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).

Lake Oswego School District in Oregon recently discovered the cost benefits from ownership, when they discovered they would pay 89 percent less by self-provisioning than by leasing from Comcast. School districts sometimes partner with municipalities and integrate school fiber assets for larger municipal fiber projects, as...

Duck River Electric Membership Corporation (DREMC) in Tennessee announced in September that it has launched a feasibility study to investigate ways to use a proposed fiber-optic network to bring better connectivity to members.

Exploring Added Value

According to the announcement, DREMC is considering investing in a fiber-optic loop to improve communications between its offices and substations. DREMC recognizes that this initial investment can be a first prudent step in considering the future of the cooperative and the vitality of rural Tennessee:

A fiber-optic loop has been proposed to connect all offices and substations, including the co-op’s emergency operations center. This project could also provide capacity for community purposes: fiber that could be leased to other parties, even Internet-to-home providers.

The broadband feasibility study will explore how the proposed fiber-optic loop might help improve connectivity in rural areas served by DREMC.

Within The Confines Of The Law

In Tennessee, electric cooperatives are prohibited from providing Internet access to residents, but DREMC still wants to use its publicly owned infrastructure for the benefit of members.

DREMC serves the areas south of Nashville. Columbia and Tullahoma are some of the more densely populated areas and have their own electric utilities, which also provide Gigabit connectivity. Rural areas outside of the cities rely on cooperatives like DREMC for electricity; the state restrictions will keep those communities in that last century for Internet access because national providers have no desire to serve them. 

From the announcement:

“This is a first but very important step,” says DREMC President and CEO Michael Watson.

“Today, so much depends on connectivity. Economic development, job creation and retention, healthcare, education, and public service are all enhanced by access to broadband Internet. But many rural households and communities do not have the connectivity they need.”

Watson describes the situation as very similar to the mid-1930s when electric cooperatives were created...

Once again we return to Iowa to learn about community networks and high-speed connectivity. Home to municipal networks such as in Cedar Falls, Lenox, and Harlan, Iowa also grows publicly owned networks of a different kind - cooperatives’ networks. The Winnebago Cooperative Telecom Association (WCTA) provides next-generation connectivity to rural areas, and is now upgrading infrastructure in its service area. WCTA uses Fiber-to-the-Home (FTTH) technology to provide Internet access of 100 Megabits per second (Mbps). 

Small Towns and Cities To Get An Upgrade

WCTA is now installing fiber in Forest City, home to about 4,000 people and the county seat of Winnebago County.

WCTA General Manager Mark Thoma told the Globe Gazette’s Forest City Summit newspaper, “We have to work closely with the city. Kudos to the city crew for locating (all the utilities). It’s been going very well.”

WCTA intends to install their fiber underground in Forest City and the municipal utilities department is facilitating the cooperative’s efforts by locating current utilities infrastructure. Collaborating will enable WCTA to bury their fiber without disrupting other services.

This upgrade to fiber will replace the copper lines towns served by WCTA, where members still use DSL. Customers in rural areas received an upgrade to FTTH several years ago. 

Rural Areas First

In 2011, WCTA received $19.6 million American Recovery and Reinvestment (ARRA) award for a fiber broadband project in rural areas throughout its service territory. Half of the money was a grant, and the other half was a loan.

While finishing the fiber builds in these rural areas in 2015, WCTA automatically bumped up the speeds of all rural members. Previous top speeds of 15 Mbps jumped up to 100 Mbps via FTTH but the $65 per month subscription rate stayed the same. WCTA's fiber network speeds are symmetrical, so upload and download speeds are the same.

Cooperatives Have Annual Meetings

The WCTA...

The Roanoke Valley Broadband Authority (RVBA) network is live in Virginia, and the state’s cable-telco lobby is not happy. Despite the Virginia Cable Telecommunications Association (VCTA) attempts to turn people against the network, local leaders in Roanoke County decided to help fund further expansion.

As part of their $183 million budget, the Roanoke County Board of Supervisors included $3.4 million to bring the network into the county, with economic development driving the vote. From the Roanoke Times coverage of the vote:

“There is so much that is great that is going on in Roanoke County,” [Supervisor Joe McNamara] said. “Whether it’s what we’re doing for community development with our strategic planning, what we’re doing from an economic development standpoint, what we’ve done with allocating money toward storm water management. I really see broadband as just one area of the budget.”

How Did This Come About?

The network had started out as a joint project among the cities of Salem and Roanoke and the counties of Botetourt and Roanoke. Both counties dropped from the project, leaving the cities to do it themselves. Now with the network live, Roanoke County is reconsidering its previous hesitation.

In late April 2016, the RVBA celebrated the official lighting of the 47-mile fiber network. Fittingly, the first customer is the Blue Ridge PBS station: the local publicly-owned network is serving the connectivity needs of local public television. The overall goal, however, is economic development, and the RVBA intends to sign up 60 small and large customers in the next year and a half. In six years, they expect the network to break even and be self-sustaining.

Questionable Questions

That’s concerning to the state’s cable-telco lobby. VCTA, whose top donors are Comcast and Cox, hired a team of telemarketers to present a...