Construction of the new Midco network in Annandale was completed last week, over a month ahead of schedule, and a significant number of potential customers are reportedly switching over to the new provider.
At the same time, Windstream has completed additional upgrades to the system that has long been Annandale’s only broadband connection, and said last week that it plans to contend with Midco for the loyalties of Annandale area customers for a long time to come (see related article on Windstream’s response). With that, Annandale Mayor Dwight "Dewey" Gunnarson, said that the city’s multi-year goal of bringing quality competing networks to town at no cost to the city has been met.
"That’s the perfect scenario for Annandale, where now there is an environment of competition rather than a monopoly," said Gunnarson. "It keeps both Midco and now hopefully Windstream honest and working hard for every single dollar they earn from Annandale."
Capturing customers
When a feasibility study was commissioned by the city in 2013 to help attract new providers to town, researchers with U-reka Broadband Ventures found that an astonishing 86 percent of respondents were either dissatisfied or very dissatisfied with their Windstream service, and nearly 96 percent said they were very likely or likely to switch to another provider with similar prices and services if the option was available.
"U-reka has completed several of these surveys for communities across the upper Midwest and has never seen these types of numbers for dissatisfaction with providers or likelihood to change providers," the study noted.
While Midco services were only recently made available, it appeared last week that many customers were fulfilling that declared intention to switch providers.
Dan Nelson, director of governmental affairs for Midco, reported that the company has roughly categorized about 2,100 potential customer addresses in and around town as residential properties, and about 600, or nearly 30 percent, have already signed up for one of more of Midco’s internet, cable TV and phone services. That number, Nelson added, is "going up every day, every week."
Slow speeds and outages on the Windstream network were often cited as hindrances to businesses in Annandale in recent years, and while Midco did not provide specific numbers in regard to commercial property signups due to a variety of factors, Nelson said there was "good progress" on that front as well.
There are roughly 190 potential business customers in the area, but most operate on contracts and are not free to switch immediately, Nelson said. Another factor is that some businesses have requested "enhanced capacity fiber" services, which takes more time and planning than a regular residential installation.
"We are confident we will continue to secure additional customers as they come off contract with other providers," said Nelson.
While Midco did not disclose an overall target number of customer signups, Nelson said the company is on track to meet its goals.
"We have met or exceeded our initial target for that market," he said. "It continues to be just a good experience dealing with the people there. They’re happy to have us, it seems, and we’re more than happy to serve them. So it seems to be working out for both sides."
Smooth construction
John Fischer, who oversaw construction of more than 55 miles of infrastructure for the Annandale project, said that there were two major factors in Midco finishing its project five weeks ahead of schedule despite a particularly wet summer.
"Probably the biggest reason was the MP crews we had. They were well-seasoned veterans. That made all the difference in the world," he said.
Jim Brausen, an Annandale resident and project supervisor for MP Nexlevel, which did the underground installation portion of the project, said his crews had finished drilling and were cleaning up on Thursday, Sept. 22.
"Everybody’s been real good around town here. Usually we get complaints, but everybody wants it so bad around here that nobody has really said too much as far as that goes, which is kind of once for once. Nobody likes getting yelled at," said Brausen with a laugh.
A second major factor in the smooth construction process was the ground conditions around Annandale. Not only are there relatively few underground utilities in and around the city, but the sandy soil helped crews return to work and continue drilling even after a night of heavy rainfall.
"It was just a great build," said Fischer. "People were so receptive it was just unbelievable. We’re all just amazed. I wish we could find 100 Annandales to build."
Making an impression
Like Fischer, Nelson said that Annandale has made an impression company-wide.
"I think that my colleagues throughout the company would agree that Annandale has just been one of those special experiences from the very first moment," he said. "Everybody realizes how special this has been, that Annandale needed a solution so bad, and they’re showing appreciation to us for trying to be that solution, and we’re working real hard not to let them down."
Nelson said that the company would do its best to earn customer loyalty each day going forward, and that while problems from any number of causes can crop up in the telecommunications business, the company pledges to be responsive.
"While it seems a lot like a honeymoon right now, we want it to be lasting and durable," he said.
Next steps
Gunnarson said he has been pleased with Midco’s construction process, and hopes there will further development going forward.
"It certainly has been a wonderful experience in dealing with Midco and being able to express our concerns, our wants and needs, and actually see positive results. But we’re not done," he said.
Next steps, Gunnarson added, should include further expansion to the greater Annandale area and the establishment of service redundancy.
"What Annandale really needs now as far as a second step is a redundant connection to either the west or the east so if that fiber line coming from Clearwater gets cut we still have service," Gunnarson said, adding that redundancy is necessary to attract businesses in fields like healthcare, banking and technology. "Obviously it’s Midco’s perogative whether they’ll want to address that or not, but I’m confident that we’ll have way more productive conversations with them than we’ve ever had with Windstream."
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