Tag: "economic development"

Posted February 12, 2013 by christopher

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The Georgia General Assembly is considering another bill to limit investment in telecommunications networks in the state, an odd proposition when just about everyone agrees states need as much investment in these networks as possible.

House Bill 282, the "Municipal Broadband Investment Act," purports to limit the ability of public entities to invest only in "unserved" areas. But as usual, the devil is in the details. This bill will be discussed on Wednesday, Feb 13 at 4:00 EST in the Telecom Subcommittee of the House Energy, Utilities & Telecommunications committee (Committee roster here).

We strongly encourage Georgians to write to members of this committee and explain that these decisions should be made at the local level, not by the state. Communities each face unique circumstances regarding the need for telecommunications investment and they can be trusted to make informed decisions after weighing the available evidence.

Many local governments have invested in modest networks to connect local businesses, but such investments will be prohibited in Georgia if residents in the area are already served with a connection of at least 1.5 Mbps in one direction. This baseline is far lower standard than the FCC's definition of "basic" broadband: 4 Mbps down and 1 Mbps up. Setting a low baseline hurts communities but rewards carriers that have refused to invest in modern networks.

This bill poses a dramatic threat to the ability of local governments to encourage economic development and provide the environment necessary for the private sector to create the jobs every community needs. See our fact sheet on how public broadband investments have created jobs.

Supporters of this bill will claim that it only restricts investment to areas that are most needing it. This argument is not only flat wrong, it comes mostly from those most interested in preventing, not encouraging, investment.

The bill will effectively prohibit any community investment because the cost of collecting the data and making the case that areas are unserved...

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Posted February 4, 2013 by lgonzalez

Franklin, Kentucky expects to see more positive economic growth when it launches its new fiber optic network. According to an article in the Bowling Green Daily News, the south central community is ready for the upgrade:

“We are super excited about it,” said James McCaslin, associate vice president of academic affairs and director of Franklin-Simpson Center. “It will be like going from 1970 to 2013 with the flip of a switch.”

We contacted Tammie Carey, Fiber Services Manager for Franklin Municipal FiberNET, and she was good enough to answer some questions. She told us that 32 miles of aerial fiber are strung in three loops around the city to ensure redundancy. She expects the network to launch near the end of January for local businesses, though the utility has already been serving one business as detailed below.

The decision was based solely on a desire to boost economic development, a sentiment echoed in the Daily News article:

It’s hard to recruit industry now if you don’t have (fiber optics),” said Dennis Griffin, industrial recruiter for Simpson County. “A lot of industries, particularly in this area, are satellite plants connected to their corporate offices, somewhere else in the United States. They all need to be connected by fiber.

“So if you don’t have that, it’s hard to compete with communities that do,” Griffin said. “Ten years ago, you could get by with T-1 lines – now most industries are just expecting that you have fiber."

Apparently, City officials contacted AT&T and Comcast several years ago and asked them to install fiber to the Franklin industrial parks. When they refused, City Leaders began pondering the possibility of a municipal fiber network. Tammie tells us about the decision in an email:

It was economic based.  Our Industrial Authority was working with several industries regarding possibly locating in our community.  A need they had was large amounts of reliable bandwidth.  The existing companies would not build fiber to the industrial park locations.  The city saw this as a major hindrance with our economic development recruitment and made the decision to invest in a system....

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Posted January 25, 2013 by lgonzalez

“The electric co-ops represent possibly the greatest potential for expansion of really good infrastructure in rural America,” [Todd] Pealock said, explaining how it’s a natural fit for co-ops to be infrastructure providers.

“It’s very synergistic for our linemen to hang cable, to lift the hardware up,” Pealock said. “The splicing is very natural for them.”

Todd Pealock is CEO of Habersham Electric Membership Corporation (EMC), and chairman of the board of North Georgia Network. In a recent article in the Electric Co-op Today news page, Pealock described how electric coops have a natural affinity for bringing broadband to rural America. We brought you a similar news story from Missouri earlier this year. Electric coops  are partnering with the public sector in a range of projects across the country.

The North Georgia Network project is funded primarily with a $42 million stimulus grant and state grants contributed to building the 260-mile backbone. Another 800 miles of middle and last mile installation was completed on November 30, 2012.

The project already connects schools, government, hospitals, higher ed, and other community anchor institutions across an eight county area. Over 2,000 homes are connected to the open access network. Businesses also trust their broadband needs to the network, intended to spur economic development in the region. In addition to Habersham EMC, Blue Ridge Mountain EMC is also a partner.

“It’s been a natural magnet of interest to the business community,” Pealock said. “I think they see this as tremendous infrastructure.”

Because they are cooperatives, owned by the customers, these organization are accountable to communities in ways that absentee-owned companies like Windstream, Frontier, and others are not.

Posted January 23, 2013 by lgonzalez

“We want to grow our own new businesses in Indianola, and Simpson College is home to an entire group of potential entrepreneurs who we hope will find support for their efforts here and some day choose to locate their businesses here,” [Jerry Kelly, former Indianola mayor and executive director of the city's development association] said. ‘What we are doing is called ‘economic gardening.’ What grows here will stay here.”

Thanks to the Indianola Municipal Utilities (IMU) next-generation broadband network, the city and the college have fertile soil to nurture that garden. We previously wrote about this FTTH partnership here, explaining that the community owns the infrastructure and a local business provides services over the network.

The partnership between Simpson College, the Indianola Development Association, and IMU is called the Indianola + Simpson College Entrepeneurial Devopment Initiative. The student-business incubator will bring together students, mentors, and existing businesses with the hope that resulting entrepeneurships will sprout and grow in Indianola.

Through the partnership, the incubator will have access to IMU's server platforms, wholesale bandwidth, local marketing and outreach efforts, and customer service activities. 25 students will develop senior Capstone Projects through the initiative. College and city leaders anticipate that number will continue to grow.

Simpson College

The Simpson College News Center also writes that the project will be led by Chris Draper. Draper is associated with Des Moines' Startup City, a technology-based business incubator. Draper is CEO of the first graduate of Startup City, Meidh Tech, which offers property management technology solutions.

“By engaging students in real-world problems, allowing them to own their successes and...

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Posted January 22, 2013 by christopher

Jason Bird is the Electrical Superintendent at the city of Princeton Utilities in Illinois. He joins us for the 30th episode of our Community Broadband Bits Podcast to explain why Princeton built a rather unique network. Princeton has built a fiber network to connect some of the local businesses and uses broadband over power lines (BPL) to provide a low cost option for area residents.

Princeton offers another example of how a community can build and own the infrastructure while partnering with a local company that will provision the services. This approach appeals to many towns that recognize the benefits of ensuring the network is owned by the community but do not want to provide services themselves.

This network helped save hundreds of jobs and has benefited the community in many ways -- just one of which is that they were selected as a site that allowed families to videochat with our troops deployed abroad over the holidays.

Read our coverage of Princeton's network here.

Read the transcript from 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 21 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 download the Mp3 file of this episode directly from here.

Find more episodes in our podcast index.

Thanks to mojo monkeys for the music, licensed using Creative Commons.

Posted January 19, 2013 by ejames

Even as the Internet is changing every aspect of our lives and communities, most Americans are intimidated by confusing jargon and misconceptions about Internet policy. We are developing a series of fact sheets that make these issues understandable to everyone.

We presently have fact sheets, covering broadband, financing networks, wireless Internet, economic development benefits from community owned networks, and the public savings from community owned networks.

If you want to stay up to date with these fact sheets and other developments in community owned networks, subscribe to our one-email-per-week list. Once a week, we send out an update with new stories and resources.

Broadband is Affordable Infrastructure

Local governments spend billions on all sorts of infrastructure every year to advance the public good for their communities. Roads and bridges keep day-to-day activity moving. Investments such as water and sewer infrastructure keep cities clean and livable. Fiber infrastructure is used for a wide range of purposes, including economic development, education, and to keep a city’s administration connected. To get a look at how fiber network infrastructure compares to other public investments, we've developed the Broadband is Affordable Infrastructure fact sheet.

Broadband is Affordable Infrastructure.

Creative Funding Sources For Fiber Infrastructure

As interest in publicly owned broadband network infrastructure increases, local communities seek new ways to fund municipal networks. Revenue bonds, interdepartmental loans, and avoided...

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Posted January 19, 2013 by lgonzalez

If you are a 21st century crafter, you are probably prolific at finding inspiration online. You may be familiar with American Crafts of Orem for ideas or products. The company, founded in 1994, is now a customer of UTOPIA and reports significant bandwidth improvement after the switch from old T-1 connections. From the UTPOIA blog:

With a robust e-commerce presence, American Crafts has to rely on its network. According to Kris Barlow, IT Manager, before switching to UTOPIA, the firm used a single T-1 connection, along with two additional T-1 connections to connect a remote warehouse in Provo. “Our Provo location was using an iProvo connection at the time. By switching to UTOPIA, we could use a single fiber connection to our headquarters building which provided much faster Internet speeds—up to 10 Mbps on our service plan, as compared with traditional T-1 speeds.”

Barlow also notes how the switch has allowed the company to consolidate headquarters and warehouse locations. Reliablity has also been a key improvement:

“In the three years that we've had UTOPIA service, I can remember only two or three service interruptions, all of which were resolved within the same day and were not related specifically to our connection,” he says. “Using the UTOPIA network has allowed us to drastically reduce the fee that we pay for Internet service when compared to the T-1 connections we were previously using, all while also drastically increasing the bandwidth of the connection.”

Because UTOPIA is open access, the company could keep the same phone provider, as it is an ISP on the UTOPIA network. The switch was seamless:

“This allowed for us to simply add the UTOPIA service to our current provider’s bill and allowed us to avoid the hassle of establishing a new account with a new provider,” Barlow says.

Posted January 15, 2013 by lgonzalez

We are pleased to announce that an excerpt of our report, Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to A Gigabit and Ubiquitous Wireless Coverage, is now highlighted in the newest Broadband Communities Magazine. The November/December 2012 issue focuses on economic development.

Editors chose our report because it shows how a community can successfully develop a network to address community needs. The result is greater economic development and a range of increased community benefits. In addition to our report, several other articles focus on economic development and come from authors such as Reed Hundt and Blair Levin, Doug Adams and Michael Curri, Ken Demlow, Craig Settles, and David Moore.

You can access the digital edition online and see the entire issue table of contents at Broadband Communities Magazine Online.

You can still download the full report from the ILSR website and check out some of our other resources including case studies, fact sheets, video and audio.

Posted January 11, 2013 by lgonzalez

Cottage Grove, Oregon, is on the cusp of adding up to 250 new jobs with the aid of its fiber optic network.  A recent Register-Guard.com article by Serena Markstrom details the potential project between the City and First Call Resolution. The company is interested in expanding to a Cottage Grove shopping strip. While the space is the right size and location, it does not have the needed telecommunications connections for a high-capacity call center.

The City is looking into expanding its fiber optic network to accommodate First Call. City leaders will seek a state economic development grant and recently approved funding for an engineer's construction plan to lay the cable to get an accurate cost estimate. Initial estimates are $450,000 for an entire underground installation. Council members have already suggested that the expansion makes sense, regardless of whether or not First Call becomes a tenant. The 7 miles of fiber are primarily located in the southern part of the city while the shopping strip is in the north.

The City Manager Richard Meyers hopes the added infrastructure will bring more than just First Call Resolution to the shopping strip. From the article:

The commercial strip being considered for the call center has much empty space. “The whole plaza needs help,” Meyers said. “We need to do something to see if we can get other things in there.”

If more businesses moved in and started leasing the cable, the city could collect money — just like any utility — from those who tapped into the network and use those funds to continue to expand fiber optic cable around town, Meyers said.

“With our fiber and what we’ve developed, we’re within 4,000 feet of connecting” to the Village Center, he said. “That’s how close we are,” he said. “It’s not a huge distance. We can do it. (It would be a) piece of cake to connect our system to his network and so all of [First Call Resolution's] call centers would be on the same network.”

The city network also offers a Wi-Fi network throughout 80% of the city. Rates vary, ranging from 10 free hours each month at 128 Kbps to 7 Mbps unlimited with tech support for $50 per month. According to the CGWiFi website:

...

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Posted January 4, 2013 by lgonzalez

Kudos to Richard Downey, Village Administrator for the Village of Kronenwetter in Wisconsin. Mr. Downey reminded us that we have yet to write about the fiber network in Princeton, Illinois. While we have noted Princeton in our list of economic development successes, we haven't delved into the network that serves the city, the schools, and the business community.

Princeton is home to about 7,500 people and is located in the north central region of the state in Bureau County. They have their own electric, water, and wastewater utilities and began offering broadband connectivity in late 2003. We spoke with Jason Bird, Superintendent of Princeton Electric Department, who shared the network's story with us.

In 2003, the city’s largest electric and water consumer was also the largest employer. At the time, incumbents served the community with T1 connections. The manufacturing company moved to Mexico, taking 450 jobs with it. The community was stunned.

Approximately 6 months later, Ingersoll Rand, the community's second largest employer with about 300 jobs, also considered moving away from Princeton. While lack of needed broadband was not the only reason, the Ingersoll Rand CEO let community leaders know that it was one of the influential factors. The company liked being in Princeton, and the city would have been on the top of the location list if not for the sad state of connectivity. At the time, the only commercial option was unreliable T1 connections for $1,500 - $2,000 per month. If Ingersoll Rand moved, the community would experience job losses equal to 10% of the population. Community leaders needed to act and do it quickly.

To retain Ingersoll Rand, the City Council decided unanimously to go into the telecommunications industry. They issued an RFP and encouraged incumbents AT&T and Comcast to bid; neither were interested. (Interestingly, once Princeton let it be known that they were going to build the network without them, there were some local upgrades from both companies.)

IVNet, located in Peru, Illinois, won the bid to manage and provide retail...

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