Tag: "fiber-to-the-business"

Posted September 20, 2010 by christopher

Carroll County, Maryland, has announced a partnership with the Maryland Broadband Cooperative to bring fiber-optic broadband to area businesses that have been neglected by incumbent providers.

The county brought the broadband cooperative in to lease out unused fiber on the county’s 110-mile network, which it built over the past two years. The cooperative will connect business customers with its own members, which include various sizes of Internet service providers that can link the businesses to the network. Prices will vary depending on the service provider and location of the business.

The Carroll County Times offers greater coverage in a story by Marc Shapiro.

The County's $9 million network is financed in part with cost savings from transitioning away from $600/month T1 lines and is the result of many years of work. Remember that a T1 offers 1.5 Mbps of connectivity, the new fiber network likely offers 100Mbps to 1Gbps today and is capable of offering much greater capacity in the future. Building these networks is a far smarter move than leasing T1 lines.

Every county school, every major county facility and Carroll Community College is on broadband Internet, said Mark Ripper, chief information officer with the Carroll County Department of Technology Services. All county facilities and libraries and the board of education will have broadband Internet shortly, he said.

The Maryland Broadband Cooperative, a public/private partnership that promotes economic development through technological infrastructure, will lease the "dark fiber," unused fiber, to its member companies, who can in turn sell Internet service to local businesses. The MDBC has 59 members, about 30 of which are Internet providers, said Patrick Mitchell, president and CEO of the MDBC.

Posted July 28, 2010 by christopher

We've previously noted the successes of the Santa Monica approach to leasing dark fiber, but a new article reveals that Los Angeles, Burbank, and Anaheim also lease city-owned fiber assets.

In fact, Burbank generates substantial net income for its general fund through leases, including to major Hollywood studios.

Burbank first laid its fiber in the late 1980s and began leasing in the mid 1990s, said Robert DeLeon, a senior electrical services planner in Burbank. It currently leases to 15 studios, such as Warner Brothers and Disney, or studio-related businesses, like post-production companies. Like Santa Monica, Burbank's main goal in leasing its dark fiber was to attract business. But at $200 per strand per mile, Burbank is currently making approximately $1 million that is being put back into the general fund.

Santa Monica's revenues from leases have been more modest, but the benefits of leasing go far beyond regular payments. The network increases economic development and improves the quality of life with free Wi-Fi in a variety of public areas. Further, the city no longer has to overpay for the data connections it needs for municipal functions.

Santa Monica is also leasing to 15 businesses that include hospitals, entertainment companies and new media outlets, among others, but is only making $270,000. It was never Santa Monica's intention for the leasing of dark fiber to be a major source of revenue, Wolf said.

Santa Monica - UCLA Medical Center uses city-owned fiber because the city has better customer service:

Though there are other options for obtaining a fiber optic connection, such as AT&T, Kacperski said the hospital decided to lease from City Hall because hospitals are community based and because City Hall has better customer service than private carriers.

As we have often maintained, locally owned networks win on customer service (and often reliability). Community networks may not always win on prices because massive incumbents can engage in predatory pricing by cross-subsidizing from non-competitive markets, but they can win on providing a better experience for subscribers.

Moving forward, Santa Monica is starting to go beyond simply leasing dark fiber to actually...

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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 23, 2010 by christopher

Cedar Falls, Iowa, is the latest of a number of publicly owned cable networks that are upgrading to FTTH. Cedar Falls has been planning this for some time, squirreling away net income over the years as it ran surpluses to help afford the costly upgrade. A story in the WCF Courier notes it will cost $17 million and is expected to be completed in 2012. The bonds used to finance the project will be repaid over 10 years.

When I last spoke to folks in Cedar Falls, they had massive take rates - bolstered by local service that Mediacom could not compete with. Cedar Falls Utilities (CFU) had already been offering fiber services to local businesses and will be expanding that to the entire area. According to an article in the Cedar Falls Times, the utility had already been installing FTTH capability into greenfield developments, so they have certainly planned for this transition.

Motivation for the upgrade seems to be the faster broadband speeds and more capacity for HD channels. The Utility also noted that needed bandwidth has been doubling every year -- a likely reason they opted for FTTH rather than a cheaper DOCSIS3 upgrade that would not offer the same scalability as FTTH (and DOCSIS3 is much more constrained in upstream capacity).

The Cedar Falls Times article explains the benefits of FTTH over HFC:

An HFC plant uses thousands of active devices (such as amplifiers) to keep data flowing between the customer and the service provider. Any one of these devices can fail, interrupting service. In contrast, the all-fiber plant will be a passive optical network, with no active components between the distribution center and the end user. Fewer “moving parts” means fewer points of failure and a more reliable system.

CFU puts community needs first:

“We know from experience that economic growth comes to cities that keep their infrastructure up to date, whether it’s roads, water, electricity or broadband,” said Krieg [CFU General Manager]. “CFU is going to do what it takes to make sure Cedar Falls has leading-edge communications technology, and maintain economical rates for internet and video services.”

The network was launched in 1996, one of the first...

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Posted June 17, 2010 by christopher

The city of LaGrange has long been offering top-notch telecom services to local businesses. I just stumbled across this video describing their new colocation facilities. They are approaching 400 business customers and serve the local cellular towers. They do not provide residential services.

This video is no longer available.

Posted June 12, 2010 by christopher

Santa Monica has built an impressive fiber network to connect local government buildings, schools, parks, and local businesses. With local jobs dependent on massive media studios that require very robust connectivity, Santa Monica has responded by building an impress community broadband network. That network is now offering 10Gbps connections - if such a connection were available from the local cable company, I shudder to think what they would charge for it.

Posted December 10, 2009 by christopher
  • TMCNET interviews Jory Wolf - the CIO of Santa Monica's Information Systems Department - about their application for broadband stimulus funds. Santa Monica has long used its publicly owned network to expand broadband access in the community.

    Our Santa Monica City Net and City WiFi (News - Alert) project will provide the equipment and connections required to expand the City’s free WiFi service that delivers Internet access to the public at our libraries, open space areas, community centers, homeless shelter, senior centers and animal shelters. In addition, our project will provide a connection to over 200 ISPs to obtain affordable broadband options to local businesses and increase the competitiveness of our country’s preeminent post-production companies and intellectual exports located in Santa Monica, Calif.

  • South Hadley, a small town in Massachusetts, may expand its modest fiber network (currently connecting schools, police, and town hall to others in town. Its municipal power company is evaluating options.

  • Baltimore City Paper ran a column discussing the Monticello, MN, city-owned network and the attacks against it by TDS Telecom. This accounting of the history has some errant details, but I found it fascinating how far the Monticello story has spread.

Photo from public domain

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