Tag: "savings"

Posted August 26, 2013 by Lisa Gonzalez

It is no secret to our readers that communities throughout the country have transitioned from leasing services from big corporations to building their own fiber networks to save public dollars. Some create collaborations between various entities to reduce costs. Jacksonville is the latest to dabble in collaboration and has found a way to save $200,000 on connectivity costs each year.

In a recent Government Technology article, Chad Vander Veen describes how the city found a way to eliminate leased lines and switch to a faster 1 gigabit connection via fiber (the article incorrectly says "gigabyte" in multiple places where it mights gigabit) . The City's Information Technology Division (ITD) began developing relationships and bringing various agencies together to explore its options. They held monthly meetings that included the mayor's office, public safety agencies, and libraries. Through these meetings they learned the city was eligible to participate in the Florida Lambda Rail program.

Lambda Rail is a nonprofit independent research and education network that connects universities, schools, libraries, and research facilities across the state. The network has an extensive network of fiber across the state. Because the City of Jacksonville is responsible for its libraries, it qualifies for service from Lambda Rail. Within 45 days, Lambda Rail served city facilities. 

“This is a great opportunity for all the partner agencies to work together to provide superior service and save money at a time we need to make every dollar count,” said Mayor Brown in a statement. “With a growing number of websites and applications helping to expand the reach of city government, we owe it to taxpayers to invest wisely in the most effective and efficient systems to keep everyone connected.”

Saving public dollars by elimintating leased lines and collaborating is certainly a positive outcome. Unfortunately, this solution may limit the community in the longer term. Working with entities that only serve nonprofit or specific entities means that others who need connections in the communities - including both residents and local businesses - will not directly benefit from this investment.

This is a good reminder for communities to engage in long term thinking when they...

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Posted August 6, 2013 by Christopher Mitchell

In Florida, Lakeland is one of several communities that has built a dark fiber network in a low-risk bid to expand connectivity for anchor institutions and to spur economic development. City of Lakeland Fiber Optics Supervisor Paul Meyer joins us for episode #58 of the Community Broadband Bits podcast.

Meyer explains why Lakeland began offering dark fiber leases and how it has benefited the community - most notably by allowing ultrafast communications at low rates. The network has expanded several times over the years in conjunction with other projects, including bringing smart traffic management to more intersections.

In addition to saving money for municipal buildings and the school district, the network has helped the hospital take advantage of modern technology and helped to lure new businesses to the community. This interview complements our previous story about Lakeland's fiber network.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 22 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted August 1, 2013 by Lisa Gonzalez

Near the center of Florida sits Lakeland, the largest city between Orlando and Tampa with 98,000 residents. The area boasts 38 lakes, citrus crops, and a growing healthcare industry. Lakeland also owns a fiber optic network serving education, business, and government. To learn more, we spoke with Paul Meyer, Lakeland Electric City of Lakeland Fiber Optics Supervisor.

The city's municipal electric company, Lakeland Electric, began generating and providing electricity to customers in its service territory in 1904. In the mid 1990s, the utility began replacing older copper connections between substations with fiber-optic cable. Soon after, the Polk County School District asked Lakeland Electric to connect school facilities via the fiber network for video transmissions. By 1997, almost 50 school facilities were connected to each other via using dark fiber provided by Lakeland Electric. In 1994, the District paid $219,582 $84,737 to the utility to design, construct, and install equipment for video connections in four schools. The school received an indefeasible right of use for two fibers for twenty years. over which Verizon delivers data and voice services to the School District on its own lines.

Meyer noted that the fiber project likely cost more than the school paid but the installation gave them the opportunity to expand the network. Further expansion connected the police department, libraries, and water facilities. Over time, the electric utility has incrementally expanded to every building engaged in city business. The network is aerial, using the utility's own poles to mount the fiber.

Like a few other communities on our map, including Martin County Florida, Lakeland took advantage of the opportunity to expand when the state's...

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Posted July 22, 2013 by Lisa Gonzalez

The City of Champaign is now celebrating the transition to the UC2B fiber network. With underground fiber lines, the City will no longer be plagued by weather related interruptions. Champaign is also counting on significant savings on a network that is more than 1000 times faster than the old connections. From the City of Champaign website:

UC2B fiber and Internet access also means real cost savings to the City. The City will now save $30,240 annually by dropping all of our T1 data lines, and $31,200 annually by using UC2B as our Internet provider. While a significant portion of this savings is offset by annual maintenance fees for the fiber rings the City uses, we still save over $13,000 net annually and have a much faster, much more reliable system that will allow our digital data transfers and Internet use to expand for years to come!

For more on the UC2B network, listen to episode #42 of the Broadband Bits podcast. We spoke with Carol Ammons and Brandon Bowersox-Johnson, both involved in Champaign's efforts to use the UC2B network to its full potential.

Posted June 6, 2013 by Lisa Gonzalez

The newly completed Medina County Fiber Network (MCFN) in Ohio will soon add Medina County government as the next customer.

The Medina-Gazette reports the County Commission recently voted unanimously to enter into a five-year agreement with MCFN and drop Armstrong Cable. County Administrator Chris Jakab says the county will save $600 per month. Currently Medina County pays $3,300 per month and the new monthly fee will be $2,700 per month.

Apparently, Armstong Cable did not take the news well. At the County Commissioners meeting, Armstrong questioned the decision:

Minutes after the commissioners unanimously approved changing service providers, Armstrong’s General Manager Karen Troxell disputed Jakab’s figures.

Troxell said the Armstrong bill is made up of a $2,474 fiber-optic lease and an $826 Internet fee. She said the new agreement only covered the fiber-optic lease. She said the county still would have to pay for Internet access, which would bring the total bill to more than $3,500.

“I think this decision needs to be rethought,” she told the commissioners. “Or I need an explanation as to why you’re willing to pay more money for these services.”

Jakab said Troxell was mistaken, saying the fiber network’s $2,700 fee includes a $300 fee for Internet access.

The community recently celebrated completion of its 151-mile network, owned by the Medina County Port Authority. Last summer, the Highland School District connected to the network when its contract with Time Warner Cable ended. The move saves the school district approximately $82,000 in annual connectivity fees.

Business and community leaders began planning for the network 10 years ago as a way to spur economic development and create a more competitive telecommunications environment. A Port Authority revenue development bond issue and a stimulus grant administered by OneCommunity paid for the $13.8 million project. 

Posted March 26, 2013 by Christopher Mitchell

Mike Scott, City Manager of Moultrie in Georgia, joins us for Episode #39 of the Community Broadband Bits podcast to share the origins of the Community Network Services (CNS) network that joins four towns in four counties in rural southwest Georgia.

In this interview, Mike Scott shares some of the benefits of the network for local schools and community savings. Built originally because the existing cable and telephone companies would not invest in their communities, CNS has proved itself an incredibly valuable community investment.

CNS is credited with creating over 6,000 jobs in the communities it serves, a tremendous boon for the communities that joined together to create this network. During our interview (below), we note a video they created to show off some of the benefits of this network. Here it is:

Read the transcript from this podcast here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to D. Charles Speer & the Helix for the music, licensed using Creative Commons.

Posted March 21, 2013 by Lisa Gonzalez

Mount Vernon, Washington, started building their own fiber optic network in 1995 and over the past 18 years have continued to add incrementally. While the network started as a way to connect a few municipal facilities, it has since expanded to nearby Burlington and the Port of Skagit. The network now serves government, schools, hospitals and clinics, and a broad range of businesses in the area.

We spoke with community leaders from Mount Vernon for our 38th episode of the Broadband Bits podcast. Mount Vernon owns the network and operates it out of the Information Systems office.

The network required no borrowing or bonding because initial funding came from a state Community and Economic Revitalization Board (CERB) grant. Since then, Mount Vernon has used revenue from the network and creative cost sharing with partners to expand throughout the city. When expanding into Burlington and the Port of Skagit in 2008, city leaders received a county sales tax grant to fund deployment.

The Mount Vernon School District became a partner early in the evolution of the network. According to Kim Kleppe, Information Services Director, K-12 schools do not pay a monthly fee to receive up to 1 gig of capacity for their 10 facilities. He estimates the current costs of a dark fiber connection for one facility at $700 per month. Total savings are astronomical, allowing the schools to dedicate significant dollars toward other expenses.

Mount Vernon city government saves over $100,000 per year and nearby Burlington saves over $52,000. The network has never been in debt and maintains a reserve.

Mount Vernon's network is an open access model on which ISPs serve customers via the city's infrastructure. Subscribers pay a one time fee to the city to be connected. Onging revenue comes from the ISPs, who pay to the city a percentage of what they collect in customer connectivity fees. Currently, eight different providers offer services via the Mount Vernon network, providing ample competition.

Like other communities we see that choose the open access model, Mount Vernon...

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Posted March 15, 2013 by Lisa Gonzalez

As we monitored Georgia's HB 282, a bill to limit the capacity of local governments to invest in Internet networks that spur economic development, we learned of many existing networks that have helped communities to thrive.

Brian Thompson, Director of Electric and Telecommunications in Monroe took some time to tell us a little about their city network.  Located in the north central section of Georgia, with a population of 13,000, the network now offers triple play services to residents and businesses. Its network started in the 1970s with a municipal cable tv network. Today, the network is a hybrid with fiber having been added as an expansion to its cable network.

Monroe's investment in its fiber began as a way to improve connections for education. The Walton County School District could not find a private provider willing to collaborate on an affordable network between school facilities. The city took on the challenge and built a point-to-point network which the School District paid for in 10 years. In the mean time, the city expanded its network in other areas. Now, the Walton County Schools have gig service between facilities and to the Internet. The District pays only $500 per month for a service that would cost five times more from a private provider.

Thompson also confirmed what we hear from other communities with publicly owned networks - prices for business and residential services are very competitive and service is superior. He notes that customers often express appreciation for local representatives, rather than dealing with a huge bureaucracy like those at Verizon or AT&T. New connections can be created in a matter of hours or days instead of weeks.

Residential service for Internet access from MonroeAccess.Net includes affordable basic service (1 Mbps / 256 Kbps) for $21.95 per month. Two faster tiers include $34.95 (6 Mbps / 512 Kbps) and $44.95 (15 Mbps / 1 Mbps). Cable tv rates vary from $15.50 to $62.95 per month and residential phone service starts at $29.95 per month. Thompson notes that, when Monroe...

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Posted January 7, 2013 by Lisa Gonzalez

Fiber optic connectivity is coming soon for public facilities in Kings Mountain, North Carolina. The city has its own electric, natural gas, and water utilities and is home to a little over 10,000 people. Located along the southern edge of the state, the town is considered a suburb of Charlotte.

According to an Alicia Banks Gaston Gazette article, the City Council unanimously approved contracts to start construction and most of the city departments should be on the network before the end of the year. The city fiber optic cables amount to nine miles in length. Savings will be about $65,000 annually as the city uses its own fiber to supply phone and Internet connections rather than lease services. From the article:

“We should start seeing the savings within seven years,” Kings Mountain Mayor Rick Murphrey said. “It’s cheaper to use your own fiber optics."

Though seven years may seem like a long time to wait for savings, recall that these connections will be needed indefinitely. Further, these networks often lead to unanticipated benefits that can make the savings occur faster than forecast.

The entire project will cost $495,722 under a five-year payment plan. Also from the article:

“Taxpayers' dollars are helping to pay for this, but no increase,” Murphrey said about rates. “(Funds will also) come out of the electric, gas and water fund.”

Kings Mountain is another community choosing to use their current fiber resources to provide broadband to city facilities and save taxpayer dollars. Our recent Public Savings Fact Sheet, highlight a few of many other communities that choose this route. 

Posted December 5, 2012 by Christopher Mitchell

Following the collapse of key industries, a town of 50,000 in eastern North Carolina had to make a hard choice. It wanted to support existing businesses and attract new ones but the cable and telephone companies were not interested in upgrading their networks for cutting edge capacity.

So Wilson decided to build its own fiber optic network, now one of the fastest in the nation, earning praise from local businesses that have a new edge over competitors in the digital economy. In response, Time Warner Cable lowered its prices and modestly boosted available Internet speeds, contributing to the $1 million saved by the community each year.

Download Carolina's Connected Community: Wilson Gives Greenlight to Fast Internet here.

The Institute for Local Self-Reliance and Common Cause have just released a case study of how and why Wilson built Greenlight, a citywide next-generation fiber-to-the-home network that set the standard for connectivity in North Carolina. The report is authored by Todd O'Boyle of Common Cause and Christopher Mitchell of the Institute for Local Self-Reliance.

The network, owned and operated by the municipal utility, offer telephone, television, and Internet services to every resident or business in the city. Over 6,000 households and businesses have subscribed, a take rate of over 30% and growing. Additionally, the network has connected all of the schools with at least 100 Mbps connections. Downtown has free Wi-Fi and the library has benefited with a higher capacity connection for people looking for jobs and taking computer classes.

The Federal Communications Commission ranks North Carolina last in the nation in percentage of households subscribing to at least a "basic broadband" service, largely because Time Warner Cable, CenturyLink, and AT&T have declined to upgrade their networks to modern standards. Only 13% subscribe to a connection that is at least 4 Mbps downstream and 1 Mbps upstream -- the minimum required to take advantage of basic Internet applications according to the FCC.

This story was originally posted on the ILSR website.

This report is the first of two. The second will be published shortly and will feature a discussion of how Time Warner Cable reacted, pushing legislation through the General...

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