Tag: "economic development"

Posted March 26, 2013 by christopher

Mike Scott, City Manager of Moultrie in Georgia, joins us for Episode #39 of the Community Broadband Bits podcast to share the origins of the Community Network Services (CNS) network that joins four towns in four counties in rural southwest Georgia.

In this interview, Mike Scott shares some of the benefits of the network for local schools and community savings. Built originally because the existing cable and telephone companies would not invest in their communities, CNS has proved itself an incredibly valuable community investment.

CNS is credited with creating over 6,000 jobs in the communities it serves, a tremendous boon for the communities that joined together to create this network. During our interview (below), we note a video they created to show off some of the benefits of this network. Here it is:

Read the transcript from this podcast 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 20 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 March 25, 2013 by lgonzalez

Located in the southwestern corner of Missouri, Nixa has joined the growing list of local communities fed up with slow Internet access. A recent Rance Birger News-Leader article, describes the frustration of local tech CEO, Jeremy Bartley. He is not the only business leader in Nixa who is not willing to accept the Internet status quo. Bartley is part of an organized effort to investigate the possibility of a municipal fiber network.

The group has the ear of the City Council and the Mayor, who have put city staff on the project. From the article:

“I personally would like for staff to contact a city that’s relatively our size, and talk to somebody that started from scratch to where they’re successful, and how much it really cost them to do what they did,” [Mayor Sam] Clifton said.

“They may also have some insight on to other issues that arose when they did that as far as legalities and such,” Councilman Aron Peterson said.

Nixa has its own electric utility, which can often facilitate development of a municipal network. The first step is a survey, which will be distributed in March utility bills and is already available online.

Depending on the survey results, which should be available in April, the next step would be a preliminary design. 

Like many other communities, Nixa has been left behind by the big national cable and telephone corporations. Community leaders understand why and want to proceed with caution. From the article:

City Administrator Brian Bingle acknowledged that private businesses haven’t shown interest in running fiber in Nixa.

“If the private sector could make money off it, they’d be doing it already, and we all know that,” Bingle said. “We’re looking into something that, one, there is a demand for it, two, that we can get ourselves reimbursed for it."

Nixans who are spearheading the project also see the current and future value of a community owned network:

“One of the goals of my company is to bring other tech companies to Nixa, because it’s the future of businesses, it’s the businesses that are going to create the most income for a city. Tech is the future of all jobs,” Bartley said.

...

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Posted March 21, 2013 by lgonzalez

Mount Vernon, Washington, started building their own fiber optic network in 1995 and over the past 18 years have continued to add incrementally. While the network started as a way to connect a few municipal facilities, it has since expanded to nearby Burlington and the Port of Skagit. The network now serves government, schools, hospitals and clinics, and a broad range of businesses in the area.

We spoke with community leaders from Mount Vernon for our 38th episode of the Broadband Bits podcast. Mount Vernon owns the network and operates it out of the Information Systems office.

The network required no borrowing or bonding because initial funding came from a state Community and Economic Revitalization Board (CERB) grant. Since then, Mount Vernon has used revenue from the network and creative cost sharing with partners to expand throughout the city. When expanding into Burlington and the Port of Skagit in 2008, city leaders received a county sales tax grant to fund deployment.

The Mount Vernon School District became a partner early in the evolution of the network. According to Kim Kleppe, Information Services Director, K-12 schools do not pay a monthly fee to receive up to 1 gig of capacity for their 10 facilities. He estimates the current costs of a dark fiber connection for one facility at $700 per month. Total savings are astronomical, allowing the schools to dedicate significant dollars toward other expenses.

Mount Vernon city government saves over $100,000 per year and nearby Burlington saves over $52,000. The network has never been in debt and maintains a reserve.

Mount Vernon's network is an open access model on which ISPs serve customers via the city's infrastructure. Subscribers pay a one time fee to the city to be connected. Onging revenue comes from the ISPs, who pay to the city a percentage of what they collect in customer connectivity fees. Currently, eight different providers offer services via the Mount Vernon network, providing ample competition.

Like other communities we see that choose the open access model, Mount Vernon...

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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.

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