Tag: "public benefits"

Posted February 1, 2021 by Sean Gonsalves

For communities across the country considering whether to invest in building a municipal broadband network, a new study published last week on the economic value of the EPB fiber network in America’s first “gig city” is a must-read.

The independent study, conducted by Bento Lobo, Ph.D., head of the Department of Finance and Economics at the Rollins College of Business at the University of Tennessee at Chattanooga, found that the celebrated city-owned fiber network has delivered Chattanoogans a $2.69 billion return on investment in its first decade.

In 2010, EPB Fiber, a division of Chattanooga’s city-owned electric and telecommunications utility formerly known as the Electric Power Board of Chattanooga, became the first city in the United States to build a Fiber-To-The-Home (FTTH) network offering up to 1 Gig upload and download speeds. In 2015, EPB began offering up to 10 Gig speeds.

It cost approximately $220 million to build the network, however, “the true economic value of the fiber optic infrastructure for EPB’s customers is much greater than the cost of installing and maintaining the infrastructure,” Lobo said. “Our latest research findings show that Chattanooga’s fiber optic network provides additional value because it provides high speeds, with symmetrical uploads and downloads, and a high degree of network responsiveness which are necessary for the smart grid and other cutting-edge business, educational and research applications.”

Among the study’s key findings:

  • Job creation and retention: The fiber optic infrastructure directly supported the creation and retention of 9,516 jobs which is about 40% of all jobs created in Hamilton County during the study period.
  • Lower unemployment rate: According to the study, since Chattanooga’s fiber optic network was deployed, it has helped keep the local unemployment rate lower. This effect...
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Posted December 24, 2019 by Lisa Gonzalez

It was about five years ago that we brought consultant Eric Lampland from Lookout Point Communications into the office for episode 80 of the Community Broadband Bits Podcast. We've completed more than 300 other episodes since then, but his insight still rings true on the many indirect cost savings of community broadband networks. As activity in our office slows down a little for the holiday season, we thought this would be a great time to revisit the conversation with Eric to remind listeners of some of the reasons why so many communities are interested in taking control of their connectivity options with public investment. Enjoy! 

Today, Lisa and I are joined by Eric Lampland for a discussion of how a community could justify building a community owned network from the indirect benefits that it would create, including the savings that each household realizes from competition driving down prices. Eric Lampland is the CEO and principal consultant of Lookout Point Communications, which helps local governments that are building a network or considering an investment.

Eric and I start by discussing how quickly the cost savings per household add up to equal more than the cost of building a network and we digress from there, covering other topics related to community owned networks. This includes how big cable companies would respond to this approach.

I have to note that most community networks have not been justified on this basis - the vast majority of community networks were designed to pay their full costs and they are doing so. Here, we discuss the general benefits of these networks that are often sidelined in the policy discussion and how they alone may justify a fiber network.

Toward the end, we begin discussing open access, something we will...

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Posted October 7, 2019 by Lisa Gonzalez

Executive Director of UTOPIA Fiber Roger Timmerman has been paying attention to the issues that are on people's minds these days in Utah. He's discovered a trend — six of the top ten are issues can be positively impacted by publicly owned fiber optic Internet infrastructure. He tweeted about it:

UTOPIA Fiber has been working diligently to expand it's infrastructure in Orem; now more than 1,000 residents have the ability to connect to the open access infrastructure and choose from 11 Internet access companies. UTOPIA Fiber anticipates the deployment will be finished by the end of 2022.

Listen to our interview with Timmerman and Perry City Mayor Karen Cornin, recorded in 2016, about the network. They spoke with Christopher for episode 223 of the Community Broadband Bits podcast.

...

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Posted April 10, 2019 by Lisa Gonzalez

There are recognizable and obvious benefits that occur when a fiber is deployed in a community. New access to high-quality connectivity, educational opportunities for students in schools, better reliability, jobs from new employers, and possible ISP competition. Spillover effects also occur, but they may not be as obvious. This week’s guest, entrepreneur Isfandiyar Shaheen, has made it his mission to discover and document the benefits that come to a community when fiber connectivity is available.

Asfi is Founder and CEO of NetEquity Networks and he’s driven by the idea of connecting the entire globe. In addition to listening to our podcasts, Asfi has tapped into multitude of other methods for fiber infrastructure sharing as a way to make Internet access affordable.

He and Christopher discuss some of the places that have inspired Asfi, including Ammon and Emmet in Idaho, where the communities have used their fiber networks to find unexpected uses for their infrastructure. He describes how he finds a way to transform a spillover benefit into the direct benefit of affordable connectivity by working with infrastructure owners. It’s a process of creativity and vision.

We want to thank Asfi for using his birthday to start a Facebook fundraising campaign for ILSR ~ Thanks, Asfi!

Christopher interviewed Asfi at the Broadband Communities Summit in Austin, Texas; you can learn more from his 2017 TEDx talk:

...

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Posted May 10, 2017 by Christopher Mitchell

If you picked up the Institute for Local Self-Reliance dictionary, under "public-private partnership," it would say "See Westminster and Ting fiber-optic network." We discussed it with Westminster City Council President Robert Wack in episode 100 of Community Broadband Bits and he rejoins us for episode 252 to update us on the progress they have made.

We get an update on the construction process and the exciting developments around the Mid-Atlantic Gigabit Innovation Collaboratory (previous accomplishments noted here). One piece of good news is that they are hitting the milestones needed in the business plan for the network to break even financially. 

We also discuss the importance of finding a good partner to work with. Communities seeking a similar partnership cannot just copy this arrangement - they might start with it as a blueprint but will have to mold it to their circumstances and partner.

To learn more about Westminster, read our paper on partnerships and the Westminster tag on this site. Also, this interview from last year... 

 

Read the transcript of the show.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 30 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby...

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Posted March 20, 2017 by Lisa Gonzalez

A new case study recently released by the Berkman Klein Center for Internet & Society at Harvard University describes how the community of Concord, Massachusetts deployed its extensive municipal fiber-optic network and smart grid. In Citizens Take Charge: Concord, Massachusetts, Builds a Fiber Network, the authors offer history, and describe the benefits to the community from better connectivity and enhanced electric efficiencies.

 

 

Key Findings from the report:

  • In 2009 Concord Municipal Light Plant (CMLP) started work on a 100-mile fiber optic and wireless network to provide backhaul for a smart grid. The fiber passes 95 percent of homes and businesses in town. 
  • The $3.9 million project was paid for by electric ratepayers through annual payments that started at $418,000 per year and will decline to $207,000 in the 15th and final year of payments. The fiber will last for at least 30 years. 
  • In a second step, CMLP established a telecommunications division, called Concord Light Broadband, and borrowed $600,000 to fund startup costs of an Internet access business and fiber connections to customers. 
  • CMLP offers residential data plans of up to 200 Mbps, upload and download, for $89 monthly with a two-year agreement. CMLP competes with Comcast. CMLP doesn’t offer phone or video, but does provide much faster data upload speeds than does Comcast. 
  • The project is still being built: at the end of 2016, Concord Light Broadband served about 750 customers (a “take rate” of about 12 percent of the 6,000 customers CMLP estimates could take service) and earned 2016 revenue of $560,000, slightly less than operating costs of $583,000. (In 2016 the division also paid debt service of $60,000, including a $50,000 payment on principal.)
  • CMLP’s fiber helped the town save $108,000 in annual police and school communications costs and generated $88,000 in leasing revenue from a private school and two telecom companies. 
  • CMLP is only in the early stages of realizing the benefits of its fiber. The utility is now engaged in studies on how to use the infrastructure to realize more cost savings, increase revenue, provide new services, and reduce emissions in the coming decades.
  • David Talbot, one of the report authors, also...
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Posted January 16, 2017 by Lisa Gonzalez

The latest addition to our list of fact sheets focuses on Virginia: Municipal Networks Deliver Local Benefits. We noticed that municipal networks in the “Mother of States” have spurred economic development, saved taxpayer dollars, and improved local connectivity. 

A number of local governments in Virginia that have invested in Internet network infrastructure have attracted Internet Service Providers (ISPs) to use the publicly owned assets to offer services to residents and businesses. Local governments are using fiber-optic networks to improve public safety, take control of their own connectivity needs, and attract or retain employers.

Download the fact sheet here.

Learn more about the Roanoke Valley Broadband Authority (RVBA) open access network, located in southwest Virginia. Christopher spoke with Frank Smith, President and CEO of the RVBA for episode 221 of the Community Broadband Bits podcast.

Take a look at our other fact sheets; we will continue to add state-specific editions so check back for more. Subscribe to our weekly email for a run down of stories so you can stay up-to-date on what's happening in community broadband networks.

Posted June 28, 2016 by Tom Ernste

This is the last in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. Part 4 highlights Click’s often unseen “spillover effects” on the City of Tacoma’s economy and telecom marketplace over the network’s nearly 2 decades in operation, contributions that Tacoma should expect to persist and even expand in the future.

We published Part 3, an analysis of why the municipal network is positioned to thrive in the years ahead within the modern telecommunications marketplace on June 21st. In Part 2, published on June 7, we reviewed why Tacoma Public Utilities considered the possibility of leasing out all of the Click operations. On May 31, we published Part 1, which reviewed the community's plans for the network.

Part 4: Click’s Accumulating “Spillover Effects”

Regardless of any impending changes with Tacoma Click’s operations, it’s clear that the network has and will continue to support and enhance the overall economic interests and the public good in the City of Tacoma. “Spillover effects” - the benefits to the community that don’t show up clearly in any financial statements - tend to appear after communities developing their own municipal broadband networks.

Click’s spillover effects start with the broad economic development benefits that arose when Click appeared. Before Click came to town, Tacoma was a city in economic decline. Many businesses had fled downtown for the suburbs over the 50-plus year period after World War II. 

While we can’t give Click all of the credit for the city’s efforts to rebound from that period of economic downturn, analysts like the U.S. Conference of Mayors cite the $86 million Click network as a major component. The network was part of an ambitious and highly successful economic development effort in the 1990s that helped to revitalize Tacoma. In 2005, the Sierra...

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Posted September 25, 2015 by Christopher Mitchell

The following commentary comes from Mike Smeltzer, one of the key people responsible for the UC2B network in the Illinois twin cities of Urbana and Champaign. Mike had this comment after a question about how we can elevate local bipartisan conversations from the local level to the state and federal level without getting lost in political bickering. He wrote this and gave us permission to republish it.

The Urbana City Council could be confused for Madison's, while Champaign's Council is far more conservative. I spoke to both of them on a regular basis in the early days of UC2B seeking their support. I learned early on that I could not tell Urbana's Council what they wanted to hear on Monday night, and then change the message to better please Champaign's Council on the next night. Those dedicated public servants watch each other's meetings on the PEG channels.

The only message that rang true with both councils was economic development. That should not come as any surprise, but as we look to elevate the discussion, I believe that we need to personalize that message. Joey Durel does it more eloquently than anyone, but I have heard the same theme from other mayors and elected officials from across the country.

The first time I heard Joey was on a NATOA field trip to Lafayette 4 or 5 years ago. After he served us his home-made gumbo, he told us the bottom line on how a conservative businessman became a leading advocate for Lafayette's fiber broadband system.

Joey saw fiber broadband as his community's best opportunity to create a local business environment that would allow his adult children (and their children) to work and live in Lafayette. There is no greater gift to parents than to be able to participate in the lives of their adult children and grandchildren. Without fiber in Lafayette, Joey was concerned that his kids would have to move away to find jobs after college or high school in order to find rewarding work.

Any parent from any political perspective understands that. I am lucky that both of my daughters live in Champaign. I get to see them and my grandchildren often. Wouldn't it be great if my luck was more generally shared?

On a state level, many states lose population every year. At the current pace, some time later this century, the last person living in Iowa will turn off the lights and leave the cows and corn behind. Creating local opportunities for our kids is a personal issue, a local...

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Posted May 12, 2015 by Lisa Gonzalez

Indiana County, Pennsylvania's County Commission recently voted to use its fiber optic network for telephone service reports the Indiana Gazette. The change will allow the county to save $67,000 over the first five years. Indiana County is located on the west side of the state and is home to approximately 89,000 people.

The upgrade will allow the county to eliminate two-thirds of its phone lines by taking advantage of the network that was installed as part of Indiana County's public safety radio system. Phones in the courthouse, jail, district justices’ offices, a convalescent facility, the Indiana County Airport, the county parks and the departments of Children and Youth Services and Human Services will all be on the new system.

From the Gazette article:

“This is just the beginning of the savings we’ll see from the fiber optic network,” Baker said. Coming soon will be lower costs for county government’s Internet service.

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