Tag: "freeborn county"

Posted October 20, 2011 by Christopher Mitchell

Albert Lea, a town of 18,000 in southern Minnesota, transitioned from getting its Internet access from a private ISP to its County, Freeborn.  This is part of a larger IT collaboration between the local governments.

Previously, the community was paying $95/month for a 3Mbps DSL connection from a local private company (the options from the telephone and cable incumbents were even more expensive, offering less value).  Now Freeborn County is providing a connection of at least 25Mbps for $150/month -- however the connection regularly offers connections over 50Mbps.  

There is an upfront cost of $9,000 to make this switch, which pays off in less than 2 years (local governments often fail to make smart investments that have longer break-even windows because of how they budget for capital vs. ongoing costs).  After it breaks even, Albert Lea says it will save $6,000 a year.

Local governments will need broadband connections as long as they exist, meaning that leasing connections from a private party is often fiscally irresponsible.  Better to own it or work with another community provider that prices its service closer to the cost of actual provisioning rather than marking it up to reflect a scarce market.  

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