Tag: "economic development"

Posted September 15, 2010 by christopher

This is a follow-up to my coverage of Chattanooga's 1Gbps announcement and press around it.

Firstly, I have to admit I was simultaneously frustrated and amused by reactions to the $350/month price tag for the 1Gbps service, like Russell Nicols' "Chattanooga, Tenn,. Gets Pricey 1 Gbps Broadband."

Wow.

I encourage everyone to call their ISP to ask what 1Gbps would cost. If you get a sales person who knows what 1Gbps is, you will probably get a hearty laugh. These services are rarely available in our communities… and when they are, the cost is measured by thousands to tens of thousands. Chattanooga's offering, though clearly out of the league most of us are willing to pay for residential connections, is quite a deal.

The reaction that it is pricey blows my mind… at $350 for 1Gbps, one is paying $.35 for each megabit. I pay Comcast something like $4.5 for each megabit down and $35 for each megabit up (I actually pay more as I rarely get the speeds advertised).

Make no mistake, Chattanooga's 1Gbps is very modestly priced. And I would not expect many communities to duplicate it. Chattanooga has some unique circumstances that allow it to create this deal; the fact that other community fiber networks around the country cannot match it should not be taken as a knock against them. Ultimately, communities must do what is best for them, not merely try to steal the thunder as the best network in the nation.

But for the folks who have the best network in the nation, I get the idea they have enjoyed the vast coverage of their creation. The Chattanooga Times Free Press ran a lengthy story titled "Fastest on the web."

"We can never overestimate the amount of bandwidth that will be needed in the future," said jon Kinsey, a Chattanooga developer and former mayor who is working with local entrepreneurs to study ways to capitalize on the faster broadband service. "What EPB has set up gives us an opportunity as a community to get into a whole new realm of business growth."

One might expect that the president of the "Information Technology and Innovation Federation" would be interested in the most cutting edge broadband network in the country --...

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Posted July 14, 2010 by christopher

Bristol Virginia is again expanding broadband access in rural Virginia. Following a $22.7 million BTOP (broadband stimulus) grant and matching $5.7 million grant from the Virginia Tobacco Commission, in combination with in-kind contributions from the Virginia Department of Transportation, BVU will greatly expand middle-mile broadband throughout 8 counties in Southwest Virginia. The project is expected to take 2.5 years to complete.

The Bluefield Daily Telegraph covered the story:

“With this broadband network, Bristol Virginia Utilities will enable service to more than 120 of what we refer to as anchor institutions,” [US Senator] Boucher said. “That includes schools, libraries, hospitals, clinics, major government facilities and other large public facilities. The new network will also come within two miles of 18,000 homes and 500 businesses. That makes it feasible for what we refer to as last mile service to be provided to these 18,000 homes and 500 businesses. Some of these have broadband today, but not all of them do.”

This project will add onto the economic development successes resulting from previous networks built by the publicly owned utility:

Boucher said the original broadband line deployed across the region several years ago has already helped to create a number of new jobs, including 137 new virtual call center jobs that have been created in the region by DirectTV, and another 700 plus jobs that have been created by the Northrop Grumman and CGI technology centers in Lebanon.

Read BVU's press release on the grant award [pdf].

Though BVU is expanding middle mile access, it cannot offer last-mile services in most of these communities. Virginia law prevents BVU from offering some services outside its existing footprint - a policy that is great for telco profits but terrible for people that actually want modern telecom services.

For its existing broadband subscribers where it is allowed to offer services, the utility has boosted downstream and upstream speeds [pdf]. The new tiers remain asymmetrical, as with a number of the earlier muni broadband networks....

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Posted July 12, 2010 by christopher

In January 2001, or about 1 million years ago in tech time, Site Selection Online published "Wired Cities: Working-Class Communities Build Next Frontier of High-Speed Connectivity". I found it years ago when reading up on the Click! network in Tacoma, Washington.

I recently stumbled across it again and thought it might be interesting to evaluate its claims after a decade (or close to it) had passed.

The lead of the article discusses Tacoma its relationship to Seattle. Tacoma had extremely poor connectivity from the private sector and its public power utility decided to build an HFC network to extend broadband to everyone in the community. Tacoma's Mayor notes that over 100 companies poured in after the community solved its own broadband problems - generating some 700 jobs in 18 months.

Fast forward to today, and this paragraph:

As a result, the next frontier of information companies isn't being confined to the Silicon Valleys of the world. It's taking root where you might least expect it: in places like Tacoma, LaGrange, Ga., and Blacksburg, Va.. And in most cases, it's government taking the lead, beating business to the punch by stringing fiber and building networks in working-class communities that most bottom-line corporations would otherwise ignore.

The principle of self-reliance is timeless. And we see the same idea in news articles today: local governments bringing broadband to areas the private sector cannot. In 2010, the fastest and more affordable broadband networks in the US are not in Silicon Valley -- they are in Lafayette, Chattanooga, Wilson, Utah, and other places where the community decided to prioritize big broadband.

Because of the competition in Tacoma, prices for telecom have remained lower than in nearby Seattle - as I quoted a Tacoma resident previously:

I have Comcast in Tacoma and all I know is since there is competition down here Comcast is about half the cost as it is in Seattle. They give you a rate good for a year. When your year is up you call up and just say Click! and bam back down you go. A friend in Seattle once called Comcast with both of our bills with similar service and mentioned my price and they said I must live in Tacoma and they wouldn't match the price.

Seattle...

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Posted June 18, 2010 by christopher

A 2007 video from Chattanooga's Electric Power Board explaining the benefits of publicly owned fiber-optic infrastructure.

Posted June 11, 2010 by christopher

Danville's open services fiber-optic network has brought a new employer with some 160 jobs to town. EcomNets is investing almost $2 million to build a green data center to the area.

More jobs may be on the horizon as the White Mill renovation continues and should be finished in coming month (original coverage here and here).

Though the public power utility owns this network, it does not offer services. The network, which currently services municipal locations, schools, and some 75 businesses with Internet access, leaves independent providers to provide the actual services. They welcome major carriers like Comcast and Verizon, who have thus far refused to use open access networks to expand their customer base.

Currently, the network has a single service provider, though the utility has spoken with others and expects more service providers to join the network when it begins making residential connections.

As for when it will begin offering residential access, the City Council will discuss that on July 6 in a work session. The Utility has recommended the City start the next phase, servicing some 2,000-3,000 homes.

Posted June 4, 2010 by christopher

It's fast and it's symmetrical. Chattanooga, the nation's largest muni FTTH network will be offering the fastest residential package in the country by the end of the month: 150 Mbps.

Chattanooga's Electric Power Board (EPB) is ahead of schedule in the fiber rollout, planning to offer triple-play services to all 145,000 residential customers in its electrical territory by the end of the year. Dave Flessner at the Chattanooga Times Free Press covered this story and the paper posted a short audio clip of EPB President Harold DePriest at the press conference.

EPBFi is up to almost 10,000 customers, a number expected to double by the end of the year.

Comcast is responding to this aggressive muni network:

Comcast Corp. remains Chattanooga's biggest video provider and has also increased the speed of its Internet offerings and the number of high-definition television channels and movies it provides for its subscribers.

Tennessee, home to the famous Tennessee Valley Authority that brought the electrical grid the mountains long neglected by the private sector, continues to value public ownership of infrastructure:

Hamilton County Mayor Claude Ramsey likened EPB's broadband expansions to what the Tennessee Valley Authority brought to the region during the Great Depression.

"What is happening today is equivalent to electricity coming to the valley in the 1930s," he said.

I'm guessing this 150Mbps plan is the first of more impressive announcements to come out of Chattanooga as they take advantage of this key community asset. The 150 Mbps press release is available here.

The article also noted a major economic development win in Bristol Tennessee - a $20 million newspaper printing plant that would not have been possible without their muni network. This testimonial is located toward the bottom of the page.

Hyatt [company VP] acknowledged that the high-speed data transfer and reliable fiber optics were the main reasons for locating the facility in the park. This service is essential as companies move deeper into the information age, especially with...

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Posted May 24, 2010 by christopher

According to the local paper, Johnson City, Tennessee, continues to discuss whether its public power utility should build a FTTH network.

As with so many other communities that have only "high speed" cable and DSL options, people are recognizing the importance of broadband on economic development. Local Business leader, Joe Grandy, is the focus of this article:

“Economic development is part of what we’re charged at the Power Board with accomplishing. If the current (broadband) infrastructure is not sufficient to allow economic development to grow this market, something needs to change.”

If the private sector either isn’t willing or isn’t able to create adequate infrastructure, Grandy said, “then an entity such as the Power Board may need to.”

Tennessee cities without publicly owned networks may find themselves in an even tougher bind than similar communities elsewhere. With Jackson, Bristol (TN and VA), Chattanooga, Pulaski, and others, businesses do not have to move far for great networks run by the local public power company.

Grandy, though, “doesn’t think there’s any question” that the Johnson City area will reap the whirlwind, economically speaking, if it fails to scale up local broadband capability. He has been involved in the recent search for a CEO to run the metro area’s new Economic Development Council, and a half-dozen candidates who visited early this month made it abundantly clear that broadband capability is as important an issue today as dependable electricity was 80 years ago.

Public power transformed Tennessee. Publicly owned broadband may be necessary to keep it transformed.

Posted May 18, 2010 by christopher

The nation's newest open access network opened for business this week - Palm Coast FiberNET in Florida. This network is intended to serve businesses and is not currently a FTTH build. The network uses the City of Palm Coast's fiber assets:

The City of Palm Coast is making its high performance fiber network available for business and commercial use in Palm Coast. The goal of this effort is to create business opportunities for private sector service providers, lower the cost of telecom and broadband for local businesses, and to help attract new businesses and job opportunities to the City. Broadband connections to businesses will provide Internet access, a wider variety of telephone, videoconferencing, and other business class services.

The opening ceremonies (a cutting of the fiber) were covered on Office Divvy, who noted that the network currently has two providers and a plan to connect most businesses in town over the next two years. Services to their facility will be up in early June.

This is a similar approach as used in several networks in Virginia, including the Wired Road, and nDanville. Rather than trying to build citywide all at once, these networks expand as opportunities arise and funding is available.

Clarification: The City has already expanded its fiber assets to create this network; the post should not be read as the City merely leasing fiber it already had.

Posted May 11, 2010 by christopher

KMOX, a station from St. Louis, recently asked what Ohio's OneCommunity did correctly in building a regional broadband network. The article is interesting for some background on OneCommunity, but the discussion of what St. Louis attempted is somewhat lacking (and the reporters appear to have little expertise in broadband).

OneCommunity is a successful nonprofit approach to expanding broadband access by working with various entities - sharing the resources of public entities as well as private carriers to the benefit of everyone. However, its results are somewhat less predictable than the admittedly more top-down approach of a local government-run initiative that can ensure everyone in a community gets a certain kind of connection. On the other hand, OneCommunity is more insulated from the fluctuations of everyday politics that can hurt or slow projects operated by a local government, depending on the structure (remember, structure is defined by rules ... and rules matter).

My impression is also that OneCommunity has been tremendously successful in securing broadband for middle mile and large institutional needs, but its approach at solving the last-mile problem has been hit-or-miss depending on the community. By lowering the cost of backhaul, the private sector may be more interested in building those last-mile connections, but residents do not get the full benefits of service from a provider that puts community needs above profits.

OneCommunity started in Cleveland with the idea of collecting spare or unused broadband capacity (often using assets after the dotcom bust) and putting it to use.

Along with a variety of other key community anchors, the network connects some 65 hospitals in all.

"We're allowing point of care treatment through remote specialists that actually allow, not only a triage of patients in the emergency room, but actually direct treatment and diagnosis on site in real time from a third-party specialist located in another institution."

OneCommunity's network is sufficiently large that these hospitals can connect directly to each other rather than each connecting to the larger Internet to send information amongst themselves. Just as in Lafayette, where all in-network connections occur at 100Mbps, OneCommunity can offer...

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Posted May 5, 2010 by christopher

One of the focuses of the recent FiberFete conference is what do communities do once they have built a next-generation network. Lafayette had lots of ideas.

Let's start with counting new jobs. Lafayette Pro Fiber recently discussed one of the employers adding jobs. The post acknowledges that the fiber network is not the sole reason for these particular jobs, but it does play an important role:

You have to know if you've been down to "the egg" at the LITE building that they're not going to put 100 cubicle workers in that facility. No way they'd fit. However they do have to do the tedious work in Louisiana to get those credits. So some large percentage of those 100 workers will have to be off-site. But they'll have to be able to do their work as if they were in the same building with, at a minimum, the 100 megs of connectivity that standard ethernet LANs provide. That, of course, is exactly what LUS provides on its justly acclaimed 100 meg intranet. A person setting behind a nice workstation setup on Moss Avenue with a nice VLAN setup could work within the Pixel Magic network as if they were just down the hall from the boss's glossy corner office (something both would probably prefer). The ultimate in working from home. I'll not be surprised if Pixel Magic opts for an offsite work center like NuConn did—but there too LUS' fiber-to-every-nook-and-cranny make it possible to shop for the cheapest appropriate location rather than the cheapest location that has something close to real connectivity. In that sort of situation it would be easy and damned inexpensive to leverage LUS Fiber to provide a gig or several of commercial grade connection between the two points.

This is only one of several employers who have added many jobs in Lafayette because of the publicly owned fiber network.

Another avenue Lafayette is exploring is high-bandwidth classrooms. They have created a specific FiberKids program (which was discussed at FiberFete).

The project is intended to test live streaming, high-definition capabilities for school conferences, lectures and field trips.

Students are encouraged to explore the uses of fiber-optic technology in the classroom....

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