Tag Archives: sunesys

Salinas Valley preps for IoT development wave

by Steve Blum • , , , ,

Middle mile infrastructure is improving in the Salinas valley, with a quantum shift due early next year. That’s expected to help improve poor last mile broadband access, at least when compared to what the average California can expect to get. In a nutshell, that was the message I delivered to the Salinas AgTech meet up last week. You can download the presentation here.

The evening’s program was about broadband resources that could be available to support the development and deployment of Internet of things (IoT) applications, services and products in the region. The Salinas Valley is one of the world’s highest producing agricultural areas, and is just an hour’s drive south of Silicon Valley. Well, okay, it’s an hour when the traffic cooperates, which is not always a good bet. But even so, it’s close enough to make it the logical go-to development bed for agriculture-focused technology.

IoT will play a big role in the future of agriculture in California. All the talk about broadband gaps notwithstanding, water is the one absolutely critical – and desperately scarce – resource here. IoT can help manage it intelligently, both directly via increasingly granular and situationally aware irrigation control, and indirectly by reducing wasted or ill-timed production. And that’s just one aspect of IoT’s agricultural potential.

By the end of March, an open access fiber route – built by Sunesys with a grant from the California Public Utilities Commission – will connect the lower half of the valley to dark fiber that stretches back to heart of Silicon Valley. Besides improving retail broadband services for consumers and small businesses, it will also support the growth of high capacity, industrial class connections which can serve major agribusiness operations as well as the kind of low power, low bit rate wireless networks that will make widespread deployment of IoT technology feasible in the fields.

Santa Cruz to Soledad fiber optic network shifts course, makes progress

by Steve Blum • , , ,

Work on an independent fiber route that will run from Santa Cruz to Watsonville, and then on through Salinas to Soledad is moving ahead. So far it’s just paperwork that’s getting done, but that’s the part of the project that takes the most time. Originally proposed in 2013 and awarded a $10.6 million subsidy (out of a total cost of $13.3 million) by the California Public Utilities Commission in 2014, the network owner, Sunesys, LLC, spent a year obtaining environmental clearances and is now negotiating construction permits with the cities and counties along the way.

One change in the route will make a big difference to Cabrillo College and, potentially, businesses on a half mile stretch of Soquel Drive west of the college. As first designed, the fiber path followed Soquel Drive from Highway 1 near Dominican Hospital to just before Cabrillo College, where it jumped back over the freeway to take advantage of an existing, and relatively inexpensive, utility pole route. After discussions with the school and urging from local officials, particularly Aptos supervisor Zach Friend, Sunesys agreed to adjust the route so that it extends an extra mile along Soquel Drive.

You can explore the route via the Central Coast Broadband Consortium’s interactive fiber map. Click on the advanced button, and go to the Layers tab. Under the Utility heading, select “Sunesys segments”. It’s a middle mile network, which means it isn’t meant to directly serve end users, except for very large ones like Cabrillo or U.C. Santa Cruz. Instead, the business plan calls for local Internet service providers to lease capacity on the system – the wholesale cost is very low, due to the CPUC subsidy – and then build out retail connections to businesses and, perhaps, homes.

The official schedule calls for the network to light up in about a year and half, but so far there have been no roadblocks and an earlier start date is possible.

Without competitive pressure, fiber can be as slow as copper

by Steve Blum • , , , ,

A new home development on the back side of the former Ft. Ord in Monterey County is getting fiber to the home. But don’t confuse that with fiber-to-the-home service, which so far doesn’t appear to be in the cards.

The East Garrison development has been in the making for several years. It was ready to move forward just as the Californian housing crash came in 2008, which put it and several other nearby developments into a deep freeze. But the new home market is coming back, and fiber is tagging along for the ride.

Every lot is plumbed with fiber connections, and the homes themselves are pre-wired with Cat 5 cabling, or so the people in the sales office say. Not all the model homes have ethernet – RJ45 – jacks installed. Some just have coax connectors and standard RJ11 phone jacks. There’s a telecoms panel built into the master bedroom closet (a no-no, by the way, according to many service techs – bedroom closets have a way of getting filled to overflowing, making access difficult; better to put it somewhere less personal).

Unfortunately, the fiber might as well be copper, for all the difference it makes to the service Comcast and AT&T are offering. It’s good service – top of the line standard Uverse, for example – but nothing better or cheaper than the top end service packages available in surrounding communities, where the legacy copper plant will support it.

There are no plans – at least not public ones – to open up access to competitive providers, and little likelihood there will be, given that the incumbents appear to own it all. Perched up on a bluff, homeowners will be able to see a new middle mile fiber line planned for the Salinas Valley from their front yards (OK, with the help of strong binoculars…). At this point, that’s all they’ll be able to do with it.

The more broadband, the more interest in more broadband

One of the thousand or so communities, companies, organisations and private individuals that’s expressed interest in participating in the FCC’s rural broadband experiment program is the City of Marina, on Monterey Bay, which is where I live and work, at least when I’m not traveling somewhere.

It came out of a conversation I had with the city’s economic development coordinator, Marilyn Lidyoff, and a member of the economic development commission, Steve Emerson, at a local regional economic development conference back in March.

I was asked to come talk to the commission about local broadband development in general, and the FCC’s rural experiments in particular last Thursday. If you’re interested in a hyper-local point of view, you can download the presentation here. I talked about the effort in Santa Cruz County to drop the price and hassle factor of building broadband infrastructure, and the CPUC-funded fiber middle mile project that will connect the Silicon and Salinas valleys, by way of Santa Cruz.

Marina is about 8 kilometers south of that line, and would need to build a connecting link to use it. But that’s one of the projects that the Central Coast Broadband Consortium has on its wish list – there’s an unused railroad right of way that would provide a perfect path. Last mile projects are more problematic, since AT&T offers at least a taste of Uverse in much of the town and cable customers are split between Comcast and Suddenlink, both of which have cable modem service.

But it’s one more example of how interest in broadband development builds upon success: as projects, in this case the Salinas Valley line, moves forward, communities take note and start to look for ways to use it and otherwise keep pace with 21st century infrastructure needs.

CPUC awards first broadband infrastructure subsidy to an independent ISP

by Steve Blum • , , , , , ,

Two small Monterey County last mile projects are now proof of concept for both a key assumption and a major change for the California Advanced Services Fund (CASF).

Proposed by Surfnet Communications, Inc. and approved unanimously last week by the California Public Utilities Commission, the Monterey Dunes and Paradise Road projects validated the assumption that underpinned spending $10.6 million on a fiber link from Santa Cruz south through Monterey County to Soledad: that building middle mile links will lead to faster, cheaper and more reliable last mile service in underserved areas.

Although the Surfnet projects will only reach about 400 homes, it demonstrated that there is a market for dark fiber in the Salinas Valley, where 100,000 people lack access to the CPUC’s minimum standard of 6 Mbps download/1.5 Mbps upload speeds. That was a major difference between the successful Salinas Valley grant application and the failed Golden Bear middle mile proposal in northern California, which had no last mile element.

Surfnet is also the first CASF applicant to be approved without first qualifying for a certificate of public convenience and necessity (CPCN) as a regulated telephone company. New rules adopted by the CPUC in February, as authorised by a new law – senate bill 740 – last year, set strict standards for Internet service providers that don’t fit the traditional telco mold.

However, a lower entry bar appears to mean tougher scrutiny going forward, as commissioner Carla Peterman noted. “These funds are one of the first going to non-CPCN holders”, she said. “So I’d like to emphasise that the monitoring of non-CPCN holders should receive by us under these is important”.

Tellus Venture Associates assisted with several CASF proposals in the current round, including the Sunesys and Surfnet projects, so I’m not a disinterested commentator. Take it for what it’s worth.

CPUC connects Salinas Valley to Silicon Valley with fast, cheap fiber

A 91-mile fiber optic middle network for the Salinas Valley, stretching from Santa Cruz in the north, to Watsonville, Moss Landing, Castroville, Salinas, Gonzales and Soledad in the south, is on the way. On a unanimous vote this morning, the California Public Utilities Commission approved a $10.6 million grant to Sunesys, LLC from the California Advanced Services Fund (CASF).

“The key point for me was that typically that these projects only make a price commitment for two years”, said Commissioner Michel Florio. “In this case the provider has made a commitment for at least five years, maybe as long as fourteen years”.

Pointing out that there are “still more jobs in agriculture” in the Salinas Valley than in an other sector, Commissioner Catherine Sandoval highlighted the acute need for better broadband access in the area, as expressed at public meetings the CPUC held in Salinas last year. “This could be a game changer”, she said. “This is a middle mile project, a back bone that is critical”.

The project will bring low cost wholesale fiber access to Salinas Valley Internet service providers and major commercial and institutional customers all along its route, at a maximum cost of $1,550 per month for any contracts, of any length signed in the first five years. By comparison, unsubsidised dark fiber can cost up to ten times as much. The network will interconnect with major north-south fiber lines in Salinas and Soledad, and terminate in Santa Cruz where Sunesys earlier built a dark fiber connection to Santa Clara, which provides access to several Tier 1 exchanges in Silicon Valley.

Since the Santa Clara connection was built 4 years ago, the price of wholesale Internet bandwidth in Santa Cruz has dropped by a factor of one hundred, to less than a dollar a megabit per month. Cruzio, a local ISP, leveraged this access to light up last mile fiber optic connections for downtown Santa Cruz businesses and improve speed and reliability for thousands of consumers. This new line is expected to do the same for Salinas Valley communities.

On the retail side, the commission also approved CASF funding for two last mile projects in the Paradise Road and Monterey Dunes areas of northern Monterey County, proposed by Surfnet Communications, a local ISP (and a Ponderosa Telephone project in Fresno County), albeit without the haircut proposed by Florio.. These two systems are the first of what are expected to be many consumer and small business-oriented projects that connect directly to the Sunesys middle mile network.

Gonzales councilman Robert Bonincontri and city manager Rene Mendez told commissioners of the tremendous need for connectivity in the Salinas Valley, where unemployment rates are high and household income levels are low, even when work is available. The social and economic impact of the project, coupled with its financial viability – demonstrated by the Surfnet proposals, as noted in the approved resolution – was the reason commissioners opted to fund 80% of its construction cost. Normally, CASF grants are limited to between 60% and 70% of the tab.

The next step is to finalise construction plans and route details, with completion expected within two years.

Tellus Venture Associates assisted with several CASF proposals in the current round, including the Sunesys and Surfnet projects, so I’m not a disinterested commentator. Take it for what it’s worth.

Trimmed Salinas Valley broadband project heads back to CPUC

Building jobs and a better economy.

A 91-mile fiber optic middle mile network reaching from Santa Cruz deep into the Salinas Valley is back on track, after discussions between the California Public Utilities Commission and Sunesys, LLC – the company applying for the project – led to a $388,000 cut in proposed grant funding.

A revised draft resolution, offered as an alternative by CPUC president Michael Peevey, was posted this afternoon and is scheduled to be considered by commissioners on Thursday. If approved, it would provide a subsidy of $10,640,000 from the California Advanced Services Fund (CASF), which represents 80% of the total project cost of $13.3 million. That’s more than the established limit of 60% to 70% funding, so commissioners would have to agree to an exception to the general rule, based on the significant social and economic impact the project would have in the Salinas Valley.

This latest draft also extends the time frame for guaranteed pricing on the system. Sunesys is a wholesale dark fiber company, which sells to retail Internet service providers as well as large institutional customers. In exchange for the higher subsidy, Sunesys said it would lease a pair of fiber strands along the entire length of the system to all comers for $1,550 per month and keep that price on the table for at least five years, three years more than the CPUC usually requires for CASF projects. According to the draft…

Sunesys has informed [CPUC] staff that it will honor its pricing commitment above for any contract, of any length, if it is signed during the initial five years. For example if in year four, a customer signs a 10 year contract; Sunesys will honor the above pricing through year 14.

Two Monterey County last mile projects – proposed by Surfnet Communications and reliant on the Sunesys middle mile fiber – are also on Thursday’s agenda, along with a proposal for a combo middle and last mile project in the Cressman area of Fresno County.

Tellus Venture Associates assisted with several CASF proposals in the current round, including the Sunesys and Surfnet projects, so I’m not a disinterested commentator. Take it for what it’s worth.

Gonzales mayor makes the case for Salinas Valley broadband

Maria Orosco addresses the CPUC yesterday.

Gonzales mayor Maria Orosco and city manager Rene Mendez spoke on behalf of their community, the Salinas Valley and the entire central coast region yesterday, as they urged the California Public Utilities Commission to approve an $11 million grant to build a fiber optic broadband backbone system.

Mayor Orosco spoke to the Salinas Valley’s need for twenty-first century broadband infrastructure and the benefits it would bring…

Good morning, my name is Maria Orosco, mayor of the City of Gonzales. I’m also here to ask for your support for the broadband project. Broadband is as vital to our community as water is to our agricultural economy in the Salinas Valley.

This project will bring jobs and a better life to hundreds and thousands of our residents.

Students now cannot do their homework, parents do not have access to services when they have to access the Internet for these services. It makes it challenging and difficult. Without broadband in our communities it will certainly make it more challenging for many of our residents. Businesses in Gonzales are also faced with the challenge of not being able to have certain services that they need, without broadband. So these are some of the things that are a necessity for us in our communities, and we encourage you to approve the funding that is being requested today. Thank you.

Commissioners were generally supportive of the grant, and acknowledged both the needs of the Salinas Valley and the benefits the project would bring. But they delayed a vote on the project until 10 April 2014, in order to take a second look at the numbers.

Salinas Valley fiber optic project gets CPUC support, but final vote postponed

“I think this is a great project and I want to see it happen”, said commissioner Michel Florio, as the California Public Utilities Commission discussed an $11 million proposal to build a fiber optic backbone down the Salinas Valley. “I drive through that areas regularly. I know the geography, it’s the 101 corridor. It is in many respects a low income area”.

But he wasn’t completely sold on the numbers, questioning the length of time it would take for the applicant, Sunesys LLC, to see a return on its investment in the project, if 83% of the construction cost was subsidised by the California Advanced Services Fund (CASF). By one reckoning it would take 5 years for Sunesys to start showing a profit, which, to Florio, indicated that the subsidy level might be too high. Other estimates went as long as 12 years, depending on the assumptions made.

Earlier in the meeting, Gonazales mayor Maria Orozco and city manager Rene Mendez spoke passionately about the benefits the project will bring to the Salinas Valley – I’ll have more on those comments tomorrow. CPUC staff also walked commissioners through a presentation outlining the project and the logic behind the higher level of funding that commission president Michael Peevey proposed. Normally, CASF subsidies are limited to 60% to 70% of infrastructure costs.

He agreed with Florio’s request to postpone a vote for two weeks to the 10th of April, in order to see if money might be saved. “I’m not interested in any wholesale hatchet job on the costs here, I think we can use a scalpel”, Peevey said.

Florio reiterated his overall support for the project, and seemed confident ultimate agreement on the details was possible. “I hope everyone can sharpen their pencils and shave this back a little bit”, he said, and come up with a plan that’s “not quite as rich but still gets the job done”.

Tellus Venture Associates assisted with several CASF proposals in the current round, including the Sunesys project, so I’m not a disinterested commentator. Take it for what it’s worth.

CPUC considers Salinas Valley fiber project tomorrow

by Steve Blum • , , , , , ,

Building better infrastructure.

An $11 million proposal to build a fiber optic backbone connecting the Salinas Valley to Silicon Valley, by way of Santa Cruz, goes in front of the California Public Utilities Commission tomorrow morning. A decision might or might not come. Commissioner Michel Florio has asked that the vote be delayed until next month, although that could change as the proposal is discussed.

CPUC president Michael Peevey is proposing to subsidise 83% of construction costs – grants from the California Advanced Services Fund (CASF) are usually limited to the 60% to 70% range – because of the social and economic impact the project would have. Those benefits will be underscored by Gonzales mayor Maria Orozco, who will be representing her city and the Central Coast Broadband Consortium at the meeting. Along with a couple dozen other regional leaders she endorsed the project, which will be built by Sunesys LLC and deliver dark fiber to Gonzales, Soledad, Chualar, Castroville and other underserved communities in Monterey County.

Aptos supervisor Zach Friend, the man behind the push to reform broadband infrastructure policy in Santa Cruz County, joined Monterey County supervisors Simon Salinas, Joseph Calcagno and Dave Potter in sending a letter of support to the commission…

Without question, the communities that would be served by this project currently lack broadband access common through much of the urban corridors in the state. This lack of access puts the thousands of students and local residents at a disadvantage compared to those who live in areas where adequate levels of broadband service are available.

Two other Monterey County CASF projects, both proposed by Surfnet Communications, are also on the commission’s agenda, but those are tied to the Salinas Valley dark fiber project and could be delayed as well. I’ll post an update as soon as the commission decides tomorrow.

Tellus Venture Associates assisted with several CASF proposals in the current round, including the Sunesys project, so I’m not a disinterested commentator. Take it for what it’s worth.