Municipalities are not primary motivated by the desire to make a “profit,” as that term is understood by Wall Street, but by the need to meet important needs of the community. Chief among these are enhancing economic development, educational and occupational opportunity, access to affordable health care, digital equity, public safety, homeland security, environmental protection, efficient government service, cultural enrichment, and all of factors that contribute to a high qualify of life. A public FTTU system can contribute to the fulfillment of each one of these goals.
Hamilton, Ohio, to Expand Fiber to Businesses and Schools
A part of the Cincinnati metro region, Hamilton sits in the extreme southwest corner of Ohio. The community of 63,000 will soon expand its fiber resources to spur economic development and improve education opportunities. Eric Schwartzberg from the Journal News reports that the City Council recently voted to support the city-owned electric utility's proposal to create a broadband utility and build a data center. Hamilton is a full service community, also offering sewer, water, and gas.
Hamilton's municipal facilities have used the city's fiber I-Net for over nine years, reports Schwartzberg, and they believe it now makes sense to connect schools and local businesses while opening the network to independent service providers.
[Mark] Murray [a project manager for the city’s underground utilities] said the opportunity to offer broadband to businesses and schools is similar to what Hamilton does with the electricity it generates.
“If we were putting up poles and stringing wires and only providing that to city institutions or city buildings … why wouldn’t we offer electric to businesses?” he said. “Well, that’s the same question that’s being asked of our fiber optic network. We’ve made great use of it here within the city, but why not take this asset and offer it as a service to the businesses?”
“When you start to see this type of facility go in, it’s not unusual for regional or national start ups to want to take advantage of the opportunity to tap into our fiber network,” [Murray] said.
In January of 2012, the City's We Connect People Sub-Committee began investigating how best to use the City's fiber. They hired Magellan Advisors who estimates the project costs at $4.3 million to expand the fiber network, purchase equipment and build the data center, and to use for future capital improvements and maintenance. Murray said positive operating revenue would be expected in 2017 and 2018 would very likely show net income.
In addition to serving local business, the utility also hopes to establish the Hamilton City School District as a community anchor institution. Murray noted that the utility is not interested in providing phone, video, or data to the school; they will build the infrastructure for private providers.