Tag: "savings"

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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Posted November 29, 2012 by Lisa Gonzalez

We have already published a fact sheet on the critical role community broadband plays in job development. Now, ILSR presents a collection of how community owned broadband networks save money for local government, schools, and libraries while providing cutting edge services. The Public Savings Fact Sheet is now available.

Though schools, libraries, and other community anchors need access to faster, more reliable networks, the big cable and telephone companies have priced those services so high that they are breaking the budget. But when communities create their own connections, affordable high capacity connections are only one of the benefits. A community owned network offers the promise of self-determination -- of upgrades on the community's time table and increased reliability for emergency responders.

The Public Savings Fact Sheet is a great piece to share to mobilize other members of your community. Share it with decision makers and use it to start meaningful conversations. Distribute it widely and often.

We are always developing new resources. If you have an idea for a new fact sheet, we want to hear it.

Posted October 9, 2012 by Christopher Mitchell

Following the release of our case study on Chanute, Kansas, we have an interview with City Manager JD Lester and Director of Utilities Larry Gates for our 16th podcast -- Community Broadband Bits.

JD Lester and Larry Gates discuss Chanute's network and its impact on their rural community. As detailed in the case study, Chanute built a fiber optic and wireless broadband network to connect schools, public safety, and local businesses. And they did it all without bonding or borrowing -- an impressive feat with implications for many other communities that have similar needs.

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 download the Mp3 file directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted October 8, 2012 by Lisa Gonzalez

The Chattanooga Gig continues to benefit the community. We have covered some of the jobs that it has created, how it has lowered City expenditures and improved street lighting, and the recently announced speed increase without hiking rates. Now, EPB can also boast about how the network has significantly cut power costs.

Dave Flessner from the TimesFreePress.com reports that, thanks to fiber enabled smart grid technology, Chattanooga's electricity rates are 5 percent less than they would be without the network. From the article:

“The savings from the smart grid and the payments from the telecom division to our electric system are exceeding our costs and that is helping save money for every customer of EPB, whether you are signed up for any of our telecom services or not,” [EPB President Harold] DePriest told EPB directors Friday. “If we hadn’t made this investment, your electric bills would be higher.”

In addition to savings for every electric consumer, the network has been wildly successful for its video, phone, and Internet offerings.  There are 40,000 users to EPB and its telecom division generates more profit than its 73-year old electricity utility. Chattanooga is ahead of the game:

EPB Chairman Joe Ferguson said the [American Reinvestment and Recvery Act] stimulus funds helped speed the installation of the smart grid network from the original plan of 10 years down to less than two years.

“We’re exceeding the goals we set in our business plan,” Ferguson said. “We’ve stayed ahead of schedule; we’ve stayed on budget, and the number of customers who have signed up is better than we expected. The acceptance has been huge and that’s where the revenue comes from that we can plow back into our business and help keep our electric rates down.”

Chattnooga is regularly visited by community leaders from around the country interested in finding out more about their network and how they created it. Obviously, word has gotten out about the many advantages to owning...

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Posted September 18, 2012 by Christopher Mitchell

Curtis Dean, the Telecommunications Services Coordinator for the Iowa Association of Municipal Utilities, joins us for our 13th Community Broadband Bits podcast. Curtis explains why Iowa has so many municipal utilities and why 28 of them offer some form of telecommunications service.

We talk about why making sure everyone in rural areas has access to affordable, reliable, and fast broadband is good for everyone in the entire country. And Curtis shares his experiences with the publicly owned FTTH network in Spencer.

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 30 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 download the Mp3 file directly from here.

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted September 12, 2012 by Lisa Gonzalez

Two years ago, we reported on the emerging partnership between Carroll County, Maryland, and the Maryland Broadband Cooperative (MBC) to build a fiber network to local business clients. The County financed the investment in part through cost savings obtained as a result of transitioning away from expensive T1 lines.

This summer, the Carroll County Office of Technology Services reported that the network is on track to be completed by January, 2013. In an interview with the Carroll County Times, Mark Ripper noted that the network is 60% complete. When deployed, the Carroll County Public Network (CCPN) will be 110 miles long and connect 132 sites, including the county public schools, the public library, and Carroll County Community College.

Carroll is one of a group of Maryland counties that comprise the Inter-County Broadband Network, a group of local government entities partnering to connect the smaller municipal networks across Maryland like the CCPN.

Back in 2007, when the CCPN was in its infancy, a Baltimore Sun article discussed significant cost savings estimated for the local library:

Currently, Ripper said the county pays $3,300 a month to connect all the local library branches to the Internet. Those costs will be eliminated once the network is built out.

Savings to the schools, the libraries, the college, and county government are expected to be significant. Short term annual savings for all four entities are estimated at $950,000 per year in leased line costs, according to a 2010 Carroll County Credit Rating Report. The report goes on to estimate potential revenue from the network at $300,000 to $600,000 in the short term and as high as $3,600,000 to $7,200,000 in the long term, depending on how the network is used in the future. The credit report PDF is available here.

The $9...

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Posted July 19, 2012 by Lisa Gonzalez

Quite some time ago, we let you know about the plans and funding for the Medina County Fiber Network (MFCN). The network, owned by the Medina County Port Authority (MCPA) began construction in March, 2011, and is nearing completion. Jennifer Pignolet, reported in the Medina GazetteOnline, that the network just signed on their first customer, Highland Schools.

Apparently, the schools contract with its current provider, Time Warner Cable, is about to expire. While connecting Highland Schools now may be ahead of schedule, the county fiber committee can accommodate their needs. As an added bonus, the new relationship is more economical for the schools. From the article:

“Their situation needing to be addressed immediately certainly moved them to the front of the line,” [said Jim Gerspacher, chairman of the county’s fiber committee].

While the $14 million network is still months away from full completion, Gerspacher said there is enough infrastructure in place to get Highland online.

The school will have full Internet and phone service and will have all its buildings connected to one network.

Highland Technology Director Roger Saffle said the district will save close to $90,000 a year by switching from Time Warner to the Medina County network.

“It will maintain the access we already have with a cheaper cost,” Saffle said.

Highland Schools is moving from a $100,000 per year Time Warner Cable contract (or about $8,333 per month). The schools now will pay $1,500 each month to the MCPA and, according to Saffle, will be able to apply for federal grant funding to recover 40% of that monthly fee.

In 2008, OneCommunity and the MCPA began a partnership to plan and build the network. OneCommunity received a $44 million broadband stimulus grant in 2010 to extend fiber to 22 Ohio counties. MCPA received $1.6 million of that stimulus for their County network. The remainder of the $13.8 million project was covered by 20-year revenue development bonds issued by the MCPA.

OneCommunity will manage operations when the project is...

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Posted July 5, 2012 by Lisa Gonzalez

In June, the city council of Greenacres, Florida, voted to invest $42,550 to connect to Palm Beach County's fiber-optic network. Greenacres joins a growing list of Palm Beach County municipalities who have data-transmission agreements with the County. Other towns include Palm Beach Gardens, Jupiter, Juno Beach, West Palm Beach, Delray Beach and Riviera Beach.

Willie Howard of the Palm Beach Post covered the Greenacres story earlier this month:

Instead of paying AT&T and Comcast $33,360 annually for transmission lines, the city will pay Palm Beach County $8,400 annually.

"It's basically cost sharing as opposed to revenue generating," said Mike Butler, director of network services for Palm Beach County. "We're not in it to make money."

Thomas Hughes, Finance Director of Greenacres, estimates the savings to the City will amount to $124,800 over five years.

In addition to saving money, Greenacres will have the advantage of increased speed. Currently, AT&T and Comcast provide a 1.5 Mbps connections. The new arrangement will provide 10 Mbps from the County - six times faster at a little more than one third the cost. The City can also feel good about keeping the dollars local and will avoid the uncertainty in dealing with remote and giant AT&T or Comcast.

Palm Beach County sits just south of Martin County, where a municipal network saves the County and school district significant dollars for connectivity. You can download our recent case study on Martin County, Florida Fiber: How Martin County Saves Big with Gigabit Network, to learn more about that network.

Posted June 20, 2012 by Christopher Mitchell

We have just released a paper revealing how Martin County saved millions of dollars by building its own fiber optic network to link schools and county facilities rather than leasing lines from Comcast.

The report, Florida Fiber: Martin County Saves Big with Gigabit Network, reveals how Martin County transformed the threat of a near ten-fold cost increase for its telecom budget into cost savings and new opportunities for economic growth.

Download the Florida Fiber Report here.

“Martin County is a model example of how local governments can cut costs, increase efficiencies, and spur economic development,” according to Christopher Mitchell, Director of ILSR’s Telecommunications as Commons Initiative. “Local governments will need broadband networks in 10, 15, 30 years – they should consider owning the asset rather than leasing indefinitely.”

ILSR Broadband Researcher Lisa Conzalez and Christopher Mitchell authored the report.

The new report highlights challenges the County faced, creative tactics used to reduce the cost of the investment, financial details on the incredible cost savings from the network, and how the new connections are already being used.

Though the County is not planning on offering services directly to residents or businesses over the network, the network has already allowed a local Internet Service Provider to expand its territory and offer some choices to people and businesses previously stuck only with AT&T and Comcast. Additionally, the network is leasing dark fiber to some entities.

Florida law makes it difficult for the community to offer services to residents and businesses by imposing additional regulations on public providers that are not imposed on massive companies like AT&T and Comcast.

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