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Erwin FTTH Pilot Project Moving Forward

Erwin, Tennessee announced last summer that it was planning an FTTH pilot project to connect 1,200 customers. After receiving the necessary approval from the state comptroller this summer, Erwin Utilities began construction in October, reported the Erwin Record.

The pilot project focuses in and around downtown and leadership at Erwin Utilities plan to use the network for the town's electric system, water system, and wastewater system in addition to high-speed connectivity. Lee Brown, General Manager of the municipal utilities, reported that the network will provide services up to a gig.

From an August Johnson City Press article:

“This project will enable Erwin Utilities to provide improved electric, water and wastewater services while enhancing the quality of life and creating economic opportunities for citizens within Erwin Utilities’ service area,” he said. “I expect the benefits of this project to our customers and community to be substantial.”

...

“It’s our intent to be able to deploy this over our whole customer service area in the future, and of course, the success of the pilot project will somewhat dictate how quickly we’ll be able to do that,” Brown said. 

The first phase of the project is scheduled for completion in early January.

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.  

North Georgia Town Considering Fiber for Business

The City Council of the city of Commerce is considering using its existing fiber resources to offer connectivity to local businesses. At a November 3rd work session, Council members reviewed the plan and, according to the Main Street News, members voiced support for the idea.

“We’ve been actively working on this for months,” [City Manager Pete] Pyrzenski told the council. “We’ve been counseled on, we’ve talked through the options… this is a pretty viable utility for Commerce.” 

“We are ready to pull the fiber,” Pyrzenski declared. “Our role is to supply the fiber. We’re not going to get into cable TV, not going to get into telephone, just high-speed Internet.”

“Businesses have been looking for an alternative,” noted Mayor Clark Hill.

Windstream now serves the community of 6,500 but there have been significant complaints and there are no other options in this north Georgia town.

The city will need to invest $70,000 for equipment and legal fees. The network plan will use an existing line and will run additional fiber to expand the reach to more commercial customers. At this point, the city estimates a 5 - 10 year payback but that period may be reduced if local businesses respond positively. The city will fund the deployment with an interdepartmental loan from their municipal electric utility. Commerce also owns a municipal gas utility.

Cortez To Expand Open Access Network

A recent vote by the Cortez city council cleared the way for a major expansion in the city’s open access network. By committing $1 million in local funds, the city unlocked a matching $1 million grant from the Colorado Department of Local Affairs, which disperses revenues from federal mineral leases in the form of a variety of economic development grants around the state.

This $2 million infusion will enable Phase II of the city’s network plan to go forward next year, making connections newly available to 400 businesses along two major highways. This builds on the existing Phase I network, which is capable of offering connections to about 650 businesses along Main Street. About 250 businesses have already signed on in Phase I, good for nearly a 40% take rate. The city plans to add 27 miles of fiber in 2015. 

The $1 million in local matching funds that enabled the Department of Local Affairs grant are pledged from a combination of sources. The network's own reserve fund will contribute $250,000, while the remainder will come in the form of interdepartmental loans from the city's general fund ($250,000) and equipment fund ($500,000). 

The city does not offer its own services over its fiber, favoring an open access model that lets independent service providers compete using its infrastructure. The network currently has seven mostly local ISPs competing for customers. The long term plan, as described by City General Services Manager Rick Smith in a Broadband Bits podcast back in May, is to build a fiber to the home network throughout the city. Smith sounds pretty determined to make that happen:

“Just because we live here in rural Cortez, there’s no reason why we shouldn’t have access to affordable broadband. It’s a necessity in today’s digital age.” 

“It would probably take more than $10 million to finish out the entire city,” Smith said. “That could take at least five years, but we have a roadmap. We have a plan.”

Cortez has taken a gradual approach towards developing its fiber infrastructure, beginning with an I-Net for local anchor institutions in 1999. Over time, the town of less than 9,000 residents has become a regional fiber optic hub, thanks to several grants from the state, partnerships with neighboring governments, and smart local investments. Cortez serves as the nexus for the western half of the Southwest Colorado Access Network (SCAN), which connects public institutions in a five county region to backbone fiber. 

Cortez has also benefitted from good timing: it began leasing extra capacity on a few of its fiber optic lines to a handful of private companies in 2005. This allowed Cortez to be grandfathered in as an exemption to SB 152 which passed later that same year, meaning that unlike nearly all other Colorado municipalities, Cortez did not have to pass a referendum to use its fiber optic infrastructure to offer retail services. 

Aurora's Nonprofit Approach with Muni Fiber - Community Broadband Bits Episode 123

Aurora, Illinois, has been named one of the "Smart 21" most intelligent communities of 2015 according to the Intelligent Community Forum. We have been tracking Aurora for a few years and wrote about OnLight, its nonprofit ISP, that we wrote about earlier this year.

With some 200,000 people, it is the second largest city in Illinois but it has one of the most interesting hybrids of municipal fiber and nonprofit partnerships we have come across. For this week's Community Broadband Bits podcast, Lisa Gonzalez takes the reins and interviews Rick Mervine, Alderman of the 8th Ward in Aurora.

Alderman Mervine explains why the city first invested in the fiber network and why they later decided to create OnLight to serve community anchor institutions as well as others in the community.

Read the transcript of this episode 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 20 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 Jessie Evans for the music, licensed using Creative Commons. The song is "Is it Fire?"

The Dalles Pays off Its Network Debt Ahead of Schedule

Of the more than 400 communities around the country that have built and benefitted from community networks, the town of The Dalles in Oregon may have a case for the title of “most bang for the buck.” Their commitment of $10,000 12 years ago to leverage a $1.8 million “QLife” fiber optic network has lead to a massive, $1.2 billion dollar investment from Google in the form of a huge data center, employing nearly 200 people and generating millions in tax revenues for the local community. And at the end of September, the QLife board of directors announced that they had paid off the loans used for network construction more than three years ahead of schedule. 

We covered part of The Dalles’ network story two years ago: a small city of just 13,000 was told by Sprint in 2000 that it would have to wait 5 to 10 years for broadband Internet access. Meanwhile, local manufacturing was declining and employers were overlooking the town due to its outdated infrastructure. Before building the QLife network, The Dalles had no access to the major long haul fiber pathway that happened to run right through town. As city manager Nolan Young told Andrew Blum in an interview for his book “Tubes,” it was like “being a town that sits next to a freeway but has no on ramp.” 

The city decided enough was enough, and partnered with the county and the local public utility district on a plan for a $1.8 million, 17 mile fiber optic loop through the community that would connect anchor institutions and offer middle mile access to private providers. 

The nascent network faced opposition from a local telecom in the form of a lawsuit, which scared the public utility district away from the partnership. It had another setback when a private partner declared bankruptcy, saddling the public agency with an $800,000 loan. The city and Wasco County pressed forward with their partnership, however, and secured half of the needed $1.8 million in state and federal grants while covering the rest with loans. The city made a one-time contribution of $10,000. QLife pursued a cautious strategy, building in successive phases only after enough subscriber revenue commitments were in place to cover the requisite loan payments.  

The city’s small investment has paid off many, many times over. Major network construction was completed in 2003, and in 2005 Google announced they would locate a major new data center in the town, bringing 150 jobs and a $600 million investment. Pleased with their easy access to major fiber optic infrastructure and seeing massive growth in the demand for cloud-based applications, Google announced last year that they would double down on The Dalles, investing another $600 million and creating dozens more jobs to grow their already huge facility. 

The benefits of the network aren’t limited to a single major employer. Schools, a community college, a hospital, and a network of medical offices all use QLife’s fiber directly for fast, reliable, and secure data services. Seven different telecom and internet providers also lease fiber from QLife, increasing the competition and service quality available in the area.

Even Sprint, the incumbent who told the city to wait a decade for broadband, started upgrading their own network six months after QLife construction began. QLife and Google have even partnered to provide free WiFi throughout downtown and many of the surrounding areas. Now, with their debt retired ahead of schedule, the network is running an operating surplus in the hundreds of thousands that could be put to any number of good uses. 

Of course, not every town that builds a fiber optic network will immediately get a $1.2 billion data center. The Dalles had several factors working in their favor when wooing Google, including cheap hydroelectric power from Bonneville Power Administration dams along the Columbia River and long haul fiber optic lines running right past their doorstep. However, City leaders were smart enough to see the opportunities in front of them and determined enough to persevere in the face of opposition. Their bet has paid off immensely.

New Report Details Local Government Efforts to Improve Minnesota Connectivity

In our latest report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, we analyze how local governments in 12 Minnesota communities are expanding 21st century Internet access to their citizens.

In 2010, the Minnesota legislature set a goal for 2015 - universal access to high speed broadband throughout the state. Even though we have the technology to make that vision a reality, large swaths of the state will not meet that goal. Nevertheless, local folks who have chosen to take control of their connectivity are finding a way to exceed expectations, surpassing the choices in many metropolitan regions.

Some of the communities we cover include:

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

We delved into networks in Anoka, Carver, Cook, Lake, and Scott Counties. The report also shares developments in the municipalities of Chaska, Buffalo, and Monticello. We tell the story of RS Fiber, located in Sibley and part of Renville County. These communities provide examples of municipal networks, a variety of public private partnerships, and "dig once" policies.

This week in Minnesota, the governor’s office began accepting applications for the state’s new $20 million initiative Border-to-Border program. We hope this new report will serve as a resource for potential applicants and other community leaders across the U.S. interested in taking charge of their broadband destinies.

Read and download the full report [PDF].

First Muni Fiber Net in Maine - Community Broadband Bits Episode 115

By building a fiber line to allow some local businesses to get next-generation Internet access, Rockport became the first municipal fiber network in the state of Maine. Town Manager Richard Bates joins us for episode 115 of the Community Broadband Bits podcast.

We discuss the financing behind the network and their partnership with local Internet Service Provider, GWI, to improve access to the Internet.

Bates also explains how they had to ask voters for authorization to use a tax-increment financing approach to paying for the network to spur economic development. Nearby communities have been watching to see what happens.Read our story about this network 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 15 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. 

Missoula Pursues Open Access Fiber for Jobs - Community Broadband Bits Podcast 112

After having met City Councilmember Caitlin Copple at last year's Broadband Communities event in Austin and seeing the progress Missoula, Montana, has made in considering a municipal fiber network, I knew we should ask her to be on the show. This week, she joins me and Karen Palmer, the Director of Operations for a local tech company in Missoula, LMG, for episode 112 of Community Broadband Bits.

After surveying local businesses, Missoula found a strong need for better services and is examining its options for an open access fiber network. They are fortunate to have already identified some service providers that want to work with them on the project.

Additionally, the network would be a boon for community anchor institutions, from schools to hospitals, and facilities owned by either the County or City.

Read a transcript of this show, episode 112, courtesy of Jeff Hoel.

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."