Tag: "savings"

Posted June 19, 2017 by christopher

For episode 259 of the Community Broadband Bits podcast, we are going back to the well in Ammon, Idaho - one of the most creative and forward-thinking fiber network deployments in the country. Strategic Networks Group has completed a study examining the impact of Ammon's open muni fiber network on local businesses and residents.

To discuss the results, we welcome back Ammon Technology Director Bruce Patterson and SNG President Michael Curri. After a quick reminder of how Ammon's network works and what SNG does, we dive into how Ammon's network has materially benefited the community.

The city is expected to realize savings approaching $2 million over 25 years. Subscribers will be saving tens of millions of dollars and businesses seeing benefits over $75 million over that time frame. Listen to our conversation to get the full picture.

Bruce has visited us for the podcasts, including episode 207 on Software-Defined-Networks, episode 173 in which he described public safety uses for Ammon's network, and episode 86 from back in 2014 when local momentum was starting to grow for better connectivity. 

Michael has also joined been on the show in the past. He participated in episode 93, talking about the benefits of broadband utilization.

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

You can... Read more

Posted June 6, 2017 by christopher

One of the very many treats at Mountain Connect this year was a keynote from Chattanooga EPB's Director of Fiber Technology, Colman Keane. (Watch it here.) After discussing their remarkable successes, we snagged an interview with him (he was last on the show for episode 175).

We discuss whether or not Chattanooga is an appropriate role model for other cities considering a municipal fiber investment and the general viability of citywide approaches in the current market.

We also get an update on Chattanooga's financials, their enthusiasm on connecting well over 90,000 subscribers, and how the smart grid deployment is creating tremendous value for both the utility and the wider community.

For more about Chattanooga, take a look at our ongoing coverage. We've been following the network and the community since 2009.

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 23 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 for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted March 20, 2017 by lgonzalez

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 recently... Read more
Posted March 1, 2017 by lgonzalez

For local schools, finding ways to cut costs can be challenging but allows more money to be spent directly on students. While trimming small costs here and there adds up, eliminating leased lines from telephone companies and making the change to VoIP phone systems can be a big savings with improved service. Pitt County Schools in North Carolina are one of the latest to upgrade and save big.

Goodbye Copper, Hello Fiber

The district owns a fiber optic network and has ditched copper wire telephone service in favor of a new VoIP system at nine of its facilities. The cost to replace the phone system at those facilities was $32,000 but the district reclaimed $13,000 so far by eliminating the need to lease copper phone lines.

District officials plan to replace all the phones in the district with a fiber based system at a cost of $210,000, pending the availability of funding. They estimate annual savings will be approximately $107,000, so the project will pay for itself in less than two years.

More Than A Trend

Carroll County Public Schools (CCPS) in Maryland and Austin's public schools in Texas found that switching from traditional phone lines to VoIP supported by fiber saved their districts significantly. CCPS began saving approximately $400,000 per year when they partnered with the county and several other entities to develop the Carroll County Public Network (CCPN). Austin Independent School District (AISD) collaborated with several other entities in Austin, Texas, and AISD’s investment in their network paid for itself in less than 3 years. In 2011, AISD estimated they saved almost $5.8 million in telephone and Internet connectivity avoided costs.

It's Not All About The Money

In Pitt County, school officials are finding better service is an added benefit:

In addition to saving money, the new phone system offers a variety of features, such as online call history and voicemail, an easier system for connecting calls to classrooms, better call quality and a... Read more

Posted December 21, 2016 by lgonzalez

Plans for a fiber-optic middle mile network to serve the Brazos Valley in Texas are firming up and the project should be up and running within two years, reports KBTX from Bryan and College Station. The network will also have a fixed wireless complement.

Healthcare First

The $22 million network backbone, funded through the FCC’s Healthcare Connect Fund and the Brazos Valley Council of Governments (BVCOG), will first connect healthcare providers such as hospitals, schools nurses, and jail clinics.

According to the April 2015 Network Plan from the Brazos Valley Council of Governments, 62 percent of the population in the proposed service area live in rural areas with poor access to quality healthcare. Twenty percent of residents in the region are 60 years of age or older. Texas A&M School of Public Health, one of the partners in the project, completed a study that indicated high percentages of chronic conditions in residents in the region. In 8 of 12 of those measures, the results were worse than the national average. In some cases, the rates were twice as high as national averages.

Local leaders plan to next add libraries, workforce centers, schools, and a number of other local government facilities. "If our schools are spending a disproportionate amount of their funds on just providing the minimum of internet, that's not right. We can fix that," said Michael Parks, Executive Director of the Brazos Valley Council of Governments.

Jobs Ahead

The BVCOG wants to take advantage of the economic development possibilities by connecting local businesses in the future. They estimate the network will help create approximately 600 new positions in small business and 1,100 new jobs in total. Local business owners are already looking forward to better connectivity, especially the anticipated 1 Gigabit (1,000 Megabits per second) upload critical for sending data heavy files. "It helps to send big pay loads of data upstream. That has always been a challenge, so to go 'gig' is going to be much more efficient," said Bronius Morekaitius, who owns a local... Read more

Posted November 17, 2016 by lgonzalez

The Missoula County Public Schools (MCPS) plans to save $150,000 per year by investing in its own fiber infrastructure. Over a 20-year period school officials expect to save approximately $3 million.

Fiber For Education And Savings

MCPS will be the first in the state to self-provision its wide area network (WAN), the connections between district facilities. Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN.

School officials were already leasing lit fiber service when they began investigating options to compare cost and service. They also looked at leasing dark fiber, which would mean they would need to maintain the equipment to light the fiber themselves, and investing in an Indefeasible Right of Use (IRU). The IRU would give the school district the ability to use a designated number of fiber strands to use as they wished for a fixed period of time. 

As other school districts around the country are discovering, the best choice for them was to own the infrastructure and control it themselves:

"We're saving the district $3 million over the next 20 years in the general fund that will be able to be allocated to other things," Littman said of self-provisioned fiber. "It's more than $3 million, actually. The reason we say we'll only end up saving the general fund $3 million in the end is because we do have some annual maintenance costs to incur to protect the fiber."

Leasing lit fiber for the speeds MCPS needs would have cost $1.5 million to $3.1 million for only a five-year contract. A dark fiber 10-year contract would have cost about $3 million.

Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN. The school will still need to contract for Internet access from an Internet Service Provider (ISP).

Lake Oswego School District in Oregon recently discovered the cost benefits from ownership, when they discovered they would pay 89 percent less by self-provisioning than by leasing from Comcast. School districts sometimes partner with municipalities and integrate school fiber assets for larger municipal fiber projects, as... Read more

Posted August 26, 2016 by alexander

The Columbus, Ohio suburb of Dublin is home to Dublink, a fiber-optic network that serves local businesses, schools, and community anchor institutions. Dublink brought new jobs and research opportunities to the local economy while saving local institutions hundreds of thousands of dollars per year. 

Just recently, Dublin City School District and City of Dublin struck a deal to allow public schools to use the network. Now, residents want Dublink to deliver high-speed access to their homes. 

Residents Want The Benefits, Too

This spring, Dublin residents expressed their discontent with incumbent Internet service providers (ISPs) Charter Communications and AT&T at two packed meetings. Doug McCollough, Dublin’s Chief Information Officer (CIO) summarized local sentiments in a memo to the City Council in April. In the memo and in a Columbus Business First article, McCollough downplayed the idea that the city would operate a network itself, but noted a growing impatience in his community:

"We are a city and should not be competing against telecom carriers, (but) the patience for that message is running out. Our residents want broadband service in their home for a reasonable price – now."

Extensive, compelling public discussions on the social network Nextdoor and in an online forum facilitated by resident group Dublin Broadband encouraged city officials to take up the issue at a larger public meeting in April. Community enthusiasm led to the addition of three more meetings in July, August, and September. The next step will be to survey residential Internet needs and to gather information from the Department of Commerce and... Read more

Posted August 16, 2016 by lgonzalez

Lake Oswego School District (LOSD) in Oregon is set to make an investment that will save up to $301,000 per year in telecommunications costs - its own dark fiber network.

To Lease Or To Own? There Is No Question!

LOSD is the latest in a string of local schools that have chosen to invest in fiber infrastructure for long-term savings. Caswell County, North Carolina, is also investing in dark fiber with an eye on the future. Because the school district will own the network, they will no longer be surprised by unexpected rate hikes, making budgeting easier. The money they save can be directed toward other programs and, because it is dark fiber, they are only restricted by the equipment they install and the bandwidth agreements they enter into with Internet Service Providers (ISPs). Some schools choose to become ISPs themselves or join collaborations in which they can purchase bandwidth collectively to save even more. 

According to Joe Forelock, the district’s assistant superintendent for academic and student services, “This is a long-term investment for the health of the district over the next many, many years.” Once the network is in place, it will cost approximately $36,720 annually to maintain it, which is 89 percent less than what Comcast plans to charge LOSD for the 2016 - 2017 school year. 

We want to note that Comcast tripled their rates from the 2015 - 16 school year, in part because the 2016 - 17 contract was only for a year while the dark fiber network is being constructed. With no competition in the region, Comcast has broad practical authority to decide what LOSD will pay. “Right now, Comcast is essentially the only game in town in many communities," Morelock says, "including LO."

Clackamus County will install the $1.54 million network; 40 percent of the total cost will be reimbursed through E-rate, the federal program for schools that pays for Internet access and certain infrastructure expenses.

“After six years, if costs remain the same and do not increase, or decrease for that matter, the district will save $181,000 per year in connectivity costs with the E-rate discount, or $301,000 per year if E-rate were to disappear,” Morelock says.

Connecting In Clackamus

... Read more

Posted April 30, 2016 by lgonzalez

Caswell County School Board members recently voted to take a long-term approach to student connectivity in North Carolina.

Ten Years Was A Lifetime Ago

Earlier this month, the issue of Internet access for the schools came before the Board because a lease with the telecommunications company connecting school buildings is about to end. Since the inception of the 10-year agreement, computer and Internet use in schools has skyrocketed; Caswell County Schools now aim to have every child on a computer at school. The district is now served by satellite Internet access to school facilities and in order to supply the speed and reliability they need, the Chief Technology Officer David Useche recommended a fiber-optic network to the Board.

Lease vs. Own

Useche offered two possibilities: 1. lease a lit network, which costs less in the first years of the contract but will not belong to the school district; or 2. pay more for the first five years to have a dark fiber-optic network constructed. The dark fiber network infrastructure will belong to the school district. Caswell County will use E-Rate to help fund the construction of the network, which will result in an overall long-term savings of $35,000. Useche told the Board:

“If we look at the projections for the Lit network, in ten years after E-Rate our cost is going to be $214,255. With the Dark network the cost is $178,729. The difference is a savings of $35,000,” said Useche, who added that the district will use $751,000 in E-rate funds to help build the network. Useche said that the State of North Carolina is using E-rate funds to build networks in some of its rural areas. “If we didn’t have E-Rate funds we could not afford either of these options. We are lucky to have them to provide the services the schools need.”

The Board agreed with Useche’s recommendation to approve the dark fiber option. The agreement will include 10 Gigabit per second (Gbps) connectivity for less than $100 per month more than 1 Gbps connectivity. “It’s not like we need ten gigabits right away but pretty soon we will need that much bandwidth,” said Useche.

Posted April 25, 2016 by Scott

Virginia Beach has launched a $4.1 million capital improvement project to extend the city’s high-speed Internet network to all municipal buildings. The network will also offer connection spots on the system for colleges, businesses, and neighboring cities, according to the Virginian Pilot.

The city (pop. 448,479) plans to more than double the reach of its municipal network, adding 73 more sites, including more police stations, fire stations, and libraries. Project work is currently underway and is expected to finish in the next year to 18 months. In addition to extending the municipal network, the project will include buying new networking equipment. The city is using money from its capital fund to pay for the project.

Once the project is completed, Virginia Beach will become the first community in the South Hampton Roads region of Virginia with its own Internet network linking all of its government buildings, the Virginian Pilot reported

Growing City Internet Needs

Virginia Beach started its municipal Internet network in 2002 with the local public schools. Since then, the city has invested a total $27 million to install about 225 linear miles of fiber-optic cable, linking all the public schools along with  “connecting many government buildings, including police stations, fire stations, libraries, recreation centers, and Human Services facilities,” according to a city news release.  

Today, Virginia Beach’s burgeoning Internet needs are fueling its municipal network expansion. The network helps maintain traffic lights, facilitates video conferencing, and provides infrastructure for email. A city spokesperson told us that 100 Megabit per second (Mbps) symmetrical service is available to most of the sites on Virginia Beach’s municipal network. 

Network Yields Savings

Once Virginia Beach’s municipal Internet network is fully implemented, the city will save about $500,000 annually in Internet access fees,... Read more

Pages

Subscribe to savings