Tag: "economic development"

Posted November 22, 2013 by dcollado

Danville's open access network has fueled economic development in the Virginia community's resurgence after tobacco’s demise and job losses from a once thriving textile industry put a hurt on the local economy. Danville’s technological prowess is now attracting companies from China, in addition to other economic development gains we covered previously.

Jason Grey, nDanville’s Network Manager, told us that Zeyuan Flooring International, a Chinese wood floor manufacturer, is locating its first U.S. facility in Danville. Zeyuan CEO, Sindy Cui, said the company initially thought about locating in Los Angeles, but was eventually swayed by the hospitality and resources available in Danville. Zeyuan plans to invest $15-million in a 40,000 square foot manufacturing plant that will employ 100 people within three years.

Zeyuan is the second Chinese company to locate in Danville in the past year. Last September, Chinese furniture assembler GOK International announced it will invest $12.5-million to establish its U.S. headquarters and showroom in Danville. GOK International plans to employ 300 people within three years.

Not coincidentally, both companies are locating in Cane Creek Centre, one of Danville’s five industrial parks connected to nDanville’s fiber network. Serving businesses was a high priority in building the network. As the first fully automated open-access network in the country, nDanville passes more than 1,000 businesses including every parcel in each of the industrial parks. Many businesses take 100-Mbps fiber connections, some take advantage of 1-Gbps connections. 

These recent additions to Danville’s thriving commercial sector are just the latest in a steady string of economic development successes for the area that include the likes of Goodyear and IKEA. And it’s not just manufacturing. 

Danville is home to one of the first non-government sponsored next generation Cray supercomputers. The Cray XMT2 supercomputer is part of the Noblis Center for...

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Posted November 18, 2013 by lgonzalez

Dublin, home to 16,000 people, is also home to a network that snakes through the city and parts of Laurens County. In addition to a natural gas utility that serves the region, the city provides connectivity to two area school districts and local businesses. We contacted Guy Mullis, IT Director for the City of Dublin.

The fiber optic network was installed in 1999 to provide connectivity for the two separate school systems in the community, Laurens County Schools and Dublin City Schools. The school districts needed better connectivity because dial-up was the only option at the time. The school districts could not afford the cost of installing their own fiber networks.

The City used its own funds to construct a network that is 85% aerial. Mullis was not an employee of the City at the time, but he estimates the network cost approximately $1.5 - $2 million. He also believes the funds were a combination of capital improvement funds and economic development funds. From the start, the plan has been to serve the schools but also to provide connectivity to spur economic development.

Eight city school facilities and six county school facilities use the network today for connections between buildings. Dublin City Schools have 10 Gbps speeds between facilities; Laurens County Schools have equipment in place for 1 Gbps connections between schools. Both school districts use the Georgia Technology Authority for Internet access.

Once the network was in place, AT&T and Charter Communications began building in Dublin. Mullis says he does not believe AT&T and Charter would have invested in Dublin in 2000 if not for the presence of the community network. He notes that AT&T begin installing DSL in areas of town within a year of the fiber network deployment. 

During the first few years, the City connected its network to the Internet with a 45 Mbps AT&T connection but needs quickly outgrew capacity. The City looked for alternate ways to connect to the Internet. City staff discovered that a major dark fiber backbone ran through Dublin from Atlanta to Jacksonville, Florida. The company that owned the line (the company has since been purchsed by Level 3) allowed Dublin to splice into the dark fiber to connect to Atlanta. The opportunity allowed Dublin to buy...

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Posted November 1, 2013 by lgonzalez

Centennial is asking its voters to reclaim local authority this election. City leaders want to make better use of an existing fiber optic system but a 2005 Colorado state law pushed by a corporate telephone company precludes it. If the citizenry reclaims its local authority through referendum, the City can take the next step toward providing indirect services via its fiber network. 

We contacted City Council Member Ken Lucas to find out more about the ballot question. Centennial is a relatively young city that was incorporated in 2001 and has about 100,000 residents. Lucas told us that this ballot question is not only about using their fiber resources. The community of Centennial considers this a critical step toward maintaining a business friendly environment.

The National Transportation Safety Board (NTSB) provided grants to install the existing network for traffic control, security cameras, and public works monitoring. The City contributed only approximately $100,000 to the network, valued at $5 million. Traffic and public safety now use only two strands of the network that runs through the center of town. City leaders want to use the remaining 94 strands to improve access in the community. To see a map of the fiber and open conduit in Centennial, check out the City's PDF.

Approximately 94% of Centennial businesses and 85% of households are within one mile of the fiber backbone. Residents and business owners can now choose between Comcast or CenturyLink and rates are high. Lucas tells of one business owner who asked Comcast to provide 1 Gbps service to his building. Comcast offered to lease a line to the business at a high rate, but the customer would still have to pay $20,000 for installation.

Community leaders want to encourage more competition and, if they eventually develop the fiber, will explore open access models. Centennial knows their authority to invest in fiber infrastructure will influence economic development. City...

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Posted October 29, 2013 by christopher

Greenlight, a muni FTTH network in eastern North Carolina's city of Wilson, is proving to be a powerful tool in attracting new residents and businesses. We spoke with General Manager Will Aycock about the network and how it has benefited the community.

Our interview covers a number of subjects, including how the network is attracting new residents to the area and helping businesses to be more competitive in part by providing an incredibly reliable product - more than five years without an outage to its major commercial subscribers.

The schools in the entire County are connected, allowing them to take advantage of all major technological innovations. First responders, especially fire fighters, are better able to train and respond to incidents because of benefits from the fiber network. All this and more in the audio below.

We previously published a case study of Wilson's Greenlight and also wrote about how Time Warner Cable responded to the network by lobbying for a law to make sure no other community could copy Wilson. And last year, we interviewed Catharine Rice about that law in episode 5 of this series.

Read the transcript of 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 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.

Find more episodes in our podcast index.

Thanks to...

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Posted October 10, 2013 by christopher

Kevin Litten, of the Baltimore Business Journal has published a good discussion of why Baltimore is considering a public investment to expand the City's fiber network.

Councilman William H. Cole IV still bristles when he talks about the absence of FiOS in the city, a decision industry observers say has played out in other urban areas where the suburbs outrank the city in wealth. “When you look at a map of Maryland and what counties they chose to skip, Baltimore stands out, and it stands out for all the wrong reasons,” Cole said. “We need to explore every option we have to remain competitive. You can’t talk about being a great city for biotech and trying to attract startups and continue to expand the [University of Maryland] BioPark and not continue to invest.”

Litten also explored how Comcast is damaging area businesses by abusing its position as the sole citywide provider of fast Internet access (Verizon does poor DSL):

At No Inc., a 10-employee tech firm that develops software for commercial real estate, Chief Technology Officer Alex Markson said that Comcast wanted to charge $20,000 to build infrastructure to the company’s small office building on Water Street downtown.

The company had to settle for an affordable, but vastly inferior wireless connection from Clear using WiMAX. Keep this in mind the next time you hear that wireless is providing an alternative to the cable and telephone monopolies.

But that setup, which includes a barbecue grill-like satellite dish pointed out the window of the company’s offices, isn’t ideal. Productivity plummets when employees have to wait for long downloads. When using technology such as GoToMeeting to make sales pitches, “you’re not crushing it because you look like you’re slow,” Markson said.

And finally, Litten quotes some guy named Christopher Mitchell that seems to know what he is talking about:

“What Baltimore wants to do is alter the equation by making it less expensive for either a private competitor to compete or build enough assets to compete on its own,” Mitchell said. “What they need to do is figure out how they can get more fiber into more places to lease to potential companies.”

A Baltimore blogger has...

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Posted September 26, 2013 by dcollado

When Indianola decided to invest in a municipal fiber network, the decision was part of a larger economic development plan that included a startup incubator in partnership with Simpson College - which we wrote about earlier this year. Located near Des Moines in Iowa, Indianola is one of a few communities that has partnered with a local trusted provider, MCG in this case, that offers services over a publicly owned network.

According to Chris Draper, Director of Indianola + Simpson College Entrepreneurial Development Initiative (EMERGE), his program would not exist if the city did not decide to invest in economic development and municipal broadband as a package deal. Less than a year after launch, EMERGE has nine active startups, some of which are already seeing significant growth and seizing new opportunities. Collective Labor (collectivelabor.com) has created an online platform to facilitate collective bargaining negotiations.

By centralizing the process of calculating proposals and editing contract terms, Collective Labor decreases negotiation time, reduces errors and ultimately makes the negotiation process more efficient. In Iowa alone, Collective Labor believes it can save schools upwards of $35-million a year by streamlining their collective bargaining efforts, freeing up budgets to hire more teachers and improve schools.

Even more promising, the platform can handle all collective bargaining scenarios from teachers to municipal workers, and trade unions to public safety professionals. The demand for Collective Labor’s service is proving solid. Less than a year after launching (in February), Collective Labor has signed up five school districts and has thirteen contractor requests pending. In fact, Collective Labor President, David Gaus, just announced on Twitter that a Colorado firm has agreed to invest cash and expertise that will result in a new office and additional staff to support a nationwide expansion. Not bad for a startup that’s barely seven months old.

...

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Posted September 17, 2013 by christopher

The small town of Windom in southwest Minnesota has long been one of the smallest FTTH networks in the nation. I have long wanted to bring WindomNet General Manager Dan Olsen on our show because it has some of the best anecdotes in the world of community owned networks. We finally got him!

To understand WindomNet, you should know that it has fewer households than what many of us consider to be the minimum threshold for a viable triple-play FTTH network. Not only have they made it work, they have attracted numerous employers to town, as our interview discusses. It also kept a local employer located just outside of town in the area after a massive telelphone company operating in Minnesota found itself unable to provide the service that business requested. Tiny Windom ran a fiber out to the business and kept them in the region.

The network has expanded to nearby farm towns with the help of a broadband stimulus award. Even now, after bringing connections to a rural region that the big providers have largely ignored, the big cable and CenturyLink lobbyists that live in the capital in Saint Paul have relentlessly lied about Windom, calling it a failure and presenting skewed figures to suggest the investment had not succeeded.

In our discussion, Dan and I explore the reality of WindomNet and how it is benefiting a much larger region beyond its own borders. Read all of our coverage about Windom here.

Read the transcript for 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 18 minutes long and can be played below on this page or subscribe 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.

...

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Posted September 13, 2013 by lgonzalez

Indiana's Metronet Zing winds its way through South Bend, Mishawaka and St. Joseph County providing dark fiber service to businesses, government and education. The project started as an economic development initiative when community leaders in the area realized that the high cost and lack of high-speed connectivity in the area kept businesses away.

Project Future, the economic development organization serving South Bend, Mishawaka and St. Joseph County until 2012, studied the potential benefits that might flow from better telecommunications in the region. The nonprofit inspired the county Chamber of Commerce, local government, nearby universities, healthcare, and businesses to develop a new nonprofit network model. The 100 mile network offers a dark fiber open access model that encourages competition, keeping prices in check. Nineteen carriers deliver services over the network. Average price for 1 gig service is $1,000 per month.

In the early 2000s, South Bend leaders wanted to take advantage of the regional long-haul fiber that runs directly under South Bend. There was very limited access to fiber connections in the area from providers and rates were high. St. Joseph's County, city government, and the University of Notre Dame needed better, faster, more reliable telecommunications.

A study commissioned by nonprofit Project Future confirmed what community leaders suspected. Education, economic development, healthcare, research and a better quality of life in South Bend depended on the community's access to a dark fiber network. Project Future developed a plan that would involve public investment in an open access dark fiber network. Community leaders joined together to form nonprofit St. Joe Valley Metronet, Inc. in 2004. Metronet's purpose was to build the infrastructure the region so desperately needed. Revenue would be passed back to the community through reasonable rates. 

South Bend and nearby Mishawaka owned fiber networks that ran through conduit to serve the cities' traffic monitoring systems. New fiber, dedicated to the telecommunications network, would be installed in the conduit to reduce the need for excavation. The community did not want to be a...

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Posted September 4, 2013 by lgonzalez

The story has been updated to fix errors. The original story described the project as a partnership but we have since learned it is a project of the Kitsap Public Utility District that is encouraged by the City.

We reported on Poulsbo, Washington, last fall after the community began a wireless pilot project providing a free high-capacity wireless mesh network throughout downtown. Kitsap Public Utility District is running the project, with encouragement from the City. An interview with Poulsbo City Council member Ed Stern filled in more details on this local project.

A wireless mesh pilot project was not the original plan. The public utility district had been investing in a fiber optic network to reduce costs for local government and provide better broadband for schools and hospitals. Stern and other city leaders also recognized that encouraging telecommuting would keep local dollars in the community. Poulsbo is very close to Seattle and city leadership hoped to draw employees from Seattle offices and encourage economic development. They offered a high quality of life and knew better broadband would draw more employers to Poulsbo.

The partners installed a fiber backbone throughout the city and had planned to expand last mile connections in the near future. Poulsbo also codified changes in conduit policy with new ordinances to better manage public rights-of-way. The code requires private providers to first use existing city conduit and the city reserves the right to lease it to them. This policy prevents unnecessary wear and tear and traffic disruption on local streets.

However, the state legislature erected barriers that derailed the full project by revoking PUD authority to offer direct retail services. To this day, public utility districts are required to wholesale access, which rarely creates enough revenue to justify the initial cost of building networks. Community leaders knew that wholesale-only models carry more risk because they split an already tight revenue stream. With the change in state law, the community re-evaluated the fiber network plan. 

Rather than abandon the plan, Poulsbo and the PUD adjusted it to use the existing fiber assets. They created the wireless mesh pilot project that went live in Poulsbo in November 2012....

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Posted August 29, 2013 by dcollado

Located in the northeast corner of Tennessee, Morristown Utility Systems (MUS) offers gigabit broadband throughout a region that covers 30,000 residents and businesses. I recently spoke with MUS General Manager and CEO, Jody Wigington, about FiberNET’s progress and he had much to report, starting with over $5 million in cost savings for local businesses, residents, and the local government itself.

Asked about cost savings to Morristown’s city government, Wigington pointed to $840,000 in total savings from a smart meter program - a combination of lower annual power consumption and operational efficiencies. Another $20,000 in annual savings is due to the county not having to pay out-of-town IT contractors to maintain its network because the required expertise can now be found locally thanks to MUS’s dedicated network specialists.

Morristown businesses and residents are also saving, to the tune of $3.4-million annually thanks to FiberNET’s introduction of lower prices in the local broadband market. That’s $3.4-million, every year, which can be spent locally rather than being siphoned out of the community to corporate shareholders.

In terms of revenue, FiberNET generated $8.6-million during the most recent fiscal year and is projected to generate $8.8-million during the current one. FiberNET's solid financials have translated into increases in MUS’s payments in lieu of taxes (PILOT) to the city, which now amount to $350,000 per year, up from $150,000 in 2010. FiberNET’s strong financial performance resulted in MUS becoming cash flow positive just two years after launch, and net income positive after five years. Both of these key milestones were reached significantly quicker than initially projected.

MUS FiberNET’s impact on economic development is also notable. Oddello Industries, a contract furniture manufacturer that relies on FiberNET for its communications, recently announced a $4-million expansion in Morristown, resulting in 228 new jobs. Oddello CEO, Tom Roberts, cited “reliable utilities” among the reasons for investing in Morristown. This growth is part of a larger trend for Oddello, which has grown its Morristown presence from 35 to 415 employees in just the past year. 

Another sign of FiberNET’s impact on economic development is the recent decision by Molecular...

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