With construction of a major community broadband network behind them, local leaders in New York State’s Southern Tier region are now considering the potential for the recently completed dark fiber network.

Since becoming operational in 2014, the Southern Tier Network (STN) is already serving over 100 industrial and government service entities across the region. STN is a not-for-profit, local development corporation that built, owns, and manages the network for the region.

Jack Benjamin, president of economic development organization, Three Rivers Development Corporation, explained the value of the network to the region in a July Star Gazette article:

This backbone fiber that we've got here is a huge benefit for us going forward. As this technology piece continues to be even more important in the future, because it's going to be changing all the time, we will have the base here that allows us to change with the marketplace. Part of our thought process here is we want to keep what we've got in terms of businesses and provide the infrastructure that allows them to stay here and be competitive.

Building Out for the Future

When we wrote about the STN in 2011, the planned backbone of the network included a 235-mile fiber-optic ring stretching across Steuben, Schuyler, and Chemung counties. Glass producer Corning paid for $10 million of the initial $12.2 million cost to deploy with the remaining balance paid for by the three counties where the network is located. The STN is now 260 miles total, including strands that run to city centers and select business areas in the tri-county area.

Additional expansions on the network are pending, including a 70-mile extension to neighboring Yates County. Thanks to a $5 million award from New York’s Regional Economic Development Council, the STN will also expand the network into “targeted business development areas” in Broome County and Tioga Counties...

The City Council of Upper Arlington, Ohio on Oct. 26 approved several contracts that will enable the community to build a municipal fiber-optic network to key anchor institutions for an estimated $2.5 million.

Upper Arlington’s project will provide high-speed Internet service for the city’s buildings, the Public Library, Upper Arlington city schools, and most city parks according to a news report from the Upper Arlington News. The 30-mile fiber network will serve about 40 locations around the boundaries of the city (population 34,000).

Besides establishing better connectivity between the three public partners’ buildings, the network is expected to provide opportunities for commercial companies to lease telecommunications services. The network would allow the city to lease some of the 288 fiber strands to commercial companies, such as other Internet Service Providers (ISPs).

Financing and Break Even

Under the cooperative arrangement, the library will contribute $17,616 annually, the city $68,484 per year and the school district $177,900 each year until the project is paid off. “These costs are derived from the amounts that each entity is currently paying for leased broadband connectivity between their facilities,” Upper Arlington Assistant City Manager Dan Ralley told us. 

The period anticipated to pay off the network construction is nine years with the school district and library able to extend the parties’ shared-services agreement for an additional 15 years after. The extensions would occur in three five-year segments.

Cost savings, broader bandwith

Ralley says the primary benefits of the new city fiber-optic network will be significantly lower long-term bandwidth and broadband access costs.  For example, the city of Upper Arlington expects to save about $1,280 a month for Internet service by building its own fiber network. Over 10 years, the city’s savings would total about $150,000.

And the municipal network will be a boon for the Upper Arlington public schools. In an Oct. 19, 2015 staff report, Ralley said:

Upper Arlington Schools’ available bandwith capacity is a...

An interesting confluence in events in Maine have resulted in what some are calling the "Maine model" of fiber optic networks that are available to multiple Internet Service Providers to encourage competition and high quality services. The CEO of GWI, Fletcher Kittredge, joins us this week to explain this model and where it is currently being implemented.

GWI is a local firm, rooted in Maine and focused on delivering high quality services with great customer support. It is working with Rockport (which we wrote about here and podcasted on here) and Islesboro (podcast here) as well as others.

Fletcher starts by telling us more about Maine's Three Ring Binder network and then goes on describe the dark fiber model, benefits of that approach, and how he thinks about public vs private ownership of the open access physical assets.

Read the transcript from this episode here.

Note: This podcast was posted a day late due to the very poor Internet connectivity at a retreat center in Minnesota. Thanks CenturyLink for a reminder why communities cannot rely on the national carriers to invest in modern infrastructure.

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Plans for a fiber network collaboration between the city, school district, and county will save hundreds of thousands of dollars in Stormlake, Iowa. The school district recently voted to take advantage of significant savings for connectivity by switching to the publicly owned infrastrucutre as soon as the network is ready.

The Storm Lake Pilot recently reported that under the current contract with Vast Broadband, the district pays $7,500 per month to lease two strands of fiber. The new arrangement will allow the district to lease 12 fibers from the city-owned network for $14,000 per year or $1,167 per month - a reduction of approximately 85 percent. The city and the school district will enter into a 10-year agreement to ultimately save the district a total of $760,000 or approximately $6,333 per month during the term of the lease.

The school will still need to pay for Internet access and as part of the agreement will be responsible for purchasing its own equipment. The School Board voted unanimously to approve the agreement.

As we reported in July, the Stormlake project began as a way to better communication between water and wastewater utility facilities but then evolved into a public safety and cost saving initiative. All three entities - Storm Lake Community School District, the City of Storm Lake, and Buena Vista County - anticipate considerable savings and heightened reliability. We expect to report on more public savings as the community uses this valuable fiber asset.

Project costs for the system of conduit and fiber, which does not include hardware, are estimated at approximately $1,374,000 to be shared by all three entities. This first phase of the project is scheduled to be completed by December.