Tag: "fiber-to-the-business"

Posted January 29, 2014 by Lisa Gonzalez

Its extensive free Wi-Fi has brought Ponca City into the limelight but the mesh network did not appear overnight. The community effort began with miles of fiber network that provide connectivity and enable the mesh network financially and technically.

Ponca City, home to 25,000, is located on Oklahoma's north central border; Tulsa, Oklahoma City, and Wichita are all more than 90 miles away. The petroleum industry flourished in Ponca City until the oil bust in the 1990s and the population began to decline as workers moved away. Community leaders sought ways to salvage the local economy through economic development. They began to focus on the technology, manufacturing, and service industries.

The municipal electric department, Ponca City Energy, installed the first five miles of fiber in 1997 and five more in 1999 to connect outlying municipal buildings to City Hall. Line crews from the utility and the City Technology Services Department handled all installation to keep expenses down. The City continued to add to the network incrementally, exapanding it to over 350 miles. The network also serves the City's SCADA system.

In 2003, Ponca City Energy connected the local schools, and the Ponca City Medical Center to the network. The network also began providing Internet to the University Learning Center of Northern Oklahoma, now named the University Center at Ponca City. The Center collaborates with thirteen higher education institutions to provide distance learning in 48 online degree programs.

Ponca City eventually began offering Internet access via the fiber to commercial customers. According to Craige Baird, Technology Services Director, most businesses in the community purchase Internet access from the City. Revenue from commercial Internet customers, approximately $36,000 per month, pays for the wireless mesh network.

In 2008, Ponca City installed the wireless...

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Posted January 28, 2014 by Lisa Gonzalez

In partnership with the Center for Popular Democracy, we have created a new policy brief: Building Community Broadband Access. We offer examples of communities that have acted to improve access by using smart strategies that facilitate community owned networks.

This fact sheet provides information to legislators, advocates, or concerned citizens who want to educate others about the benefits of publicly owned networks. This is the latest in our growing collection of convenient, compact, and instructive fact sheets. 

The Center for Popular Democracy works with a long list of local, state, and national groups to exercise grass-roots democracy. 

Download the Policy Brief [PDF].

Posted January 9, 2014 by Christopher Mitchell

We are adding a new fact sheet to our growing collection with the new, Financing Municipal Networks Fact Sheet. Many have assumed that municipal networks are funded with taxpayer dollars, but this is not true in the overwhelming number of cases.

When a community decides it needs to establish its own publicly owned network infrastructure, one of the biggest challenges is financing the investment. Each community is unique but three main methods of financing are most popular. This fact sheet offers a quick look at these common approaches and provides real-world examples.

Download the Fact Sheet [pdf]

Posted January 9, 2014 by Christopher Mitchell

This the second in a series of posts exploring lessons learned from the Seattle Gigabit Squared project, which now appears unlikely to be built. The first post is available here and focuses on the benefits massive cable companies already have as well as the limits of conduit and fiber in spurring new competition.

This post focuses on business challenges an entity like Gigabit Squared would face in building the network it envisioned. I am not representing that this is what Gigabit Squared faced but these issues arise with any new provider in that circumstance. I aim to explain why the private sector has not and generally will not provide competition to companies Comcast and Time Warner Cable.

Gigabit Squared planned to deliver voice, television, and Internet access to subscribers. Voice can be a bit of hassle due to the many regulatory requirements and Internet access is comparatively simple. But television, that is a headache. I've been told by some munis that 90% of the problems and difficulties they experience is with television services.

Before you can deliver ESPN, the Family Channel, or Comedy Central, you have to come to agreement with big channel owners like Disney, Viacom, and others. Even massive companies like Comcast have to pay the channel owners more each year despite its over 10 million subscribers, so you can imagine how difficult it can be for a small firm to negotiate these contracts. Some channel owners may only negotiate with a provider after it has a few thousand subscribers - but getting a few thousand subscribers without good content is a challenge.

Many small firms (including most munis) join a buyer cooperative called the National Cable Television Cooperative (NCTC) that has many of the contracts available. But even with that substantial help, building a channel lineup is incredibly difficult and the new competitor will almost certainly be paying more for the same channels as a competitor like Comcast or Time Warner Cable. And some munis, like Lafayette, faced steep barriers in just joining the coop.

FCC Logo

(An...

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Posted January 6, 2014 by Christopher Mitchell

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 Lisa Gonzalez

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 Lisa Gonzalez

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 David Collado

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 David Collado

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 Lisa Gonzalez

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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