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Rochester Pursues Business Case Study for Muni Network in Minnesota

The Rochester City Council recently voted unanimously to move forward with a study on the possibilities of publicly owned broadband in this southeastern city. Rochester will then decide whether to move forward with bids to form a public-private partnership for a network, or pursue another path.

After receiving dozens of calls from his constituents, City Councilman Michael Wojcik is asking his colleagues to consider a municipal network. Rochester’s area holds a population of about 110,000, and is home to the world-famous Mayo Clinic

According to the Rochester Post-Bulletin, Charter Communications operates its cable TV and Internet services under a franchise agreement with the city. That agreement is up for a renewal on March 31.

Wojcik said his constituents have been angered over issues such as digital box fees, but most of the complaints are about broadband service, which Wojcik said is essential. He said Charter's recent price increase for stand-alone broadband from $55 to $60 per month makes the service unobtainable for a percentage of area families with children in school.

"Broadband is key for information for a lot of people, particularly younger generations, and going forward, it becomes more and more critical," he said.

In 2010 Wojcik asked the council to investigate options for publicly owned infrastructure, but the measure did not advance. Wojcik says he hopes that citizen outrage with poor Charter service and contract negotiations will encourage city council members to take action.

The Council invited Chris to offer expert opinion. KIMT TV covered the decision and spoke with him after the meeting: 

“I think it’s a necessary step for the Rochester City government to get involved, because over ten years of experience suggests that the private sector alone is not going to solve this problem, that if Rochester needs higher quality internet access it may have to do it itself.”

Here is vide of KIMT TV's coverage:

Broward County Saves with Fiber Network in Florida

In 2014, Broward County completed its transition from an expensive leased data, video, and voice communications system to its own fiber network. The southern Florida county is now saving $780,000 per year with plenty of room to grow. With the transition to an IP-based telephony system, the County also saves and additional $28,000 per year.

Pat Simes, Assistant CIO of the county, recently contributed a profile on the project to Network World.

In 2009 when the network was too slow to be effective, county staff knew they had to act. Costs were increasing 15% each year as the number of lines grew and the demand for bandwidth increased. The County also had to provide funding to reach locations that the carrier's network did not serve. The situation made it difficult to budget; there was always a need to fund unexpected expansions and increasing service.

Several groups in Enterprise Technology Services (ETS) began working together to develop a way to improve systems for both groups:

Working together the teams developed a 3-year strategic initiative to upgrade Broward County to a 10 GigE core network infrastructure.   Part of the plan called for reducing complexity and duplication of infrastructure, so the County also decided to converge the voice and data networks and, with voice and data traversing the same circuits, network redundancy would have to be increased because a single line outage could cause a location outage for both critical services.

As Broward County developed the new network, they faced an 18 month deadline. The contract with the incumbent was set to expire and the parties would then move to a month-to-month arrangement. That plan would increase the County's costs by 50%. Martin County, located north of Broward, faced a similar situation when they set to develop their county-woe network. Read more about Martin County's incredible savings in our report, Florida Fiber: Martin County Saves Big with Gigabit Network.

Fortunately, the ETS Team was able to share conduit space with the state Department of Transportation (DOT) to cut costs and reduce deployment time. Martin County struck up a similar working relationship to dramatically reduce time and expense.

After a six-month design phase and a four-year construction period, the County's 41-mile underground fiber optic backbone now provides voice, video, and data. The network provides 10 gig capacity to 21 county facilities. The County spent approximately $2.5 million to build the fiber network.

One of the most important characteristics of local government will always be accessibility to constituents; reliable telephony is a must. Broward County knew that the new network would mean a phone system change. ETS chose an IP-based system, which was half the cost of a non-IP based system.

County staff now engage in video conferencing and have access to soft phone technology, allowing them to make phone calls over the Internet. The IP system is scalable to tens of thousands of phones as the county's needs grow. 

The IP-based system cost a total of $2.3 million, which included telephones, applications, licenses, voice mail, call centers and servers for 30 locations. The system costs $100,000 per year as compared to the legacy system, which was $700,000 per year.

We have encountered a number of other agencies that found significant savings by using publicly owned infrastructure for telephony. Notably, Austin Independent School District (AISD) in Texas. AISD partnered with several other Austin area agencies to eventually deploy the Greater Austin Area Telecommunications Network (GAATN), completed in 1998. AISD faced an estimated $3 million cost for telephones in 1988. Their $18 million contribution to the project paid for itself in less than 3 years.

Broward County has positioned itself to save millions over time, ensured a reliable system, and controlled its telecommunications costs. Florida has state barriers limiting how the county can use its fiber for economic development or to improve residential service but if that situation changes in the future, Broward County has a valuable economic development tool already in place.

DubLINK Network Supports Economic Development, Health Care, and Supercomputing

Award-winning supercomputing apps, medical research, economic development, and quantum computing advances. What do they all have in common? They all depend on the DubLINK network running underneath Dublin, Ohio, a suburb on the Northwest edge of Columbus. The city of 43,000 people has 125 miles of fiber optics in the ground, both within its own boundaries and in the form of fiber purchased by the city within metro and regional networks. 

DubLINK began in 1999 as a public private partnership with the Fishel company to build an institutional network. In the wake of the 1996 Telecommunications Act, Dublin worried that a recent massive investment of $70 million in streetscaping would be undone as competing providers dug up newly paved streets to install fiber optics. To avoid this, the City signed a franchise agreement with Fishel to install a multi-conduit system, with the city receiving some conduit for its own use.  

Using 1.25” conduits installed in the city’s existing sewer system, the network runs for 25 miles underneath Dublin’s business district and connects six city buildings, who use their own lit fiber for data and voice services, eliminating expense leased line fees. This has allowed the city to save approximately $400,000 per year for the last 12 years in connectivity and information technology expenses.

In 2004, Dublin spent $3.5 million to purchase 96 strands running 100 additional miles through Columbus FiberNet, bringing the total length of the DubLink network to its current 125 miles. FiberNet is a duct system that runs throughout a significant portion of central Ohio, including Columbus and its surrounding suburbs.

The following year, the City of Dublin struck a deal with the Ohio Academic Resources Network (OARnet). OARnet is a 1,600 mile statewide fiber backbone connecting K-12 schools, colleges, universities, federal research labs, and other institutions. A $500,000 grant from the Ohio Board of Regents allowed DubLINK to make its connection with OARnet, and the city gave OARnet an indefeasible right to use 4 of its 96 fiber strands throughout its entire 125 mile network. They called their partnership CORN, for the Central Ohio Research Network. Earlier this year, the Ohio State Legislature awarded DubLink $300,000, which along with a $250,000 National Science Foundation grant and a $328,000 local contribution, will allow DubLINK to match OARnet’s 100 Gbps speeds throughout its entire network.

Seal - Dublin, Ohio

According to Dana McDaniels, Dublin's Director of Development, the city has spent approximately $5.5 million over the years in building, purchasing, and upgrading DubLINK. For this investment, he estimates that the city has received at least a $35 million return on investment already. This includes avoided costs around $4.8 million ($400,000 per year over 12 years), leases to telecoms and other entities of about one third of the city's dark fiber that amount to $3.2 million, and the much more significant gains in employment and thus tax revenue that have resulted from companies expanding or relocating in Dublin to take advantage of its incredible connectivity.

Dublin has a two percent income tax, one quarter of which is dedicated to a wide variety of capital improvement projects. It also uses a small part of this revenue as collateral for tax-increment financing bonds, which it has used to fund some of its share of network construction costs, with the rest of the $5.5 million in total network investments coming from the regular capital improvements budget.

The network is currently being used by a wide variety of public, private, and nonprofit institutions, including National Mutual Insurance, Nestle, Dublin Methodist Hospital, and online reference catalogue company OCLC Inc. OCLC connects to 70,000 libraries around the world, but relies on DubLINK to secure its data by connecting to backup data centers throughout the region.

Rather than narrowly focusing on network revenue, Dublin takes a broader economic development approach to its fiber resources. Development Director McDaniels uses fiber connectivity to lure businesses to locate or expand in Dublin the way other cities use tax credits or land giveaways. Ohio Health, which runs six hospitals in the state and has various other facilities, was granted 4 strands of DubLINK's fiber, which helped them decide to headquarter in the city. They now light and manage the fiber themselves, using it connect to all of their facilities throughout the region. Because they are able to so easily run their operations from Dublin, they have expanded their employment in the city from 300 to 1,200 people.

This September, one of DubLINK’s institutional anchors announced that they would be using DubLink to test new applications for quantum computing. Battelle Memorial Institute, a nonprofit applied science and technology company, signed a five-year deal with DubLINK to use the city’s fiber for their Quantum Key Distribution network, the first commercially-funded network to use quantum computing to encrypt information. Using subatomic particles instead of binary code to transmit information, Battelle claims they have created a form of encryption that will be hack-proof even if quantum computers make traditional encryption techniques obsolete. 

DubLINK proved its usefulness in 2013 as well, when a collaborative including representatives from the City of Dublin, the University of Missouri, and The Ohio State University were recognized for creating the “Best Application for Advanced Manufacturing” at the Next Generation Application Summit in Chicago. The team developed an app called Simulation-as-a-Service, which allows small businesses and labs to remotely access supercomputing capability. Small manufacturers would be able to use the app (in combination with a robust fiber optic connection) to run design simulations through supercomputers on the Ohio State campus, as well as trade design information in massive data files. 

According to Prasad Calyam, an assistant professor of computer science at the University of Missouri and the leader of the team developing the app: 

“The app really requires the infrastructure,” said Calyam. “The infrastructure is not the end goal of the project. It’s really the app. But we couldn’t build the app without the infrastructure.”

“Our work on Simulation-as-a-Service is one example where having a city invest in broadband infrastructure will help economic development,” said Calyam. “It helps companies to move there, to use the infrastructure, and essentially build new kinds of collaborations.”

Expedient Logo

The combination of DubLINK’s fiber infrastructure and proximity to The Ohio State University has also helped attract a growing number of data centers and medical research operations. Dublin-based Cardinal Health opened a research center in the city earlier this year, and Expedient Data Centers recently announced plans for a $52 million data center.

An even bigger fish is on the line for Dublin, which is competing with neighboring suburb Hilliard to be the location for a new $1.1 billion Amazon data center. Amazon has been secretive about its plans, but Ohio Governor John Kasich recently confirmed earlier leaks that the center would be located in the Columbus area. 

Dublin is pushing ahead with the expansion of DubLINK in the coming months and years. In conjunction with the upgrade to 100 Gbps speeds, the network is also beginning to move towards an open access Fiber-to-the-Premise model for major office and multitenant buildings in the city. Rather than bringing fiber to the curb and waiting for building owners to take advantage, the city will be bringing the fiber directly into at least 20 buildings this year and about 10 each year thereafter, with the option to increase the pace if it incents businesses to locate or expand in Dublin.

DubLINK has also struck a deal with a local data center that will serve as a "meet me" room and is in talks with ISPs, which will allow those intitutions using DubLINK fiber to connect to whatever ISP they wish over the publicly owned fiber. It will also allow them to connect to OARnet, the National Science Foundation's GENI rack, and the Ohio State University's supercomputer remotely - all at 100 Gbps. 

The local schools are on the docket for connections as well, with the three city high schools and administration building at the head of the line. They all stand to gain 100 Gbps network connections, and will also benefit from the nearly limitless educational resources of Ohio's universities and research organizations available through OARnet.

Whether or not Dublin successfully woos Amazon, its fiber optic network has proven to be a valuable community asset. It has allowed the city to partner with a local provider to launch a city-wide Wi-Fi system over 24 square miles, which uses DubLINK for backhaul and in return allocates 25% of its bandwidth to the city for its own uses, such as police communication and logistical support for large public events. It has supported medical and computing research, creating good jobs in the process. For all these achievements, Dublin has twice been named a Top 7 Community by the Intelligent Communities Forum, and last year Dana McDaniels, who oversaw DubLINK's development, was given ICF's Lifetime Achievement Award.  

Decorah Fiber Network Wins Civic Award

The town of Decorah, Iowa, population 8,000, lies along the winding banks of the Iowa River. So close to the river, in fact, that in 2008 its floodwaters swamped parts of the town, including the emergency operations center. That unfortunate event got city leaders thinking about how to ensure secure and redundant communications in future emergencies. The city, county, and school district decided to partner on a fiber optic network build that would meet their shared needs.

The resulting project, called the Decorah Metronet, has lead to the city being named an “All-Star Community” by the Iowa League of Cities. The award was given last month in recognition of Decorah’s innovative policies, and specifically singled out the fiber optic network for its contributions to public safety, cost savings, and intergovernmental cooperation. The award is given each year “based on innovative efforts in areas such as urban renewal, development, preservation, service sharing or quality of life improvements.”

Completed in the fall of 2013, Metronet boasts an 11-mile, 144-strand fiber optic loop. It connects 18 facilities belonging to six different anchor institutions: the city of Decorah, Winneshiek County, Decorah Community Schools, Luther College, the Upper Explorerland Regional Planning Commission, and the Winneshiek Medical Center. Metronet not only provides redundancy and savings on connectivity costs, but data center services and offsite backup for its member institutions as well. 

When the network went live last November, City Manager Chad Bird emphasized its economic potential and indicated it would eventually offer extensions to individuals and businesses: 

"I see the Metronet fiber being an economic development tool for our community -- having it in place and having excess fiber available for the commercial industrial segment of our economy. I can think of technology heavy business -- call centers or data centers - that might appreciate having excess fiber capacity."

The project was the recipient of a $520,000 federal Broadband Technology Opportunities Program grant in 2010 which provided the bulk of the initial construction budget, although each anchor institution contributed $75,000 in matching funds over three years as well. 

Congratulations to Decorah, and notch another victory for Iowa’s rural community network movement. 

Dakota County is Fiber Rich Thanks to Dig Once Approach - Community Broadband Bits Podcast 117

Calls for "dig once" policies have resonated for years. The general idea is that we can more fiber and conduit in the ground at lower prices if we coordinate to include them in various projects that already disturb the ground. In the south Twin Cities metro in Minnesota, Dakota County has been tweaking its dig once approach for more than a decade.

This week, Network Collaboration Engineer David Asp and .Net Systems Analyst Rosalee McCready join us to discuss their approach to maximizing all opportunities to get fiber and conduit in the ground. They work in a county that ranges from rural farms in the south to urban cities in the north, offering lessons for any local government.

We discuss the award-winning software they developed to coordinate projects and the many benefits of the network that have already produced millions of dollars in savings. And now the county is examining how it can use its fiber to spur economic development and investment in better Internet access for area residents.

Read the transcript from our discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 18 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to The Bomb Busters for the music, licensed using Creative Commons. The song is "Good To Be Alone."

Ellensburg Considers Muni Fiber Network Expansion

Last year, we covered this central Washington city’s first foray into publicly owned fiber optics. The local incumbent, Charter Communications, began charging the city $10,000 per month for services it had been providing for free for a decade as part of its franchise agreement. Ellensburg officials did some quick math and realized that they could save money building their own network.

They ultimately awarded a contract for $960,000 to build 13 miles of fiber connecting various public facilities throughout the city including the police department and Central Washington University. Thanks to Charter’s high rates, the direct cost savings alone could pay for the entire project in about eight years, leaving aside all the other direct and indirect benefits of public network ownership. 

Now, with the original construction project not even quite complete, Ellensburg is already considering expanding to serve residents and the local business community. According to the local Daily Recorder newspaper, the city council has unanimously voted to issue a request for qualifications from contractors for a long term strategic plan.

“Typically, for this type of an activity, (a strategic plan) would include a strengths, weaknesses, opportunities and threats analysis for the telecom utility,” city Energy Services Director Larry Dunbar said. “We would look at different business cases for different service opportunities like providing Internet access to perhaps commercial businesses, perhaps Internet access to the general public. A variety of other service opportunities are possible.”

The new strategic plan is expected to be finished before construction on the current institutional network ends. The construction plan for the institutional network was designed to be “future-ready,” with contingency funds set aside for possible later alterations or expansions. It seems those funds may be tapped sooner rather than later.

The Ellensburg Business Development Authority has been a major advocate of the city’s fiber network, pushing the city to expand it to new areas, offer service to businesses, and look into how it could compete with Charter Communications. As city councilmember Tony Aronica put it:

“It impacts Ellensburg at the business level but also at the consumer level, because there’s not really any other options,” he said. “I think it’s responsible of us to do this.”  

While nothing has been decided yet, Ellensburg’s discussion of expanding municipal network services is already turning envious heads in Spokane and other nearby cities. Ellensburg itself consulted with Tacoma, which has operated a city cable utility for years, in crafting its institutional network construction plan. It's always encouraging to see expertise and ideas spread from one local community to another, shortening the learning curve for small cities seeking to get out from under the local cable incumbent's thumb. 

North Carolina Town Saves Public Dollars With Its Own Network

On June 18 Holly Springs, home to approximately 25,000 people, started saving money with its new fiber I-Net. Last summer, the Town Council voted to invest in fiber infrastructure as a way to take control of telecommunications costs. Just one year later, the 13-mile network is serving community anchor institutions.

After exploring options with CTC Technology and Energy, Holly Springs determined that deploying their own $1.5 million network was more cost effective than paying Time Warner Cable for data services. Annual fees were $159,000; over time those costs certainly would have escalated. According to the Cary News, Holly Springs anticipates a future need for more bandwidth:

“And we wouldn’t have been able to actually afford as much (data) as we need,” [Holly Springs IT Director Jeff Wilson] said. “Our costs were going to be getting out of control over the next couple of years.”

Because state law precludes the town from offering services to homes or businesses, Holly Springs plans to use the new infrastructure in other ways. State law allows the community to offer free Wi-Fi; the town will also lease dark fiber to third-party providers. According to the News article, the town has already entered into a 20-year contract with DukeNet, recently acquired by Time Warner Cable. DukeNet may expand the fiber to the Holly Springs Business Park for commercial clients.

The community's free Wi-Fi in public facilities is approximately 20 times faster than it was before the deployment, reports the News:

When the town activated the network on June 18, “People told us they could tell the difference immediately,” said Jeff Wilson, Holly Springs’ IT director.

According to the News, the fiber network allows the city to expand free Wi-Fi to more green spaces. Cameras at baseball fields now stream live video of games; parents and grandparents can watch activities online if they cannot attend games in person.

For more on the community and the project, check out Chris' conversation with Jeff Wilson in episode #107 of the Community Broadband Bits podcast.

The Past and Future of Muni Fiber in Boulder - Community Broadband Bits Episode 108

Boulder is the latest Colorado community to recognize the benefits of using city-owned fiber to spur job growth and improve quality of life. Boulder Director of Information Technology Don Ingle joins us for episode 108 of the Community Broadband Bits podcast.

We discuss the many ways in which Boulder has benefited from community owned fiber over the past 15 years and the smart policies they have used to expand conduit throughout the community.

We finish with a discussion about the upcoming referendum that Boulder will likely place on the November ballot to regain local authority to use and expand its fiber assets to encourage job growth and increase residential options.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 17 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Davenport, Iowa, Releases RFP for Feasibility Study

Davenport recently issued an RFP, hoping to hire a vendor to complete a feasibility study. The community wants to learn more about connectivity options that build on its current fiber assets.

According to a May 2014 Government Technology article by Colin Wood, the city has installed fiber throughout the community over the past decade. CIO Rob Henry told Wood:

“For years, residents and businesses have been asking us to do this,” Henry said. “We always knew we were going to get to this point.”

Henry goes on to note that current services from incumbents in Davenport are not sufficient for economic development. The first step will be to connect businesses then follow with fiber to each premise.

Davenport's population is approximately 103,000. During the 70s and 80s, manufacturing was the predominent industry but today tech firms are moving into the area. It is considered part of the Quad Cities region, midway between Chicago and Des Moines from east to west and the Twin Cities and St. Louis from north to south.

According to the article, government facilities began using fiber first, with schools, hospitals, and parks following. The network saves Davenport $400,000 per year because the city serves its own telecommunications needs rather than buying service from a provider.

Wood reported that the city has spoken to CenturyLink and Mediacom; Chris told GovTech:

It’s good that Davenport is trying to cooperate with local Internet service providers (ISP), Mitchell said, but it’s unlikely to produce much substance because, in some cases, ISPs will attempt to starve the municipality for customers. “Every local government at first tries to work with incumbent providers,” said Mitchell, adding that, “my thinking is the city is not going to get a whole lot out of trying to work with them.”

The feasibility study will include several components, including a business case needs analysis, an evaluation of Davenport's current fiber optic capabilities, and recommendations. Bids are due in mid-July; the RFP is available online [PDF].

Holly Springs Finds Savings with Muni Fiber - Community Broadband Bits Episode 107

Holly Springs, a town of about 25,000 in the Triangle region of North Carolina, has built its own network to connect community anchor institutions and has an interest in using it to spur economic development and other community benefits but a 2011 law pushed by Time Warner Cable makes some of that more difficult.

City IT Director Jeff Wilson joined me for episode 107 of the Community Broadband Bits podcast. We discussed why they decided to build a municipal network and how they have just finished the actual build.

We also discuss the savings they anticpate from owning the network and how local residents were hopeful that the network could be expanded to connect homes and businesses before learning that state law restricted them from doing that.

Read our additional coverage of Holly Springs.

Read the transcript from our discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 13 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."