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Young ValpoNet Already Luring In Business

A newly operational dark fiber network, built by the city of Valparaiso, Indiana, is already proving to be a hot commodity for area businesses and institutions. Since going live in May of this year, ValpoNet has received dozens of inquiries from companies and organizations looking to build upon its unlit backbone.

From Idea to Implementation

The municipality had always intended to build the fiber system in order to support local businesses. City officials also came to recognize that a strong fiber backbone was well worth the investment, will continue to support new technologies, and will support emerging technologies from local entrepreneurs and tech companies. 

Valparaiso first considered building its own strong, redundant fiber network after a large data company said it was wary to expand in the region after weather related outages impacted the incumbent provider network. To ensure data flowed securely and to reduce or eliminate outages, ValpoNet installed a dark fiber loop with “carrier diversity and redundancy.” 

ValpoNet has no plans to become a municipal ISP but hopes to entice private sector ISPs as part of a competitive open access model. Currently, the 25-mile network houses 288 strands of fiber. It runs mainly north-south along IN-49, and also circles around the denser circumference of the city.

You can listen here to our discussion of the origins of ValpoNet with Valparaiso’s Development Director, Patrick Lyp, who is the city’s point person for the network.

Cities With Municipal Networks Go Far In #StrongestTown Contest

Update: Traverse City, Michigan, took home the prize as 2017 #StrongestTown. Congrats to Traverse City!

Keeping with the spirit of March Madness, the nonprofit StrongTowns ran the second annual #StrongestTown contest based on the nonprofit’s Strength Test and Principles. Of the 16 communities that participated, almost a third have been featured on MuniNetworks.org for their Internet infrastructure plans: Ellsworth, Maine; Lafayette, Louisiana; Traverse City, Michigan; and Valparaiso, Indiana.

These five communities have battled their way forward against steep competition. Through articles and podcasts on Strong Towns, they tried to showcase how their residents are active in their communities and committed to change at the local level. All five overcame the initial rounds, and Traverse, City, Michigan made it to the final round against the Canadian city of Guelph. The winner will be announced Monday, March 27th on the contest page.

Community Networks Support Vibrant Towns

It comes as no surprise to us that these communities would be in the running for #StrongestTown. Building a community network takes public support and a realistic look at financials. Publicly owned networks encourage job creation, improve healthcare, and connect low-income residents. The towns that made the cut took different approaches to better connectivity. 

Chesterton, Indiana: Dark Fiber Investment, Seeks Operator

Chesterton, Indiana, plans to deploy a dark fiber network to serve municipal facilities, anchor institutions, and local businesses. Like their neighbor to the south, Valparaiso, they hope to boost economic development, improve local services, and help the community compete in the race to draw in new industries. “We learned if we didn’t have that in the ground ready to go, we couldn’t compete,” said Town Manager Bernie Doyle.

Taking It One Step At A Time

The Chesterton Redevelopment Commission released a Request for Proposals (RFP) in late July as part of Phase II of the project christened the Chesterton Fiber Optic Network (CFON). The community is looking for an entity to operate and maintain, provide last mile connectivity, and perform other services typical of an Operator. Late last year, the community released the Phase I Request for Information (RFI), for a firm to design the fiber backbone of approximately 15 miles. They chose a company in March. The final phase will seek out a firm to construct the network.

Chesterton wants Gigabit connectivity for municipal, public safety, education, and other public buildings. The network must also provide similar services to community anchor institutions and local businesses; the community wants to attract high-tech, bio-medical, and financial firms to diversify its local economy.

The community's priorities include retaining ownership, increasing economic development, and deploying an expandable network. Chesterton wants to have the entire project lit and offering services by June 1, 2017.

Future Funds, Present Projects

Like Valparaiso, Chesterton is banking on tomorrow's dollars to finance today’s investment. The city will use Tax Increment Financing (TIF) to fund the project. TIF will permit the city to finance the network with future gains in property or sales tax expected to from the geographic area that will obtain the redevelopment or infrastructure project. They will be able to borrow the funds, build the network, then use the funds generated from the network to pay off the debt.

Dark Fiber Network Brightens Prospects In Valpo, Indiana

Valparaiso, Indiana, is investing in dark fiber to stimulate economic development; it is deploying ValpoNet, a dark fiber network to serve local businesses and institutions.

The city of approximately 32,000 people is a little over an hour southeast of Chicago and home to Valparaiso University, Purdue University North Central, Indiana Vocational Technical College, and several other colleges. The community also has a large manufacturing base and a number of hospitals and medical clinics, so there is an ample supply of entities with IT departments with the requisite knowledge to use a dark fiber network.

If At First You Don't Find Fiber...

In 2010, a regional economic development organization developed a report that identified the lack of fiber in "Valpo" and Porter County but no project developed. The city moved on to other things until 2014. A situation with a large financial information company in town breathed new life into the idea of municipally owned fiber. The company wanted to expand its facility and wanted to be sure it could access better connectivity. Several years earlier, there had been an ice storm at one of the company's home offices and, while they thought they had redundancy from the incumbents, such was not the case. They lost connectivity for days and from that point on, whenever they opened new offices, expanded, or relocated, redundancy was always a top priority. 

Valpo's Redevelopment Commission decided to hire a consultant to draft a feasibility study. He determined that a dark fiber network was not only possible, but needed. The study revealed that other companies suffered from poor reliability and considered affordability another pressing issue. 

Valparaiso Embraces Dark Fiber - Community Broadband Bits Podcast 199

When Valparaiso, Indiana looked into solutions for a business that needed better Internet connectivity than incumbent providers were willing to reasonably provide, it quickly found that many businesses were lacking the access they needed. The market was broken; this wasn't an isolated incident.

Correction: Lisa misspeaks in the intro, saying Valparaiso is northeast of Chicago. It is southeast.

Valparaiso General Counsel & Economic Development Director Patrick Lyp joins us to discuss what Valparaiso is doing to ensure its businesses have the access they need in episode 199 of the Community Broadband Bits podcast.

We discuss the need from local businesses and the dark fiber approach Valparaiso has started to encourage better choices in the ISP market. We also discuss the funding mechanism, which is tax-increment financing - a tool increasingly common in building dark fiber networks in Indiana.

This show is 25 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."