Located in the northeast corner of Tennessee, Morristown Utility Systems (MUS) offers gigabit broadband throughout a region that covers 30,000 residents and businesses. I recently spoke with MUS General Manager and CEO, Jody Wigington, about FiberNET’s progress and he had much to report, starting with over $5 million in cost savings for local businesses, residents, and the local government itself.

Asked about cost savings to Morristown’s city government, Wigington pointed to $840,000 in total savings from a smart meter program - a combination of lower annual power consumption and operational efficiencies. Another $20,000 in annual savings is due to the county not having to pay out-of-town IT contractors to maintain its network because the required expertise can now be found locally thanks to MUS’s dedicated network specialists.

Morristown businesses and residents are also saving, to the tune of $3.4-million annually thanks to FiberNET’s introduction of lower prices in the local broadband market. That’s $3.4-million, every year, which can be spent locally rather than being siphoned out of the community to corporate shareholders.

In terms of revenue, FiberNET generated $8.6-million during the most recent fiscal year and is projected to generate $8.8-million during the current one. FiberNET's solid financials have translated into increases in MUS’s payments in lieu of taxes (PILOT) to the city, which now amount to $350,000 per year, up from $150,000 in 2010. FiberNET’s strong financial performance resulted in MUS becoming cash flow positive just two years after launch, and net income positive after five years. Both of these key milestones were reached significantly quicker than initially projected.

MUS FiberNET’s impact on economic development is also notable. Oddello Industries, a contract furniture manufacturer that relies on FiberNET for its communications, recently announced a $4-million expansion in Morristown, resulting in 228 new jobs. Oddello CEO, Tom Roberts, cited “reliable utilities” among the reasons for investing in Morristown. This growth is part of a larger trend for Oddello, which has grown its Morristown presence from 35 to 415 employees in just the past year. 

Yet Don Kom, director of the City of Ames Electric Department, tells us: “There has been no discussion at my level of bringing fiber from the city to our customers. We’re not having that discussion.” Certainly the city has many pressing issues and priorities to address, but super-fast Internet service ought to be high on its list. Besides the fact that it’s the wave of the future and we ought to try to keep pace with that wave, Ames has an impressive history of ambitious and innovative achievements.

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“My answer has been, as it is tonight, to point out these plain principles,” Roosevelt told the crowd. “That where a community -- a city or county or a district -- is not satisfied with the service rendered or the rates charged by the private utility, it has the undeniable basic right, as one of its functions of government, one of its functions of home rule, to set up ... its own governmentally owned and operated service.”

While FDR was referring to electricity in 1932, he could easily be speaking about today's critical need for Internet connectivity. Fortunately for a growing number of people in our country, many local leaders share his sentiments and those communities are investing in community owned telecommunications networks.

Government Technology recently reposted a Governing article by Alex Marshall, a Senior Fellow at the Regional Plan Association in New York City. The Director of our Telecommunications work, Christopher Mitchell, tells me he just bought Alex's new book from a local bookstore and has put it at the top of his reading list: The Surprising Design of Market Economies.

Marshall sees fiber optic connectivity as the utility of today and tomorrow. He explores the question of who should provide access - public institutions or the private market? In his research, Marshall finds that many local communities are not waiting for an "official" answer to that question and are taking control of getting their citizens online.

Marshall spoke with Nick Braden from the American Public Power Association (APPA):

Another county in Washington will soon be connected via a community owned fiber network. Peter Quinn, of the Economic Development Committee Team Jefferson, tells us that the Public Utility District of Jefferson County will be investing in the new infrastructure. The Northwest Open Access Network (NoaNet), will operate the Jefferson County network for at least the next five years.

Nonprofit NoaNet has been expanding wholesale fiber infrastructure across Washington since 2000. NoaNet works with local communities to bring the fiber backbone to community anchor institutions (CAIs) such as schools, libraries, hospitals, and government facilities.

The Jefferson County project is funded with a $3.2 million American Reinvestment and Recovery Act (ARRA) stimulus grant and a county contribution of $500,000. The network should measure approximately 70-100 miles, and connections to CAIs are expected to be 100 Mbps, however the planning is still in process.

The network will connect community anchor institutions including county schools, public safety facilities, city and county government facilities, several local libraries, healthcare clinics and hospitals, and state parks. Towns that will receive anchor connections include the City of Port Townsend, Port Ludlow, the Port of Port Townsend, Quilcene, Brinnon, and Chimacum. Approximately 90 community anchor institutions will be connected through fiber or the planned wireless network. Wireless will be offered where geography and expense preclude fiber installation.

Construction will start April 8th with a planned completion date of August 5th, 2013. Jefferson PUD will own the network and independent ISPs will provide service to the anchor institutions and have the option of expanding the network to serve local businesses and residents.

The plan is divided into three "tiers" and described on the Jefferson PUD Broadband Project website:

Tier 1 are anchor institutions that must have service to be compliant with the grant. 

Tier 2 are sites of anchor institutions that weren't initially submitted with the grant.

Tier 3 are locations that will be provided service if resources are available.

Benton PUD, located in south central Washington, recently expanded its fiber foot print through Richland and Rattlesnake Mountain. The move involved a collaborative effort between the City of Richland, the Benton PUD, and the Department of Energy.

According to Annette Cary of the Tri-City Herald, the expansion will bring better communications to the Hanford Nuclear Site. Schools, libraries, and businesses in Richland will take advantage of the additional fiber from downtown to north Richland.

Benton PUD offers fiber to businesses in Kennewick, Prosser, Benton City, and now Richland via an open access model. Residential wireless is also available in Prosser, Pesco and Kennewick with five retail providers on the network.

According to the article, Benton PUD will also use the fiber for its advanced metering system. From the article:

"This agreement allows Benton PUD to increase its capacity and redundancy, while also helping the Hanford project," Rick Dunn, PUD director of engineering, said in a statement.

The fiber also provides additional capacity for the Hanford Federal Cloud, a system that allows Hanford information to be stored at centralized and consolidated data centers rather than on individual worker's computers. The fiber serves several DOE facilities connected to Hanford.

"Having a fast, reliable communications infrastructure is critical in supporting Hanford's cleanup mission," Ben Ellison, DOE's Hanford chief information officer, said in a statement. "This project gives DOE the capacity it needs to further the mission and allows for future growth of both the community and Hanford cleanup activities."

While the DOE sees the fiber as an asset in the ongoing clean up of the decommissioned nuclear production complex, local leaders see it as an opportunity to bring more business to the area. Richalnd and southern Washington are also known for low power rates, another feature attractive to potential businesses. As clean-up winds down at Hanford, Richland is looking to the future and wisely using fiber as a way to reach out for commercial opportunities.