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Design Principles from Virginia's nDanville Open Access Network

The nDanville network of rural southern Virginia has long been a favorite of ours (previous coverage is available here). The network has helped Danville go from being notable for having the highest unemployment rate in Virginia to being ranked as the third top digital city in the nation, according to a recent article.

Danville's City Manager was honored by the Southern Piedmont Technology Council for developing the nDanville network:

Danville City Manager Joe King received the Chairman's Award for his leadership in advancing the development of a modern telecommunications infrastructure in the region, a key factor in Danville's economic development renaissance.

King had been the director of the city-owned utility when it drew up plans for a fiber-optic network to be built incrementally until it could connect every home, business, and community anchor institution in Danville Utility's territory. At the time, Danville was suffering tremendously from the loss of tobacco and textile industries.

Today, the nDanville net-work connects hundreds of businesses, has sharply re-duced costs for local gov-ernment, health care provid-ers, and local schools, and has introduced more competition into the telecommunications marketplace.

Danville Utilities has 44,000 electric meters, half of which are located in Danville (44 sq miles). The others are scattered across over 450 sq miles surrounding the city. The Southern Piedmont Technology Council serves the technology industry in Danville as well as nearby counties and another city.

Even in 2004, many in Danville did not have broadband access to the Internet, as outlined in an early document explaining the network. Verizon barely offered DSL and Adelphia offered limited cable modem service.

Andrew Cohill, a consultant assisting the project, has offered more background in a recent article of Broadband Communities. In it, he notes that the network was a piece of a larger strategy of investment in the community to develop local expertise in technology.

Danville was the first municipality to deploy a fully automated, Layer 3 open-access network; nDanville, with more than 135 miles of fiber, passes more than 1,000 business locations, including every parcel in all five business parks. Current customers have access to 100 Mbps fiber connections capable of delivering a wide variety of services, and 1 Gbps and 10 Gbps connections are available upon request.

And as we noted back in August, the network is starting to connect residents in a pilot project starting with up to 500 homes.

The network is profitable, connects over 150 businesses, and is creating significant economic development.

An interesting resource that Andrew shares are the principles behind the network. Communities just starting to consider a community broadband network may want to adopt a similar statement of principles.

  • Universal access: The long-term goal of the project is that every business and home should have the same level and quality of service. This commitment supports the open-access business model by aggregating the largest possible number of potential customers for service providers.
  • Level playing field: Every service provider should be able to play by the same rules. nDanville has a single public price list available to all providers. There are no special deals or unpublished rates.
  • Public-private partnerships: City investments in broadband infrastructure should create private sector business opportunities. The city sells no services to businesses or residents.
  • Multiservice network: nDanville is an open-access network that supports multiple providers and a wide variety of services well beyond the traditional triple play to create true competition and lower prices.
  • Symmetric bandwidth: The availability of services offering affordable symmetric bandwidth was viewed as critical to the economic revitalization of Danville. Any transport service requested by a provider can be configured with equal upstream and downstream data capacity to support business- class services and applications. This early decision is now becoming increasingly important with the rapid increase in the use of business videoconferencing, which requires symmetric bandwidth to perform adequately.
  • Unlimited bandwidth: Another early design goal was that any home or business should have the capacity to use any service needed to compete in the global economy. nDanville’s active Ethernet fiber network offers 100 Mbps, 1 Gbps and 10 Gbps connections as standard, and DWDM lightpaths are available on request.

Some of the high profile economic development achievements include an Ikea plant and the expansion of CBN Technologies, which produces secure identification documents. While Ikea and CBN did not choose Danville solely for the publicly owned fiber-optic network, they rely upon it and almost certainly would not have picked Danville in its absence.

Open Access nDanville Network Goes Residential

The open access fiber-optic network in Danville, Virginia, is officially going FTTH. We have long watched nDanville's progress and are excited to see the network expanding into residential access after significantly improving telecom services to businesses and schools.

Last year, City Council debated and ultimately rejected a more ambitious plan to expand the network more rapidly. But the utility has secured permission for a smaller project area this year, allowing it to expand without incurring debt. This project will be financed out of the reserves they have built up from net telecom revenues over the years. That's right, they have been running in the black and are reinvesting those funds into connecting more of the community.

The utility has $250,000 to use for the build, allowing them to connect some 250 homes (maybe double that if they can stretch the funds) in this phase. If things go as well as they have historically, they will roll through the community in this fashion, undoubtedly increasing their capacity as the model proves itself. Additionally, as new developments are built, they will likely be connected due to the extremely low cost in so-called greenfields.

They have one provider lined up to offer video services on their open access network (the utility provides no services themselves) but as they gain subscribers, more service providers will begin offering services.

This network is creating jobs directly (by expanding the physical infrastructure) but is also encouraging many more jobs indirectly -- the local service provider is expanding and local businesses are doing better than they would if mired in the duopoly so many other communities find themselves.

nDanville's Quiet Success in Rural Virginia

nDanville, the open access fiber-optic network operated by the City's public power company, has been quietly succeeding in southern Virginia. This network has already connected half of the communities health care facilities, allowing them to improve medical care with 100Mbps and gigabit circuits at affordable prices.

The medical network connects Danville Regional Medical Center and about half of the area’s medical facilities to nDanville, a fiber optic network established by the city. The high performance fiber allows real-time access to patient medical records and allows for the exchange of CT and MRI scans instantly.

Another article notes praise for the city's efforts:

"It enables us to better serve our patients by having their information available across multiple sites," Deaton [CEO of Danville Regional Medical Center] said. "We will continue to support the city's efforts in linking our medical community together, and I want to commend the city for the success of this network and making healthcare a top priority."

The Intelligent Community Forum brought the above success to my attention in awarding Danville a recipient of its 2011 Founders Awards. (Chattanooga is in the running for Intelligent Community of year and really, how could it possibly lose?) But ICF details more impressive details from nDanville:

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On average, fiber connections for these facilities provide twice the bandwidth of the previous connection but at a 30% savings. More than 90% of the medical facilities (approximately 125 locations) are to be connected by December  2011, said Jason Grey, the Broadband Network Manager of Danville Utilities, who led Danville’s charge to become a recognized intelligent community by ICF.

ICF further noted that the nDanville Network provides a crucial link between the Danville Diagnostic and Imaging Center and the Danville Regional Hospital. This high capacity connection allows the two facilities to exchange CT and MRI scans instantly, as well as other patient information, thus helping doctors do their job more effectively.

The project has impacted education as well. At the Danville Community College medical technician students train on new interactive systems which provide monitoring and feedback to accelerate learning. Training rooms have a sophisticated video system that allows instructors to record students training and to provide detailed critiques, thus combining the technological and the human art of healing.

Dentists are also taking advantage of the network, which has allowed one Dentist's group create new jobs by opening a fourth office.

This network has been available for businesses for a few years now and the city is really seeing the benefits. Officials say when it first became available, many businesses were interested, but then the economy hit a slump. Now that things are looking a little brighter, utilities officials say they expect many more businesses to sign up, expand and hopefully come to the area because of it.

It was the nDanville network that prompted Dr. Albert Payne to open his fourth dental office. He says multiple offices don't make sense if you can't keep them connected.

"I told them we wouldn't go out there if the network wasn't available for us," he said. "You want to have access to all the charts from all the different locations at one time."

But take note, the success of the network is not merely better health care and a few more jobs - it has changed the perception of Danville:

"I could see in five years everybody would be retired and there wouldn't be any dentists to work on anybody, so now, we've got some young people ready to go to work," said Dr. Payne.

He says young people have been impressed to see a small city like Danville big into technology.

logo-danville-utilities.pngThe network connects over 100 businesses and currently has a single ISP operating on it, a local business that is clearly getting the job done. But nDanville has spoken with a number of ISPs excited to come on the network as soon as it has more potential customers.

We most recently wrote about nDanville when it considered expanding the network to some residential areas last year. The City Council decided not to, but the utility is working with City Council to begin a less ambitious expansion that would not incur any debt.

For years, nDanville has been generating net income, some of which gets depositing in the City's General Fund and some of which goes into an unreserved fund balance that can be used to further expand the network (later generating more revenues, and the circle of life begins anew). Those decisions will be made over the course of the next month.

Danville City Council Nixes Expansion of nDanville Fiber Network

In Virginia, Danville's open access all-fiber network, nDanville, currently serves only businesses and large clients. In the early summer, Danville Utilities decided to recommend expanding the network to between 2,000 and 3,000 residential homes with a 10 year, $2.5 million loan.

As Danville Utilities operates the network purely on a wholesale basis, it would not provide services directly. From an article leading up to the decision:

Danville Utilities would run the broadband services to the homes, to a box mounted on the house, and the user would pay a monthly service fee of $8.80 on their utility bill for the box. Gamewood would bill customers for the actual services provided, and pay the city 20 percent of those charges as an access fee for the cable.

Gamewood, a company that would have provided IPTV services on the network, had attempted to measure subscriber interest by mailing a postcard to 1000 local residents. The response failed to persuade at least one city council member, who demonstrated a total lack of understanding of the situation.

Luther bluntly said he had “no faith” in the numbers, and said he is convinced “nDanville is not going to fly.”

“If they want to build it, let Gamewood built it,” Luther said.

Of course, a private company is not interested in an investment that takes 5 years to break even. Even if it were, it would have little incentive to open the network to competition as nDanville does.

Ultimately, the City Council neglected to fund the project - perhaps an unsurprising decision in a time of economic woe. However, for a community like Danville, one wonders how it will recover without access to better broadband than last-generation cable and DSL services that are commonly available throughout the region.

The local paper editorialized in favor of the decision, but noted that the public power utility should continue expanding the network for commercial subscribers.

In Virginia, nDanville Brings Home the Jobs

Danville's open services fiber-optic network has brought a new employer with some 160 jobs to town. EcomNets is investing almost $2 million to build a green data center to the area.

More jobs may be on the horizon as the White Mill renovation continues and should be finished in coming month (original coverage here and here).

Though the public power utility owns this network, it does not offer services. The network, which currently services municipal locations, schools, and some 75 businesses with Internet access, leaves independent providers to provide the actual services. They welcome major carriers like Comcast and Verizon, who have thus far refused to use open access networks to expand their customer base.

Currently, the network has a single service provider, though the utility has spoken with others and expects more service providers to join the network when it begins making residential connections.

As for when it will begin offering residential access, the City Council will discuss that on July 6 in a work session. The Utility has recommended the City start the next phase, servicing some 2,000-3,000 homes.

nDanville Network Helps Police, Economic Development

Though Danville, Virginia, was hit hard by the simultaneously decline of tobacco and textile industries, the community has responded: Danville Utilities has been building a state of the art all fiber network. Like many communities, they built a backbone and connected the schools and government buildings first.

They then started to connect businesses. This summer they will be rolling out a pilot project to connect a few thousand homes to their open services network. As they add more potential subscribers to the network, they will be more attractive to service providers. This should spur competition, increase innovation, reduce prices, and otherwise make the network more desirable to subscribers.

Though the open access idea has been somewhat maligned following the troubles of UTOPIA (many of which had nothing to do with the wholesale model), the consulting firm Design Nine has helped both nDanville and The Wired Road move forward with a revised wholesale-only model. This approach may be gaining traction nationally depending on how the rules for the stimulus grants are written: Stimulating Broadband suggests broadband stimulus funding from USDA will favor "projects that will deliver end users a choice of more than one service provider."

Back in Danville, the schools have much faster Internet access while shaving their telecom budgets. Other key features are listed on the network's site, including:

The nDanville Medical Network project has begun to connect a majority of doctor’s offices and medical clinics around the city. The network is already being used by the Danville Regional Medical Center to provide super high speed connectivity to satellite clinics and offices in Danville.

Last year, Last Mile featured an article on the network that includes some numbers, goals, and history of the project.

Below is a video that discusses some of the benefits of the network.

Video: 
See video