Tag: "lease"

Posted March 1, 2017 by lgonzalez

For local schools, finding ways to cut costs can be challenging but allows more money to be spent directly on students. While trimming small costs here and there adds up, eliminating leased lines from telephone companies and making the change to VoIP phone systems can be a big savings with improved service. Pitt County Schools in North Carolina are one of the latest to upgrade and save big.

Goodbye Copper, Hello Fiber

The district owns a fiber optic network and has ditched copper wire telephone service in favor of a new VoIP system at nine of its facilities. The cost to replace the phone system at those facilities was $32,000 but the district reclaimed $13,000 so far by eliminating the need to lease copper phone lines.

District officials plan to replace all the phones in the district with a fiber based system at a cost of $210,000, pending the availability of funding. They estimate annual savings will be approximately $107,000, so the project will pay for itself in less than two years.

More Than A Trend

Carroll County Public Schools (CCPS) in Maryland and Austin's public schools in Texas found that switching from traditional phone lines to VoIP supported by fiber saved their districts significantly. CCPS began saving approximately $400,000 per year when they partnered with the county and several other entities to develop the Carroll County Public Network (CCPN). Austin Independent School District (AISD) collaborated with several other entities in Austin, Texas, and AISD’s investment in their network paid for itself in less than 3 years. In 2011, AISD estimated they saved almost $5.8 million in telephone and Internet connectivity avoided costs.

It's Not All About The Money

In Pitt County, school officials are finding better service is an added benefit:

In addition to saving money, the new phone system offers a variety of features, such as online call history and voicemail, an easier system for connecting calls to classrooms, better call quality and a...

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Posted February 23, 2017 by lgonzalez

Schools in Greeneville, Tennessee, are about to save on Internet connectivity to the tune of $50,000 per year, thanks to a partnership with the municipal electric utility.

Local Utility, Local Solution

Greeneville City Schools (GCS), which obtains Internet access via the state’s Education Networks of America (ENA), used to obtain cable connections from big providers that worked with ENA. Comcast and CenturyLink are two of the local providers that lease lines to the schools with ENA as the entity that arranged the connections. Not anymore.

GCS, ENA, and the Greeneville Light & Power System (GLPS) have entered into a new partnership to use GLPS fiber-optic infrastructure to bring Internet access to school facilities. As a result, the school will cut telecommunications costs by approximately $50,000 per year and double their capacity.

Assistant Director of Schools and Chief Technology Officer Beverly Miller told the Greeneville Sun:

“GCS is extremely pleased and excited about moving network fiber optic cabling dependence to the local community power provider. GLPS is an exceptional electrical provider with a stellar reputation for reliability and high performance. In addition to the expectation of improved service, the school district anticipates significant financial savings as a result of this new partnership.”

According to GLPS General Manager Bill Carroll, the utility already had significant infrastructure in place, which it uses for its own facilities. Connecting GCS schools and administration facilities wasn’t a difficult undertaking. In fact, GLPS hopes to reproduce the plan for the Greene County Schools to reduce their costs in a similar fashion:

“We have 2,200 miles of high voltage (power) lines and just 60 miles of fiber, mostly in the city,” Carroll said. “We’ve been routing fiber very carefully to pass by government buildings, schools and other folks we can serve in the future. At some point, we can do the same for Greene County’s schools and government buildings, but it’s a matter of logistics.”

Starting With The Schools

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When local schools reduce costs by partnering with municipal utilities...

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Posted January 31, 2017 by lgonzalez

Laurinburg, North Carolina, is considering opening its fiber-optic network to private providers.

It’s been over a year since the community contracted with a consultant to inventory the community’s assets and provide options for expanding its use to the private sector. Since then, community leaders have discussed looking for potential partners and have met with private providers. According to the Laurinburg Exchange, the city will likely release a Request for Proposals (RFQ) as a way to let providers know they are interested in investigating ways to make excess capacity available.

Community leaders believe providers could make use of the publicly owned fiber for fixed wireless service, lease fiber for business Internet access and telephone services, web hosting, and other services. City Manager Charles Nichols said:

“The city has the capability to offer all those services now; we know this is an asset to this community and we’re trying our best to figure out a way to utilize it.”

Laurinburg already connects ten entities with its network, including County facilities, schools, healthcare clinics and hospitals, the airport, and several local businesses. Community leaders want to spur economic development by offering high-quality connectivity in Laurinburg to more businesses.

Tapping An Existing Resource

The city deployed its fiber-optic network in the mid-1990s to improve communications between city hall and its public works facilities. It later leased excess capacity to other public entities, including several facilities that obtained Internet access and data transmission through School Link. As the city has expanded network footprint, it now consists of a 100-mile ring that surrounds the county.

Laurinburg prevailed in a lawsuit commenced by BellSouth in the early 2000s when the provider argued the city had no authority to operate the system. When the trial and appellate courts examined the prevailing statute and the technology in place, however, both found for the city. Since then, state law has changed but Laurinburg’s right to operate its system is grandfathered in; they are still, however, subject to the state prohibition on expansion

The city is the seat of Scotland County, located near the South Carolina...

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Posted December 6, 2016 by lgonzalez

Iowans in the small town of Osage have been able to obtain cable Internet access from the community’s municipal utility since 2001. The community is about to take the next step; Osage Municipal Utility (OMU) is acquiring a fiber-optic backbone from a private provider. The purchase will get them started on what will eventually be a Fiber-to-the-Home (FTTH) upgrade.

Serving Osage For More Than 125 Years

Osage, the Mitchell County seat, is home to about 3,600 people and located in north central Iowa. The electric utility began as Osage Electric Light, Heat and Power Company in 1890. After several ownership changes, the municipality became the owner in 1941. In 1959, the utility began supplying natural gas and in 2001, the utility added a communications system. In addition to Internet access, OMU also began offering cable TV and telephone service.

OMU is also developing a Voluntary Community Solar Program in which customers can purchase units of Solar Array capacity and in return they receive a production-related credit on their monthly utility bill.

Another Local Tool

Josh Byrnes, general manager of OMU, described the backbone as “another tool in the economic toolbox.” He noted that the line will create opportunities for people outside of OMU’s service area that live along the backbone to potentially obtain service from private providers.

In addition to providing FTTH to customers in the future, Byrnes noted that OMU will also be bringing much needed redundancy in the area. Incumbent Omnitel Communications is the sole provider of fiber-optic services in Mitchell County. OMU will offer fiber in Mitchell, one of the towns in the county where Omnitel has no fiber presence.

“We are simply getting connectivity to Osage and build out from there. There are going to definitely be opportunities for savings to our rate payers long term. Even more important is the dependability of services moving forward. It’s hard to put a price on that.”

Posted November 17, 2016 by lgonzalez

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...

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Posted October 14, 2016 by lgonzalez

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...

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Posted October 4, 2016 by christopher

Located in the Denver metro region and shaped like a barbell, Centennial has effectively used dig once policies to build conduit and fiber assets that have attracted Ting to the community. Tim Scott is the Director of Fiber Infrastructure for the city and joins us on Community Broadband Bits podcast episode 222.

Centennial took advantage of a project installing fiber for Intelligent Transportation Signaling. But just putting in more fiber was not sufficient to establish a carrier-grade network that ISPs would want to use. Tim explains what they had to do to attract ISP interest.

Centennial's shape is very conducive to their strategy (which may be a tautology - they chose that strategy because it works for them). At any rate, their arterial corridors run quite close to the majority of premises and therefore a well-designed fiber backbone network is more attractive in that community than others.

Read the transcript of the show here.

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

This show is 29 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 download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to mojo monkeys for the music, licensed using Creative Commons. The song is "Bodacious."

Posted September 20, 2016 by christopher

Medina County has built a fiber network to connect its core facilities and leases its fiber to multiple ISPs to improve connectivity in its communities. David Corrado, CEO of the Medina County Fiber Network, joins us to discuss their approach on Community Broadband Bits episode 220.

We discuss how the Port Authority became the lead agency in building the network and the challenges of educating potential subscribers on the benefits of using a full fiber network rather than the slower, less reliable connections they were used to.

Medina's approach allows carriers to buy lit services or dark fiber from the county network. And as we have seen elsewhere, the biggest challenge can be getting the first and second carriers on the network. After that, it can really pick up steam as other carriers realize they are missing out if not using it.

At the end of our interview, we added a bonus from Lisa - she just produced a short audio segment about Pinetops losing its Internet access from the city of Wilson in North Carolina.

Read the transcript of the episode here.

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

This show is 27 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 download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to mojo monkeys for the music, licensed using Creative Commons. The song is "Bodacious."

Posted September 13, 2016 by christopher

Saint Louis Park, a compact community along the west side of Minneapolis, has built an impressive fiber network, a conduit system, and several deals with developers to ensure new apartment buildings will allow their tenants to choose among high speed Internet access providers. Chief Information Office Clint Pires joins me for Community Broadband Bits podcast 219.

In one of our longest episodes, we discuss how Saint Louis Park started by partnering with other key entities to start its own fiber network, connecting key anchor institutions. Years later, it partnered with a firm for citywide solar-powered Wi-Fi but that partner failed to perform, leaving the community a bit disheartened, but in no way cowed.

They continued to place conduit in the ground wherever possible and began striking deals with ISPs and landlords that began using the fiber and conduit to improve access for local businesses and residents. And they so impressed our previous podcast guest Travis Carter of US Internet, that he suggested we interview them for this show.

Clint Pires has learned many lessons over the years and now we hope other communities will take his wisdom to heart. Well-managed communities can make smart investments that will save taxpayer dollars and drive investment in better networks.

Read the transcript of the episode here.

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

This show is 40 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 download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Roller Genoa for the music, licensed using Creative Commons. The song is "Safe and Warm in Hunter's Arms."

Posted July 23, 2016 by alexander

Co-op subscribers in Challis, Idaho are set to see faster speeds as Custer Telephone Cooperative, Inc. (CTCI) gained permission from city officials to install fiber-optic cable to local homes. With the member-owned telecommunications cooperative expanding its fiber optic network throughout Custer and Lemhi Counties, local residents will benefit from a future-proof network that promises higher speeds and low prices. 

How Did We Get Here?

The rural towns on the eastern side of Idaho’s Sawtooth Range are remote, sparsely populated, and mountainous - all factors which scare away investment from large Internet service providers (ISPs). Yet, they will witness construction of a Fiber-to-the-Home (FTTH) network, something that even their urban counterparts rarely see. CTCI, which has been delivering telecommunications services to the community since 1955, will provide 1,253 co-op members in Custer County and Lemhi County with high-quality Internet connectivity at competitive prices.

CTCI currently provides download speeds of 6-15 Megabits per second (Mbps) and upload speeds of 1 Mbps on its aging coax-copper network. Their initial goal is to achieve 100 Mbps on a 100 percent fiber-optic network, with speeds ultimately reaching 1 Gigabit per second (Gbps) (or 1,000 Mbps). The co-op’s pricing chart currently lists a 100 Mbps download/10 Mbps upload fiber connection at $279.95/month. 

Federal Funds Point in the Right Direction

CTCI receives federal funding through the Universal Service Fund (USF), an FCC program designed to improve Internet connectivity in the rural U.S. CTCI’s receives the funding for operating expenses and investments because of the cooperative's contribution to the public benefit as stated in a 2012 report to the Universal Service Administrative Corporation (USAC):

“In light of Custer's longstanding record of outstanding past service, and its plans to continue upgrading, improving, and maintaining its network for the benefit of its customers, there is no doubt that Custer's status as an ETC [Eligible Telecommunications...

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