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UC2B At A Crossroads, Partner Selling Assets

In late February, private Internet service provider, Countrywide Broadband (CWB), announced that it and Seaport Capital together would acquire assets belonging to iTV-3, Inc. In addition to fiber networks developed in Peoria, Bartonville, and Bloomington, iTV-3 is deeply involved in bringing connectivity to the Urbana-Champaign community. The company leases fiber on the UC2B network, has expanded the network by deploying its own fiber off the UC2B fiber rings, and promised to expand the Fiber-to-the-Home (FTTH) network across the community.

In the agreement with iTV-3, the UC2B nonprofit has a right of first refusal to purchase any local iTV-3 assets deployed if iTV-3 is purchased by another company. In short, UC2B has 60 days from the date of the CWB and iTV-3 purchase agreement to decide if they want to purchase the iTV-3 fiber expansions. If the nonprofit decides not to purchase the fiber, it will continue to own the UC2B rings and CWB will own the expansion fiber.

It was only a few weeks ago that we wrote about the upcoming sale of Bristol's BVU Optinet. It is important for communities to recognize that as these networks are built, they are targets for purchase and consolidation. Fiber networks are a hot commodity and local governments may be tempted to plug short term financial problems with a sale that has implications for decades – long after those elected officials have left office. 

They Chose iTV-3

The open access (FTTH) network, one of the few last-mile projects awarded funding during the first round of the American Recovery and Reinvestment Act (ARRA), cost $26 million to deploy. The network offered affordable access to residents - as low as $19.99 per month. At first, UC2B operated the network, but the organization later sought a private partner to manage and provide services. In 2014, UC2B chose iTV-3, Inc. as a partner to offer triple-play and to expand the network.

Urban Renewal In Bozeman: Fiber Required!

Bozeman, Montana, continues to move forward toward a future of fiber optics connectivity. Last we checked in, the community had formed a nonprofit, Bozeman Fiber, to own and operate the community network, had started to secure private funding, and were well on their way to their end goal.

City leaders have now approved an update to the Downtown Bozeman Urban Renewal Plan to allow Tax Increment Financing (TIF) as a way to fund the project. This is an important step to ensure that the fiber infrastructure project maintains a sustainable funding source.

Amending the Plan

Ten years ago the city adopted an ordinance creating the Urban Renewal Plan and the TIF districts. The plan uses 9 principles to guide the development and growth of the community. City leaders approved amendments to the ordinance this past December to better prioritize the current needs of businesses and residents. The amendment in question would add the importance of fiber optics to the first principle, “Strengthen Downtown’s Economic Vitality.” Brit Fontenot, Director of Economic Development, described the necessity of the changes (from local news station KTVM):

"A lot of commerce happens downtown. It's not just art galleries and restaurants. We also have things like hardware stores and high-tech companies. In order to keep up with the demand downtown, we need infrastructure that can accommodate and, in this case, it's fiber optics." 

Tax Increment Financing

By amending the ordinance, the city can more easily use TIF funding for the construction costs of the fiber network. The idea behind TIF is that a community can borrow against the future increases in the property tax revenue of the area where the particular project will be developed. We’ve reported on this funding method before: it has been considered in Sanford, Maine, and Wabash County, Indiana.

The Proposed Network

Two Fiber Networks Collaborate: Aim to Bridge Digital Divide in Georgia

In October, the North Georgia Network (NGN) cooperative announced the formation of a new partnership with Georgia Public Web (GPW), a pairing that will conjoin two large fiber optic networks that together cover most of the State of Georgia. The newly announced partnership will enable the two organizations to more effectively confront their shared mission to improve broadband access across the state. Paul Belk, president and CEO of NGN, expressed his enthusiasm for the new partnership:

GPW is a great company for NGN to work with, as we have similar goals to serve communities challenged with ‘the digital divide.’ The companies are great links to each other because GPW serves most of the state with the exception of NGN’s footprint. Together we create a complete solution.

Two Networks Become One

This partnership connects GPW’s nearly 3,500 mile fiber optic network that stretches across most of the state to NGN’s 1,600 mile network. As Mr. Belk noted, a look at NGN’s network map shows that it covers one of the few remaining service areas in Georgia that GPW’s massive network map does not reach.

What's Next For Southern Tier Network?

With construction of a major community broadband network behind them, local leaders in New York State’s Southern Tier region are now considering the potential for the recently completed dark fiber network.

Since becoming operational in 2014, the Southern Tier Network (STN) is already serving over 100 industrial and government service entities across the region. STN is a not-for-profit, local development corporation that built, owns, and manages the network for the region.

Jack Benjamin, president of economic development organization, Three Rivers Development Corporation, explained the value of the network to the region in a July Star Gazette article:

This backbone fiber that we've got here is a huge benefit for us going forward. As this technology piece continues to be even more important in the future, because it's going to be changing all the time, we will have the base here that allows us to change with the marketplace. Part of our thought process here is we want to keep what we've got in terms of businesses and provide the infrastructure that allows them to stay here and be competitive.

Building Out for the Future

When we wrote about the STN in 2011, the planned backbone of the network included a 235-mile fiber-optic ring stretching across Steuben, Schuyler, and Chemung counties. Glass producer Corning paid for $10 million of the initial $12.2 million cost to deploy with the remaining balance paid for by the three counties where the network is located. The STN is now 260 miles total, including strands that run to city centers and select business areas in the tri-county area.

Member Owned Networks Collaborate for Rural Georgia Libraries

A member-owned nonprofit network and a telecommunications cooperative are helping seven regional libraries in mountainous northeast Georgia improve services for patrons with fast, affordable, reliable connectivity.

Collaboration for Community

The North Georgia Network Cooperative (NGN), in partnership with member-owned Georgia Public Web (GPW), recently launched 100 Megabit per second (Mbps) symmetrical broadband access speeds in seven library facilities in the Northeast Georgia Regional Library system (NEGRLS). Upgrades in some of the locations were significant. At the Helen library campus, the facility switched from a 6 Mbps download DSL connection to the new service.

The new initiative also enables the complementary “NGN Connect” service which includes hosted Wi-Fi service and a VoIP telephone system at each location. The upgrade extends from the cooperative's role in the Education Exchange, Georgia's only regional 10 Gigabit per second (Gbps) private cloud for exclusive use by school systems launched last September.

Helping Rural Georgians Help Themselves

Donna Unger, director of member services for NGN, explained NGN’s mission for the project:

I've often heard libraries build communities, it's very fitting that we are here today celebrating the new 100 Mbps connection to the Northeast Georgia Regional Library System provided by NGN Connect. This is what we're about, NGN's foundation was built upon the communities in which we serve. It's becoming more critical for libraries, government, education and businesses alike to have reliable and affordable bandwidth to meet the daily demands of the ever-changing dynamics of today's digital world.

NEGRLS Director Delana L. Knight highlighted the initiative’s benefits:

Offering free access to this important resource is another way that our local public libraries are empowering our communities by providing support for job seekers, students, as well as almost limitless educational and entertainment opportunities for all citizens.

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

Nonprofit Bozeman Fiber Secures Funding From Eight Local Banks

Good news from Montana! Bozeman Fiber has secured funding to begin construction of a 23-mile open access community fiber network. Through an impressive partnership among eight local banks, Bozeman Fiber secured $3.85 million.  

First Interstate Bank, Rocky Mountain Bank, Big Sky Western Bank, Opportunity Bank, U.S. Bank, American Bank, First Montana Bank and Bank of Bozeman all came together to support the fledgling network. During a press conference, First Interstate Bank President Bruce Parker described how this level of collaboration was possible. He initially approached twelve banks in April about the project. Now, six months later, eight banks have committed to providing funds. Parker expressed a high level of confidence for the network’s impact:

The project really speaks for itself in terms of what this infrastructure will do for the Bozeman community. 

Bozeman Fiber is itself a remarkable collaboration between public and private sector interests. The city of Bozeman will not manage the network themselves. Instead, the City Commission voted to form a separate nonprofit entity to direct the project. In order to consider the many diverse needs of Bozeman from the economic to the educational, the board of this newly formed nonprofit features seven members from the public and private sector. The end result is this unique public-private partnership. 

A purpose for the fiber network is economic development, in part by providing affordable fiber access to small businesses and startups. The press conference took place at the headquarters of Elixiter, an online marketing company that has grown rapidly in the past four years. The founder, Andrew Hall explained how Bozeman Fiber will benefit companies like Elixiter:

Video on OpenCape: How Cape Cod Created a Fiber Network

Almost ten years ago, Dan Gallagher, a technology director at Cape Cod Community College, could not get the bandwidth the college needed from incumbent service providers. After communicating with others in the areas, it soon became clear that a number of others shared the same experience.

“We asked anyone who thinks this is a problem for their business or entity here on the cape to come to cape cod community college to talk about it and a hundred people showed up.” - Dan Gallagher in eSTEAMers

The community formed non-profit OpenCape, and created a 350 mile fiber optic network and a colocation data center with $40 million in combined BTOP grants, state grants, and private funding. Completed in late 2012, the project proved to be well-worth the wait. Three large entities almost immediately became customers on the network: the Joint Base, the Woods Hole Oceanographic Institute, and Hydroid, Inc, a private company.

Now the senior consultant for OpenCape, Dan Gallagher describes the project in depth in this episode of eSTEAMers by Cape Cod Community Media Center.

More Details on the Northwest Open Access Network - Community Broadband Bits Episode 164

Just a few short weeks ago, we interviewed Dave Spencer, the Chief Operating Officer for the Northwest Open Access Network (NoaNet) in Washington. We offered a good overview, but got some requests for more details so Dave returns this week for a more focused discussion in episode 164. 

We discuss the specific services that are available and how the retail service providers access them as well as NoaNet's enlightening approach to peering so its service providers have the benefits of low cost, high quality Netflix videos, as an example. We also discuss the legal status of NoaNet as a nonprofit municipal organization. Finally, we discuss the other services that NoaNet makes available and how some of the fees are structured. 

This show is 23 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

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

Biloxi and Mississippi Gulf Coast Towns Pursuing Fiber Initiative

Community leaders in the city of Biloxi want to expand massive water and sewer infrastructure improvements to include broadband infrastructure. The City Attorney Gerald Blessey recently addressed members from the Leadership Gulf Coast group and during the speech he shared the idea to spread fiber throughout Biloxi.

Mayor FoFo Gilich has already spoken with the Governor who, reports WXXV 25, is interested in the idea. Streets in town are being excavated for the water and sewer project and Gilich wants to use this opportunity to install conduit and fiber.

Biloxi recently settled a lawsuit for just under $5 million with British Petrolium (BP) for economic losses arising from the Deepwater Horizon disaster in 2010. Community leaders consider fiber a strong investment to help the area recover.

“And not only is it going to be economic development, but it’s going to be quality of life. Our school system needs this. The medical system needs this. The casino industry needs this,” said [Vincent Creel, city of Biloxi Public Affairs Manager]. 

The Biloxi plan may be happening in coordination with a larger initiative to bring fiber to the coastal area. The Mississippi Gulf Coast Fiber Ring would link 12 cities along the southern coast; each community would determine their own level of service.

The Sun Herald reports that Governor Phil Bryant has offered an additional $15 million in BP state settlement funds to deploy fiber. While any network is still in the idea stage, the plan will likely involve establishing a nonprofit organization to own and operate the fiber ring.

The Coast counties need the economic development a fiber network could bring. According to the Sun Herald:

Since Hurricane Katrina, the recession and oil spill, the three Coast counties are down 2,700 jobs compared to the pre-recession numbers of 2008, and down 5,600 jobs compared to pre-Hurricane Katrina in 2005, [Blessey] said.