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The Tacoma Click Saga of 2015: Part 4: Accumulating Spillover Effects
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.
Avoid Partisan Fights with a Personal Face on Economic Development
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?
Indiana County Saving With Fiber in Pennsylvania
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.
Broward County Saves with Fiber Network in Florida
In 2014, Broward County completed its transition from an expensive leased data, video, and voice communications system to its own fiber network. The southern Florida county is now saving $780,000 per year with plenty of room to grow. With the transition to an IP-based telephony system, the County also saves and additional $28,000 per year.
Pat Simes, Assistant CIO of the county, recently contributed a profile on the project to Network World.
In 2009 when the network was too slow to be effective, county staff knew they had to act. Costs were increasing 15% each year as the number of lines grew and the demand for bandwidth increased. The County also had to provide funding to reach locations that the carrier's network did not serve. The situation made it difficult to budget; there was always a need to fund unexpected expansions and increasing service.
Several groups in Enterprise Technology Services (ETS) began working together to develop a way to improve systems for both groups:
Working together the teams developed a 3-year strategic initiative to upgrade Broward County to a 10 GigE core network infrastructure. Part of the plan called for reducing complexity and duplication of infrastructure, so the County also decided to converge the voice and data networks and, with voice and data traversing the same circuits, network redundancy would have to be increased because a single line outage could cause a location outage for both critical services.
Longmont Schools Save, Increase Bandwidth With Help from LPC
Schools in Longmont recently began working with Longmont Power and Communications (LPC) to increase bandwidth, save money, and begin implementing a new technology plan. As part of the plan, every middle school student in Longmont was assigned an iPad mini this school year.
Jon Rice from the Longmont Compass alerted us to the program that takes advantage of the new 10 Gig wide area network. LPC installed the WAN this summer for the St. Vrain Valley School District. The network has a 20 Gbps ring and each school has an active 10 Gbps link with a second 10 Gbps ring for redundancy. The district's Chief Information Officer, Joe McBreen summed up the situation:
“We really needed to give ourselves some breathing room,” he said. The new LPC “pipe,” he said, gave St. Vrain 10 times the bandwidth while saving $100,000 a year and allowing teaching and learning to be exponentially improved.
According to McBreen, bandwidth demands used to take up 80 - 90 percent of the district's bandwidth, but now only requires 5 percent on a typical day, even with the new devices.
Not long ago, LPC announced a new $49.95 per month gigabit service for residents and businesses. If customers sign up early, LPC guarantees the price for an extended period. The price remains the same at that residence, regardless of who owns the home. LPC expects to finish its current expansion work in 2017.
In the short video below, School Board Member Paula Peairs notes that the district's savings on connectivity costs allows them to direct more funds to devices, staff training, and classes for students.
"The fact that the City has established that and built us the infrastructure to apply it is enormous. We have a community that supports that and really puts us in a unique position."
Matt Scheppers, Electrical Operations Manager at LPC, said of the utility's new service to the school:
The Birth of Community Broadband - Video
ILSR is excited to announce a new short video examining an impressive municipal broadband network, Glasgow Kentucky. Glasgow was the first municipal broadband network and indeed, seems to have been the first citywide broadband system in the United States.
We partnered with the Media Working Group to produce this short documentary and we have the material to do much more, thanks to the hard work of Fred Johnson at MWG and the cooperation of many in Glasgow, particularly Billy Ray.
People who only recently became aware of the idea of community owned networks may not be familiar with Billy Ray, but it was he and Jim Baller throughout the 90's and early 2000's that paved the way for all the investment and excitement we see today.
I'm excited to be helping to tell part of this story and look forward to being able to tell more of it.
Spencer Municipal Utilities Expands Upgrade to Fiber in Iowa
Spencer Municipal Utilities (SMU) in Iowa is expanding an upgrade project to bring fiber to approximately 2,000 additional premises. A little over a year ago, we reported on the switch from coax cable to fiber for 700 municipal network customers with no rate increase. According to the Spencer Daily Reporter, the original project is almost completed; the expanded upgrade will cost approximately $4.5 million.
Amanda Gloyd, marketing and community relations manager, told the Daily Reporter:
Since SMU first began offering Internet service to customers the amount used by customers has increased and we expect to see that continue. For example, the average peak usage from customers in the fall of 2010 was 125MB and today it averages around 800MB with maximums over 1,200 MB. The project to convert the whole town of Spencer will take several years and we continue to develop plans for future projects.
In April, the SMU Board of trustees approved a modest rate increase for video and Internet access to help defray increased costs for video content and increased demand on the system. The last time rates went up for video service was early 2013; residential Internet access rates have remained the same since November 2011.
New rates went into effect on June 1. Internet access rates range from $20 per month for 1 Mbps/256 Kbps to $225 per month for 100 Mbps/10 Mbps. Basic level video service begins at $14 per month; "Basic Plus" is $50.75 per month. Digital service and a range of channel choices are available as add-ons.
SMU also provides voice and partners with T-Mobile to provide wireless phone service in the community. The network began serving customers in 2000.
Gainesville Plans Gigabit Ring for City and Businesses in Texas Town
The Gainesville City Council recently approved a plan to deploy a fiber ring throughout the Texas town of 16,000. The network will connect municipal facilities and offer gigabit connectivity to local businesses. Gainesville is located seven miles from the Oklahoma border in Cooke County.
According to City Manager Barry Sullivan, the planned route will provide access to 95% of local businesses. Sullivan told KXII:
"That is key to economic development now. People used to look at streets, water and sewer. Now the first thing a lot of companies look at is the communication infrastructure because that is more limited than streets, water and sewer in most communities," said Sullivan.
The project will cost $525,000; the City will pay $425,000 and the Economic Development Board will contribute the remaining $100,000.Watch the news video or read the story for more information.
Paid Prioritization Threat Reinforces Value of Community Networks
Kansas Community Benefits from Community Owned Networks
Even though the Kansas cable lobby have temporarily retracted their competition-killing telecom bill, we still want to highlight the benefits of preserving full home rule, local authority by focusing on a number of communities, including Chanute, Ottawa, and Erie.
We have reported on Chanute's municipal network for years. The community leveraged its electric utility assets and incrementally built an extensive publicly owned gigabit fiber network. Over several decades, the community expanded its network to serve schools, libraries, local government, and businesses. Chanute took advantage of every opportunity and created a valuable asset with no borrowing or bonding.
Several business, including Spirit AeroSystems, chose to locate in Chanute because of its incredible fiber network. Spirit brought approximately 150 new jobs. The network also retained jobs when incumbents refused to provide needed upgrades to local businesses. Rather than leave town, the businesses connected to the City's network and increased their productivity.
Former City Manager J.D. Lester referred to municipal broadband as “the great equalizer for Rural America,” saying: “You don’t have to live in Kansas City to work there.” (See our case study Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to A Gigabit and Ubiquitous Wireless Coverage [PDF])
Kids in Chanute have access to connectivity other schools can only dream about. The local community college has expanded its distance learning program with higher capacity broadband. Free Wi-Fi hotspots are all over town; money otherwise sent to distant providers stays in the community. Chanute has invested in a WiMAX wireless system that serves public safety all over the region, not only in town. Their other utilities use the network for automatic metering and SCADA applications, saving energy and allowing customers the chance to reduce utility bills.