Tag: "savings"

Posted October 14, 2015 by Lisa Gonzalez

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.

Posted October 9, 2015 by Tom Ernste

At a Chicago City Council meeting this month, a newly elected alderman proposed the city stop relying on incumbent ISPs and start using its existing fiber network for connectivity.

Pointing to nearby cities like Aurora, where municipal government eliminated leased lines to reduce costs by $485,000 per year, Alderman Brian Hopkins suggested the switch could save the city “tens of millions of dollars” annually. He also advocated the change in order to provide more efficient services.

“We already have a robust infrastructure in place to build from. Fiber optic resources currently controlled and managed by [the Office of Emergency Management and Communications] for traffic, first-responder, and emergency services is an example,” Hopkins said. "Given the debt Chicago faces, we should follow other cities by switching all municipal government broadband access from private incumbent providers to a taxpayer-owned fiber network. The money saved can be reinvested into the expansion of the municipal network to finally reach those communities that need fast affordable access. Why would we not do this?”

Hopkins’s comments come on the heels of a resolution we reported on earlier this year from four powerful Chicago City Council members calling for hearings on how to use city buildings, light poles and high-speed fiber-optic lines for a wireless network that could raise the city millions.

The city is trying to find ways to generate revenue amidst a major $30 billion employee pension crisis that led Moody’s to downgrade the city’s bond rating to junk status in May.

One of the most obvious benefits to local government of self-provisioning is saving...

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Posted September 30, 2015 by Hannah Trostle

Washington, DC, continues to operate an incredibly successful municipal network. Created in 2007, the municipal government’s 57-mile fiber optic network, DC-Net, provides connectivity to government buildings and community anchor institutions that are health or education based. DC-Net started providing public Wi-Fi hotspots in 2010. We covered some of the savings of DC-Net itself in our 2010 report, and we recently found a report from 2012 that details an example of public savings from the network.

In 2008, the Office of Personnel Management in D.C. needed to replace its aging phone system with state-of-the-art Voice over IP and a video conference system. These two telecommunication systems require a high capacity network. After a market analysis found that prospective vendors would cost more than the budget could handle, they had to find an alternative solution. That’s when they connected with DC-Net. The network kept costs down - the initial cost-savings from the project were about $500,000. 

DC-Net also provided more than Office of Personnel Management had originally anticipated: redundancy, more connectivity, and better coverage. With the added redundancy, the phone and Internet have had less outages. DC-Net then provided gigabit ethernet to the headquarters and Wi-Fi coverage. 

The total cost savings for the Office of Personnel Management over the first 6 year period (from 2008 to 2014) are estimated at $9.25 million. They came in at budget with more connectivity than they had anticipated by using a municipal network that was committed to meeting their needs. Sounds like a good deal to us.

Posted September 22, 2015 by Lisa Gonzalez

ONE Burbank, the dark fiber network that has provided connectivity for studios since 1997, is bringing a number of benefits to Burbank schools and taxpayers, reports the Burbank Leader. The network is saving public dollars, generating revenue, and providing better connectivity to schools and public facilities.

Five years ago, we reported on Burbank's asset and its primary customers - Hollywood studios. That trend has continued but now the network generates even more revenue. As a result, all electric customers served by Burbank Water and Power save with lower utility bills:

Last year, ONE Burbank generated $3.4 million in revenues for the utility, [General Manager Ron] Davis said in May. That’s compared to roughly $205,000 in 1997 and about $1.5 million five years ago, according to data Davis presented to the City Council.

“The bulk of that [$3.4 million] is all margin and helps keep electric rates down,” Davis said. “[We do] basically zero marketing and collect that margin.”

By connecting city facilities rather than leasing from a private provider, Burbank has all but eliminated past telecommunications expenses, lowering costs by 95% and saving, $480,000 in total thusfar. The school district has saved $330,000 since connecting to ONE Burbank.

ONE Burbank is also providing four times as much bandwidth to the school at a much lower rate that it once paid to the private sector, cutting its costs from $18,000 per year to $9,000 per year.

In August, Burbank Water and Power began using the dark fiber network as backhaul for free Wi-Fi service available throughout the city. There is no service level guarantee but it is open to any device:

“It’s just out there if you can get it,” Ron Davis, the utility’s general manager, told the City Council last week.

The dark fiber has helped retain and attract business, reports city leaders, and they want to continue the current trajectory to bring in high-tech companies and turn Burbank into a "Silicon Beach."

Louis Talamantes, president of Buddy’...

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Posted September 16, 2015 by Lisa Gonzalez

Boise, the Ada County Highway District (ACHD), and Boise State University (BSU) have entered into an agreement to deploy fiber along a busy downtown Boise corridor. The high-speed lines will supply connectivity to a new building BSU intends to lease as a facility for Computer Science Department students. The fiber will also connect the BSU Bookstore.

The city will use the fiber to connect its City Hall and a Police Department substation located on the BSU campus while ACHD will add this fiber line to its current fiber network to control traffic throughout the city.

According to an Idaho Statesman article, the city has been installing conduit on campus, connecting it to ACHD conduit situated in the downtown core during the past year. Conduit installation cost the city approximately $47,000; BSU will now install fiber in the conduit at a cost of approximately $75,000. ACHD will contribute a  section of its own conduit to complete the connection and will provide the permits to install the fiber.

When deliberating the joint venture, Boise leaders considered the economics and the future possibilities of the presence of the fiber. From the Statesman article:

“Providing the same data connectivity from a telecommunications provider would cost each agency close to $36,000 (per) year,” deputy city attorney Elizabeth Koeckeritz wrote in an Aug. 20 memo to the City Council. “By working together to connect these four locations, the (return on investment) is less than one year.”

At some point, Reno said, the city wants to connect the Boise Depot, the original railroad depot on the Bench south of the BSU Campus that the city owns and rents out as a venue for business meetings, weddings and other events.

This agreement will allow each entity to own one-third (48 strands) of the entire fiber line (144 strands). The city will continue to own the conduit that is in place and will own all newly-installed conduit and vaults located on city property or in the ACHD rights-of-way; any conduit installed on University property will belong to BSU.

Posted September 11, 2015 by Phineas Rueckert

The New York State Bridge Authority (NYSBA) expects to bring in over $900,000 over the course of the next ten years in revenue from dark fiber leases. The agreements, which allow private companies to access publicly owned dark fiber spanning the bridges, will also help maintain low tolls and allow regional telecom operators to expand their data transmission networks. The NYSBA announced on August 4 that it would be leasing dark fiber on two new bridges - the Bear Mountain and Rip Van Winkle bridges in upstate New York. These will be the third and fourth NYSBA bridges that generate revenue from fiber leasing.

The NYSBA dark fiber leasing program is now in its fifth year. Since the Authority does not receive any state or federal tax money for the operation and maintenance of its bridges, it has sought creative solutions to finance the upkeep of its infrastructure. It has now leased dark fiber on four of five intended bridges, with plans to lease more on a fifth - the Kingston­-Rhinecliff Bridge - in the near future.

In March, the Authority leased the Newburgh-Beacon Bridge to QCSTelecom, Inc. for $535,000. While such dark fiber leases are one-time fees, and usually last for at least ten years, the immediate benefit to the community takes the form of lower tolls for everyone who crosses the bridge. One editorial, posted in the Daily Mail, considered the locally-scaled benefits of the project:

Locally, we don’t have much to worry about from another toll hike in the immediate future. Although the lease won’t replace tolls as a principal source of revenue, it will help the bottom line and help keep tolls at current level. It’s clear that getting to the other side of the Hudson River can be costly over time and, as energy and transportation costs rise, we are not prepared for another toll hike. But with the success of the dark fiber leasing program, now in its fifth year, we can believe with some certainty that the drive to Columbia County won’t cost more.

The NYSBA’s strategy seems to be working at keeping tolls low - really low. Kathy Welsh reported in the Hudson Valley News Network that the $1.25...

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Posted September 8, 2015 by Hannah Trostle

library-computer.jpg

Community Anchor Institutions, such as public libraries and schools, are among the first places people go to access the Internet when they cannot access it at home. With 30% of the United States without a broadband connection at home, libraries and schools are essential for access to social services, job applications, and digital learning tools. These institutions, however, may not themselves have the capacity to meet the increasing demand for Internet access.

That can be a really big problem. With many states requiring online testing, schools need to have adequate bandwidth, so that networks do not crash at key moments. Some schools have to ration Internet access - while some students are testing, no one else is...

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Posted August 14, 2015 by Phineas Rueckert

On July 21, the City Council of Sun Prairie, Wisconsin passed a resolution to fund construction on a segment of what could become a citywide, high-speed fiber optic project. Construction will take place in the city’s Smith’s Crossing subdivision, parts of Main Street, and the Tax Increment Finance (TIF) District 9/St. Mary’s development area. It is slated to begin in early September and last through December 1, weather permitting, and will cost an estimated $640,000.

The mayor of Sun Prairie, Paul Esser, believes that going through with this project is the correct move for the City. He was recently quoted in the Sun Prairie Star

Moving ahead with the pilot project in Smith’s Crossing is the right way to go. I believe that as an early adopter of this technology we will have an economic development advantage which will attract companies that require this broad bandwidth.

The fiber-to-the-premises (FTTP) construction at Smith’s Crossing is seen as a testing ground for a larger FTTP network construction that would extend 200 miles of fiber and have the potential to connect all of the city’s homes and businesses. Currently Sun Prairie has about 30 miles of fiber. If Sun Prairie can successfully build out this citywide network - costing an estimated $26.7 million for the whole city - it could rival that of Reedsburg, Wisconsin, which began construction on its fiber-to-the-home network in 2003. Reedsburg has seen numerous economic development benefits and has created a considerable amount of community savings from lower prices.

The city of Sun Prairie initially invested in fiber optic technologies in 1999. In that year, the City built a fiber ring for the school system. Rick Wicklund, the manager of Sun Prairie Utilities, estimates the fiber ring will save the school $2 million by 2019. The fiber also runs to about 28 businesses and more than 130 Multiple Dwelling Units (MDUs), according to Wicklund. Now, Sun Prairie Utilities is looking towards residential markets. 

Officials are calling the Smith’s Crossing...

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Posted July 8, 2015 by Rebecca Toews

Located at the foot of Mount Hood in Oregon, Sandy's municipally-owned full fiber network offers gigabit Internet service for under $60 to every resident in the city. Sandy is one of the few municipal FTTH networks that has been built without having a municipal electric department.

The Institute for Local Self-Reliance released this short video this week about the city’s approach—it should be a model for others who want faster Internet, but remain paralyzed by the big telecom monopoly stranglehold.

City managers, frustrated that they couldn't even get a DSL line in to City Hall started off by building their own wireless and DSL network, beginning in 2001. Today, 60% of the community has already subscribed to the Fiber-to-the-Home network, or is on a waiting list. View the video below, or on YouTube here.

Be sure to check out our report on Sandy, SandyNet Goes Gig: A Model for Anytown, USA.

Posted June 24, 2015 by Lisa Gonzalez

Changes in leadership in Chanute have put the community's FTTH plan in suspended animation. In April, the City Commission decided to delay financing shortly before the scheduled bond sale. It is unfortunate that residents and businesses will lose the opportunities the fiber deployment would bring. Nevertheless, they deserve the right to make their own choices, good or bad.

The community of Chanute deployed a network incrementally with no borrowing or bonding in order to improve efficiencies, save public dollars, and control connectivity for municipal facilities. Local schools and colleges, struggling to compete, began taking advantage of technology in the classroom and expanded distance learning. The network eventually created a number of economic development opportunities when community leaders started providing better connectivity to local businesses. We told Chanute's story in our 2013 report "Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage." 

Chanute made history when it was the first municipality in Kansas to obtain permission from the Kansas Corporation Commission to issue bonds for the project. They also became the first municipality in the state to seek and receive "eligible telecommunications carrier" (ETC) status. Chanute was awarded over $500,000 in Rural Broadband Experiment Funds from the FCC. Whether or not they will still be able to take advantage of those funds remains a question. After taking action and putting so many of the necessary pieces in place, it is disheartening to see the plan abandoned by politicians.

Regardless of the future of the FTTH project, Chanute has the infrastructure in place to encourage more economic development, connect community anchor institutions, and allow the community to control its own costs. The FTTH project is still a possibility.

You can learn about the origins of Chanute's network in episode #16 of the Community...

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