The LUS Story ( Fiber to the Home ) and more ...

[NewsCopy]

This is the history (Starting in 2002) behind the Lafayette Utility System's effort to bring Fiber to the Home of ever resident, every house, and business in the area.

It's lit. Businesses have signed on. So where do we go from here?

After almost four years, Lafayette Utilities System's 65-mile, 96-strand fiber optic loop, named LUS Powered Network, is available for use. Lafayette has been hearing, "It's coming, it's coming," for a long time now, so what do we do with it now that it's lit, that is, up and running? Well, four companies have signed on with LUS and will begin offering services through the network to their own customers in the near future.

The University of Louisiana and Lafayette Consolidated Government have been using the network for months, along with LUS. It has operated without interruption for them, proving its promised capabilities. LUS has provided UL with fiber optic connectivity between its main campus and the University Research Park. For LCG, the loop has connected the Clifton Chenier Center, Public Works and City Hall with other governmental entities.

But there are many capabilities that have yet to be proven. What will the loop do for economic development? Will LUS' "Build it and they will come" strategy work? These questions and more have yet to be answered, so The Times set out to present the issues surrounding the loop.

The initial purpose of the loop was to connect LUS to its substations and replace its outdated microwave telecommunications system. But it overbuilt, with the hope that having broadband service available at a competitively lower price than other telecommunications providers would bring technology companies to Lafayette and help those already located here thrive and grow. The SONET network offers broadband and Internet services to wholesalers, who must then resell those services to the public.

"We'll be able to bring high-speed bandwidth to smaller companies at competitive pricing," says Frank D. Ledoux, manager of the Powered Network. He adds that this will ensure that Lafayette becomes a profitable business venture for companies.

There have been many assumptions made about LUS' predictions of competitive pricing and Director Terry Huval says, "They're competitive. It's a customized pricing."

In the March 15, 2000 cover story of The Times, Steve Creeden of Cox Communications, which has its own fiber optic system, said decreased prices because of competition or increased efficiency were "very unlikely."

"The burden of building that infrastructure will ultimately be recouped through consumer rate," Creeden said. He went on to say at the time, when LUS' ring was sitting idle and being paid for with taxpayers' dollars, that the ring was excessive.

BellSouth also offers fiber optic capabilities and says it was the first to offer this back in the '80s along Johnston Street. It currently has more than 600 miles of fiber-optic cable in the city and views the LUS project as an attempt to restrict competition.

"The reason that we oppose LUS doing that is the approach of using taxpayer dollars to go into competition with private industry," says Danny Wilson, regional director for BellSouth. He says that BellSouth's prices are competitive and adds, "We want to compete with anybody. We will compete with anybody."

LUS currently uses BellSouth, as well as Sprint, Stratos, Qwest and AT&T as gateways to connect to networks outside of the loop. Its interconnection with these major telecommunications providers enables nationwide access of the services to local customers. But, according to Mike Stagg of digitallouisiana.org, that could be affected in the near future.

The Federal Communications Commission is considering reclassifying high-speed telecommunications services and making them equal to cable modem services. The Broadband Regulatory Parity Act of 2002, introduced in the Senate by Sen. John Breaux in April, says that "cable modem services and digital subscriber line services are subject to disparate regulatory treatment by the Federal Government and by state and local governments."

The bill would put LUS and BellSouth in direct competition and could force LUS to begin offering last-mile services, or service from the actual loop to doors of businesses.

Stagg says, "It's going to be viewed as a setback, but I think it's a real opportunity for them (LUS)." He says LUS should be praised for its vision and deployment of the project, but that "they haven't had the courage or the vision to deliver world-class last-mile solutions.

The rest of the story

The Times of Acadiana
Erin Zaunbrecher
Erin Zaunbrecher is business editor for The Times.
237-3560, ext. 160 erin.zaunbrecher@timesofacadiana.com

[NewsCopy]

Bells dig in to dominate high-speed Internet realm

To hear BellSouth talk, high-speed fiber lines are the way of the future. So why is it so determined to stop Lafayette, La., a rural community in the heart of Cajun country, from installing its own fiber?

Joey Durel, Lafayette's mayor, has been asking himself that same question. His city plans to build an advanced broadband network to offer voice, data and video to its 116,000 residents. But local officials claim BellSouth is trying to kill the project. And they say it's getting help from Cox, the local cable-TV operator.

"We have the opportunity to do something great for this community — and in a state that needs a big win," Durel fumes. "They have to get out of our way."

It's the dark side of the fiber story.

The regional Bell companies have made much of their billion-dollar plans to run broadband networks across the USA. Yet they're also quietly trying to erect hurdles that would make it hard — or expensive — for anyone to compete with them.

Besides municipalities like Lafayette, the Bells are going after their phone rivals, Internet carriers and major metro areas — anyone with an interest in building services that might compete with the Bells.

Critics say the Bells' efforts are an attack on competition and that consumers could be the big losers.

"If municipal governments and others are blocked from entering this market, the vast majority of Americans are going to wind up on the wrong side of the digital divide, because they will be unable to afford high-speed services," says Gene Kimmelman of Consumers Union.

Atlanta-based BellSouth disagrees. Bill McCloskey, a company spokesman, argues there are no barriers to entry into the broadband business, as evidenced by the army of carriers — cable, wireless, local governments and others — that are trying to compete.

The rest of the story

By Leslie Cauley, USA TODAY

[NewsCopy]

Lafayette, a city of 116,000 in southwest Louisiana, has plenty of Cajun spunk. Creativity, too. Just ask telecommunications giant BellSouth, which is trying to block Lafayette's plan to save its citizens' money and time by giving them high-speed access to the Internet.

As described in a story last week by USA TODAY 's Leslie Cauley, city leaders took up the fight because they feared that the city and its citizens were suffering for lack of broadband Internet access.

This has emerged as a survival issue for rural and small-city residents, whom the telecom companies logically get to last because less density translates into lower profit potential. As measured by education, employment or entertainment, the future appears to be tied to high-speed access.

So Lafayette, like dozens of other cities unwilling to wait for telecommunications giants such as Bell South to install broadband pipelines, decided to build its own.

That should have been the end of the story. Why shouldn't citizens be able to use their own resources to help themselves? Because BellSouth, like other telecoms, thinks actions like Lafayette's are unfair competition.

The reason, as in other states, has to do with complex legal arrangements made among telecoms, legislatures and regulators. But the core issue is money. BellSouth says it can't compete effectively with cities where taxpayers pay for laying down expensive fiber-optic networks.

Perhaps, but Lafayette is building because BellSouth and the city's cable TV company aren't rushing to meet the city's needs.

Most of Lafayette has access to BellSouth's DSL connection. But that is only a tenth as fast as what the city plans to install.

Part of the city also has access to Cox Communications' cable high-speed Internet connections. Those are faster, but city officials say they're wary of the cost after six price increases in four years. They're seeking to build a "triple play" video, phone and data system.

The future of Lafayette shouldn't be left to the whim of the big telecommunications companies, insists City Parish President Joey Durel. Installing fiber-optic cable, he credibly argues, is no different from laying down sidewalks or sewer lines.

In fact, the "triple play" plan mirrors the action Lafayette's city fathers took a century ago when they realized the private power companies were passing them by in favor of larger, more lucrative markets in Baton Rouge and New Orleans. To survive, they built their own municipal power system.

The rest of the story

[DaddyCajun]

Makes me want to drop my Bellsouth DSL, but then the option is COX Internet. What gives? Any other options?

DaddyCajun!!!

[NewsCopy]

A bill has been filed in the legislature to call for a second election on the issue of Lafayette entering the telecommunications business. Proponents say the legislation is merely to protect their rights to ensure an election on a very important issue. The election is already planned and will be made official on Tuesday at a Council meeting. The election is to take place in July, if the Council approves the measure next week. The legislation was filed by State Sen. Sharon Weston Broome, D-Baton Rouge. It has been assigned to a committee headed by Senator Mike Michot of Lafayette.

The legislation also calls for other provisions that would protect the Telecommunications industry which certainly has made an investment in the community. But, having the bill assigned to the Senate Commerce, Consumer Protection and International Affairs Committee is just too ironic.

The rest of the story

[NewsCopy]

A hundred years ago, when Louisiana was still literally in the dark, residents of Lafayette banded together to build a city-owned electric utility where once there was little more than swampland. Today, at the dawn of the 21st century, it is hatching plans to lay out its own state-of-the-art fiber-optic broadband network.

This time, the city's futuristic ambitions are challenged not by the rigors of geography but by obstacles of business: specifically, telecommunications giant BellSouth and cable provider Cox Communications, which claimed the region as their own years ago. But the historic coastal community, known for its eclectic culture and rhythmic zydeco music, is not about to abandon the pioneering spirit that begat its visionary reputation.

After a legal skirmish earlier this year, the two sides are preparing for a citywide election slated for mid-July that will decide the issue.

"The people of Lafayette feel like there is a history of seizing the initiative," said John St. Julien, a member of Lafayette Coming Together, a citizens group supporting the fiber network. "Our Creole and Cajun communities have always been told by outsiders that everything we did was wrong--from our language to the food we eat. Culturally, we've learned not to care what others think or say about us. I think it gives us a place to stand when companies like BellSouth and Cox come in and tell us we can't do something."

Across the country, acrimonious conflicts have erupted as local governments attempt to create publicly funded broadband services with faster connections and cheaper rates for all citizens, narrowing the so-called digital divide. The Bells and cable companies, for their part, argue that government intervention in their business is not justified and say they are far better equipped to operate complex and far-flung data networks.

As part of this special report, CNET News.com has created an interactive municipal broadband legislative map that details the major battlegrounds on the issue. At stake is the fate of high-speed Internet access for millions of Americans, hinging on a fundamental question of civics and economics--whether the government or private industries should take the leading role in building out what's considered this generation's critical infrastructure challenge.

"Is broadband fast food, or is it power?" said Doug Lichtman, a professor at the University of Chicago Law School. "The answer might be: 'We don't know. Let's experiment with it.' It might give us great information about what risks the government assumes, once it gets into it."

The rest of the story

ZDNet News via NewsEdge Corporation

[Zeebart21]

Kaliste Saloom, an attorney in Lafayette who organized the Lafayette Yes political action group to campaign for the new fiber network.>>>>>

Do we know this guy???

Bell South and Cox are crapping their pants right now.. LOL!!!

Z.

[DaddyCajun]

Yes we KNOW this guy and he knows UL. His son played baseball for UL at Second base a few years ago! A few games ago I was a little late for the start of the game and Kaliste Saloom was sitting in my box talking with a few of my boxseat buddies. He is a very nice man and I am glad men in powerful positions like himself and people like those on this board and the city of Lafayette have the VISION to see that this initiative is voted FOR. GO OUT AND SPREAD THE WORD TO VOTE "YES" IN JULY AS THIS VOTE HAS VERY IMPORTANT PRESENT AND FUTURISTIC RAMIFICATIONS FOR OUR CITY AND OUR YOUTH.


DADDYCAJUN
VOTE YES!!!!!!!!!!!
LOUISIANA!

[RaginCajun77]

Nice University of Louisiana reference in the article.

[Lil_Robi]

Anyone would be brain washed to vote no for this. In my opinion it would only boost jobs and help the IT fields for people like myself.

GO KAL
GO Cajuns

[RaginRash]

Yes we KNOW this guy and he knows UL.

I think the Z-man was being toungue-in-cheek. The Saloom family are Lafayette and UL through and through.

It is imperative to pass this and not let the deep pockets of the Baby Bells and Cox influence opinions with outrageous " push polls" and such.

Like the old folks on this board, I AM A FRIEND OF FIBER!

[KingTiger]

Yes we KNOW this guy and he knows UL. His son played baseball for UL at Second base a few years ago! A few games ago I was a little late for the start of the game and Kaliste Saloom was sitting in my box talking with a few of my boxseat buddies. He is a very nice man and I am glad men in powerful positions like himself and people like those on this board and the city of Lafayette have the VISION to see that this initiative is voted FOR. GO OUT AND SPREAD THE WORD TO VOTE "YES" IN JULY AS THIS VOTE HAS VERY IMPORTANT PRESENT AND FUTURISTIC RAMIFICATIONS FOR OUR CITY AND OUR YOUTH.


DADDYCAJUN
VOTE YES!!!!!!!!!!!
LOUISIANA!

Can you elaborate on exactly what the yes vote will mean vs. the no vote? I am curious to see if this is the same scenario I am faced with in my area. Thanks in advance!!

[studentfan]

I definitely like the idea of fiber coming to our homes. We had an LUS official come talk to us in our AITP meeting last semester and I saw the picture of the fiber plans. We need to get it in here.

[CajunRebel]

There are many good reasons to vote "NO" on this fiber issue.

First, any of you who claim to be anti-big government would certainly want to vote no. There is a big issue when the Government wants to compete with the private sector. I do not think people realize how dangerous this can become. LUS will basically have a monopoly on communications. This is very anti-capitalism and very pro-communism.

Second, this whole fiber thing is very risky. If things don't work out, you are looking an absolute financial disaster!!! I mean a HUGE disaster!!! This is why we are one of a handful of cities in the World even considering this as an option.

But in the end, I too will end up voting yes for the same reason everyone else will: the economy.

Our economy relies heavily on oil, which in my opinion will be struggling industry in 10-20 years. We need to diversify, and obviously the best place to do this is in technology.

By the way:
The single biggest influence in presidential elections is the Economy. If the economy is good, the president will almost always be re-elected. If it is bad, he will almost always not be re-elected. This is ironic because despite what politicians say, the president has almost no effect on the economy.

[Lil_Robi]

I agree with you but what kills me is that the public competition has the means to increase our services (bandwidth) and they do nothing about it. They continuously try to nickel and dime us. I think it is China that has about 30mb for only about $15 a month. I have 4mb for $39.95. Something is not rite and they need the competition.

[CRAWFISH61]

I am for the fiber initiative. People continually point out that LUS would be in competition with private companies. I would like to point out that Bellsouth and Cox Cable are goverment regulated monopolies. They have very little real competition. I have noticed that increases in my cable bill have stopped since LUS has developed this plan. I see no one saying that LUS should shut down and let Entergy, a private corporation, take over their electrical producing role. This is not about LUS competing with WalMart or mom or pop. It is about providing a valuable commodity that Cox and BellSouth are unwilling to provide.

[cypremort]

There are many good reasons to vote "NO" on this fiber issue.

First, any of you who claim to be anti-big government would certainly want to vote no. There is a big issue when the Government wants to compete with the private sector. I do not think people realize how dangerous this can become. LUS will basically have a monopoly on communications. This is very anti-capitalism and very pro-communism.

Second, this whole fiber thing is very risky. If things don't work out, you are looking an absolute financial disaster!!! I mean a HUGE disaster!!! This is why we are one of a handful of cities in the World even considering this as an option.

But in the end, I too will end up voting yes for the same reason everyone else will: the economy.

Our economy relies heavily on oil, which in my opinion will be struggling industry in 10-20 years. We need to diversify, and obviously the best place to do this is in technology.

By the way:
The single biggest influence in presidential elections is the Economy. If the economy is good, the president will almost always be re-elected. If it is bad, he will almost always not be re-elected. This is ironic because despite what politicians say, the president has almost no effect on the economy.

Here's the problem with the "Government vs. Private Sector" argument. Both Cox and Bellsouth had the chance to bring fiber to the home. They were even approached by LUS about being the connection for the last mile. Neither wanted to do it. Once LUS moved forward, the started the anti-fiber campaign. As recently as 2 weeks ago, the mayor was still making overtures to Bellsouth to cooperate on this and possibly deploy as a joint venture. Bellsouth won't give him the time of day.

Another thing. Go ask Cox or Bellsouth if they the LUS referendum fails if they plan on running fiber to the home. The answer: NO.

If it is such a risk, then why are they fighting it so hard? The more they fight against, the bigger endorsement they give it.

Bellsouth and Cox have nothing but their best interest in mind. They couldn't give a ~~~~~ about local communities and they have shown that over and over again. They are scared to death because they know it is the future.....

[JMVCAJUNS]

Bell south and Cox have there interest only and nobody else's,, Competion is good for everyone bottom line!

[DaddyCajun]

SOME GOOD POST ABOUT FIBER TO THE HOME FROM DELPHI!!!
I LIVE IN CARENCRO, BUT I AM FOR THIS IN A BIG WAY!!! I HOPE WE COULD BE THE FIRST CITY OUTSIDE LAFAYETTE'S CITY LIMITS TO GET FTTH!!!

DADDYCAJUN

From: Joe (CajunFun) Jun-28 4:04 pm

Joey Durel just spoke at the Oil Center Renaissance Association about Fiber To The Home. If everyone in Lafayette ordered cable, and didn't pay their bills, it would mean an extra $5/month per household. That's the WORST possible scenario.

People have asked why we aren't funding roads and other infrastructure first; it's because there is no income from those projects, and they must only be bonded against projected tax revenues. The bond issue for FTTH is different because it is a revenue generator.

He also explained that we are not responsible for the whole $125 million; the city will do a few test substations, and proceed based on revenues. Our risk here is actually very low, and the total risk is only 3-4 percentage points of LUS' revenues. He also said that to undercut us, BS & Cox would have to cut fees by $25-30/mo, and by that time, we will only be indebted about $2/mo per household… so even then, it's still a win for Lafayette.

He also said that if it were legal, we could have simply run fiber to every home in Lafayette, supplying them with telephone, cable and Internet, and boosted everyone's LUS bill by $10-15; that's how cheaply it could have been done. He discussed this thing from every angle, and as a businessman (and he has been very successful in business).

He says 7 states have already outlawed what we're trying to do here, and another 7 are considering outlawing it. He said that he has thought about sending a letter to the Governor of Florida, "Dear Jeb, Please support the current Florida legislation to outlaw local government initiatives for FTTH. Sincerely, Joey Durel.

"P.S. And please urge all of your tech companies to relocate to Lafayette."

We should become the very first large city in the US to do what we are doing. Thursday 7:30 AM, KPEL will air a talk Joey had with the CEO of Sun Microsystems. Joey reports that the guy said in the interview, "Every CEO in Silicon Valley is watching Lafayette."

This will be HUGE.

Guys and gals,

Every thing Joe and Joey have said is correct. A vote for this project is a no-brainer. Lafayette is already on the world's technology map just thinking about our project. Once implemented, Lafayette will be the largest city in NORTH AMERICA with its own FTTH program. Lafayette will be 10 years ahead of its competition for technology jobs and become a new center for web based technology.

As an example, one of the projects Sun Microsystems is considering implementing in Lafayette is a large scale distributed computing system, which in essence makes computing power & software a shared utility to be leased out to individual users and accessed from a central core instead of every user owning his own CPU and copy of software. (Current uilities work that way now. For example, electricity is provided to each premise by a central generator instead of each customer owning their own generator...) Yahoo is considering using Lafayette as a test bed for its newest web based products including new applications emphasizing locally based content. Various software and design companies are looking locate here with little need for massive network infastructure - they would be able to locate here with programmers working out of their homes with data throughput greater than T-1 speeds.

Jobs have already been created or saved through LUS fiber: Stone Energy kept its engineering and geological staff in Lafayette because of fiber connectivity. Otherwise it was relocating to Houston.

Oh yeah, Cox Cable has raised its cable rates by 17%, supposedly due to increased costs, in all of its service areas except one. Can you name it?

The plan works and when implemented on a City wide scale will be an economic driving force becoming the next Oil Center for Lafayette.

Here are a few pro-fiber websites. Check out the Fiber Film Festival entries, they're great! Let me know your favorite. I have mine.

Remember, vote YES on July 16.

http://lafayetteyes.org/
http://lafayettecomingtogether.org/
http://www.fibre911.com/
http://lus.org/site.php
http://www.fiberfilmfest.com/

GEAUX VOTE!!!!!!!!
LAFAYETTE WILL PROSPER!!
UL WILL PROSPER!!!
ACADIANA WILL PROSPER!!!

DADDYCAJUN FOR FTTH!!!!!!!!!!!!!!!!!!!!!!!!!

[NewsCopy]

Maximizing the Economic & Community Value of the LUS Fiber Loop

The Lafayette Utility System's 65-mile fiber optic network has the potential to become a powerful economic development tool for the utility's service area and, ultimately, the region. Properly developed and utilized, the LUS fiber loop could become the most cost effective economic infrastructure investment ever made in the region — providing the digital infrastructure backbone that can enable existing businesses to derive the full benefits of unfettered participation in the electronic commerce revolution that is sweeping through all sectors of our economy. Properly utilized and developed, the LUS fiber loop could also become a magnet for new business development and recruitment in Lafayette and Acadiana.

That is a fair and realistic evaluation of the LUS network's potential based on similar projects in other communities across the country.

The reality is that the LUS fiber loop is not completed and it is not connected to the local, regional, national and global electronic networks that imbue it with this great potential. Lighting this network, getting it operational, and getting these value-adding interconnections made are the essential and critical tasks that need to be accomplished if LUS is going to leverage its investment into maximum community benefit so that this loop can serve as the local on ramp to the information super highway.

While there seems to be a consensus among community and public sector leaders that this is the best use of the LUS fiber investment, there doesn't seem to be any sense of urgency to leverage this tool to its maximum value.

A convergence of forces and events indicates that the window of opportunity to leverage the LUS fiber loop to its full potential is upon us and that this opening will shortly close.

There are any number of ways that bringing the LUS fiber loop into active use could be accomplished. However, a careful examination of the facts and circumstances point in the direction of creating a public-private consortium to complete, manage, operate, maintain and grow the LUS-built fiber loop.

Such a consortium would provide the ways and the means to derive maximum community benefits that accrue from what is, by the very nature of the network's existence, is a community asset. A consortium would provide for an active public role in the provision of essential digital economic infrastructure in a manner that could benefit all sectors of the LUS service area and, at the same time, provide a means to draw on the creativity, nimbleness and efficiencies of private sector into the management and operation of this asset.

The LUS Fiber Loop: The Glass Catapult

Lafayette Utility Service (LUS) has constructed a fiber optic loop to enable it to monitor the status of its publicly-owned electrical grid and stations. In the process of deciding how to proceed with this project, LUS learned that it could significantly expand the capacity of its network for a small portion of the total cost of the project. LUS constructed a 65-mile, 96 strand fiber loop that courses through all segments of its service area, which is a significant portion of Lafayette Parish.

As a result of this infrastructure investment, businesses, public agencies and institutions, nonprofits, and residents throughout the city find them selves tantalizingly close to a fiber route that could afford them virtually among the highest speed Internet connectivity available anywhere in the world.

The public nature of the ownership of this digital infrastructure makes delivering the connectivity and other benefits of access to this loop to all segments and sections of the LUS service area a core test that any plan that proposes uses of this network must pass.

The rest of the story

by Mike Stagg/Director
Louisiana Digital Initiative