Tag: "financing"

Posted January 11, 2013 by Lisa Gonzalez

Cottage Grove, Oregon, is on the cusp of adding up to 250 new jobs with the aid of its fiber optic network.  A recent Register-Guard.com article by Serena Markstrom details the potential project between the City and First Call Resolution. The company is interested in expanding to a Cottage Grove shopping strip. While the space is the right size and location, it does not have the needed telecommunications connections for a high-capacity call center.

The City is looking into expanding its fiber optic network to accommodate First Call. City leaders will seek a state economic development grant and recently approved funding for an engineer's construction plan to lay the cable to get an accurate cost estimate. Initial estimates are $450,000 for an entire underground installation. Council members have already suggested that the expansion makes sense, regardless of whether or not First Call becomes a tenant. The 7 miles of fiber are primarily located in the southern part of the city while the shopping strip is in the north.

The City Manager Richard Meyers hopes the added infrastructure will bring more than just First Call Resolution to the shopping strip. From the article:

The commercial strip being considered for the call center has much empty space. “The whole plaza needs help,” Meyers said. “We need to do something to see if we can get other things in there.”

If more businesses moved in and started leasing the cable, the city could collect money — just like any utility — from those who tapped into the network and use those funds to continue to expand fiber optic cable around town, Meyers said.

“With our fiber and what we’ve developed, we’re within 4,000 feet of connecting” to the Village Center, he said. “That’s how close we are,” he said. “It’s not a huge distance. We can do it. (It would be a) piece of cake to connect our system to his network and so all of [First Call Resolution's] call centers would be on the same network.”

The city network also offers a Wi-Fi network throughout 80% of the city. Rates vary, ranging from 10 free hours each month at 128 Kbps to 7 Mbps unlimited with tech support for $50 per month. According to the CGWiFi website:

...

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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 January 4, 2013 by Lisa Gonzalez

Kudos to Richard Downey, Village Administrator for the Village of Kronenwetter in Wisconsin. Mr. Downey reminded us that we have yet to write about the fiber network in Princeton, Illinois. While we have noted Princeton in our list of economic development successes, we haven't delved into the network that serves the city, the schools, and the business community.

Princeton is home to about 7,500 people and is located in the north central region of the state in Bureau County. They have their own electric, water, and wastewater utilities and began offering broadband connectivity in late 2003. We spoke with Jason Bird, Superintendent of Princeton Electric Department, who shared the network's story with us.

In 2003, the city’s largest electric and water consumer was also the largest employer. At the time, incumbents served the community with T1 connections. The manufacturing company moved to Mexico, taking 450 jobs with it. The community was stunned.

Approximately 6 months later, Ingersoll Rand, the community's second largest employer with about 300 jobs, also considered moving away from Princeton. While lack of needed broadband was not the only reason, the Ingersoll Rand CEO let community leaders know that it was one of the influential factors. The company liked being in Princeton, and the city would have been on the top of the location list if not for the sad state of connectivity. At the time, the only commercial option was unreliable T1 connections for $1,500 - $2,000 per month. If Ingersoll Rand moved, the community would experience job losses equal to 10% of the population. Community leaders needed to act and do it quickly.

To retain Ingersoll Rand, the City Council decided unanimously to go into the telecommunications industry. They issued an RFP and encouraged incumbents AT&T and Comcast to bid; neither were interested. (Interestingly, once Princeton let it be known that they were going to build the network without them, there were some local upgrades from both companies.)

IVNet, located in Peru, Illinois, won the bid to manage and provide retail...

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Posted December 20, 2012 by Lisa Gonzalez

This past spring, we introduced you to the small town of Leverett, in rural western Massachusetts. Having been largely ignored by the cable companies and left behind by Verizon's DSL service, the community overwhelmingly approved a town-owned network initiative in a May vote. They decided to finance the FTTH network with a 20-year bond measure.

The debt will be serviced by both the revenues from selling services on the network and a modest increase in property taxes estimated at 6%. Local leaders calculate the increase in property taxes will amount to less than the savings created by lowering existing DSL and telephone services. 

Peter d'Errico, of the Leverett Broadband Committee gave us an update via email:

We issued a Request for Information (RFI) in September. Thirteen respondents gave us a wealth of information about the state of the industry and their readiness to engage with our project. Based on this information, together with our already-completed network design, we are now crafting an Invitation for Bids (IFB) for the network build and one year's maintenance. We expect to issue the IFB early January, with a return date in February, which will allow us to select a contractor shortly thereafter.

As soon as we issue the IFB, we will draft a Request for Proposals (RFP) for network operator / service provider. This will also be based on the information gathered from the RFI and our design.

We have initiated the 'make-ready' process with the local utility and phone company.

A November Gazette.Net article [requires login] on the project described some temporary setbacks due to Hurricane Sandy and an October storm that came through the area. In order to keep the project momentum going, the committee is  gathering the pieces needed now and in the future. Early prep work will make launching the network that much easier. From the article:

Leverett homeowners already received an easement request in...

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Posted December 14, 2012 by Lisa Gonzalez

Back in 2010, we reported on the municipal network in Spanish Fork, Utah. Back then, the utility innaugurated its telephone service, which completed its triple play offering. With recent discussion around Utah's UTOPIA, Spanish Fork is getting a second look.

A Cimaron Neugebauer, Salt Lake Tribune article, highlights the success of the Spanish Fork Communications Network (SFCN). When we last reported on SFCN, 60% of residents subscribed to its cable television and high-speed Internet service. Two years later, the numbers are even higher:

Spanish Fork runs its own municipal network to deliver telephone, cable TV and Internet services. The network has deep ties with the community and is popular with residents, nearly 80 percent of whom are customers.

"It’s exciting to live in community that invests in this kind of thing," resident Bret Bills said.

A combination of bonding and borrowing paid for the $7.5 million network including a municipal electric utility substation. Construction began in 2001. The investment continues to pay off:

Today, the city currently makes about $1 million a year profit from the service and its bonds of $600,000 annually will be paid off in 2015.

The network is a combination of fiber and coax cable. As is often the case, the community acted to fill the gap left by the failure of the private sector, involving the community along the way. From the SFCN website:

SFCN offers services that no other company will provide and can only be implemented by the public sector. The Spanish Fork Community Network has been established to serve the residents of Spanish Fork, not the interests of some large corporation.  We have involved the citizens of Spanish Fork since the systems inception through a local Citizen's Ad Hoc Committee and it has ensured the system is design to meet the needs of Spanish Fork.

Unlike UTOPIA, SFCN is able to offer retail services, having been grandfathered in at the time of the crippling Municipal Cable TV and Public Telecommunications Services Act.

Prices are incredibly...

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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 19, 2012 by Lisa Gonzalez

Last year, we reported that ECFiber was in the process of connecting rural Vermont, with a focus on connecting those who had no access to broadband. In addition to large investments from a limited number of investors, local citizens began lending funds to expand the network. 

In a recent open letter to the Governor, published in the Barre Montpelier Times Argus, Laura Zantzinger from Barnard describes how ECFiber touches her household. Zantzinger's home tech company can now expand because she has the capacity she needs from ECFiber. Zantzinger also discusses how fiber access helps her son academically:

My son attends an online high school in a program offered through one of the top universities in the country. He attends video conference classes, lectures, meetings, and myriad other communications online to California, and places all over the globe.

Two years ago, we moved out of state, renting a house elsewhere to get the Internet, because my son was not able to participate in class. His grades suffered because of it. Last year, we rented an office in another town where Internet was available.

Zantzinger describes two growing trends - home based businesses and distance learning - that require access to broadband. Zantzinger shares strong words of praise for ECFiber's mission, experienced by her first hand:

ECFiber’s approach has been open and community-oriented. They just want to get it built, pay it off, and hand it over to the towns. They are willing to make things work, even if it is hard, if it means they can serve the customer. Their priorities as expressed in the meetings were amazing to me.

According to the ECFiber blog, funding is moving forward to bring the network to neaby Woodstock. From the blog:

As previously announced, local supporters of the effort to build a fiber-optic hub inside the Woodstock library have agreed to match any similar pledge dollar-for-dollar up to $100,000. This means that, so far, the Woodstock community has advanced $15,000 toward the ultimate goal of raising $400,000.  The capital needed in Woodstock will pay to hang fiber-optic cable from the nearest ECFiber hub in Barnard, down Route...

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Posted November 9, 2012 by Lisa Gonzalez

We have covered developments in the town of Indianola, Iowa, where the community decided to build their own network in 1998. The original purpose for investment was to use the network to enhance public safety and increase efficiency with SCADA applications. In 2005, however, the network began offering telecommunications services to local businesses. As of October, Indianola Municipal Utilities (IMU) began offering fiber-to-the-home to residents as it gradually begins expanding the use of its fiber asset.

You can now hear firsthand about the network, its history, and how the municipal utility navigated the journey to its next-generation open access network. Craig Settles interviewed Todd Kielkopf, General Manager of IMU, in an August Gigabit Nation podcast. The two discuss IMU's evolution since 1998. They also talked about the unique advantages that exist when a community considering network infrastructure investment already has a municipal utility in place.

Kielkopf tells how the driving factor for the fiber installation was to allow easier management and communication between utilities. When a 1990 franchise agreement with MediaCom was about to expire, the city investigated options. Hopes were that that the city could build a fiber network and MediaCom would offer services over that network, but that vision was never embraced by MediaCom.

Iowa law allowed the city to hold a referendum asking residents for permission to provide telecommunications services through the municipal utility's network. The referendum passed and they created a five year financial plan. Financing was with taxable and tax exempt bonds. The electric utility would build and own the network and a new telecommunications utility would license to a private partner that would offer retail services. Now, IMU and Mahaska Communication Group (MCG) have an agreement whereby MCG provides retail services over the network. While the agreement is not exclusive, no other providers currently use the network.

Kielkopf discusses three distinct phases in the development of the network's current status. First the network connected schools, libraries, government entities, and other anchor...

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Posted October 16, 2012 by Christopher Mitchell

Sandy has run a wireless network for over eight years and has just announced a partnership with i3 to bring FTTH to everyone using i3's technology to run trunk fiber lines through existing waste water and storm water pipes. We previously wrote about Sandy here.

Joe Knapp, the IT Director for the city of Sandy and the General Manager of SandyNet, is our guest on this week's Community Broadband Bits podcast - episode 17. He discusses how Sandy began offering broadband access to itself, residents, and businesses and how they expanded to fiber originally. And toward the end, he gives us the low-down on how the partnership with i3 is structured.

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 28, 2012 by Lisa Gonzalez

We have closely followed the efforts of WiredWest, the collaborative project involving 37 (and growing) towns in western Massachusetts. The group is currently collecting pre-subscription cards to show support for the project. The pre-subscription results will also assist efforts to finance the project by documenting the existing demand.

Plans for the 2,000 mile fiber optic network continue to inch forward with every new town that joins the group. Estimated cost for the network is between $60 million and $120 million and, as the cooperative grows, so does the group's ability to successfully apply for grants and issue bonds. Much of the cooperative's business and technical expertise comes from in-kind contributions from its members. We see Wired West as a prime example of communities coming together to take control of their own destiny.

A recent Berkshire Eagle article by Scott Stafford discussed some of the results from a March marketing survey. From the article:

Average survey respondents have two computers (desktop, lap-top or notebook devices) in the home. And while 88 percent currently have some type of home Internet service, 45 percent are dissatisfied with the speed of their Internet.

The survey also showed that 25 percent who responded currently run a business from home or telecommute. An additional 30 percent said they would likely operate a business out of their home or telecommute if they had better Internet access.

He spoke with Monica Webb, Chair of WiredWest's Executive Committee, who pointed out some economic realities:

"Many people are saying they would start a home-based business or telecommute if they had better broadband access," Webb said. "And there are a number of second homeowners that would stay in the county longer, or relocate here full time, if there was better Internet service."

The impact on the regional economy could be significant. Webb described the role of broadband access to the local economy as "fundamental infrastructure," comparable to the telephone service and electricity.

"We know it will be good...

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