Tag: "fiber-to-the-business"

Posted January 6, 2014 by christopher

A few weeks ago, a Geekwire interview with outgoing Seattle Mayor Mike McGinn announced that the Gigabit Squared project there was in jeopardy. Gigabit Squared has had difficulty raising all the necessary capital for its project, building Fiber-to-the-Home to several neighborhoods in part by using City owned fiber to reduce the cost of building its trunk lines.

There are a number of important lessons, none of them new, that we should take away from this disappointing news. This is the first of a series of posts on the subject.

But first, some facts. Gigabit Squared is continuing to work on projects in Chicago and Gainsville, Florida. There has been a shake-up at the company among founders and it is not clear what it will do next. Gigabit Squared was not the only vendor responding to Seattle's RFP, just the highest profile one.

Gigabit Squared hoped to raise some $20 million for its Seattle project (for which the website is still live). The original announcement suggested twelve neighborhoods with at least 50,000 households and businesses would be connected. The project is not officially dead, but few have high hopes for it given the change in mayor and many challenges thus far.

The first lesson to draw from this is what we say repeatedly: the broadband market is seriously broken and there is no panacea to fix it. The big cable firms, while beating up on DSL, refuse to compete with each other. They are protected by a moat made up of advantages over potential competitors that includes vast economies of scale allowing them to pay less for advertising, content, and equipment; large existing networks already amortized; vast capacity for predatory pricing by cross-subsidizing from non-competitive areas; and much more.

So if you are an investor with $20 million in cash lying around, why would you ever want to bet against Comcast - especially by investing in an unknown entity that cannot withstand a multi-year price war? You wouldn't and they generally don't. The private sector invests for a return and overbuilding Comcast with fiber almost...

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Posted January 3, 2014 by lgonzalez

In 1985, Auburn Electric became one of the first communities in the midwest to deploy fiber. At the time, the purpose was to improve electric and voice systems substation communications within the municipal utility. That investment laid the foundation for a municipal network that now encourages economic development and saves public dollars while enhancing services.

Auburn expanded its fiber network beyond electric systems in 1998. The utility began using the network to serve city and county government operations. It is not well known, but Auburn offered gigabit service to its public sector customers way back in 1998.

The benefits from the deployment prompted community leaders to develop an Information Technology Master Plan in 1998 that would answer the question of what other ways the fiber could serve the community? As part of the Master Plan, Auburn leaders collected information from other communities that were capitalizing on their own local fiber. While Auburn made no immediate plans, they kept an open mind, waiting until the time was right.

In 2004, Cooper Tire and Rubber (now Cooper Standard) was about to be sold from its parent company. The $1.6 billion auto component manufacturer needed a data center but bandwidth was insufficient and inconsistent in Auburn. Cooper considered leaving because the incumbents, Mediacom and AT&T, could not or would not provide the broadband capacity the company needed. If Cooper left town, an estimated $7 million in wages and benefits from 75 high-paying tech jobs would also leave. At the time, Auburn was home to 12,500 people.

County Courthouse in Auburn, Indiana

According to Schweitzer, the City tried to persuade the telephone company to find a solution with Cooper but the two could not reach an agreement. Rather than lose Cooper, the City of Auburn stepped in to fill the connectivity gap in 2005.

In a 2007 interview with Public Power magazine, Schweitzer noted advantages in Auburn that facilitated the project:

“We also had a major tier-one Internet provider with a...

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Posted December 11, 2013 by lgonzalez

Westminster began its FTTP pilot project last summer and interest is high. Brett Lake from the Carroll County Times recently reported the project is growing. According to the story, the Mayor and Common Council voted in late November to spend city capital projects reserve funds to expand the pilot. 

During the engineering phase of the project, officials identified several opportunities to expand the footprint at nominal construction expense. The additional reach will include an industrial park and a residential neighborhood adjacent to Carroll Lutheran Village, one of the original sites. 

The Village is a continuing care facility of single- and multi-family dwellings. Project leaders hope to learn to serve both with the pilot project. Residents also receive healthcare services so the fiber network will facilitate onsite telehealth.

The city will also install a ring for redundancy within the Air Business Center to connect potential business customers. The business center is adjacent to the industrial park that will now be included in the pilot project.

Each location is near the Carroll County Public Network (CCPN). Westminster will take advantage of the proximity and will tap into the CCPN fiber to reduce costs. The entire pilot project is estimated at approximately $650,000.

Gary Davis, CIO of the Carroll County Public Schools and Chairman of the CCPN, spoke with Chris in Episode #43 of the Community Broadband Bits podcast. The network serves government, schools, and libraries across the county.

Posted December 10, 2013 by dcollado

We last took a look at Palm Coast’s FiberNET over two years ago when Broadband Communities featured the open access fiber network along Florida’s upper east coast. Due to its initial focus on community anchor institutions and incremental build out, FiberNET serves as an outstanding example of how to justify a network investment with cost savings. We recently spoke with Courtney Violette who created the initial business plan for FiberNET under his previous role as Palm Coast’s CIO; he is now a Managing Partner with Magellan Advisors, an international broadband planning firm.

A presentation on the Palm Coast government website shows how FiberNET generates hundreds of thousands of dollars in annual cost savings for the City of Palm Coast, Flagler County School District and Florida Hospital. The data is impressive. The City of Palm Coast alone saves around $160,000 per year by switching to FiberNET for its networking needs.

Flagler County School District is likely the biggest beneficiary of cost savings in the community. Before FiberNET came onto the scene, the District paid Bright House Networks more than $500,000 per year for network services over a hybrid fiber-cable network. Now Flagler County School District pays around $300,000 for faster, more reliable services over FiberNET’s all-fiber network. These savings paid for the schools’ initial cost of connection after just one year.

Florida Hospital and its affiliates are also saving big. Affiliated doctors’ offices and clinics are required to maintain a 10-Mbps (minimum) connection with the hospital. Before FiberNET, these connections cost around $900 per month from the local incumbent. FiberNET now offers them for $250 per month. Similarly, the Hospital itself saves tens of thousands on its annual networking costs by switching to FiberNET.

It is worth noting these initial figures are conservative by not accounting for growing internal demand for high-speed networking. In other words, as these entities ramp up usage of faster network services available through FiberNET, their savings will grow accordingly. In fact, their savings will actually accelerate as they use services only available over fiber which the incumbent could not offer without...

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Posted December 4, 2013 by dcollado

A year has passed since we covered SpringNet in Springfield, Missouri, and its remarkable impact on local businesses and economic development. We recently spoke with SpringNet Director, Todd Murren, and Network Architecture Manager, Todd Christell, to get an update on how the network is progressing.

Demand for SpringNet’s high-speed data services continues to grow steadily. Financial statements for City Utilities of Springfield show the network generated $16.4-million in operating revenue last year against costs of $13.2-million. Better yet, revenues have increased around 3% per year while cost increases are closer to 0.5%. The end result is close to $3 million in annual net income for SpringNet. And all of this comes from a network that only serves commercial and public sector clients because Missouri state law restricts municipal network provision to only “Internet service,” meaning SpringNet cannot offer triple-play packages to compete with incumbent providers.

One of the highlights of SpringNet’s economic development success has been the attraction and retention of travel giant Expedia. After a large national provider failed to deliver on negotiations with the company, SpringNet stepped in to make sure Expedia brought its call center to Springfield. That effort has paid off handsomely for SpringNet and the local community. Expedia now employs close to 900 in the area after announcing in July that it was hiring another 100 employees in Springfield.

Up next for SpringNet is an effort to leverage its fiber infrastructure to create even more jobs. Believing that future job growth will revolve around the advancements enabled by gigabit networks, SpringNet is working with the Mid-America Technology Alliance (MATA) to host a hackathon with partners in Kansas City to explore what is possible between gigabit cities.

As Murren and Christell tell it, someone in Springfield can now send data to Kansas City with a 5-millisecond delay. It’s like they are in same building despite being hundreds of miles apart. This capability spells opportunity for new ways of doing business and delivering...

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Posted December 4, 2013 by lgonzalez

Muskogee, located in east central Oklahoma, is considering free Wi-Fi across the community to boost economic development. As a model, community leaders are looking at Ponca City. A recent Muskogee Phoenix article quoted the Interim City Manager:

“Our hope is that the public Wi-Fi initiative will distinguish us from other cities when it comes to attracting economic development, all the way from retail to industrial,” Interim City Manager Roy Tucker said. It “will most certainly increase the quality of life and educational opportunities of our citizens.”

Local citizens developed the Action in Muskogee (AIM) initiative to improve the community; the idea to provide free Wi-Fi grew out of the initiative. Muskogee hopes a Wi-Fi network will also improve public safety, government efficiency, and Internet access for citizens.

AIM participants hope to emulate Ponca City and its award-winning mesh network. City officials installed the wireless network in 2008. Residents of Ponca City save an estimated $3.9 million a year in avoided ISP costs. In other words, the network helps keep $3.9 million in the Ponca City economy.

Ponca City began its network in 1997 with a few miles of fiber to improve communications between municipal facilities. Each year the network grew and Ponca City now has over 350 miles of fiber. Municipal facilities, schools, hospitals, healthcare clinics, businesses, and even casinos use the fiber network. According to the article, Ponca City sells Internet access via the fiber to local business customers to fund the mesh network and free Wi-Fi for the community.

Muskogee has no plans to install a publicly owned fiber network like Ponca City's. Another Phoenix article suggested Muskogee leaders may pursue a public-private arrangement:

“...

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Posted November 22, 2013 by dcollado

Danville's open access network has fueled economic development in the Virginia community's resurgence after tobacco’s demise and job losses from a once thriving textile industry put a hurt on the local economy. Danville’s technological prowess is now attracting companies from China, in addition to other economic development gains we covered previously.

Jason Grey, nDanville’s Network Manager, told us that Zeyuan Flooring International, a Chinese wood floor manufacturer, is locating its first U.S. facility in Danville. Zeyuan CEO, Sindy Cui, said the company initially thought about locating in Los Angeles, but was eventually swayed by the hospitality and resources available in Danville. Zeyuan plans to invest $15-million in a 40,000 square foot manufacturing plant that will employ 100 people within three years.

Zeyuan is the second Chinese company to locate in Danville in the past year. Last September, Chinese furniture assembler GOK International announced it will invest $12.5-million to establish its U.S. headquarters and showroom in Danville. GOK International plans to employ 300 people within three years.

Not coincidentally, both companies are locating in Cane Creek Centre, one of Danville’s five industrial parks connected to nDanville’s fiber network. Serving businesses was a high priority in building the network. As the first fully automated open-access network in the country, nDanville passes more than 1,000 businesses including every parcel in each of the industrial parks. Many businesses take 100-Mbps fiber connections, some take advantage of 1-Gbps connections. 

These recent additions to Danville’s thriving commercial sector are just the latest in a steady string of economic development successes for the area that include the likes of Goodyear and IKEA. And it’s not just manufacturing. 

Danville is home to one of the first non-government sponsored next generation Cray supercomputers. The Cray XMT2 supercomputer is part of the Noblis Center for...

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Posted November 18, 2013 by lgonzalez

Dublin, home to 16,000 people, is also home to a network that snakes through the city and parts of Laurens County. In addition to a natural gas utility that serves the region, the city provides connectivity to two area school districts and local businesses. We contacted Guy Mullis, IT Director for the City of Dublin.

The fiber optic network was installed in 1999 to provide connectivity for the two separate school systems in the community, Laurens County Schools and Dublin City Schools. The school districts needed better connectivity because dial-up was the only option at the time. The school districts could not afford the cost of installing their own fiber networks.

The City used its own funds to construct a network that is 85% aerial. Mullis was not an employee of the City at the time, but he estimates the network cost approximately $1.5 - $2 million. He also believes the funds were a combination of capital improvement funds and economic development funds. From the start, the plan has been to serve the schools but also to provide connectivity to spur economic development.

Eight city school facilities and six county school facilities use the network today for connections between buildings. Dublin City Schools have 10 Gbps speeds between facilities; Laurens County Schools have equipment in place for 1 Gbps connections between schools. Both school districts use the Georgia Technology Authority for Internet access.

Once the network was in place, AT&T and Charter Communications began building in Dublin. Mullis says he does not believe AT&T and Charter would have invested in Dublin in 2000 if not for the presence of the community network. He notes that AT&T begin installing DSL in areas of town within a year of the fiber network deployment. 

During the first few years, the City connected its network to the Internet with a 45 Mbps AT&T connection but needs quickly outgrew capacity. The City looked for alternate ways to connect to the Internet. City staff discovered that a major dark fiber backbone ran through Dublin from Atlanta to Jacksonville, Florida. The company that owned the line (the company has since been purchsed by Level 3) allowed Dublin to splice into the dark fiber to connect to Atlanta. The opportunity allowed Dublin to buy...

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Posted September 24, 2013 by christopher

Holyoke Gas & Electric has been connecting community anchor institutions and local businesses in Western Massachusetts with fiber networks for years. Rather than using exception access to the Internet as a competitive advantage over more poorly connected neighbors, the Municipal Light Plant (in the parlance of Massachusetts law) is helping nearby towns to establish their own networks.

I met Senior Network Engineer Tim Haas in a lunch with people building community owned networks in Leverett and Princeton in late August. He joins me for episode #65 of the Community Broadband Bits podcast.

We discuss the Holyoke approach, its network, and enthusiasm for assisting others in the region to improve access to the Internet.

Read the transcript of our discussion 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 17 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted September 7, 2013 by lgonzalez

Residents of Vernon, California, will soon have the option to connect to the City's fiber optic network. Vernon offers dark and lit fiber to local businesses via 35 miles of fiber but residents are stuck with slow DSL connections. An EGPNews.com article reports:

City officials say they hope to bridge the digital gap for its residents by becoming an Internet Service Provider, creating, and operating a small-scale broadband residential service program. The Internet will be provided to residents through direct fiber optic connections or via a wireless service connection.

The program will be available to all existing and future residences in the city.

Vernon Light & Power Department Fiber Optic Division serves this town's 5.2 square miles located south of downtown Los Angeles. The population is only 112 in 31 existing households. The network will also connect a future residential project, Meta Housing, scheduled to be completed by the end of 2013. The City is the smallest incorporated city in the state, describing itself as "exclusively industrial." Vernon is home to over 1,800 businesses that employ 50,000 people from surrounding communities. 

The new initiative will connect residents for a one-time connection fee of $100. Monthly service will cost $40.65, which is $10 less than DSL. The fiber connections will be 10 times faster than current DSL speeds. Residents should be able to access the network by November 1.

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