The following stories have been tagged economic development ← Back to All Tags

Charlotte Media Eyes Salisbury's Fibrant

WSOC TV in Charlotte recently looked at Salisbury's four-year-old Fibrant network. Reporter Tenikka Smith investigated what a municipal network could do for Charlotte. Charlotte is also one of the communities working with Google in hopes of having it expand to them. That interest has led AT&T to consider updating its comparatively pathetic DSL services as well.

Smith spoke with a Salisbury small business owner who switched to Fibrant in 2010. Rick Anderson-McCombs of the Sidewalk Deli noted fast speeds and high quality voice service from Fibrant. According to Anderson-McCombs' mother, Angenetta Dover, the deli also saves $30 - $40 per month compared to past service with the local incumbent. Dover also uses the service at her home and notices a significant improvement:

"Even (the) lowest speed and slowest speed is super compared to what we used to have to do," she said.

Robert Van Goen from Rowan County's economic development coalition, Rowan Works, believes a municipal network could be a smart investment for Charlotte. The network tells potential job creators that a community is "prepared to do business for the next 10, 15, 20 years and compete in the global marketplace."

WSOC TV compared prices; they found Time Warner Cable and AT&T offered basic triple-play bundles - up to 6 Mbps download - for $79 per month. Upload speeds, the real test for businesses, are typically much slower. Fibrant's lowest tier triple-play bundle offered 20 Mbps symmetrical service for $97 per month.

Saving money for better service is always a winning strategy. Local businesses often consider other benefits from municipal networks; Anderson-McCombs told Smith his motivation reached beyond financials:

“The main reason I got Fibrant was not so much to help my business, but help my town because I think it's very progressive of Salisbury to include Wi-Fi and Internet service in our utilities."

Below is an ad Fibrant created with local businesses describing the superior service of Fibrant phone. Though residents may be less enthusiastic about phone service, it is the lifeblood of many local businesses.

Video: 

New York Times Covers Fiber and Economic Development

In a recent New York Times article, reporter Kate Murphy shined a light on fiber's increasing role in economic development. Murphy discussed several of the same networks we have followed: Wilson, NC; Chattanooga, TN; Lafayette, LA; and Mount Vernon, WA.

Murphy acknowledged that successful companies are moving from major metropolitan areas to less populated communities out of necessity:

These digital carpetbaggers aren’t just leaving behind jittery Netflix streams and aggravating waits for Twitter feeds to refresh. They are positioning themselves to be more globally competitive and connected.

Murphy notes that countries where governments have invested in critical infrastructure offer more choice, better services, and lower rates. She also points to successful local initiatives, often in less populated communities where large private interests have not invested:

Stepping into the void have been a smattering of municipalities that have public rather than private utility infrastructures. Muninetworks.org has a map that pinpoints many of these communities. They are primarily rural towns that were ignored when the nation’s electrical infrastructure was installed 100 years ago and had to build their own.

Murphy spoke with several business owners that moved from large metropolitan areas to smaller communities because they needed fiber. For a growing number of establishments, fiber networks are the only kind that offer the capacity needed for day-to-day operations. Information security firm, Blank Law and Technology, moved to Mount Vernon to take advantage of its open access fiber network. It helps when customer service representatives live in your neighborhood:

“We investigate computer malfeasance and have to sift through terabytes of data for a single case,” Mr. Blank said. “The fiber connection is the only reason we are in Mount Vernon and the customer service isn’t bad because all you have to do is walk down the street and knock on the door at City Hall.”

Voters Approve Local Telecommunications Authority in Montrose, Colorado

By a 3,982 in favor and 1,397 opposed, the voters in Montrose decided on April 1st to take back local authority for telecommunications services. The state revoked the community's ability to establish a telecommunications utility in 2005. 

Jim Branscome covered the election results in the Daily Yonder. Branscome, a resident of Montrose, knows the local broadband situation:

Internet service here is currently a hodgepodge. Some of us depend on broadcast towers, some on DSL from CenturyLink and some on cable service from Charter. Service is generally at less than 10MB. It’s expensive, and customer service is erratic.

Community leaders state that they want to encourage fair competition and ensure every one has the opportunity to fast, reliable, affordable connectivity. 

In addition to ensuring that local businesses are in a position to compete with any large corporations that might attempt to establish a major share of the market, Turner said the city also wanted measures to enable lower income households to benefit from the advantages of gigabit speeds and capacity. “We don’t want to create two levels of society here, those who are connected and those who are not,” he said.

While Montrose is a long way from getting every person connected, the community is discussing the idea of financing a network with revenue bonds. 

This election result demonstrates Montrose's desire to be in control of their own connectivity. They understand the need to think of the future. From the Daily Yonder article:

It used to be that if a town wanted to prosper, it needed a river, then a railroad, then an Eisenhower Interstate highway, and then a cell phone tower. Today it needs to be a “gigabit city.”

Crain's New York Business: New York City Conduit Jam Packed

Crain's New York Business recently published an article on the crowded conduit under New York City. The article complements the April 7 edition of This Week in Crain's New York podcast, hosted by Don Mathisen.

Empire City Subway (ECS), the crumbling subterranean network of conduit for telephone wires constructed in 1888, is so crowded underground construction crews regularly need to detour to reach their destination. Routes are no longer direct, adding precious nanoseconds to data delivery - a significant problem for competitive finance companies.

Verizon owns ECS and, according to the article, does not operate with competitors in mind:

But businesses that lease space in the ECS network for their own fiber-optic cable say that Verizon doesn't worry about keeping the system clear for others. Conduits are filled with cables from defunct Internet providers that went belly-up after the dot-com bust in 2000. Verizon itself left severed copper wire in lower Manhattan ducts after installing a fiber-optic network following Superstorm Sandy. (The company says the cables could be easily removed, if needed.)

Stealth Communications spent an extra $100,000 in March to re-route its fiber from Rockefeller Center to Columbus Circle. Conduit was so congested along the planned route, the independent ISP needed to go 6,500 feet out of its way. The re-route added almost two weeks to the project.

Crain's contacted Chris Mitchell from ILSR:

"It's foolish to think that we can just leave it to the market to use this limited space under the street efficiently," Mr. Mitchell said. "The fiber needs are tremendous, and if New York over time can expand access to a lot of fiber at low cost, we'll see all kinds of [innovation]."

He added that New York might be best served by the public-utility model embraced by Stockholm and Santa Monica, Calif., and under consideration now in Baltimore, in which the city builds a fiber backbone. Internet service providers lease access to that fiber at low cost and compete to offer specialized services as part of the "last-mile" connection to the home or business.

Possible solutions being considered include municipal fiber to lower income neighborhoods, requiring changes from ECS, and stringing fiber along aboveground transportation tracks. The ultimate goal is to create conditions that will increase competition

But something must be done to improve ECS, industry veterans say; otherwise, the conduits will only become harder to use. "The more you have to get around, the more cable you put in the street," said Brad Ickes, president of independent provider Optical Communications Group. (OCG and Verizon have been locked in a legal dispute since 2008.) "And then everything gets more congested, because everyone is going that way."

Gothenburg Considering FTTH in Nebraska, Survey Responses Needed

As the "Pony Express Capital of Nebraska," Gothenburg understands the value of speed. City leaders are now investigating the possibility of bringing a FTTH network to the community. Initiative leaders are asking the town's 3,500 residents to complete a broadband survey before April 15th.

According to a recent article in the Gothenburg Times, local schools will soon be surpassing the community's current telecommunications capabilities. The school district is considering a one-to-one Chromebook initiative:

Angie Richeson, an integrated technology integration specialist and Dudley Elementary librarian, said current telecommunications infrastructure has a glass ceiling.

“We can’t get bigger or faster without changing the infrastructure,” she said. “And speed is an issue in our community.”

Community leaders also want economic development benefits that flow from a fiber network. Four Fortune 500 companies operate in Gothenberg. CenturyLink, currently providing last-mile connectivity, has no plans to upgrade.

Nathan Wyatt, Chair of the Fiber Infrastructure Committee of the Gothenburg Improvement Company (GIC) recently told the Times:

"Right now the infrastructure that exists in Gothenburg is like the dirt roads. We don't have the fastest most direct infrastructure available that would give us the fastest speeds available. And as websites get more complex. We're going to need more data and more broadband to give our residents a better experience and we also need it to recruit businesses," said Wyatt.

GIC is a coalition of local businesses working to recruit new commerce to Gothenburg. Wyatt told the Times in another article that a local provider would be ideal:

“Can you imagine calling a local number to get service on your Internet, phone and cable?” he asked.

Wyatt said the GIC doesn’t want a call center but someone that people know and recognize in the community who would service the network.

Initiative leaders have already launched an aggressive grassroots campaign, "Get Up to Speed Gothenburg." The campaign Facebook page includes pics of information sessions, quotes from business owners, and promotional videos. Wyatt told the Times:

“Now we’re going 35 mph and with fiber optics, we could go 100 miles per hour,” he said. “As a community, soon we will need to drive 1,000 mph and new infrastructure will prepare us for this reality.”

Nebraska law makes many forms of municipal ownership difficult but we hope they are able to meet their local needs and wish the state would get out of their way.

ConnectArlington to Offer Dark Fiber Services to Local Businesses in Virginia

We last reported on Arlington County, Virginia, in the summer of 2012 when they were into phase II of their publicly owned fiber network deployment. At the time, the community planned to use the dark fiber network for public schools, traffic management, and public safety. That plan will now include local businesses.

ARLnow reports that ConnectArlington will work with a third-party consultant to manage dark fiber leasing to multiple service providers. They will also dedicate a portion of the dark fiber for government use. The County expects the project to be complete by early 2015. From the press release:

Additionally, the County will work directly with property owners and various businesses to ensure they have the opportunity for this high-speed and secure fiber line via direct access to buildings. Arlington universities, research centers, government buildings and Federal agencies will also be connected – providing additional collaboration opportunities at unprecedented levels of speed and security.

When the Arlington County government developed the network, they installed additional conduit for future use. A public safety initiative to connect several radio towers allowed ConnectArlington to expand the anticipated footprint. An Intelligent Traffic System (ITS), funded with a federal grant, required street excavation so the county installed additional conduit and fiber. Arlington County also took advantage of an electric power grid upgrade, co-locating dark fiber along the grid placed by the local electric provider.

Other communities have taken a multi-faceted long-term approach, considering their own needs with an eye on economic development. Capitalizing on unique opportunites can reduce costs, speed up a deployment, and allow the local community to better manage their projects.

Sandy, Oregon and Mount Vernon, Washington have maintained smart conduit policies for years. Developers are required to install conduit to reduce later costs. In Santa Monica, City Net began as a way to meet the needs of government and now offer lit and dark fiber to businesses. (Learn more about Santa Monica in Chris' interview on episode 90 of the Community Broadband Bits podcast or download our report.)

As smart communities realize broadband's increasing role in economic vitality, they explore local options. Arlington County takes a gigantic step forward as it opens up ConnectArlington to the business community. Also from the press release:

"World class cities are not only creating fiber networks to meet their own enterprise needs, but are also making dark fiber available to high technology companies to keep or attract these companies to their communities,” said Professor Joseph Pelton, Chair of the Arlington County IT Advisory Commission.

Jack Belcher, CIO of Arlington County's Department of Technology Services Leadership Team, sums it up:

Video: 
See video

Bill to Boost Broadband in Minnesota Struggles in Legislature

In a revealing video about the Internet access problem in rural Minnesota, Annandale City Administrator Kelly Hinnenkamp below describes her town's struggle with connectivity. The video is the latest in a series on the Minnesota Senate DFL YouTube page intended to shed light on the critical situation in the state.

Hinnenkamp describes broadband in the areas outside of Annadale as "horrific." She goes on to discuss how the community's poor connectivity negatively impacts its economic health. She shares a story about entrepreneurs from an artisan spice business once located in Annandale. The company started with online sales but the owners anticipated opening a storefront in the downtown area of the lake community. After contending with eight outages in three weeks, the new business pulled up stakes and moved to Buffalo. 

Buffalo, located only 15 minutes away from Annandale, offers fast, reliable, affordable fiber service to local businesses.

In a February Minnesta Public Radio News article, Hinnenkamp told Dave Peters:

“Broadband is probably the single most important issue in our community right now,” she said. “Our big issue is not that we don’t have service but that we have one provider that has shown little interest in improving it. Broadband is our future."

In a Star Tribune article, Pete Kormanik, the owner of a local McDonald's, expressed his concern as a business owner:

Downloading data for a digital menu board — a task that would have taken 30 minutes at his other restaurants — dragged on for more than four hours.

After delays in processing credit cards, watching training videos and transmitting orders, Kormanik switched to an AT & T antenna. But a cloudy day can slow that service.

“If you can’t stay current with [connectivity], you’re just going to fall behind,” Kormanik said. “And businesses won’t go into those locations.”

Watch the brief interview with Hinnenkamp below or visit the series website to see more interviews. In the words of Dan Dorman, Executive Director of the Greater Minnesota Partnership: 

"It's time to stop talkin' and do something."

Broadband has been discussed for the past several years in Minnesota. Several task forces and reports have all concluded that lack of broadband in Minnesota, especially in the rural areas, will have detrimental effects on the future. Senator Matt Schmit, a DFLer from Red Wing, introduced SF 2056 [PDF] this session to inspire momentum for local broadband projects. Representative Erik Simonson, DFL Duluth, has been pushing the measure in the House.

The bill establishes a grant and loan program focused on local middle- and last-mile projects in areas like Annandale. Dubbed the Border to Border Infrastructure Program, it would bring $100,000,000 from the state's general fund to be applied to broadband projects. The bill has bipartisan support but has not been prioritized by either the Governor or Senate leadership within the Legislature. Meanwhile, Comcast and other incumbent lobbyists have been trying to minimize the fund and any impact it could have.

While it may not become a reality this legislative session, the bill has brought serious reflection on the critical need for Minnesota's rural areas. One of the attractive features of the bill is that funds can be used to supplement funding for local projects. This approach allows local communities to determine the best path for their own needs.

Video: 
See video

Minnesota Local Governments Advance Super Fast Internet Networks

Publication Date: 
March 19, 2014
Author(s): 
Christopher Mitchell
Author(s): 
Lisa Gonzalez

Local governments in Minnesota have been at the forefront of expanding fast, affordable, and reliable Internet access - often in some of the most challenging areas of the state. ILSR has just released a policy brief to explore some of these approaches: Minnesota Local Governments Advance Super Fast Internet Networks.

The full report is available here.

The brief examines five communities that have taken different approaches to expanding access, from working with a trusted local partner to creating a new cooperative to building community-wide FTTH networks.

Lac qui Parle County has worked with Farmers Mutual Telephone cooperative to bring fiber networks to those who had been stuck on dial-up. Finding itself in a similar situation with no reliable partner, Sibley County is creating a new coop to work with.

Scott County built a fiber ring to connect community anchor institutsion to dramatically expand access to high capacity networks and lower telecommunications budgets. That network has helped to lure several major employers to the area by leasing fiber to them.

Windom and Monticello have built FTTH networks in extremely challenging conditions. Though Windom is far smaller than most have believed is feasible to build such a network, it has thrived and is now connecting many of the small towns surrounding it. It was essential in retaining jobs in the community that would have been lost without it and has attracted new jobs to the region. Monticello is a younger network and has remarkably benefited the community even as it has struggled financially due to dirty tricks from the telephone and cable companies.

The policy brief makes some policy recommendations while focusing on some local solutions to difficult problems in ensuring all Minnesotans have fast, affordable, and reliable Internet access.

Lexingtonians Consider Municipal Network Options in Kentucky

Community leaders in Lexington are the latest to stand at a fork in the broadband road. In September, the franchise agreement between the Lexington-Fayette Urban County Government (LFUCG) and Time Warner Cable expired, resulting in a month-to-month agreement continuation. As they negotiate a new contract, local citizens have called for consideration of a municipal network.

When the contract was originally negotiated in the 1990s, the community was primarily interested in cable TV servce. As broadband has become critical infrastructure for residents, businesses, and government, the community's focus shifted. Lexington customers have complained repeatedly about Internet and cable TV service from Time Warner Cable. A February Kentucky.com article noted that local consumers complained over 300 times to Lexington's Urban County Government, the entity responsible for contract negotiations. According to the article:

The biggest single category of complaints was about price and the volatility of monthly rates. Other complaints were that the cable TV service "repeatedly fails, resets or freezes"; that there was an extended wait time and/or "unhelpful responses" in customer service; and that email and Internet "had declined in service" and showed "significantly slower service."

The City Council considered the situation bad enough to debate whether or not to appoint an ombudsman to advocate for Lexington consumers.

The community wonders how the proposed merger between Time Warner Cable and Comcast will impact their current service. While the Vice Mayor seems to think it is an "almost golden opportunity" to deal with a different provider, local citizen Roy M. Cornett has a different perspective. He wrote for Business Lexington.com:

We can choose to maintain the status quo and allow out-of-state corporations to continue to control our access to the Internet, or we can rescind the franchise agreements to the copper and fiber lying in the ground around our community and treat the Internet as the piece of infrastructure essential for our future economic growth that it is. 

We would just note that this is not an either/or proposition. They can both develop a new franchise or not separately from deciding to move forward with some smart municipal investments.

As the LFCUG has moved forward with franchise negotiations, they opened up the discussion at City Council meetings. Cornett attended a Cable Franchise Workshop to learn about the process. What he learned is that the LFCUG possesses very little power in negotiations, due to federal law. In fact, if Time Warner Cable meets a very low standard, the LFCUG has no option but to renew.

Lexington Kentucky Logo

Cornett and others in the community wonder if Lexington wants to go down the same Internet road again - expensive, unreliable, and ruled from a far off corner office. He addresses the question in another article on the Barefoot and Progressive site:

If the Time Warner [Cable] and Comcast merger goes through, Lexington will not only have piss poor download speeds, but caps on the amount of data you can use in a month. Comcast currently has a cap of 300 gigabytes per month for customers in Elizabethtown and Campbellsville, Kentucky. To put this in perspective, my family’s usage as of February 15, was 99 gigabytes for the month and we still have two weeks to go. I am terrified of what it will be in a few years when my youngest kids become teenagers. 

Cornett reached out to us when he wanted to learn more about the possibilities of a muni for Lexington:

The City of Chattanooga just recently built a municipal ISP to provide gigabit service to 147,000 homes at a cost of $330 million (of which $111 million was provided by the feds). Christopher Mitchell, the director of Telecommunications as Commons Initiative for the Institute for Local Self-Reliance, did some very rough back-of-the-envelope calculations for the City of Lexington and estimates that a full gigabit fiber network to every resident and business would be somewhere in the $200 million range. 

Those are huge numbers and should give anyone pause, but consider that we are spending $1.6 million on sidewalks for Tates Creek Road, $17 million for resurfacing a few blocks of South Limestone and $310 million dollars renovating Rupp Arena. Ask yourself if any of the above projects could come close to offering the economic impact that gigabit internet service would bring. It isn’t even close.

In his Business Lexington.com article, Cornett encourages a new coalition, the Bluegrass Economic Advancement Movement (BEAM), to take up the muni possibility. The group is a collaboration between Louisville and Lexington with support from the Brookings Institute. The goal of BEAM is to bring quality jobs to the Bluegrass and increase export activity.

Cornett, who we expect to hear more from, writes in his Barefoot and Progressive article:

I won’t speculate on the motives of the corporations for attempting to kill competition, but the issue of our city possessing a modern, reasonably priced, continually upgraded network is essential to our future.

This is not a fight we should shy away from. On the contrary, this is a fight we need to embrace, and it can be the lynchpin that takes the BEAM super region from a good idea to a shining success. I urge Mayors Gray and Fischer to – at the very least – explore the option of retaking control of this vital component of our infrastructure.

GAO Report: Government Telecom Investments Help Local Businesses

The Government Accountability Office released a report today examining economic development and government-spurred broadband deployment. The report, titled Telecommunications: Federal Broadband Deployment Programs and Small Business looks at the effects of stimulus projects on opportunities for small business. 

According to the press release:

“GAO’s investigation confirms the success of the Recovery Act’s broadband programs," said Rep. Waxman.  “In rural and urban areas across the country, small businesses are benefitting from higher speeds and lower prices thanks to federal investment in this essential infrastructure.  Expanding broadband access and quality is critical for American competiveness in the 21st century global economy. These were public dollars well spent.”

The report reviews communities around the country where either federal dollars have been invested in networks or local governments have made such investments. The results were consistent with our findings over the years - municipal networks create a business-friendly environment and contribute to economic development. 

According to the report summary:

According to small businesses GAO met with, the speed and reliability of their broadband service improved after they began using federally funded or municipal networks.

Regarding competition, the GAO find that municipal networks spur competitor investments:

For example, following the construction of a fiber-to-the-home municipal network in Monticello, Minnesota, the two other broadband providers in the area made investments in their infrastructure to improve their broadband speeds. One of these providers stated that all of its networks undergo periodic upgrades to improve service, but upgrade schedules can change in order to stay competitive when there is a new service provider in a particular market.