Tag: "economic development"

Posted March 15, 2013 by lgonzalez

As we monitored Georgia's HB 282, a bill to limit the capacity of local governments to invest in Internet networks that spur economic development, we learned of many existing networks that have helped communities to thrive.

Brian Thompson, Director of Electric and Telecommunications in Monroe took some time to tell us a little about their city network.  Located in the north central section of Georgia, with a population of 13,000, the network now offers triple play services to residents and businesses. Its network started in the 1970s with a municipal cable tv network. Today, the network is a hybrid with fiber having been added as an expansion to its cable network.

Monroe's investment in its fiber began as a way to improve connections for education. The Walton County School District could not find a private provider willing to collaborate on an affordable network between school facilities. The city took on the challenge and built a point-to-point network which the School District paid for in 10 years. In the mean time, the city expanded its network in other areas. Now, the Walton County Schools have gig service between facilities and to the Internet. The District pays only $500 per month for a service that would cost five times more from a private provider.

Thompson also confirmed what we hear from other communities with publicly owned networks - prices for business and residential services are very competitive and service is superior. He notes that customers often express appreciation for local representatives, rather than dealing with a huge bureaucracy like those at Verizon or AT&T. New connections can be created in a matter of hours or days instead of weeks.

Residential service for Internet access from MonroeAccess.Net includes affordable basic service (1 Mbps / 256 Kbps) for $21.95 per month. Two faster tiers include $34.95 (6 Mbps / 512 Kbps) and $44.95 (15 Mbps / 1 Mbps). Cable tv rates vary from $15.50 to $62.95 per month and residential phone service starts at $29.95 per month. Thompson notes that, when Monroe...

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Posted March 13, 2013 by lgonzalez

The town of Erie, Colorado, is conducting a residential survey as it considers a community owned network. Erie has about 18,000 residents and straddles Boulder and Weld Counties. 

The concerns facing Erie's community leaders were recently summed up in a John Aguilar article in the Boulder Daily Camera. According to the article, four companies were to be screened to complete a $50,000 feasibility study. The community owned broadband approach has both strong supporters and some doubters in town.

From the article:

Trustee Jonathan Hager, who has spent the last dozen years managing fiber-optic networks for a Westminster-based wholesale electric power supplier, championed the idea for Erie from both a local control perspective and an economic development one.

"If I'm a company and I'm going to relocate here with 100 employees and I need 100 megabits per second of speed and the town can provide that, I think that would be something I would look at," Hager said. "If we can make Erie stand out as a good place to live because we offer broadband, that puts us in a good position."

Internet access, he said, has become so ubiquitous and necessary that it could be seen as just another municipally provided utility, like water and electrical service.

"We can provide it ourselves and cut out the middle man," Hager said.

Those who are not sold on the idea of funding a study, express resignation at entering a challenging industry:

"I'm very sensitive to the speed of technology's progression," Mayor Joe Wilson said. "By the time we cut the ribbon on this technology, it's old news."

Wilson also voiced concerns about whether it is government's proper role to be providing broadband Internet service or whether that is better left up to the private sector. He said there hasn't been an outcry from residents to pursue such a service.

Clipboard for survey

The completion of a residential survey can clarify how the community feels about local broadband connectivity and help leaders decide how to move forward. Surveys are a common tool as part of feasibility studies, but in our experience the...

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Posted February 28, 2013 by lgonzalez

We recently learned that Tapes Again, a company that specializes in media reproduction and packaging, is moving to Lafayette, Louisiana, from Boulder, Colorado. The company is leaving its 20 year home to take advantage of LUSFiber's incredible network. According to a Business Brief from TheAdvertiser.com:

Tapes Again, a company started in Boulder, Colo., more than 20 years ago is moving to Lafayette next month. The decision to move is attributed to the bandwidth capacity available in Lafayette through LUS Fiber, according to a news release.

The company's clients include musicians and others that have a need for media reproduction and packaging. Much of the company's interactions are through the internet, so the time that it takes to upload and download large files has a direct impact on daily production schedules.

While the presence of a high-speed network is often citied as one contributing factor enitcing businesses to move, less often do we see connectivity as the sole reason. Tapes Again is also changing its name to Lafayette Media Services.

Special thanks to the Lafayette Pro Fiber Blog for sharing this story.

Posted February 26, 2013 by christopher

Morristown, Tennessee, is one of very few communities where anyone in town can immediately get a gigabit delivered to their home and business. General Manager and CEO Jody Wigington of the municipal electric utility, Morristown Utility Systems, joins me to discuss why they built their network and how it is has benefited the community.

The network has also attracted businesses that otherwise might not consider the community for an investment. Competing providers have kept their prices lower than they do in communities with less competition, a tremendous benefit. MUS Fiber keeps more than $3 million in the community each year. Just think of that -- distributing $3 million among the residents of a community each year. That is real money that helps boost the local businesses.

We also talk about the origin of the system, how it has benefited the electric utility, and advice for other communities that are considering their own network investments. Read our additional coverage of MUS Fiber.

Read the transcript from this conversation 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 22 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to D. Charles Speer & the Helix for the music, licensed using Creative Commons.

Posted February 26, 2013 by lgonzalez

As the Georgia legislature considers HB 282, a bill that will restrict local governments from investing in telecommunications networks, we are continuing coverage of the communities that will be harmed by passage of the legislation.

Should the restrictions become law, existing networks will not be able to expand. No expansion means fewer opportunities to reap the benefits that flow naturally from community networks. While this means few residents will receive access in places like Thomasville and Moultrie, it also means fewer businesses will receive access in places where networks exclusively serve commercial customers and government offices. 

LaGrange's IT Director, Alan Slaughenhaupt, told us a little about its municipal network that began in 1996. The community decided to build its own network when no private provider would. The first goal was to get the K-12 schools connected. Bonds funded the network build out and were paid off within five years. At the time, the city partnered with ISN (Later Earthlink) to get the schools connected. LaGrange now partners with Charter Communications to bring connectivity to students.

The LaGrange network now connects hospitals, most city, county, and state government facilities, and provides connectivity for businesses.  Alan describes how a T1 connection cost local businesses $2,300 per month in 1996. Now, thanks to competition created by the community owned network, local businesses can pay just $100 for a connection with better capacity. The municipal network serves about 400 commercial customers.

Kia Logo

Alan explained that the automaker Kia moved a manufacturing facility near LaGrange in 2009 that used Just-In-Time inventory control. It needed a high-speed connection between the main plant and suppliers that LaGrange could deliver.

The move created 2,500 new jobs at the factory, each paying between $14.90 and $23.50 per hour. Along with the positions in the factory, came 3,000 auto-related jobs with suppliers located near the facility. Today, Kia has moved its main manufacturing to a different location and a different network, but its suppliers...

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Posted February 25, 2013 by lgonzalez

Recently on Gigabit Nation, host Craig Settles visited with Mayor Max Beverly from Thomasville, Georgia. As our readers know, the Georgia General Assembly is again considering a bill to limit municipal efforts to bring connectivity to local residents and businesses. That bill is currently scheduled to be heard on Tuesday afternoon, 2/26, but many people have already expressed their anger at it in Facebook comments on the bill page.

HB 282 sets a very low bar for what is considered "served" - 1.5 Mbps - and prohibits municipal networks from serving those areas while also imposing a new heavy cost on investing in unserved areas. 

Mayor Beverly discusses how he and other Georgia community leaders are fighting HB 282 through education. Speaking from first-hand experience, he finds that elected officials often turn from support to opposition when they hear about the incredible success of Thomasville. 

Mayor Beverly finds himself sharing the story of Thomasville's victories that are all tied with the network, created in 1999. In Thomasville:

  • direct profits from the telecommunications utility have eliminated city taxes - police, fire, and other city services are funded through the $2 million+ contributed to the general fund
  • over 500,000 people in south Georgia have received state-of-the-art healthcare services which could not have been delivered without the incredible capacity of the network over a multi-county area
  • over 6,000 jobs (including many in the hospital and its clinics) have come to Thomasville through employers that would not have been able to locate there prior to the services offered through the network
  • about 70 schools over a 10 county region receive network services that Mayor Beverly describes as a "game changer" in educational opportunity

Settles and Mayor Beverly also spent time on what makes Thomasville such a success. The Mayor attributes the community's entrepreneurial approach and their unsurpassed customer relationships. The network and its staff are...

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Posted February 24, 2013 by lgonzalez

We recently came across a news report from Knoxville's WBIR.

The video touches on how the city has gone from a town that used to rely on the choo-choo to a metropolitan wonder that flies over fiber optic cables. Walter Cronkite called Chattanooga the "dirtiest city in America" but the network is transforming it into a technology capitol. Reporter Eleanor Beck focuses on the network's many customers and how they use their connections. Among those customers are an increasing number of businesses who seek the 1 gig service.

Beck spoke with Jack Studer, one of the founders of Lamp Post Group, a downtown incubator. Studer raved about the 1 gig network as a selling point to new businesses. Chattanooga's investment continues to fuel economic development and bring fresh entrepreneurs to town.

The story is a little under four minutes.

Posted February 23, 2013 by lgonzalez

In Cuyahoga County, OneCommunity is leading the effort of upgrade the County's networking ability. With a special focus on improving pubic safety, the project is estimated to save the county $10 million over the next 5 years. From the OneCommunity blog:

The project provides high-bandwidth connectivity and secure video conferencing to more than 60 county offices and public safety locations; will provide wireless high speed Internet to the Justice Center, Courthouse, and Administration Building; and will equip County employees with mobile wireless access.

In addition, the Cuyahoga Regional Information Services (CRIS) emergency system is now available in public safety vehicles, enabling law enforcement officers to pull up criminal records while out in the community.  Cuyahoga Community College benefits from this public safety broadband connection as emergency personnel can use CRIS to help coordinate response efforts.

In Mayfield Village, a new network is being installed by OneCommunity in a city-owned office and industrial area. Mayfield Village anticipates this new resource and its high capacity will bring new businesses to its facility on Beta Drive.

Mayfield Village Planning Development describes the service:

The Mayfield Village fiber optic network is a new facet of our Beta Drive commercial district. The network is intended by the Village to save our businesses substantial amounts of money on their internet and other IT costs. Mayfield Village not only partnered with regional dark fiber organization OneCommunity to install the fiber, but the Village and OneCommunity have teamed up to offer very competitive internet service prices to companies wishing to connect to the network.

Posted February 20, 2013 by lgonzalez

In 2011, MSNBC reported on Thomasville, Georgia. The small community beat the odds to nourish a vibrant downtown. At the time, local independent businesses in the U.S. disappeared as quaint main streets lost mom and pop ventures to the economy.

Such was not the case with Thomasville. MSNBC's report, a little over 2 minutes and embedded below, looked at how Thomasville had managed to created a thriving downtown economy filled with independent businesses. Thomasville leaders partnered with the private sector, concentrated on preserving its historic identity, and built a next generation fiber optic network. Thomasville's ability to merge yesterday and today worked.

Thomasville began construction of its own fiber optic network in 1995 to serve schools, libraries, businesses, and hospitals. At the time, the private sector was not interested in serving the area. Several other communities in the region began similar projects and, in 1997, those communities joined together to form the South Georgia Governmental Services Authority (SGGSA). In 1998, Cairo, Camilla, Moultrie and Thomasville created Community Network Services (CNS) through the Authority in order to offer services to residents. Since then, the collaboration has expanded from telecommunications services only to also providing high-speed Internet and television.

As Georgia mulls over HB282, this video shows how a next generation network is vital in similar communities. The legislation will strip local authorities of the ability to build their own next-generation networks as long as the private sector is providing some below-basic level of service. If the bill passes, many Georgia communities that need the benefits of a local network will never get the opportunity. From the CNS website:

The best part about CNS is that it is funded locally, by the cities which it serves. This means if you are a CNS customer, you are investing in your own communities, not a corporation headquartered across the country.

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Posted February 17, 2013 by lgonzalez

Susan Crawford sat down with Bill Moyers to talk about Internet access in America. The two touch on net neutrality, the digital divide, and how access is now a critical component to our economic development.

In the words of Bill Moyers, "This is pretty strong stuff." Bill and Susan also talk about how we have come to this point through lack of competition advanced by telecommunications companies' lobbying and legislative ennui.

They spend some time looking at Lafayette, Louisiana, one of the cities that we covered in our 2012 case study, Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks.  The two also dig into ways policy change can improve access and efforts we can all make to heighten awareness of the issue. This is a great discussion for any one, regardless of their place on the Internet access learning curve.

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