Tag: "economic development"

Posted September 26, 2012 by lgonzalez

On September 11th, we interviewed Todd Murren, Director of SpringNet, for our Community Bradband Bits podcast. Todd told us the story of how travel giant Expedia, chose Springfield, Missouri, as the location for their call center and how SpringNet services them with its high capacity network.

Expedia originally planned on working with a large national carrier to provide connectivity. When it was time to seal the deal, however, promises were broken - the telecommunications company revealed it would not be able to provide the needed bandwidth after all. Expedia almost walked away from Springfield. Thanks to SpringNet, however, and its 350 fiber miles and first class business services, Expedia stayed. SpringNet saved 400 new local jobs.

Todd gave us more examples of how SpringNet has contributed to the local economy as it serves over 200 business clients. In addition to these examples of how SpringNet directly influences the local economy, keep in mind the positive ripple effect. Here a quick list from Todd:

JMark Business Solutions  – a local managed services company that SpringNet has assisted in their rapid growth and success.
 
John Deere Remanufactured  – [SpringNet] participated in attracting of this global company to select Southwest Missouri as the location for a new manufacturing facility.
 
Springfield Remanufacturing Corporation – participated in the expansion plans of this local business at multiple new manufacturing sites.
 
Sunrise Media Partners – participated in the expansion plans of this local call center business.
 
Corporate Technologies Advantage – participated in the expansion plans of this local call center business.
 
Mercy Orthopedic Hospital - participated in the expansion plans of this major regional healthcare provider in the...

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Posted September 23, 2012 by lgonzalez

The Economic Development Conference Series' first event, Community Fiber Networks, is scheduled for November 8 - 9, 2012, in Danville, Virginia. Dates and locations for later events will follow. The series is being produced by Broadband Communities Magazine. Danville is near the border with North Carolina.

Christopher Mitchell and a long list of industry experts will be presenting on a wide range of topics at the Institute for Advanced Learning and Research in Danville.

Leaders in all areas of the Advanced Broadband Network industry will be sharing their findings and expertise. Danville was chosen because it is a true success story. By using their fiber network as a catalyst for economic development, Danville transformed itself. For years it was a struggling textile town but is now a highly desirable destination for businesses and individuals seeking advanced telecommunications services.

Christopher will be talking on Thursday, November 8th, on "Winning Community Initiatives." Friday, November 9th, he will present as part of the panel on "Innovative Financing Methods." The full agenda for the conference is available to help you plan your schedule.

Danville Location in Virginia

From the press release:

THIS IS THE FIRST conference of its kind in this country - an event devoted entirely to the relationship between a community's economic vitality and the presence of advanced broadband networks. Nations around the world have recognized this powerful linkage and responded to it - as have a growing number of communities in the United States.

Each event in this new conference series will be held in a city with an advanced broadband system.

Each event will have an impressive array of speakers whose mission will be to help attendees evaluate the options and opportunities and develop the optimal, affordable solution for their communities.

The first conference is in...

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Posted September 18, 2012 by christopher

Curtis Dean, the Telecommunications Services Coordinator for the Iowa Association of Municipal Utilities, joins us for our 13th Community Broadband Bits podcast. Curtis explains why Iowa has so many municipal utilities and why 28 of them offer some form of telecommunications service.

We talk about why making sure everyone in rural areas has access to affordable, reliable, and fast broadband is good for everyone in the entire country. And Curtis shares his experiences with the publicly owned FTTH network in Spencer.

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 30 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 directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted September 11, 2012 by christopher

The 12th episode of the Community Broadband Bits podcast features an interview with Todd Murren of SpringNet, in Springfield Missouri. SpringNet delivers blazing broadband over Ethernet to businesses in the community. We talk about Missouri's strong restrictions on local authority around broadband and the history of SpringNet.

We also discuss how SpringNet has led to hundreds of new jobs in the community from one single employer, to say nothing of the many others.

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 30 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 directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted September 6, 2012 by lgonzalez

Not long ago, we shared information on MINET, the municipal network in Martinsville, Virginia, that serves schools, municipal facilities, and about 30 local businesses. We noted that businesses are attracted to the area and cite the capabilities of the fiber network as a driving force.

The Martinsville Bulletin now reports that city leaders have been approached by more local businesses interested in saving money by connecting through the network. The Bulletin spoke with City Manager Leon Towarnicki who said "we are essentially maxed out”  in staff and resources. Obviously, economic development through MINET is moving along well. The City Council is now considering the costs and benefits of expanding.

The city is working with CCG Consulting to develop a business plan. CCG will soon begin a business and residential survey and review of the city's current network. The survey and plan will explore the possibility of deploying a fiber-to-the-home network and communication system, but Martinsville will shy away from operating a cable television system. From the article:

Asked if the city would try to provide cable TV service again, City Attorney Eric Monday said, “We tried it. We litigated. We lost. We’re done.”

Martinsville made an attempt to acquire a retail cable television service in 2006, but found itself in a long and expensive court battle. Adelphia had previously provided cable in the area but filed for bankruptcy in 2002 and as a result, failed to honor its franchise agreement. At the time, the city landfill had just closed and the city was looking for other ways to generate revenue. They wanted to purchase the network and tried to block Time Warner Cable and Comcast from doing so. Time Warner Cable wanted to purchase the network and then engage in a like-kind exchange. This technique is a common tool large cable corporations have used to ensure geographic monopolies.

Martinsville argued that they were grandfathered in, as in the case of Bristol, and thought it could take advantage of another exception by...

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Posted August 23, 2012 by lgonzalez

Just on the heels of Time Warner Cable announcing 81 new jobs in Kansas City in response to the newly competitive environment created by Google's Gig, we learned that Comcast is adding more jobs to its workforce in Chattanooga.

In talking points, the lobbyists and spokespeople for these major carriers often claim that community networks will result in less investment from the existing providers, not more. This is theoretically absurd, as competition drives increased investment. And empirically, we almost always see existing providers invest more as a response to losing their monopoly, not less.

According to Ellis Smith of the Chattanooga Times Free Press, 150 new jobs will be added by the end of the year. Ellis spoke with Jim Weigert, vice president and general manager of Comcast Chattanooga:

"Chattanooga is often at the top, not only in our division but across the country in terms of performance,” Weigert said. “Our strength and record of success made it a contributing factor when they selected a location."

Comcast and others, including AT&T, have had to step up their game in Chattanooga to keep customers who suddenly had a real choice. 

Regardless of whether or not today's Chattanoogans connect to its publicly owned network, they benefit. Consumers get better service, affordable rates, and advanced technology simply because the network has created competition.

Posted August 16, 2012 by christopher

In Star Tribune coverage of Mediacom's war against real broadband in rural Minnesota, we learn that Mediacom will not sue Lake County to disrupt its plan to serve thousands of unserved residents and local businesses.

And for all its accusations, Larsen says Mediacom will not sue. Spending millions of dollars on a lawsuit in a place where the company serves so few homes, he said, "is not a great business decision."

We have previously covered the many false and disproved accusations Mediacom have leveled against Lake County. The Strib article reiterates that these charges have been found to have no merit.

The article also reiterates that the County has a real need that private companies have failed to meet:

The conflict that ensued is part of a national struggle. Public officials and some of their constituents argue that rural broadband is like rural electrification: It's a lifeline for small-town America that the free market will not extend.

"We've been ridiculously underserved in this area for years," said Andy Fisher, who owns a Lake County bed-and-breakfast and a rural cross-country skiing lodge. The cable companies "are working in the interest of their profits. But if they're not going to serve this area, what are we going to do?"

And yet, Mediacom sees itself as the underdog!

"Lake County wants to make this into a David and Goliath story, where Mediacom is Goliath and poor little Lake County is David," said Tom Larsen, Mediacom's group vice president of legal and public affairs. "The truth is we're David because we're fighting [the government]. It's just the same story repeated all over the country."

Fascinating. Mediacom has billions in revenues whereas the County deals with budgets in the millions. Sure Mediacom is between 100 and 1000 times bigger than Lake County, it still wants to stop a project serving thousands of unserved people (that it believes is doomed to fail) because it is too disadvantaged.

Mediacom logo

If Mediacom actually met the needs of its subscribers, it...

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Posted July 23, 2012 by lgonzalez

Bonners Ferry, with around 2,500 residents in Northern Idaho, realized three years ago that fiber would only find their community if they installed it themselves.

“We are a little isolated up here…We don’t have the density that would attract this kind of thing.”

Mike Sloan, Bonners Ferry Economic Development Council Director, went on to describe the situation in a recent Bonners Ferry Herald article. Even though some BTOP and BIP federal stimulus project awards came to Idaho, none of them made it to Bonners Ferry. Nevertheless, Sloan and other community leaders knew the infrastructure would be crucial to the economic well-being of the region. The project has been in the works for the past three years. Sloan went on to tell reporter Cori Flowers:

Sloan said fiber optic isn’t just a means for easier internet surfing, it’s absolutely essential to economic progress. “Any area that doesn’t have this is at a distinct disadvantage,” Sloan said. “If we ever want to attract businesses to our area, we need this.”

In order to fund the build-out, Bonners Ferry plans to create a revenue bond, with anticipated revenue from the network designated to repay the bond. With the participation of several other area regional communities, leaders are optimistic. The network will travel along electrical lines and will end at the Canadian border.

The project, still in its planning phase, will be reviewed by the Panhandle Area Council, the City of Bonners Ferry, and municipal legal counsel before moving forward.

Posted July 13, 2012 by christopher

Fresno's loss will be Provo's gain. Why? Because Provo built its own network and can meet the modern telecommunications needs of businesses. A company is moving from Clovis, in Fresno County (California), to Provo, Utah. The Business Journal covered the story:

Clovis-based Secure Customer Relations, Inc., plans to move its entire operation to Provo, Utah this month, resulting in the loss of 98 jobs.

...

Secure Customer Relations operates a call center that specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry.

Overall, the cost of operations in Provo would be a savings over Clovis, Carter said, including labor costs. He added that Clovis does not have the same level of fiber optic infrastructure as Provo.

Interestingly, Clovis is slated to get better access to broadband as part of the stimulus-funded Central Valley Next-Generation Broadband Infrastructure Project. Unfortunately, that is one of them any middle mile projects that will connect community anchors but not offer any immediate benefits to local businesses and residents. It is a middle mile project, not a last-mile project that would build a fiber-optic access network like Provo has connecting everyone.

This is not to demean the middle-mile project, but such things are often misunderstood (sometimes due to deliberate obfuscations by those promoting them).

And speaking of obfuscation, the Economic Development Corporation of Utah apparently wants the Utah state government to take credit for this company moving to Provo.

"We move a lot of data and need high capacity," CEO Carter Beck told the Journal last week. His company specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry.

The relocation of companies like Secure Customer Relations, Inc. to Utah reaffirms the conclusions of a Utah Broadband Advisory Council Report released last week by the Utah Broadband Project and the Governor's Office of Economic Development (GOED) -- that...

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Posted July 3, 2012 by christopher

Writing for the American Express Open Forum, author Jack Shultz helped to compile a list of what he considers the best small towns for business in the U.S.

Ponca City made the list and was specifically singled out for the wireless network owned by the City:

This town has a very progressive economic development organization. They even have their own Youtube video promoting Ponca City as the place to locate your business. The city’s history has been shaped by the petroleum industry since Conoco Oil once had their headquarters here. Now, they highlight their fast-track permitting, workforce training, state and local incentive programs and a completely wireless community. [emphasis in original]

A local article in Ponca City News notes,

All residents in the city limits of Ponca City have access to free Wi-Fi adding to the ease of web-based business and small start-ups.

As we have noted many times, publicly owned broadband networks can play an important role in economic development strategies.

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