Tag: "fiber-to-the-business"

Posted August 7, 2013 by lgonzalez

This summer, Broadband Communities Magazine published its list of 135 municipalities that have invested in their own FTTH networks. In the May/June issue, Masha Zager finds that a growing number of communities are building fiber to the home networks. Subscriptions to the magazine are available here.

In her accompanying article [PDF], Zager describes her precise criteria for inclusion on the list:

All the network deployers on this list

• Are public entities, consortia of public entities, consortia of public and private entities or, in a few cases, private entities that benefited from significant investment or participation by local governments. 

• Own all-fiber networks that connect local homes or businesses to the Internet (or are actively developing such networks). 

• Make available – directly or through retailers – such services as voice, Internet access or video (or are planning such services). 

Zager left out commuities with Institutional Networks (I-Nets) that only serve government or schools. The list also omits communities that only lease dark fiber and those that provide services over cable or wireless.

The article discusses commonalities between municipal network communities, including the fact that many communities first run their own electric utility. Often I-Nets come first, serving municipal facilities, schools, and libraries. Next the network will serve commercial and industrial clients. Expansion to single and multi-dwelling households is usually the last step in community connectivity. As our readers know, the deployment and funding approaches can be as unique as the communities they serve.

Zager notes that a growing trend shows larger cities entering the telecommunications business. In the past, networks graced primarily small to mid-sized communities. Those communities were large enough to have necessary resources, but small enough to be ignored by major telecommunications providers.

The article also describes different types of partnerships between the public and private sectors as a way to find the right business model for delivering services. As Zager notes, state law can limits available options by creating barriers and unique regulations that only apply to publicly owned...

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Posted July 31, 2013 by lgonzalez

A part of the Cincinnati metro region, Hamilton sits in the extreme southwest corner of Ohio. The community of 63,000 will soon expand its fiber resources to spur economic development and improve education opportunities. Eric Schwartzberg from the Journal News reports that the City Council recently voted to support the city-owned electric utility's proposal to create a broadband utility and build a data center. Hamilton is a full service community, also offering sewer, water, and gas.

Hamilton's municipal facilities have used the city's fiber I-Net for over nine years, reports Schwartzberg, and they believe it now makes sense to connect schools and local businesses while opening the network to independent service providers. 

[Mark] Murray [a project manager for the city’s underground utilities] said the opportunity to offer broadband to businesses and schools is similar to what Hamilton does with the electricity it generates.

“If we were putting up poles and stringing wires and only providing that to city institutions or city buildings … why wouldn’t we offer electric to businesses?” he said. “Well, that’s the same question that’s being asked of our fiber optic network. We’ve made great use of it here within the city, but why not take this asset and offer it as a service to the businesses?”

...

“When you start to see this type of facility go in, it’s not unusual for regional or national start ups to want to take advantage of the opportunity to tap into our fiber network,” [Murray] said.

In January of 2012, the City's We Connect People Sub-Committee began investigating how best to use the City's fiber. They hired Magellan Advisors who estimates the project costs at $4.3 million to expand the fiber network, purchase equipment and build the data center, and to use for future capital improvements and maintenance. Murray said positive operating revenue would be expected in 2017 and 2018 would very likely show net income.

In addition to serving local business, the utility also hopes to establish the Hamilton City School District as a community anchor institution. Murray noted that the utility is not interested in providing phone, video, or data to the school; they will build the infrastructure for private providers...

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Posted July 29, 2013 by lgonzalez

The community of Shafter enjoys savings, better public safety, and more educational opportunities with the municipal fiber network that we wrote about two weeks ago and discussed in last week's podcast. In 2006, Shafter spent $200,000 on its I-Net to serve local schools and government in the core of the downtown area. While the community had originally planned to build a FTTH network, the tumultuous economy dictated otherwise and the community adjusted its course.

The community is now expanding infrastructure to several areas closer to the edge of town in order to serve local business. With next-generation fiber infrastructure in place, Shafter expects to attract several providers interested in serving businesses over its open access network. Completion is scheduled for the fall of 2013.

A 25 mile fiber backbone ring is now under construction and will loop to two industrial areas near the edge of town. Both complexes sit very close to the two main railroad lines that run through the town and provide easy access to transport. In addition to the larger loop, one of the industrial areas, will contain a 10 gigabit ring and the city will light two separate commercial rings to provide 1 gigabit service. This phase of Shafter's project will cost $1.5 million and required equipment will cost another $600,000. The network is underground, with 99% in city road rights-of-way. The entire path travels through greenfield areas so there is almost no infrastructure to avoid or remediate. General fund dollars, rather than bonding, borrowing, or grants paid for the entire open access network.

We learned from IT Director Scott Hurlbert that oilfield services company, Baker Hughes, invested $70 million to build a campus in Shafter. AT&T serves the company now with copper lines but "they don't like it," says Hurlbert. A 2.1 million square feet Target distribution center sits nearby waiting to switch to the Shafter fiber network.

Ross Dress-for-Less is now developing a 1.7 million square feet distribution center in the area and will likely take service from AT&T and from a different provider...

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Posted June 28, 2013 by lgonzalez

In 2010, Silverton, Colorado, decided to build a fiber-optic loop for savings and better connectivity in rural San Juan County. At the time, Qwest (now CenturyLink) provided a microwave connection to the town of around 630 residents. After taking state money to connect all the county seats, Qwest decided to take fiber to everyone except Silverton, much to the frustration of local residents. We wanted to catch up with happenings in this former silver mining camp.

We spoke with Jason Wells, Silverton Town Administrator, who told us that Silverton's loop is part of a regional effort, the Southwest Colorado Access Network (SCAN). Silverton's loop broke ground in April and it will cost $164,000. Silverton and San Juan County contributed $41,000 and the remainder comes from a Southwest Colorado Access Grant. Wells says public institutions will be hooked up first, then downtown businesses. Connecting the schools will come later.

The community is limited by its remote geography. At 9,300 feet above sea level, the town is one of the highest towns in the U.S. and still served by microwave technology. Wells hopes future expansion will include wiring Silverton to Durango, the closest SCAN community. Durango connects municipal and La Plata County facilities with its municipal fiber and leases dark fiber to local businesses, private providers, and community anchor institutions.

Wells connected us to Dr. Rick K. Smith, Mayor of participating Bayfield and General Manager of the Southwest Colorado Council of Governments (SWCCOG). Dr. Smith shared some history on the SCAN project.

The Southwest Colorado Council of Governments officially formed in 2009 and the first items on the agenda was establishing better connectivity in the region. Fourteen town and county jurisdictions belong to the Council to capitalize on the benefits of cooperation and coordination. Each...

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Posted May 29, 2013 by lgonzalez

The Missoula City Council recently approved a measure to finance a feasibility study on improving local Internet options. Keila Szpaller of the Missoulian reports the council voted 9-1 to spend $13,125 as a first step in improving business connections to boost economic development. Szpaller writes:

“We did a survey around that and identified that one of the needs that folks have is for high-speed, high-capacity connections at an affordable price,” said Councilwoman Caitlin Copple.

Copple chairs the Economic Development Subcommittee of the council, a group that formed to research the way municipal government can best support technology infrastructure to bolster local businesses – and recruit more technology startups.

“We felt like the time is now to bring on a consultant and really get a professional assessment on what we have, what the demand is and what the potential partnerships are,” Copple said.

The Montana Department of Commerce, through its Big Sky Economic Development Trust Fund, awarded $26,250 to the city and Missoula County. The county Board of Commissioners voted earlier this month to guarantee another $13,125 to meet the matching contribution requirement. The city contribution comes out of a federal grant to the city from the U.S. Department of Housing and Urban Development. Encouraging economic development will improve affordable housing options says Councilman Jason Wiener:

“When we talk about housing affordability in particular, people often talk about the gap between prices and income and working to close that as well, so this is really money put to that purpose,” Wiener said.

Montana Seal

According to the article, the Big Sky Selection Committee and several local businesses provided letters of support. First Interstate Bank called the feasibility "an important step" in encouraging high-quality local jobs. Local online publisher Mamalode wrote that robust broadband infrastructure will lead to better paying positions and will contribute to the company's vitality. Mamalode "relies...

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Posted May 21, 2013 by christopher

The city of San Leandro has formed a partnership with a local company now named Lit San Leandro to expand business access to the Internet. We talk with San Leandro's Chief Innovation Officer Deborah Acosta and Judi Clark, a consultant with Lit San Leandro, to learn more about their approach.

San Leandro already had conduit assets and Lit San Leandro is pulling fiber through it for the deployment. In return, the City is getting both attention for its 10Gbps service availability and many strands for its own use.

Rather than simply making dark fiber available, which is most helpful to technically savvy firms, Lit San Leandro is working with ISPs that can take advantage of the dark fiber to deliver services to other customers that don't have the capacity to take advantage of dark fiber directly.

We also discuss policies around conduit placement and how to build a healthy tech and innovation system.

Read the transcript from our conversation 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 23 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Find more episodes in our podcast index.

Thanks to Eat at Joe's for the music, licensed using Creative Commons.

Posted May 13, 2013 by lgonzalez

In January, Longmont Power and Communications (LPC) announced they would begin connecting businesses located within 500 feet of the existing network. As we reported, local businesses were chomping at the bit to get hooked up and enjoy the high-speed next generation network. Even without efforts at marketing or advertising, more businesses have added themselves to the queue. LPC will present the formal business plan for expanding the network to the City Council on May 14th. Tony Kindelspire recently reported on the race to get on LPC's network in the Longmont Times-Call:

"We are bringing to council a business plan to build out all of Longmont," [Vince] Jordan, [Broadband Services Manager], said. "It's the whole enchilada."

The fact that there has so far been only limited rollout is due to economics. Currently, the installations are being paid for from a reserve fund that Longmont Power has built up over the years leasing portions of its fiber-optic loop to entities such as Longmont United Hospital and a third-party provider that services the school district. Those leases bring in about $250,000 annually, Jordan said.

For 2013, the Longmont City Council authorized LPC to use $375,000 of that reserve fund to begin connecting businesses and residents to the loop.

This model works, but does not connect everyone fast enough for their liking:

To expedite the build-out, extra up-front dollars will have to be allocated, but where those dollars will come from is yet to be determined, Jordan said, adding that ultimately, the decision will lie with City Council.

Map of Longmont Fiber Rings

Right now, Longmont will cover the initial cost of connecting subscribers except in cases of extraordinarily high cost cases. If it would cost $10,000 to install but the payback to the utility in 2.5 years is only $6,000, a customer would have to cover the $4,000 difference presently. While there are over 1,300 businesses with in 500 feet of the network, connection...

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Posted April 14, 2013 by lgonzalez

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

It's not clear how many Internet-based businesses exist in Ashland...

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Posted April 11, 2013 by lgonzalez

Bartow, Florida, located in Polk County near the center of the state, is considering a FTTH network for the community's 17,000 residents. At a recent City Commission meeting, members decided to put city administrators on task and develop a plan to eventually offer triple play services to residents.

Suzie Schottelkotte reported on the initiative for The Ledger.com, quoting Mayor Leo Longworth, who commented, "I think the residents are ready for it and it's something that's needed."

The City has an existing 100 mile fiber network and offers connections to some local businesses. Government and schools also use the network. At the meeting, city commissioners heard from a fiber optic consulting firm that estimated an expansion to households at $3.3 million for capital costs and $2.5 million to run the network during the startup years until the network breaks even. 

Comcast now serves the community through its cable television franchise agreement and is a source of constituent discontent:

"Without discrediting anybody, we just don't have the quality," [Mayor Longworth] said.

The Polk County Democrat also covered the discussion. Steve Steiner referred to the Mayor's comments about the private sector:

[Mayor] Long reminded commissioners that they as well as city staffers and the general public present, are familiar with the problems experienced with the current broadband provider. Long also expressed the doubt another provider would be willing to come to Bartow to install and upgrade the current system in place. The number of businesses and the size of the population does not provide any true incentive.

The Florida Cable Telecommunications Association (lobbyists for the cable industry) responded to the initiative in a predictable fashion. From the Ledger article:

"Before the city fathers take the taxpayers' money and move in this direction, they had better understand what they're getting into," he said. "It's going to be a long time before they're making money. How long do they want to lose money? — that's the real...

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Posted March 29, 2013 by lgonzalez

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.

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