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Falmouth Saves With Cape Cod I-Net

Out on Cape Cod, municipal networks are taking hold. Public buildings throughout the town of Falmouth, Massachusetts, experience great connectivity and the town saves $160,000 each year with its own Institutional network (I-Net).

Public Savings

The Falmouth Area Network, maintained by CapeNet, connects 17 buildings throughout the town for a total of $3,000 each month ($2,500 from the school; $500 from the town). Were the town to go through a private provider, it would cost $1,000 for each building every month or $17,000 per month. By saving $14,000 each month, Falmouth's annual savings add up to approximately $160,000 a year. That’s a lot of money to be reinvested in the community of 31,000.

Falmouth Area Network intends to reach even more institutional buildings in the next few years. The 17 that are connected now are the libraries, the schools, the town hall, the police stations, the fire stations, the harbormaster’s office, and a senior center. Soon the Gus Canty Community Center will also gain a connection. At the Annual Town Meeting last week, the town approved the Capital Improvement Plan which included $80,000 to upgrade the network, including hooking up the community center. There are also plans to add a new wastewater treatment plan to the network in 2017.

The Role of OpenCape

The Falmouth Area Network came about thanks to another community-owned network project, the nonprofit OpenCape. Recently featured in an episode of eSTEAMers, OpenCape provides much needed middle mile connectivity throughout the Cape. The middle mile network does not connect business or residential users, but instead focuses on serving as a backbone of connectivity for towns. County, state, and federal grants funded construction of the $40 million OpenCape, which launched in 2013. The Falmouth Area Network connects to OpenCape, and a percentage of the city's annual fees go to OpenCape. 

Falmouth has more buildings connected than any of the other 15 Cape communities. The town’s success in capitalizing on access to OpenCape’s network has inspired other towns, such as Mashpee and Provincetown, to model their own networks after Falmouth.

Small City Fights Comcast Over Institutional Network

Reports have recently surfaced from The Detroit News and that a town in Michigan is now fighting Comcast over who owns their network.

The Backstory

Fifteen years ago, West Bloomfield, Michigan, population about 65,000, wanted an Institutional Network (I-Net) to connect all the important services, like emergency response, police, fire, and water, with a dedicated high-speed network. The town entered into a franchise agreement in order to share the construction costs with the incumbent cable company, which at the time was MediaOne. According to the township, MediaOne offered to contribute $400,000 to the cost of construction as part of that agreement.

The agreement was transferred to Comcast in 2000; Comcast acquired MediaOne in 2002. MediaOne and successor Comcast have provided "free high-speed bandwidth transport as well as interconnectivity" during the life of the network claims Comcast in a letter submitted to the court. The cable giant also describes the practice as a "benefit not provided by Comcast's competitors" and wants it to stop. The franchise agreement expired on October 1 but was renewed until 2025.

To The Courts

Comcast and the town are now fighting over ownership of the infrastructure. With Comcast demanding new fees, the town is bringing a lawsuit. Comcast, however, maintains that it owns the I-Net that the town uses for all its important communications. The Detroit News reports that the township is coming out swinging:

The township said it is illegal to use public funds for private commercial purposes and insists there was never any reference to a cable company ever retaining ownership of the I-Net and said it has paid all other costs including upgrades and maintenance of the system which is “imperative to public safety operations of the township and will impact the township’s budget which is currently being prepared for 2016.”


The township not only seeks a preliminary and permanent injunction against Comcast, it wants the company’s act declared a “wrongful conversion of township property” and to be awarded three times the actual damages plus costs and attorney fees.

In the past, these agreements made sense to small towns that needed economical internal communications. All across the U.S., towns signed onto franchise agreements with large providers that offered to build I-Nets and supply connectivity.

As original franchise agreements expire, ownership issues and rate changes are popping up. After years of dependency on big corporate providers in an environment where there is little or no competition, communities like West Bloomfield often find themselves at the mercy of companies like Comcast.

What Can Cities Do? Take Control

There’s another way though. Many towns have built their own I-Nets - often with better connectivity and more savings than franchise agreements offer. The infrastructure can be expanded for other public policy programs too, like economic development or residential Internet access. The “Institutional Networks” page is full of stories about communities that have built their own I-Nets. Rather than trusting big corporate providers, towns control their own infrastructure and are better able to predict connectivity costs.

Franchise agreements are expiring across the country. Big corporate providers like Comcast and Time Warner Cable use this strategy to squeeze more dollars from institutional customers. Martin County, Florida, overcame a similar situation when Time Warner Cable tried to extract exorbitant fees as their franchise agreement expired. Rather than pay an increased rate of more than 800 percent, they chose to invest in a publicly owned fiber I-Net. The community is now able to control their costs with fast, affordable, reliable infrastructure that the community can expand. Read more about Martin County in our 2012 Report, Florida Fiber: Martin County Saves Big with Gigabit Network.

Other towns can expect to find themselves in the same situation as West Bloomfield, Michigan. Raising rates and demanding new fees, large providers put profit before the best interests of the community. With these franchise agreements expiring, there’s a chance for cities and towns to take back local control by building their own networks.

The time to act is now. To learn more about what to do at the local level, check out our Community Connectivity Toolkit.

In New England, Greenfield Votes For a Municipal Network Too

It wasn’t just Colorado cities and counties along with Iowa communities voting this week. Back east, Greenfield, Massachusetts also rushed to the polls to support local Internet choice.

Greenfield is planning to use a combination of fiber and Wi-Fi to deliver services - an approach that has had limited success in the past due to the technical limitations of Wi-Fi. 

The Vote

At Tuesday’s Annual Meeting, residents voted on the future of high-speed Internet access in the town. The referendum, the first step in creating a municipal broadband network, saw a landslide victory. 

The people gave a resounding message that they wanted to pursue a network: 3,287 people voted in favor; only 696 were opposed. According to the local paper the Recorder, this nonbinding ballot referendum allows the town to create a nonprofit to run the municipal broadband network. 

Currently there is a pilot program on two streets – giving residents a taste of community-owned high-speed Internet. This pilot program started in mid-October and provides free Wi-Fi on Main and High Streets. If voters had rejected the ballot referendum, the town would have ended the pilot program and only created an institutional network for the municipal and school buildings. Now, with the referendum passed, they can implement the plan for high-speed Internet access.

The Plan for Broadband

When the state built a middle-mile network running through the cities of Greenfield and Holyoke, the mayor contacted Holyoke’s municipal light plant to find out how to best utilize the opportunity. Holyoke is now the Internet Service Provider for City Hall and the police station. These will then serve as Internet access nodes for Greenfield’s new network.

The community's goal is to construct a 60-mile hybrid fiber-wireless network throughout the entire town by the end of 2016. The network will have a 10 Gigabit-per-second fiber backbone.  Now that the referendum passed, the project will go out to bid and construction will begin in early January. The total cost is estimated at about $5 million – the town intends to use revenues from the network to pay for the construction.

In an October, Mayor Martin described the community's initiative to replace the old infrastructure the community now relies on:

Martin said the goal of the project is to improve the business climate and quality of life in Greenfield. He said he wants everyone who wants high-speed Internet to be able to afford it.

We have yet to see a robust Wi-Fi network that actually sees meaningful adoption by households because the technology has such limited range and variable reliability. The result is that very few people are willing to pay for Wi-Fi connectivity, especially as they have come to expect higher capacity connections than a shared Wi-Fi network can deliver. We will be watching to see how Greenfield develops.

Hudson Brings Velocity to Businesses in Ohio

In mid-September, Hudson, Ohio launched its Velocity Broadband service, bringing 1 gig connectivity to a large business complex. The commercial site is the first in series of industrial areas where the city officials plan to bring the network in the coming years. The community, located near Akron, hopes to eventually bring Velocity Broadband to residential areas.

The network is already exceeding expectations. Less than a month after the initial network launch, City Manager Jane Howington said local officials expect to surpass their goal of 50 customers by the end of 2015:

"It's moving faster than we thought," said City Manager Jane Howington. "Demand has been much greater than we thought."

Merchants are embracing Hudson’s new status as a “Gig City,” offering “Giga Specials” during the month of October and the city’s mayor declared October “Gigabit City Month.”

According to the city’s Broadband Needs Assessment, Hudson is building the network in response to significant problems with the city’s existing broadband options. Small and medium sized companies complained to the city’s consultants on the network that they have “learned to live with” problems of poor reliability, performance, and affordability of the city’s broadband services. They said even the best available broadband service options over DSL and cable are inadequate and negatively affect their ability to do business.

City officials plan to continue rolling out access to the city’s downtown area next year and to other business areas soon after. Although the city of 22,500 has no timeline on residential service, city officials have expressed the intent to eventually bring the fiber optic network to every home.

We first reported on Hudson's plans in July 2014 when the community began exploring the idea of using fiber from its existing I-Net to serve local businesses. Hudson will deploy incrementally with its own public power utility crews and will provide only voice and data services to keep expenses manageable.

At a City Council meeting on September 16th when community leaders announced the network launch, Howington explained the importance of the project for the city’s business community:

“When no one else would provide it, we decided to do it ourselves; it’s that important to our business base,” she said. “The City’s investment in Velocity Broadband will continue to change Hudson for the better, ensuring continuous success for the future of our community. We are taking speed, reliability and affordability to a whole new level…. It’s clear that fast, efficient Internet drives business growth which is key to economic vitality of our City.”

Sanford, Maine Plans Largest Municipal Network in the State

A lot has happened in Sanford, Maine since our last report on their municipal fiber optic network discussions. After a year of deliberations over different proposals, the city recently announced plans to begin building a 32-mile municipal fiber-optic network.

The city of Sanford is inside York County, situated about 35 miles southwest of Portland. The network will provide connectivity to businesses, government entities, non-profit organizations, and residences in Sanford along a limited route where there is sufficient customer density. City leaders plan to also provide a foundation for future expansion of the network to additional residential areas in the city. The network will be open access, allowing multiple ISPs to provide services via the publicly owned infrastructure.

The city will partner with Maine-based company GWI (Great Works Internet) to operate the network. Readers may recognize GWI as the same company working with Rockport, Maine's first community to invest in a municipal fiber network.

Once they complete the buildout, Sanford will be in an elite class of a just few cities nationwide that provide widespread access to 10 Gbps broadband. It is a bold plan for this city of just over 20,000 in a state that last year ranked 49th in the nation in average broadband speeds.

The Sanford Regional Economic Growth Council, a major driving force behind the project, sees the project as critical to their broader economic development efforts:

Like the growth council, this project is a public-private partnership stemming from the exploration of a best business model allowing for municipal investment and input while leveraging the strengths and expertise of private sector for-profit business. The growth council recognizes the collaboration of the public private partnership as the best means to accomplish the City’s economic development strategies.

The new network is also the first major loop in Maine that will connect to the state’s existing Three Ring Binder network. Constructed in 2012, the middle-mile Three Ring Binder spans 1,100 miles around much of Maine. The network was a product of private investments and $25 million in stimulus money from the 2009 American Recovery and Reinvestment Act

According to a study commissioned by the Economic Growth Council, the network could generate between $47 million and $192 million in economic benefits over the next decade. The Economic Growth Council and the the city are still seeking funding to build the network, estimated at $1.5 million. The city expects to cover costs through agreements they’re pursuing with anchor institutions and savings they'll see by eliminating the cost of leasing lines to city government buildings and schools.

The city is also considering Tax Increment Financing (TIF), a process we described in a previous article about another network using the process:

“Tax Increment Financing (TIF) is a method of public financing that uses future gains in property or sales taxes within a defined area to subsidize a redevelopment or infrastructure project. A local jurisdiction can borrow money up front, build the project, and then use the increased tax receipts it generates to pay off the debt over a period of years. The concept is actually pretty simple: capture the value that something will have in the future to build it now.”

A small number of municipal broadband projects have been funded with TIF, but this arrangement can be controversial as it removes substantial property value from the general taxbase. Most choose revenue bonds, interdepartmental loans, or by redirecting savings gained when city can build incrementally thereby avoiding payments for leasing lines from providers. Fortunately, Maine remains one of the states where local communities have the freedom to choose whether or not they invest in Internet networks and how they finance such a project.

At the meeting to announce plans for the network, U.S. Senator from Maine, Angus King, summed up the network's importance to the state's future:

“High-speed broadband is a gateway to economic and educational opportunity in the 21st century,” King said. “But right now, there are too many people who are denied those opportunities simply because they don’t have adequate Internet access.”

Peachtree City, Georgia Approves Resolution to Establish Municipal Broadband Utility

At a September meeting, the City Council in Peachtree City, Georgia unanimously approved a resolution to construct and operate a fiber-optic broadband network.  According to the City Council minutes from the meeting, the initial 22.54-miles of fiber will provide 1 Gbps broadband access to various facilities in the City Service area.

In addition to providing connectivity for government buildings, utility services, and medical and educational buildings, the city will target business customers in the “high end user category.”

Officials estimate the network will cost $3.23 million. To pay for the project, the Peachtree City Public Facilities Authority, an independent local government authority created by the state legislature in 2011, will enter into an intergovernmental agreement with Peachtree City. According the August 2015 Fiber Initiative plan, capital for the project will come from the Authority; the city will issue a bond and pay installments to the Authority under an Agreement of Sale.

For several years now, the city located 30 miles southeast of Atlanta has explored options to improve local connectivity. City leaders tried and failed to bring Google Fiber to the community of 35,000 people in 2010. The city attempted repeatedly to urge private ISPs like AT&T to address the problem with no success. In February of this year, city leaders began work on a study to explore the feasibility of a publicly owned fiber network.

City Council members citizens at the recent City Council meeting expressed concerns that the network will not pay for itself and taxpayers will be left to cover unpaid costs. According to a recent survey of local businesses, 100% of respondents reacted positively to the prospect of a municipal network for connectivity.

In order to achieve the plan’s objectives, the network will need 12 “high-end” commercial customers by the end of year 2.  The city’s consultant expressed confidence in meeting that first goal:

“If we had a different experience, I would be standing up here in front of you saying 12 is going to be a stretch. However, we found exactly the opposite to be the case,” said Davis. “I was amazed by that. It’s a surprise to me that the demand was so great, and that the existing customer base out there was so positive about becoming a user. From a pure business standpoint, that gave me a lot of confidence to come in and say I believe we can hit this number and I believe we can exceed this number.”

The city’s Financial Services Director Paul Salvatore added that the business plan for the project is based on conservative assumptions.  It relies on a 20-year financial model projecting success for the network if the city secures at least 12 non-governmental customers in addition to 17 serviceable government sites. Thereafter, if it reaches at least 19 total non-governmental customers by year 6, the network will start to achieve positive gains, a 10-year bond payoff, and profitability after 16 to 20 years.  

City officials have no plans to bring the network to residential subscribers at this stage, choosing instead to focus on direct and indirect economic development benefits, public safety improvements, and better cell phone coverage that will likely result from the fiber deployment. They did not rule out the prospect of fiber for residents in the future. (Watch a complete video of the September 17th City Council meeting here, the city’s municipal broadband network discussion starts at 28:20.)

At a workshop earlier in September, city leaders met with the consultant to finalize the business plan for the network. At the meeting, Interim City Manager Jon Rorie quizzed the City Council about the risks involved with investing in the new broadband network. By the time the City Council met 9 days later, Rorie was convinced of the plan’s prospects for success: 

“We recognize this is a big decision, and it is of a visionary nature, but we also recognize that there is a risk exposure as a business model,” he said. “As far as providing an opportunity from an economic development perspective, I do think it is a huge opportunity as we move forward.

Chicago Alderman Advocates Public Fiber For Municipal Savings

At a Chicago City Council meeting this month, a newly elected alderman proposed the city stop relying on incumbent ISPs and start using its existing fiber network for connectivity.

Pointing to nearby cities like Aurora, where municipal government elimnated leased lines to reduce costs by $485,000 per year, Alderman Brian Hopkins suggested the switch could save the city “tens of millions of dollars” annually. He also advocated the change in order to provide more efficient services.

“We already have a robust infrastructure in place to build from. Fiber optic resources currently controlled and managed by [the Office of Emergency Management and Communications] for traffic, first-responder, and emergency services is an example,” Hopkins said. "Given the debt Chicago faces, we should follow other cities by switching all municipal government broadband access from private incumbent providers to a taxpayer-owned fiber network. The money saved can be reinvested into the expansion of the municipal network to finally reach those communities that need fast affordable access. Why would we not do this?”

Hopkins’s comments come on the heels of a resolution we reported on earlier this year from four powerful Chicago City Council members calling for hearings on how to use city buildings, light poles and high-speed fiber-optic lines for a wireless network that could raise the city millions.

The city is trying to find ways to generate revenue amidst a major $30 billion employee pension crisis that led Moody’s to downgrade the city’s bond rating to junk status in May.

One of the most obvious benefits to local government of self-provisioning is saving taxpayer dollars. In addition to direct savings from allowing municipalities to switch from expensive leased lines, the community at large benefits from ancillary savings. Municipal government, businesses, and residents can save from the need for fewer telephone lines, lower utility costs due to more efficient operations, and even lower rates from incumbents who sense possible competition.

DC-Net Delivers Public Savings

Washington, DC, continues to operate an incredibly successful municipal network. Created in 2007, the municipal government’s 57-mile fiber optic network, DC-Net, provides connectivity to government buildings and community anchor institutions that are health or education based. DC-Net started providing public Wi-Fi hotspots in 2010. We covered some of the savings of DC-Net itself in our 2010 report, and we recently found a report from 2012 that details an example of public savings from the network.

In 2008, the Office of Personnel Management in D.C. needed to replace its aging phone system with state-of-the-art Voice over IP and a video conference system. These two telecommunication systems require a high capacity network. After a market analysis found that prospective vendors would cost more than the budget could handle, they had to find an alternative solution. That’s when they connected with DC-Net. The network kept costs down - the initial cost-savings from the project were about $500,000. 

DC-Net also provided more than Office of Personnel Management had originally anticipated: redundancy, more connectivity, and better coverage. With the added redundancy, the phone and Internet have had less outages. DC-Net then provided gigabit ethernet to the headquarters and Wi-Fi coverage. 

The total cost savings for the Office of Personnel Management over the first 6 year period (from 2008 to 2014) are estimated at $9.25 million. They came in at budget with more connectivity than they had anticipated by using a municipal network that was committed to meeting their needs. Sounds like a good deal to us.

Boise to Collaborate With BSU and Highway District For Downtown Fiber

Boise, the Ada County Highway District (ACHD), and Boise State University (BSU) have entered into an agreement to deploy fiber along a busy downtown Boise corridor. The high-speed lines will supply connectivity to a new building BSU intends to lease as a facility for Computer Science Department students. The fiber will also connect the BSU Bookstore.

The city will use the fiber to connect its City Hall and a Police Department substation located on the BSU campus while ACHD will add this fiber line to its current fiber network to control traffic throughout the city.

According to an Idaho Statesman article, the city has been installing conduit on campus, connecting it to ACHD conduit situated in the downtown core during the past year. Conduit installation cost the city approximately $47,000; BSU will now install fiber in the conduit at a cost of approximately $75,000. ACHD will contribute a  section of its own conduit to complete the connection and will provide the permits to install the fiber.

When deliberating the joint venture, Boise leaders considered the economics and the future possibilities of the presence of the fiber. From the Statesman article:

“Providing the same data connectivity from a telecommunications provider would cost each agency close to $36,000 (per) year,” deputy city attorney Elizabeth Koeckeritz wrote in an Aug. 20 memo to the City Council. “By working together to connect these four locations, the (return on investment) is less than one year.”

At some point, Reno said, the city wants to connect the Boise Depot, the original railroad depot on the Bench south of the BSU Campus that the city owns and rents out as a venue for business meetings, weddings and other events.

This agreement will allow each entity to own one-third (48 strands) of the entire fiber line (144 strands). The city will continue to own the conduit that is in place and will own all newly-installed conduit and vaults located on city property or in the ACHD rights-of-way; any conduit installed on University property will belong to BSU.

Introducing Our Institutional Networks Page

Community anchor institutions play a critical role in bridging the digital divide. These networks that connect government buildings, libraries, and schools are often called “institutional networks” or “I-Nets.” Since the start of, we have noted the ways these institutions have expanded services and saved money. Now, these stories have been compiled into one quick-reference resource.

As franchise agreements run out with incumbent service providers, public institutions often struggle to renegotiate contracts at sustainable prices. Other communities have been left behind altogether by large cable and telephone companies and cannot get the high quality Internet access needed for their libraries or schools.

With 30% of U.S. households without a broadband connection at home, schools and libraries are portals to digital learning tools, social services, and job applications. A local government self-provisioning a fiber network to connect these facilities is often the most cost-effective way to ensure these essential entities have affordable and reliable Internet access.

In this page, we detail the many times schools and libraries have used municipal networks to save money, increase Internet access, and provide better services. We also note how these municipal institutional networks can be incrementally expanded beyond institutions to businesses and homes, creating city-wide connectivity. Check out the page.