Tag: "financing"

Posted November 18, 2015 by Scott

The City Council of Upper Arlington, Ohio on Oct. 26 approved several contracts that will enable the community to build a municipal fiber-optic network to key anchor institutions for an estimated $2.5 million.

Upper Arlington’s project will provide high-speed Internet service for the city’s buildings, the Public Library, Upper Arlington city schools, and most city parks according to a news report from the Upper Arlington News. The 30-mile fiber network will serve about 40 locations around the boundaries of the city (population 34,000).

Besides establishing better connectivity between the three public partners’ buildings, the network is expected to provide opportunities for commercial companies to lease telecommunications services. The network would allow the city to lease some of the 288 fiber strands to commercial companies, such as other Internet Service Providers (ISPs).

Financing and Break Even

Under the cooperative arrangement, the library will contribute $17,616 annually, the city $68,484 per year and the school district $177,900 each year until the project is paid off. “These costs are derived from the amounts that each entity is currently paying for leased broadband connectivity between their facilities,” Upper Arlington Assistant City Manager Dan Ralley told us. 

The period anticipated to pay off the network construction is nine years with the school district and library able to extend the parties’ shared-services agreement for an additional 15 years after. The extensions would occur in three five-year segments.

Cost savings, broader bandwith

Ralley says the primary benefits of the new city fiber-optic network will be significantly lower long-term bandwidth and broadband access costs.  For example, the city of Upper Arlington expects to save about $1,280 a month for Internet service by building its own fiber network. Over 10 years, the city’s savings would total about $150,000.

And the municipal network will be a boon for the Upper Arlington public schools. In an Oct. 19, 2015 staff report, Ralley said:

Upper Arlington Schools’ available bandwith capacity is a...

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Posted November 17, 2015 by christopher

Carole Monroe is back on Community Broadband Bits for Episode 177 this week, to discuss the East Central Vermont Fiber network and its unique financing model. Carole is now the General Manager for EC Fiber. She previously joined us for episode 36 to discuss FastRoads in New Hampshire. And we previously discussed EC Fiber with Leslie Nulty in episode 9. Years later, EC Fiber is approaching 1,200 subscribers in rural Vermont and is growing much more rapidly with some open access dark fiber connections created by the state in a specific effort to enable last mile connectivity. We discuss the impact on the community, how much people in rural regions desire high quality Internet access rather than slow DSL, and also a brief mention of some progress in New Hampshire to expand the Fast Roads network. Read the transcript from this episode here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. This show is 21 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. You can 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, licensed using Creative Commons. The song is "Warm Duck Shuffle."

Posted November 2, 2015 by ternste

At a September conference in Lexington, Kentucky, Next Century Cities (NCC) hosted an influential and diverse group of leaders from the municipal broadband arena to share their experiences as leaders in community broadband. Four audio recordings, which you can find on NCC’s website, include panel discussions on a variety of issues surrounding the topic of financing for next generation broadband.

Recording #1: “Lexington Mayor Jim Gray and the Kentucky Wired Story” and Panel Discussion “Federal Support for Broadband Projects” 

The first recording begins with Lexington Mayor Gray and the city’s Chief Information Officer as they discuss their ongoing efforts to make Lexington a gigabit city. These efforts are part of a broader initiative also discussed on building a statewide 3,000 mile fiber optic ring. Several Kentucky government leaders make remarks about the project, called Kentucky Wired, including their thoughts about the public-private partnership model that is helping make the project possible.

In the second part of the recording, former Rural Utilities Service Administrator and current Vice Chair of Broadband Communities Hilda Legg, leads a panel of several experts examining funding supports and offering recommendations and next steps for communities.

Listen to the audio here.

Recording #2: “Achieving the Last Mile”

Our own Christopher Mitchell, the Director of the Community Broadband Networks Initiative at ILSR and the Policy Director for Next Century Cities, moderates this panel that includes officials who have led municipal broadband initiatives in their communities. These officials share some of the challenges they have faced and solutions they discovered in their efforts to finance last mile infrastructure.

Recording #3: “Exploring Options and Approaches for Broadband Financing”

Scott Shapiro, the Senior Advisor to the Mayor of Lexington Kentucky, moderates the panel discussion that includes a...

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Posted October 23, 2015 by ternste

A lot has happened in Sanford, Maine since our last report on their municipal fiber optic network discussions. After a year of deliberations over different proposals, the city recently announced plans to begin building a 32-mile municipal fiber-optic network.

The city of Sanford is inside York County, situated about 35 miles southwest of Portland. The network will provide connectivity to businesses, government entities, non-profit organizations, and residences in Sanford along a limited route where there is sufficient customer density. City leaders plan to also provide a foundation for future expansion of the network to additional residential areas in the city. The network will be open access, allowing multiple ISPs to provide services via the publicly owned infrastructure.

The city will partner with Maine-based company GWI (Great Works Internet) to operate the network. Readers may recognize GWI as the same company working with Rockport, Maine's first community to invest in a municipal fiber network.

Once they complete the buildout, Sanford will be in an elite class of a just few cities nationwide that provide widespread access to 10 Gbps broadband. It is a bold plan for this city of just over 20,000 in a state that last year ranked 49th in the nation in average broadband speeds.

The Sanford Regional Economic Growth Council, a major driving force behind the project, sees the project as critical to their broader economic development efforts:

Like the growth council, this project is a public-private partnership stemming from the exploration of a best business model allowing for municipal investment and input while leveraging the strengths and expertise of private sector for-profit business. The growth council recognizes the collaboration of the public private partnership as the...

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Posted October 22, 2015 by ternste

At a September meeting, the City Council in Peachtree City, Georgia unanimously approved a resolution to construct and operate a fiber-optic broadband network.  According to the City Council minutes from the meeting, the initial 22.54-miles of fiber will provide 1 Gbps broadband access to various facilities in the City Service area.

In addition to providing connectivity for government buildings, utility services, and medical and educational buildings, the city will target business customers in the “high end user category.”

Officials estimate the network will cost $3.23 million. To pay for the project, the Peachtree City Public Facilities Authority, an independent local government authority created by the state legislature in 2011, will enter into an intergovernmental agreement with Peachtree City. According the August 2015 Fiber Initiative plan, capital for the project will come from the Authority; the city will issue a bond and pay installments to the Authority under an Agreement of Sale.

For several years now, the city located 30 miles southeast of Atlanta has explored options to improve local connectivity. City leaders tried and failed to bring Google Fiber to the community of 35,000 people in 2010. The city attempted repeatedly to urge private ISPs like AT&T to address the problem with no success. In February of this year, city leaders began work on a study to explore the feasibility of a publicly owned fiber network.

City Council members citizens at the recent City Council meeting expressed concerns that the network will not pay for itself and taxpayers will be left to cover unpaid costs. According to a recent survey of local businesses, 100% of respondents reacted positively to the prospect of a municipal network for connectivity.

In order to achieve the plan’s objectives, the network will need 12 “high-end” commercial customers by the end of year 2.  The city’s consultant expressed confidence in meeting that first goal:

“If we had a different experience, I would be standing up here in front of you saying 12 is going to be a stretch. However, we found exactly the opposite to be the case,” said Davis. “I was amazed by that. It’s a surprise to me that the...

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Posted October 20, 2015 by christopher

Ammon, Idaho, continues to quietly build a future-looking open access fiber network. Though the City won't be providing services directly to subscribers, the network it is building and the model it has created could revolutionize public safety.

I just spent several days with them shooting our next video on community fiber networks (look for that in January). In episode 173 of our Community Broadband Bits podcast, we talk with City Technology Director Bruce Patterson and Systems Network Administrator Ty Ashcraft.

Bruce explains how they plan to finance the network as it moves from the current residential pilot phase to being available broadly to any residents that want to connect, likely using a local improvement district model. Then Ty tells us about the portal that subscribers will be able to use to instantaneously pick and change service providers offering various services.

Additionally, we talk about the public safety implications of their technological and collaborative approach, specifically around the horrifying prospect of an armed shooter in a public space like a school or mall.

Read the transcript from this episode here.

We spoke with Bruce about Ammon's plans previously in episode 86. Read all our coverage of Ammon here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-...

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Posted September 9, 2015 by phineas

Six years after an initial feasibility study was conducted to assess bringing broadband to Renville and Sibley Counties in southeastern Minnesota, members of the RS Fiber Cooperative board were finally able to dust off their shovels for a groundbreaking ceremony on July 9. Although those shovels may have ended up being more symbolic than they were practical, the ceremony marked an important and long-awaited step in the fight to extend broadband to 10 cities and 17 rural townships across the largely agricultural region.

The groundbreaking ceremony marked the start of stage one of a two-stage project that will take five to six years to complete. By the end of 2015, the RS (Renville-Sibley) Fiber Cooperative plans to connect 1,600 homes and businesses with fiber, with 90 percent of its service area covered by high-speed wireless. It hopes to connect another 2,600 homes and businesses by the end of 2016, with the eventual goal of reaching 6,200 potential customers. At the event, Toby Brummer, RS Fiber General Manager, highlighted the importance of broadband Internet to rural development:

This technology is to this generation what rural electric and rural telephone was to generations years ago.

The RS Fiber Cooperative is member-owned and member-driven, led by a Joint Powers Board that formed in 2009. In order to provide FTTH to the rural locations across the two counties, the cooperative partnered with a network operator, Hiawatha Broadband Communications, that already serves 17 communities in southeast Minnesota. RS Fiber will offer residential Internet speeds up to 1 gigabit for $129.95. It will also connect schools, bolster home and farm security systems, and even facilitate high school sports broadcasts and telemedicine initiatives.

The local governments each sold a General Obligation Tax Abatement Bond that in aggregate totalled $15 million that was loaned to the cooperative, which helped offset the cost of the...

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Posted September 1, 2015 by christopher

Danville, Virginia, has long been one of the municipal network approaches that we like to highlight. Built in a region hard hit by the transition away from tobacco and manufacturing economies, the open access fiber network called nDanville has led to many new employers coming to town and has shown the benefits of a low-risk, incremental investment strategy for building a fiber network.

Jason Grey, Interim Utilities Manager, is back on the show to update us on their approach. He introduced the network to us three years ago on episode 22.

Since we last checked in, Danville has continued expanding the fiber network to a greater number of residents and Jason talks with us about the importance and challenges of marketing to residents. We also discuss how they lay conduit as a matter of course, even in areas they do not plan to serve immediately with the fiber network.

Read all of our coverage of Danville here.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

Posted July 20, 2015 by lgonzalez

Momentum is growing in WiredWest territory and each town that votes takes on a fresh enthusiasm. New Salem is one of the latest communities to overwhelmingly support joining the municipal broadband cooperative. The Recorder reported that all but one of the 189 registered New Salem voters chose to authorize borrowing $1.5 million to move forward with the initiative. There are now 22 towns that have joined.

According to Moderator Calvin Layton, a typical town meeting draws 60 to 70 voters, far less than this one did. Apparently, investing in better connectivity is a hot button issue in places like New Salem, where Internet access is slow, scant, and expensive.

Poor connectivity has impacted local commerce and even driven some residents with home-based businesses away from New Salem. For Travis Miller, a role playing game designer, and his wife Samantha Scott, an IT professional, the town’s slow Internet speeds were holding them back so they moved away. In a letter to the New Salem Broadband Committee, Miller wrote:

A lack of broadband Internet service was one of the elements in our decision to move. A substantial online presence has become a basic requirement for successful table top game designers. Many of the platforms used to interact with fans and clients require broadband service. Our lack limits my income and makes further penetration into the market difficult if not impossible.

Adam Frost — owner of an online toy store, The Wooden Wagon — also found New Salem’s slow Internet speeds to be a limiting factor for his business. He said:

Though The Wooden Wagon is a specialty business, our needs are not unique: pretty much any business owner or person hoping to telecommute has the same requirements. Businesses outside the region with whom we work expect us to be at the same level technologically as they: they will not make concessions just because our Internet service is outdated. We must keep up, or be left behind.

Communities in western Massachusetts are each taking up authorization...

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Posted July 7, 2015 by christopher

Rio Blanco County is a large, rural county in northwestern Colorado that has two population centers. The county has a sharp plan for building FTTH to the population centers and wireless across most of the county to improve Internet access in a region the national carriers have little interest in.

In this week's episode, we interview county IT Director Blake Mobley, who has long been involved in improving Internet access for community anchor institutions in the area. We talk about their plan and how they are financing it (enabled in part by the Department of Local Affairs in Colorado - which has helped many community networks).

We also discuss many other aspects of what it takes to create a project like this -- including building trust among local stakeholders -- and their particular open access approach and terminology for the different layers in the stack of entities involved.

Finally, Blake tells us what they believe has to happen for the project to be successful. Read their vision statement here. Read our full coverage of Rio Blanco County stories here.

Read the transcript from this episode here.

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 below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

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