Municipal Broadband: Traverse City Light & Power’s Fiber Expansion

The following summary has been condensed for length and readability. To listen to the full discussion, click here. This episode is sponsored by ETI Software and VETRO FiberMap.

In a recent episode of The Broadband Bunch, Traverse City Light & Power (TCLP) Chief Technology and Information Officer Scott Menhart shared how the municipal electric utility successfully transitioned into a community-driven broadband provider.

TCLP, which has been serving Traverse City, Michigan, with electricity for over 115 years, saw an opportunity to leverage its fiber infrastructure to enhance connectivity, improve reliability, and offer residents an affordable broadband alternative. However, the journey was not without challenges—from incumbent resistance to financial hurdles and the complexities of entering a competitive market.

This episode provides a deep dive into the strategy, execution, and impact of TCLP Fiber, offering insights for other communities looking to develop municipal broadband networks.

The Origin of TCLP Fiber

TCLP has been serving Traverse City and the surrounding area with electricity for over 115 years. As part of efforts to modernize its electric grid infrastructure, the utility began deploying fiber rings to connect substations.

Initially, the goal was to replace outdated T1 circuits with high-speed fiber connections to improve reliability and efficiency. However, the project quickly uncovered an opportunity: excess fiber capacity could be utilized to deliver broadband services to the community.

Rather than letting this valuable infrastructure remain underutilized, TCLP explored ways to extend fiber-to-the-premises (FTTP) and create a municipal broadband service—a move that aligned with growing public demand for high-speed internet.

Overcoming Challenges in Broadband Expansion

Launching TCLP Fiber was not without obstacles. Scott Menhart and his team faced multiple challenges in transitioning from an electric utility to a broadband service provider.

1. Incumbent Resistance

The introduction of a municipal broadband option faced strong opposition from incumbent internet service providers (ISPs). Competitors argued that Traverse City was already “served” by private providers, claiming that municipal broadband was unnecessary.

However, the community overwhelmingly supported the initiative. Standing-room-only board meetings and an influx of letters in favor of TCLP Fiber demonstrated public demand for a local, reliable, and affordable broadband alternative.

2. Financial Considerations

A major hurdle was securing funding for broadband expansion. Unlike private ISPs, which aim for quick returns on investment, TCLP could adopt a longer financial horizon, allowing for affordable service pricing and gradual cost recovery.

Being a non-profit municipal entity, TCLP had the advantage of:

• Stretching the payback period over 15–20 years, rather than the typical 18–36 months that private ISPs prioritize.
• Reinvesting all revenue into network reliability and service enhancements.
• Applying for state and federal broadband grants, including BEAD funding, to accelerate deployment in underserved areas.

3. Competing in a New Market

Unlike electricity, where TCLP operates as a monopoly, broadband is a highly competitive industry. For the first time in its history, the utility had to think like a market-driven service provider, addressing:

• Customer acquisition and retention
• Competitive pricing strategies
• Differentiation through reliability and customer service

This required a cultural shift within TCLP, ensuring the broadband division operated with agility, while maintaining the high service standards the utility was known for.

Guiding Principles for Success

Despite these challenges, TCLP Fiber has thrived, thanks to its commitment to three core principles:

1. Exceptional Customer Service

TCLP has a long-standing reputation for superior customer service in the electricity sector, with a 99% satisfaction rate. The broadband division aimed to replicate this success, prioritizing:

• Fast, responsive support
• Clear, transparent pricing (no hidden fees or unexpected rate hikes)
• Local engagement to ensure that service meets community needs

2. Network Reliability

TCLP Fiber mirrors the reliability standards of its electric service, ensuring that broadband customers receive:

• Consistent, high-speed connections
• Minimal outages and rapid response times
• Future-proof infrastructure capable of handling increasing bandwidth demands

This focus on reliability disproves claims from incumbents that municipalities lack the technical capacity to maintain cutting-edge broadband networks.

3. Affordable and Competitive Pricing

To remain competitive, TCLP Fiber set out to match or exceed the speeds offered by incumbents, while keeping prices lower. The non-profit model allows TCLP to:

• Offer cost-based pricing, without profit-driven markups
• Deliver higher speeds for the same or lower cost compared to private ISPs
• Invest in network expansion and service improvements instead of shareholder returns

Future Plans: Expansion and Value-Added Services

TCLP Fiber is not stopping at city limits. The next phase of deployment includes:

• Expanding fiber coverage to the entire city and surrounding rural areas.
• Securing federal and state funding to accelerate deployment.
• Developing value-added services, including cybersecurity and managed home network protection.

As fiber becomes the foundation for smart cities, TCLP is exploring how AI-driven network optimization, IoT connectivity, and enhanced security services can provide even greater benefits to residents and businesses.

A Model for Community Broadband Success

The success of TCLP Fiber proves that municipal broadband can thrive when executed with the right strategy.

By leveraging existing fiber infrastructure, prioritizing reliability, and maintaining affordability, Traverse City Light & Power has built a sustainable, community-focused broadband model—one that is already inspiring other municipalities to explore similar initiatives.

Key Takeaways:

• Municipal broadband can successfully compete with private ISPs when built on strong customer service and reliability.
• Community support is crucial—TCLP Fiber’s success was driven by public demand.
• Public utilities can offer competitive pricing by reinvesting revenue into the network.
• Fiber is the future, and cities that take the initiative can accelerate digital equity for residents.

As TCLP Fiber continues to grow, its journey serves as a blueprint for municipalities considering broadband expansion. The future of connectivity is local, community-driven, and built to last.

© 2025 Enhanced Telecommunications.