The Missoula County Public Schools (MCPS) plans to save $150,000 per year by investing in its own fiber infrastructure. Over a 20-year period school officials expect to save approximately $3 million.

Fiber For Education And Savings

MCPS will be the first in the state to self-provision its wide area network (WAN), the connections between district facilities. Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN.

School officials were already leasing lit fiber service when they began investigating options to compare cost and service. They also looked at leasing dark fiber, which would mean they would need to maintain the equipment to light the fiber themselves, and investing in an Indefeasible Right of Use (IRU). The IRU would give the school district the ability to use a designated number of fiber strands to use as they wished for a fixed period of time. 

As other school districts around the country are discovering, the best choice for them was to own the infrastructure and control it themselves:

"We're saving the district $3 million over the next 20 years in the general fund that will be able to be allocated to other things," Littman said of self-provisioned fiber. "It's more than $3 million, actually. The reason we say we'll only end up saving the general fund $3 million in the end is because we do have some annual maintenance costs to incur to protect the fiber."

Leasing lit fiber for the speeds MCPS needs would have cost $1.5 million to $3.1 million for only a five-year contract. A dark fiber 10-year contract would have cost about $3 million.

Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN. The school will still need to contract for Internet access from an Internet Service Provider (ISP).

The National Telecommunications and information Administration (NTIA) will be hosting the "Big Sky Broadband Workshop" on August 31st and September 1st in Missoula, Montana. If you happen to be in the area and keen to learn more about connectivity in the region, plan to attend this free event. Our own Christopher Mitchell will be participating in one of the panel discussions.

From the NTIA announcement:

Broadband is a critical driver of economic growth and prosperity across the country. The “Big Sky Broadband Workshop” will bring together state, local and federal officials, industry representatives, community leaders and other key stakeholders to share real-world broadband success stories and lessons learned from across the region. The summit will also examine the gaps that remain and strategize on what still needs to be done to expand access to and adoption of high-speed Internet services for the benefit of all citizens. 

The event will begin at noon on August 31st in Missoula’s Hilton Garden Inn; there will also be a reception later that evening. Panel discussions will continue the next morning at 9 a.m.

For more details contact Barbara Brown at NTIA, telephone: (202) 280–8260; email: bbrown(at)ntia.doc.gov.

When communities decide to proceed with publicly owned infrastructure, they often aim for open access models. Open access allows more than one service provider to offer services via the same infrastructure. The desire is to increase competition, which will lower prices, improve services, and encourage innovation.

It seems straight forward, but open access can be more complex than one might expect. In addition to varying models, there are special challenges and financing considerations that communities need to consider.

In order to centralize our information on open access, we’ve created the new Open Access Networks resource page. We’ve gathered together some of our best reference material, including links to previous MuniNetworks.org stories, articles from other resources, relevant Community Broadband Bits podcast episodes, case studies, helpful illustrations, and more.

We cover: 

• Open Access Arrangements
• Financing Open Access Networks
• Challenges for Open Access Networks
• U.S. Open Access Networks
• Planned Open Access Networks

Check it out and share the link. Bookmark it!

Last August, we wrote and podcasted about the results of a broadband feasibility study for the City of Missoula, which recommended developing an open access network with approximately 60 miles of underground fiber through a public private partnership. The study also demonstrated a significant need for improved connectivity in the central business district, with almost 40% of businesses saying their connections were insufficient for their needs. The study also recommended a variety of fairly small policy changes to encourage the spread of fiber optics, such as a “dig once” conduit policy. 

Early in December, the Missoula City Council acted on at at least one of those recommendations by lowering the fee the city charges for excavating and installing new fiber optic lines in the public right-of-way by 75 percent. City Councilwoman Caitlin Copple, who has spearheaded the efforts for better connectivity in Missoula and appeared on our Broadband Bits podcast in August, described lowering the fee this way to the Missoulian newspaper: 

“It’s a gesture of good will to the service providers that we want to work with them,” said Copple, who chairs the city’s Economic Development Subcommittee. “It was a unanimous vote, and it shows Missoula is serious about business.”

The city also released a map, compiled by a third party, that shows all the privately-owned fiber assets in Missoula’s central business district. It is purposely unclear which company owns which segments of fiber, as the providers would only participate if their information was anonymized to protect their competitive edge. While certainly not present on every street, the map shows that there is a significant amount of fiber already in the ground. From the Missoulian:

In Missoula and Bozeman, momentum is building for improved connectivity by way of community network infrastructure. As usual, funding a municipal network is always one of the main challenges, but the state appears uninterested in helping them. State Representative Kelly McCarthy recently dropped HB 14 into the hopper, a bill to create a broadband development fund primarily for private companies.

The bill authorizes $15 million in general obligation bonds for broadband infrastructure projects for middle-mile and last-mile connectivity in rural areas. Unfortunately, projects built and maintained by private entities have priority per the language of section 3(2)(b).

The state legislature would be wise to follow Minnesota's lead and establish a program that is available to all as in the Minnesota Border-to-Border Broadband Development Grant Program. Private entities are eligible to apply along with public entities and nonprofits, but do not receive special consideration.

If anything, the long history of success from cooperatives and local government approaches in infrastructure is favorable to the history of consolidation and poor services that big monopolies have offered in rural areas.

It never ceases to amaze us that people designing programs to use taxpayer money in expanding essential infrastructurel would earmark it only to subsidize entities that are the least accountable to the communities they are supposed to serve. Ultimately you have to wonder whether these programs are designed to benefit local communities or just the companies that can best afford lobbyists.

The culmination of more than a year of discussion, funding searches, vendor selection, and research, Missoula has released the results of its broadband feasibility study. The study’s final report makes a range of recommendations, highlighted by the urging to invest $10.5 million from various sources to construct an open access fiber optic network connecting local businesses and over 50 key anchor institutions. 

Beginning in early 2013, Missoula City and Missoula County governments collaborated with the Bitter Root Economic Development District to win a grant from the Montana’s Big Sky Economic Development Trust Fund, which they matched with local funds. The result was a $50,000 pot from which to finance the feasibility study.

The long-awaited final study results indicate a significant demand for affordable, reliable high speed connectivity in the Missoula area from both businesses and public institutions, especially in the unincorporated areas outside the central city. In a survey (page 31 of the report), a shocking 73% of Missoula businesses reported moderate, severe, or total disruption of their business from Internet problems related to reliability or speed. A further 38% said their connections were insufficient for their businesses needs, but the vast majority of those reported that they were unable to upgrade because the needed connections were either unavailable or the price was out of reach. 

The total cost of the network, which would include over 60 miles of fiber, is estimated to be just over $17 million. That figure is a conservative estimate, however, as it assumes 100% of the network would be built underground and minimal existing assets would be used or shared (neither of which is likely to be the case when all is said and done). 

The study recommends bringing in local anchor institutions as key network tenants, while making dark fiber available to third party service providers who can sell connections to local businesses, in what the Bitter Root Economic Development District refers to as a public-private partnership:

The Missoula City Council recently approved a measure to finance a feasibility study on improving local Internet options. Keila Szpaller of the Missoulian reports the council voted 9-1 to spend $13,125 as a first step in improving business connections to boost economic development. Szpaller writes:

“We did a survey around that and identified that one of the needs that folks have is for high-speed, high-capacity connections at an affordable price,” said Councilwoman Caitlin Copple.

Copple chairs the Economic Development Subcommittee of the council, a group that formed to research the way municipal government can best support technology infrastructure to bolster local businesses – and recruit more technology startups.

“We felt like the time is now to bring on a consultant and really get a professional assessment on what we have, what the demand is and what the potential partnerships are,” Copple said.

The Montana Department of Commerce, through its Big Sky Economic Development Trust Fund, awarded $26,250 to the city and Missoula County. The county Board of Commissioners voted earlier this month to guarantee another $13,125 to meet the matching contribution requirement. The city contribution comes out of a federal grant to the city from the U.S. Department of Housing and Urban Development. Encouraging economic development will improve affordable housing options says Councilman Jason Wiener:

“When we talk about housing affordability in particular, people often talk about the gap between prices and income and working to close that as well, so this is really money put to that purpose,” Wiener said.