Tag: "public savings"

Posted August 22, 2016 by lgonzalez

Garrett County is the westernmost county in Maryland. High in the Allegheny Mountains of the Appalachian Mountain Range; winters are harsh and forest covers 90 percent of the county. Before the county deployed a fiber-optic network, high-quality connectivity was hard to come by for schools, libraries, and other community anchor institutions. By making the most of every opportunity, Garrett County has improved efficiencies for the many small communities in the region and set the stage to improve connectivity for businesses and residents.

Rural, Remote, Ready For Better Connectivity

The county is more than 650 square miles but there are no large urban centers and over time a number of sparsely populated areas have developed as home to the county's 30,000 people; since 2000, population growth has stagnated. Many of the tiny communities where businesses and residents have clustered are remote and do not have public sewer or water. These places tend to have a high number of low-income people. 

Unemployment rates are volatile in Garrett County, fluctuating with natural resources extraction industries. As the coal and lumber industries have waned, many jobs in Garrett County have disappeared. Garrett County Memorial Hospital and Beitzel industrial construction employ over 300 people and are the county’s largest employers. 

All of these characteristics make Garrett County unattractive to the large Internet Service Providers (ISPs) that want to maximize investment and focus only on densely populated urban areas. Verizon offers DSL and Comcast offers cable in limited areas but many people rely on mobile Internet access and expensive satellite Internet access.

It Started With BTOP Fiber

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In 2010, the State of Maryland received over $115 million in grant funding through the Broadband Technologies Opportunities Program (BTOP). With a matching $43 million from state and in-kind contributions, Maryland deployed the One Maryland Broadband Network (OMBN). In August 2013, the middle mile fiber-optic network was complete, stretching 1,324 miles across the state connecting 1,068 CAIs.

OMBN runs directly into Garrett County for...

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Posted August 4, 2016 by rebecca

"We Speak French, Eat Crawfish, and Have the Fastest Broadband in the World." 

Terry Huval's fascination with fiber started with the fiber on his fiddle strings, so it's pretty appropriate that he regailed Christopher with his skills during this Community Connections episode. 

In the previous episode you heard from former Mayor, Joey Durel about overcoming controversy and Lafayette's LUS Fiber.

In this episode, Huval emphasizes why ownership is so important for cities to control their fiber infrastructure. He also touches on the other benefits of the public fiber network: faster response for outages, better connectivity for public safety and traffic control, and more than $13 million in cost savings for residents and businesses!

We hope you enjoy!

Posted July 14, 2016 by alexander

Greenfield city officials and school administrators recently agreed to cooperatively build a fiber-optic institutional network (I-Net). The Milwaukee suburb of about 37,000 expects to trim thousands of dollars from its annual network bill and bring its students, teachers, and local government up to speed.

Dig Now, Save Now

Just like many communities across the U.S., Greenfield realized that it was paying too much to connect its community anchor institutions (CAIs) to the Internet. In April 2015, Greenfield school district approved a bandwidth upgrade with a private provider that would cost the schools $45,588 annually. Within half a year, they had already hit their new bandwidth limit. In November 2015, they needed to upgrade again to the tune of $119,141 per year. 

With classrooms and public institutions demanding increasingly higher bandwidth, local officials decided to ditch the incumbent providers to build a fast, affordable, reliable network in the coming semester. Their investment will allow them to make long-term budgeting decisions, direct more money toward classroom expenses, and use technology to offer rich educational experiences. 

Construction started in June on the fiber-optic network that will connect Greenfield school district, neighboring Whitnall school district, Alverno College, and Greenfield public safety buildings. With installation slated to finish by summer’s end, local institutions expect immediate savings. 

Financial Terms

The City of Greenfield, Greenfield School District, and Whitnall School District all applied for state trust fund loans through the Board of Commissioners of Public Lands of Wisconsin (BCPL). 

Michael Neitzke, Greenfield’s mayor, expects the town to repay it share - a $700,000 loan from BCPL - within 10 years thanks to annual telecommunications savings. The school districts anticipate even shorter repayment periods. Officials at Greenfield School District expect to pay off their loan within 4 years, according to Superintendent Lisa Elliot...

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Posted June 14, 2016 by lgonzalez

Kane County, Illinois, is hoping its fiber-optic network will attract more businesses looking for better connectivity. As it turns out, they've had the resources for some time but are now making more of an effort to market the benefits of their publicly owned network.

Sharing The Savings, Services, Speeds

In 2011, reports the Chicago Tribune, the county took advantage of road reconstruction and in a coordinated effort, Kane County and the Kane County Department of Transportation deployed fiber along one of its main thoroughfares, Randall Road. Since then, the county has expanded the network to approximately 47 miles, connecting county facilities in five area cities. Kane County contributed $1.5 million to the construction of the underground network that now offers 10 Gigabits per second (Gbps) capacity.

Since eliminating leased lines, institutions and facilities connected to the network have reported better performance, improved services, and significant savings. For example, Geneva School District 304 needed higher capacity to comply with new state requirements:

The district was paying $9.15 per megabyte for 500 megabytes, which amounted to $54,900 a month, he said.

The district was able get 1,000 megabytes for $24,000 per year through a provider on Kane County's fiber optic network — receiving double the service at half the cost, he said. [emphasis ours]

"From our perspective, it was a win-win," [County CIO Roger] Fahnestock said. "The reseller is working with them and are able to work with them and get this off the ground and get the school district what they needed."

The County hopes to draw in more economic development and increase competition. There are already several companies that take advantage of existing fiber to offer varying services, including connectivity for academic research, colocation and cloud storage, healthcare, and at least one provider that uses the network to provide backhaul in order to offer fixed wireless Internet access to residents and businesses. 

In order to promote the network, the county recently launched a new website that allows interested entities a way to...

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Posted June 9, 2016 by Scott

Business and residential electric customers in Bristol, Tennessee are experiencing shorter power outages thanks to recent upgrades to the city’s municipal fiber-optic network. And collectively, that represents annual savings of about $6 million for electric users, according to the CEO of the Bristol Tennessee Essential Services (BTES):

In an opinion piece for the Bristol Herald Courier newspaper, BTES CEO Mike Browder, said a recent upgrade to the electric system, which uses the city’s fiber-optic network, has helped cut power outage time by 35 percent:

“Our goal is less than 60 minutes average outage time per year per customer. In 2015, we exceeded that goal, reducing our outage time to 34 minutes per customer.”

According to BTES' About Us page, customers who lose power can depend on the smart grid to alert the utility to any outages:

Those customers with fiber services to their homes have automatic power outage detection, meaning that they do not need to make a telephone call if their power goes out. In addition, the system provides automatic meter reading and theft detection.

Browder offered this example in his piece:

"BTES recently had an outage that caused half of The Pinnacle, including Bass Pro Shops and Belk, to lose power. Using the fiber optic system, the BTES electric system automatically opened one switch and closed three more in sequence while testing each section of line. All of The Pinnacle had service restored in less than one minute!"

Bristol’s Smart Network

Reducing outage time is among a number of benefits that Bristol's 26,000 residents and its local businesses are enjoying from the city’s municipal fiber network, which it launched in 2005. The city also uses the infrastructure for fast, reliable, affordable connectivity in the community.

...

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Posted February 18, 2016 by lgonzalez

The Editorial Board from the Boston Globe recently kicked off a series titled "The Cutting Edge of the Common Good." The editors intend to offer suggestions for how to create a prosperous city through ideas to benefit Boston's 4.7 million residents. 

Their first proposal? Build a municipal fiber network.

In the editorial, the Board point out how the city has always been a cutting edge leader, from Revoluntionary War to same-sex marriage. But when it comes to developing the tech sector, the "City on a Hill" is being edged out by Chattanooga, Lafayette, Louisiana, and Cedar Falls, Iowa. High-tech innovators are flocking to communities with municipal fiber networks.

As the Globe notes, connectivity could be better in Boston:

The truth is that our tech infrastructure is in the same dismal shape as our roads and bridges. Boston, like a majority of American cities, pays more for slower Internet service than our international peers. If Boston is to remain a global hub of innovation — and on the “cutting edge of the common good,” as Mayor Martin J. Walsh promised in his State of the City address last month — it should build a citywide fiber-optic network that allows each residence and business an onramp to the information superhighway of the future.

Even though the city has its own conduit network and significant fiber assets, residents and businesses must seek service from large private providers. The Globe Editors believe the city should rethink the current approach:

But the City of Boston should not gamble its future competitiveness in a Mountain View lottery, nor should it entrust such vital infrastructure entirely to private hands.

The private market would be the ideal solution in an ideal world, but in Boston the market has failed.

The Globe points out the...

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Posted February 15, 2016 by lgonzalez

Davenport, Iowa, is more committed than ever to bringing Fiber-to-the-Home (FTTH) to its residents and businesses.

At a January City Council public work session, current members detailed the city's plans for new members. Alderman Bill Boom noted that the community already has approximately 100 miles of fiber in place and by serving its own telecommunications needs, Davenport has saved $600,000 per year.

Connectivity As It Is Davenport

In January 2015, Davenport received the results of a feasibility study that documented lack of redundancy, inconsistent distribution of fiber, and complaints from businesses about speeds and costs. Incumbents are just not keeping pace with Internet access needs of Davenport's small business growth or the residential demand. Education and healthcare were two other areas where a fiber network could offer a long list of benefits to the community. The school district uses multiple providers because reliability is such a common issue.

People who live in Davenport also want better connectivity:

Residents, like retired University of Iowa Professor and resident of Davenport, Ezra Sidran also weighed in, saying they support a broadband infrastructure increase..

“I’m just for this, I don’t know the details all I can say [is] fiber optics are where it’s at,” Sidran said.

A Changing Community

Davenport, population 102,000, is part of the "Quad Cities" metropolitan area. The region includes four counties in northwest Illinois and southeastern Iowa and also encompasses Bettendorf, Iowa, and Rock Island, Moline, and East Moline in Illinois. The population of the entire area is approximately 384,000. 

In the 1970s and 1980s, the region endured some difficult economic times as the community shifted from agriculture and related manufacturing. International Harvester, John Deere, and Caterpillar factories all closed; the community has had to attract other employers. Hy-Vee, Tyson Fresh Meats, and Genesis Health System, are only a few of the major job located in the Quad Cities today.

Looking For A Partner

Davenport is seeking a private...

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Posted February 12, 2016 by lgonzalez

For more than a decade, the people of Bristol, Virginia have enjoyed what most of us can only dream about - fast affordable, reliable, connectivity.  In recent days, we learned that Bristol Virginia Utilities Authority (BVU) has entered into a deal to sell its OptiNet triple-play fiber network to a private provider. The deal is contingent on approval by several entities.

As we dig deeper into the situation, we understand that troubles in southwestern Virginia and Bristol have led to this decision. Nevertheless, we urge the Bristol community to weigh the long-term consequences before they sacrifice OptiNet. Once you give up control, you won’t get it back.

"...A Few Bad Apples..."

If the people of Bristol surrender this valuable public asset to the private market, they run the risk of undoing 15 years of great work. None of this is a commentary on the private provider, Sunset Digital Communications, which may be a wonderful company. The problem is that Sunset will be making the decisions in the future, not the community. 

OptiNet has helped the community retain and create jobs, attracting and retaining more than 1,220 well-paying positions from Northrup Grumman, CGI, DirecTV, and Alpha Natural Resources. Businesses have cut Internet access and telecommunications costs. Officials estimate around $50 million in new private investment and $36 million in new annual payroll have come to the community since the development of OptiNet. The network allowed public schools to drastically reduce telecommunications expenses and introduce gigabit capacity long before such speeds were the goal among educators.

Schools and local government saved approximately $1 million from 2003 - 2008. Subscribers have saved considerably as well, which explains OptiNet's high take rate of over 70 percent. Incumbent telephone provider Sprint (now CenturyLink) charged phone rates 25 percent higher than OptiNet in 2003. The benefits are too numerous to mention in one short story.

However, BVU is emerging from a dark period marked by corrupt management. This sad reality actually makes its considerable achievements all the more remarkable. Last...

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Posted December 11, 2015 by ternste

As the Sixth Circuit Court of Appeals reviews the FCC's February decision to scale back state anti-muni laws in Tennessee, at least two munis in the Volunteer State are giving back by saving dollars. Networks are also contributing substantially to  public coffers via Payment in Lieu of Taxes.

Clarksville, Tennessee, Network Becomes Revenue Positive in 2015

As of June 2015, the city’s utility provider CDE Lightband paid off all outstanding expenses related to their fiber optic network. General manager Brian Taylor described how the network has improved the city’s utility services and overall economic picture:

Our fiber project has proven to be an investment that benefits the electric system, the customers and the community. It has allowed us to enhance our distribution system and improve our system reliability; provide customer choice in video, Internet and telephone services and offer another tool in economic development. Every year access to high speed Internet becomes more critical in the recruitment of new business. We are proud to be an integral part of the growth and development of our community.

In a recent press release, CDE Lightband said their 1,200 mile fiber optic network saves the City of Clarksville a total of $4.5 million annually through technological upgrades that have improved the overall safety, reliability, and speed of electrical maintenance and service. The city has also seen 27% growth in broadband service customers over the past year. The network’s cost savings, along with direct revenues from electrical and broadband services, spell major dividends for CDE Lightband coupled with continued optimism for future growth.

Total revenues since the inception of CDE Lightband in the form of Payments in Lieu of Taxes (PILOT or PILT) exceed $37 million, with annual PILOT compensation payments of $5 million to continue indefinitely. PILOT...

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Posted November 27, 2015 by htrostle

Out on Cape Cod, municipal networks are taking hold. Public buildings throughout the town of Falmouth, Massachusetts, experience great connectivity and the town saves $160,000 each year with its own Institutional network (I-Net).

Public Savings

The Falmouth Area Network, maintained by CapeNet, connects 17 buildings throughout the town for a total of $3,000 each month ($2,500 from the school; $500 from the town). Were the town to go through a private provider, it would cost $1,000 for each building every month or $17,000 per month. By saving $14,000 each month, Falmouth's annual savings add up to approximately $160,000 a year. That’s a lot of money to be reinvested in the community of 31,000.

Falmouth Area Network intends to reach even more institutional buildings in the next few years. The 17 that are connected now are the libraries, the schools, the town hall, the police stations, the fire stations, the harbormaster’s office, and a senior center. Soon the Gus Canty Community Center will also gain a connection. At the Annual Town Meeting last week, the town approved the Capital Improvement Plan which included $80,000 to upgrade the network, including hooking up the community center. There are also plans to add a new wastewater treatment plan to the network in 2017.

The Role of OpenCape

The Falmouth Area Network came about thanks to another community-owned network project, the nonprofit OpenCape. Recently featured in an episode of eSTEAMers, OpenCape provides much needed middle mile connectivity throughout the Cape. The middle mile network does not connect business or residential users, but instead focuses on serving as a backbone of...

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