The following stories have been tagged partnership ← Back to All Tags

Santa Cruz Fiber Project with Cruzio

Santa Cruz, California, and its 62,000 people with poor Internet connectivity near Silicon Valley, could be one of the larger municipalities to develop a citywide fiber network. The Santa Cruz Fiber project, which was announced on June 24, 2015, would be an open-access public private partnership (PPP) with the city constructing the network and a private company, Cruzio, serving as network operator. The plans are preliminary, but the announcement highlighted the project’s emphasis on local ownership: 

“A locally-owned, next-generation broadband network operated openly and independently and built for Santa Cruz, [the Santa Cruz Fiber Project] is uniquely tailored to fit the diverse needs of the Santa Cruz community.” 

Cruzio is one of the oldest and largest Internet service providers in California. Completely locally-owned and staffed, Cruzio is rooted in Santa Cruz County. The company’s name perfectly describes it. Cruz- from Santa Cruz and -io from I/O (Input/Output, communication between an information processing system and the rest of the world).  Our Christopher Mitchell is gushing over the name and says: “I seriously love it.”

Fiber is not a new commodity in Santa Cruz. Since 2011, Cruzio has installed fiber in several of its projects, and the fiber has wooed some 30 entrepreneurs and solo practitioners to stay in the downtown area at the Cruzio Works, a co-working space. Last November, Central Coast Broadband Consortium commissioned a study of the fiber networks in Santa Cruz (paid for with a grant from the California Public Utilities commission). They discovered more fiber under the city of Santa Cruz than in any other city in the counties of Santa Cruz, Monterey, and San Benito. Unfortunately much of it belonged to incumbent providers like Comcast and AT&T who are loath to lease dark fiber or make affordable fiber connections available to local businesses and residents. 

Then, just this past June, Comcast announced the planned rollout of Gigabit Pro near Silicon Valley, but not Santa Cruz. Even if Comcast changes its mind, the city has already found a local private partner in Cruzio. This local public-private partnership will almost certainly result in far more benefits to the community than Comcast’s Gigabit Pro. This network will be under local control and responsive to community needs.  

The intention of the partnership is to pursue an open access model. At first, the network will be solely a public-private partnership where the City of Santa Cruz will own the network and Cruzio will construct and operate it. During the initial stages, Cruzio will provide the expertise in network management that the city of Santa Cruz does not necessarily have. After a number of years, the network will open up to more service providers in order to promote competition, which is how Westminster has arranged its partnership with Ting in Maryland. 

The goal of the FTTH project proposal according to Cruzio is to connect 6,000 households and businesses by the end of the third year. Currently, the construction costs are estimated at $52 million. The City staff will present a report to city council by the end of this September on the potential Fiber Project’s feasibility. Early project estimates suggest the network would be mostly completed by late 2018. If the take-rate is feasible, the city intends to back the network with municipal revenue bonds. Revenue bonds are repaid through the sale of networking services, not through taxes. This ensures that those who use the network will pay for the network. Cruzio is now surveying residents to determine interest and creating an engineering report. 

CLIC to Host Partnership Event at Broadband Communities' September Conference

Is your community considering a public private partnership to improve connectivity for businesses and residents? Will you be attending the Broadband Communities Economic Development Conference in Lexington this September? If you answered 'yes' to those two questions, you should attend CLIC's half-day event on Friday, September 18th.

Spend the morning breakfasting with telecommunication attorney Jim Baller and Joanne Hovis from CLIC along with Maura Corbett, CEO of Glen Echo Group and Heather Gold, CEO of FTTH Council Americas.

The rest of the agenda from a CLIC email invitation:

An Extensive CLIC Paper on the Key Business and Legal Issues in Public-Private Partnerships :

Moderator: Jim Baller - President, CLIC

Speakers:

The Private Sector’s Perspective :

Speakers:

  • Elliot Noss - CEO, Ting Fiber Internet
  • Bob Nichols - President, Declaration Networks Group
  • Levi Dinkla – Vice President & Chief Operating Officer, iTV-3
  • Steve Biggerstaff – Founding President, Director & Advisor, Metronet
  • Nicholas Hann – Senior Managing Director, Macquarie Capital/Macquarie Group Ltd.

The Public Sector’s Perspective :

Moderator: Catharine Rice - Project Director, CLIC

Speakers:

  • Robert Wack - President, City Council, Westminster, MD
  • Scott Shapiro - Senior Advisor, The Mayor’s Office, City of Lexington, Kentucky
  • Jon Gant – Director, UC2B

Bald Head Island Reopens RFP to Find The Right Partner

After searching for a suitable partner, the Village of Bald Head Island in North Carolina has reopened its RFP for a gigabit fiber network. Apparently, the community received four responses but no proposal provided the level of detail they require. 

In order to give respondents another opportunity and to offer new candidates a chance, Bald Head Island leaders chose to release the RFP a second time with additional questions and a responsibility matrix. No response will be considered without answers to these new appendices. All three documents are available on the Village website.

The Village of Bald Head Island is home to approximately 160 year-round residents, but numbers swell to 7,000 during the busy tourist season. Vacation homes and part-time residents bring the potential fiber service area up to 2,500 but incumbents AT&T and Tele-Media don't see the value of bringing fiber to such an environment. The StarNews Online described community leadership's frustration and decision to move forward:

"Broadband is not available on Bald Head Island," said Calvin Peck, the village's manager. "It just isn't, and none of the current providers have plans to invest the money to make it available, so the village council feels it's an important enough issue to spend village resources to make it happen."

While Bald Head Island looks for a partner it also plans to ask voters if they agree to pursue better broadband. Voters will decide on November 3rd if they support a $10 million bond issue. Community leaders will focus on revenue bonds, one of the most common ways to finance municipal network deployment. This mechanism shifts repayment to those who use the network, reducing financial risk to the community at large.

Clearly community leaders understand that the time to act is now:

"We are losing people who would build, buy or rent property on the island because they do not have Internet service," said Gene Douglas, the village's mayor pro tempore. "Many executives of major companies' office is wherever they are as long as they have access to the Internet, and we simply don't have that."

As we have noted in the past, good partners are difficult to find; municipalities must always move forward with caution. We applaud Bald Head Island for being thorough and insisting on the details before choosing a partner. Kudos to them also for taking a bifurcated approach and asking voters for funding approval now so all pieces are in place when they find the right partner.

New Reference From U-W Extension A Library Must-Have

The University of Wisconsin-Extension recently released Broadband Policies and Regulations for Wisconsin Stakeholders, a good addition to your digital library, especially if you have in interest in Wisconsin and midwestern broadband issues.

The document provides case studies and an in-depth list of references addressing:

  • Public-private partnerships
  • Local ordinances
  • Technology councils
  • Community engagement
  • Local government telecommunications services
  • Unique efforts to increase adoption

While many examples hail from Wisconsin communities, the authors also provide information from other states and offers links to information such as local government broadband resolutions, tower agreements between municipalities and private internet service providers, successful applications for state and federal grant funds. 

The Broadband Policies and Regulations for Wisconsin Stakeholders is well organized and indexed. You can download the PDF, or access the online flip book for quick reference.

Carl Junction Pulls Out of Public Private Partnership

In the spring, we reported on a public private partnership agreement between the community of Carl Junction and Wi-Fi provider Aire Fiber. According to City Administrator, Steve Lawver, the City Council had second thoughts and pulled out of the deal.

Even though the partnership has ceased to be an option, the people of Carl Junction will still have better connectivity. Aire Fiber found the interest level was so intense that it will independently deploy the equipment to serve the community's 5.6 square miles and approximately 7,400 people.

As part of the abandoned partnership agreement, the city would have paid for and provided locations to mount necessary equipment. Aire Fiber would have handled installation, management, and technical aspects needed to keep the network up and running. In exchange, the city would have received 10 percent of the gross revenue from the network. The system would have cost an estimated $400,000 - $450,000 to deploy and both entities estimated just 10 percent of the market would have allowed them to break even.

Now the city has typical water tower lease agreements with Aire Fiber. Each tower mounting Aire Fiber equipment brings in $100 per month. 

Carl Junction has been searching for better Internet access for its businesses, schools, and residents for several years. In 2012 they commissioned a feasibility study and decided in 2013 to move forward with plans for a fiber network. Unfortunately, the community had to seek other options when it chose not fund the $5.2 million project.

As a post mortem, Lawver advises other city officials to take the time to educate elected officials and not rush the process, especially when the time comes for final approval. 

Our process from FTTH feasibility to this final agreement took 4 or 5 years.  Be patient. Understand that if you get down to the final agreement there is a good chance you may be the only person left that remembers the whole process.

Eugene Opens Up Dark Fiber for Commercial Connectivity

Businesses are now finding affordable connectivity in Eugene, Oregon, through a partnership between the city, the Lane Council of Governments (LCOG), and the Eugene Water and Electric Board (EWEB), reports the Register-Guard. A new pilot project has spurred gigabit Internet access in a small downtown area for as little as $100 per month.

According to the article, the city contributed $100,000, LCOG added $15,000, and EWEB spent $25,000 to fund last mile connections to two commercial locations. LCOG's contribution came from an $8.3 million BTOP grant.

The fiber shares conduit space with EWEB's electrical lines; the dark fiber is leased to private ISPs who provide retail services. XS Media and Hunter Communications are serving customers; other firms have expressed an interest in using the infrastructure.

Moonshadow Mobile, a firm that creates custom maps with massive amounts of data, saves money with the new connection while working more efficiently.

To upload just one of the large files Moonshadow works with daily — the California voter file — used to take more than an hour. Now it can be done in 77 seconds, [CEO Eimer] Boesjes said.

“This completely changes the way our data engineers work,” he said.

“It’s a huge cost savings, and it makes it much easier for us to do our work. We can do our work faster.”

The upgrade also will help spur innovation, he said.

“We can start developing tools that are tuned into fiber speeds that will be ubiquitous five to 10 years down the road, so that gives us a huge advantage,” Boesjes said.

The upgraded fiber also could bring more work and jobs to Eugene, he said.

“In December one of my customers said, ‘You can hire another system administrator in Eugene and we’ll move this work from Seattle to Eugene if you have fiber,’ and [at that time] I didn’t have fiber so that opportunity went away,” Boesjes said.

A 2014 EugeneWeekly.com article notes that EWEB began installing fiber to connect 25 of its substations and 3 bulk power stations in 1999. At the time, it installed 70 miles of fiber with the future intention of connecting up schools, the University of Oregon, local governments, and long-haul telecommunications providers. There is some speculation that the EWEB Board considered developing a municipal network to offer Internet access to residents and businesses and that the vision was abandoned shortly thereafter.

As word spreads, Eugene officials expect to see more retail customers and more ISPs sign on as participants.

“We had kind of a bidding war going on and that’s what the project was designed to do was to create competition,” [Milo] Mecham [from the LCOG] said.

...

“We’ve got prices that are competitive with Portland, Chicago, San Francisco — any place you want to go — and for Eugene they’re record breaking,” Mecham said. “These products are similar to what Google is offering in bigger markets, like Austin (Texas) and Charlotte (North Carolina).”

ZipRecruiter has already named Eugene one of the Top 10 Up-and-Coming Cities for Tech Jobs in 2015. As news of its efforts to spread gigabit connectivity take off, more entrepeneurs will head toward to his community of approximately 156,000.

The city plans to connect a third building this year with telecom revenue from the project.

New Handbook on Next Generation Connectivity From Gig.U

Gig.U, a collaboration of more than 30 universities across the country has just released The Next Generation Network Connectivity Handbook: A guide for Community Leaders Seeking Affordable, Abundant Bandwidth. The handbook, published in association with the Benton Foundation, is available as a PDF online.

One of the authors, Blair Levin, has been a guest several times on the Community Broadband Bits podcast, last visiting in January 2015 to weigh in on public vs. private ownership of broadband networks. As many of our readers know, Levin was one of the primary authors of the FCC National Broadband Plan in 2010.

In a PCWorld article about the report, Levin commented on funding and on local control:

“Nearly every community we worked with saw public money as a last resort, when no other options for next generation networks were available,” he said. “But our group view was that the decision should be made by the local community.”

The report underscores the importance of local decision making authority, whether each community chooses to go with a municipally owned model, a public private partnership, or some other strategy.

Levin and his co-author Denise Linn also address issues of preparation, assessment, early steps, things to remember when developing partnerships, funding issues, and challenges to expect. They assemble an impressive list of resources that any group, agency, or local government can use to move ahead.

Add this to your library.

Video: Westminster and Ting Kick Off Deployment

Westminster recently officially lit up the new fiber network with its partner Ting. They create several videos to record the event, including this montage of interviews with movers and shakers in the municipal network industry. The two partners announced their agreement earlier this year: the city will own the infrastructure and Ting will provide retail services to local residents and businesses via the network.

In the video you will see Dr. Robert Wack, the City Council Member behind the initiative, along with leading telecom attorney Jim Baller, Gigi Sohn from the FCC, and Deb Socia who heads up Next Century Cities.

Check it out:

 

The Next Generation Connectivity Handbook: A Guide For Community Leaders Seeking Affordable, Abundant Bandwidth

Publication Date: 
July 21, 2015
Author(s): 
Blair Levin
Author(s): 
Denise Linn

Gig.U, a collaboration of more than 30 universities across the country has just released The Next Generation Network Connectivity Handbook: A guide for Community Leaders Seeking Affordable, Abundant Bandwidth. The handbook was published in association with the Benton Foundation.

The report underscores the importance of local decision making authority, whether each community chooses to go with a municipally owned model, a public private partnership, or some other strategy.

Blair Levin and Denise Linn also address issues of preparation, assessment, early steps, things to remember when developing partnerships, funding issues, and challenges to expect. They assemble an impressive list of resources that any group, agency, or local government can use to move ahead.

Illinois Munis Partner with Local ISP for Gigabit Network - Community Broadband Bits Episode 160

The southern Illinois cities of Urbana and Champaign joined the University of Illinois in seeking and winning a broadband stimulus award to build an open access urban FTTH network. After connecting some of the most underserved neighborhoods, the Urbana-Champaign Big Broadband (UC2B) network looked for a partner to expand the network to the entire community.

In this week's Community Broadband Bits podcast, we talk with UC2B Board Chair Brandon Bowersox Johnson and the private partner iTV-3's VP and Chief Operating Officer Levi Dinkla. The local firm, iTV-3, already had a strong reputation as an Internet Service Provider as well as operating other lines of business as well.

In our conversation, we talk about iTV-3's commitment to customer service, their expansion plan, and how the network remains open access. Read our continuing coverage of UC2B here. See the neighborhood signups here.

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.

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 other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."