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Publicly Owned Network in Cortez Connects Business Corridor

We have been trying to keep close track of the recent group of communities building incremental, publicly owned, open access fiber networks -- which often starting with connections to businesses. A recent article from the Cortez Journal provides a window into the Cortez, Colorado network that we have previously covered here.

After the city finished building the first phase of the project, at least 150 companies, according to the city, purchased and are now connected to the city’s fiber optic backbone via private service providers, such as Brainstorm Internet and Farmers Telecommunications.

One of the service providers (Farmers Telecommunications) has a long experience in the area -- having offered telephone services for 91 years. It is now able to provide much faster services with a much lower investment because of the public investment.

“This will have a huge impact on the local economy, and it will keep citizens’ spending dollars in Cortez,” said City of Cortez Department of General Services Director Rick Smith. “And feed more money here, potentially, from around the world.”

The businesses previously had access to the slower, more expensive broadband connections but now have more choices between independent service providers can use the infrastructure built by the local government to benefit the local economy.

The city’s new, open-services network allows companies to offer advanced services, such as broadband Internet and voice and communication systems, said Farmers Telecommunications General Manager Doug Pace.

“What we’re seeing is that more and more businesses are requiring that upload speed to be increased,” Pace said as an example of the kind of cloud computing Farmer’s offers on the city’s Fiber to the Business network.

Cortez, Colorado, Also Launches Open Access Network

On the heals of our story announcing a new open access community fiber project in Idaho, we have learned of a similar project in Cortez, Colorado. Cortez is the county seat of Montezuma County in the extreme southwest of the state and has approximately 8,000 residents.

Much of Colorado has long suffered from Qwest's refusal to invest in modern networks -- though a more charitable take on it would be to say Qwest's inability because it simply does not have the capacity to invest in the kind of networks communities now need to take advantage of modern communications technologies.

In the late 90's, Qwest's services in Cortez were served by microwave links incapable of meeting local needs and Qwest refused to invest in a better connection due to an insufficient business case. In the words of Rick Smith, Director of General Services for Cortez (and in charge of the network), the city then decided "to take its destiny in its own hands." They began building their own network.

The initial phase was an I-Net, built with the City's capital funds, to connect schools and other public facilities. They were able to later expand that under Colorado's Beanpole Project, a program that sought to aggregate community traffic in an attempt to lure more private sector investment in networks.

Along the way, they began leasing some dark fiber to private companies that needed better telecommunications options. When Qwest pushed through a bill in 2005 to limit local authority to build networks (click on Colorado on the Community Broadband Preemption Map), Cortez was grandfathered, leaving it with more authority to invest in this essential infrastructure than most communities.

A press release details the financing for this latest phase:

Southwest Colorado Council of Governments secured the initial funding for this project which came from a state grant of one million dollars from oil, gas and coal leasing rights. The City of Cortez provided the 25% match for the grant funds. The funds are being funneled back into developing the economy and growth of Cortez and the surrounding area by offering potential large employers or data center providers the bandwidth and technology to grow their business from Colorado.

The Cortez Journal reported on the new network and local enthusiasm:

Ernie Young, a technical supervisor for Baja Broadband in Cortez, spoke at a Cortez Area Chamber of Commerce luncheon Wednesday, saying the proposed network is comparable in technological capability to networks in major metropolitan areas.

"It's really impressive to see how far advanced this community is going to get with this fiber-optic (network) that is going to be put in as a backbone," Young said.

Young believes the network will draw businesses to Cortez by offering information infrastructure capable of supporting satellite businesses, software companies and video conferencing.

The local Chamber of Commerce is fully supportive of this public investment:

Cortez Chamber of Commerce Logo

Chamber of commerce Executive Director Dena Guttridge agreed.

"Everybody is keeping an eye on little Southwest Colorado," Guttridge said. "Here we are right on the verge of launching this amazing project. I don't think people really understand what we're doing in this area. This is huge. We have the potential of having the fastest, most capable Internet in the state, and all over the Southwest."

From what we have heard, many nearby communities (including from nearby states) have been sending people to see what Cortez is doing and start investigating how they could duplicate it.

Cortez is not immediately building the network out to all residents and businesses -- trying to build a universal open access network in a single phase is very difficult to finance. This phase will connect local businesses and will be expanded when opportunities allow for it. It is likely that this network will start by offering only data and phone services. Delivering television services require more investment and fewer providers are able to do it for smaller networks like Cortez and Ammon, Idaho.

The Cortez Community Network Fiber Project web site has a significant amount of information as well as Frequently Asked Questions to help people to understand their approach.

They list some great principles for the network, including Universal access, geographic equality, level playing field, community control, symmetrical and unlimited bandwidth. These principles are each elaborated on. Stating and defining these principles is a smart move for any community network.

Though Qwest has not been able to build a next-generation network in Cortez, it has attempted to lock its customers into long-term (3 year) contracts in order to make life more difficult for the public network.

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: 
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