economic development

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No Longer Just a Luxury: Tennessee Communities Need Broadband Access Now

Sandi Wallis, a resident of northern Bradley County in Tennessee, doesn’t simply want to have ultra-fast, reliable broadband access for the fun of it. She needs it to run her home business. Her school-age children need it too:

“I've had to send my kids into town to do their homework. We’ve had to go into town with our business laptops to download updates to our programs for our accounting business because we can’t do it at home. We need service — not just reliable service and not just for entertainment.”

Wallis made the comments at a recent meeting hosted by the Bradley County Chamber of Commerce in Tennessee. The meeting focused on a persistent problem in many parts of Bradley County - residents and businesses lack the fast, affordable, reliable, broadband access that is available via Chattanooga’s EPB fiber network in neighboring Hamilton County. The deficiency is taking its toll.

Cleveland, a city of about 43,000 in Bradley County, has explored the idea of building their own community broadband network. But business leaders, government officials, and residents across Bradley County and the State of Tennessee are all anxiously awaiting the results of the ongoing legal struggle over the state’s anti-muni law. In addition, a bill set for consideration at the next state legislative session would, if passed, allow municipalities like Chattanooga to expand their existing fiber broadband services to adjacent communities in Bradley County. 

Don’t Mind the Gaps

Alan Hill, a representative from AT&T, suggested that rather than focusing on the broadband service gaps in the state, Bradley County should acknowledge AT&T’s positive contributions in the area:

Conduit Brings Connectivity in Lincoln, Nebraska

Lincoln, Nebraska, population 269,000, is making the most of a tough situation to improve connectivity and increase telecommunications competition; the city is doing it with conduit.

The state has severe restrictions that ban communities and public power companies from offering telecommunications services. Local businesses, government facilities, and citizens must rely on the private sector to keep them connected. Faced with that limitation, Lincoln city leaders are enticing private providers with an extensive, publicly owned conduit network.

Using Tubes to Draw in Partners

In 2012, the city invested $700,000 to install a conduit system that has since grown to over 300 miles across the city. Over the past three years, Lincoln has leased conduit space to multiple providers, including Level 3 and NebraskaLink, which offer a range of services to businesses and anchor institutions. NebraskaLink provides backhaul for Lincoln's free Wi-Fi, launched in 2014.

Mayor Chris Beutler recently announced that Lincoln will be partnering with provider number six, ALLO Communications. This local company plans to be the first provider to use the conduit to build its gigabit fiber-to-the-home (FTTH) network to every home and business in Lincoln. The network is scheduled for completion in 2019. ALLO is based in Lincoln and offers telephone, Internet, and video to residents and businesses.

Smart Conduit Choices for Long Term Vision

Hudson Adds Velocity to Help Local Businesses - Community Broadband Bits Episode 181

When Hudson, Ohio, businesses couldn't get the connectivity they needed from the incumbent cable and telephone companies, the local government stepped up to provide what it calls a "service" rather than a "utility." Hudson City Manager Jane Howington joins me this week to explain their approach in Episode 181 of the Community Broadband Bits podcast.

Hudson has a municipal electric utility already and is now investing in a fiber optic network to connect local businesses. Branded "Velocity," and launched earlier this year, the network is exceeding expectations thus far in terms of local business interest. City Manager Howington and I discuss how they decided to build a network, their incremental approach, and how they will know if they are successful in coming years. 

This show is 22 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 Arne Huseby for the music, licensed using Creative Commons. The song is "Warm Duck Shuffle."

Flipping the Switch in Santa Fe

In May, Chris introduced you to Sean Moody from Santa Fe's Economic Development Division, to explain how the community was investing in a new fiber link to better serve the local business community. With a little competition, Santa Fe officials expect more choice, better connectivity, and improved services.

CenturyLink controls the community's only connection to the Internet and the line bringing access to the web into the downtown district. Santa Fe's $1 million investment creates another path to encourage other providers to compete. Residents in Santa Fe pay approximately $50 per month for average speeds of 5 Megabits per second (Mbps) while nearby Albuquerque pays the same for 10 Mbps.

The situation may soon change.

On Monday, December 14th, the community will celebrate the investment as they "Flip the Switch and Connect Santa Fe to the Future." The event will take place at the Santa Fe City Offices and will begin at 9 a.m. Mayor Javier M. Gonzales will flip the switch at 10 a.m. to activate Santa Fe’s very first gigabit-speed Internet connection.

From the announcement:

Mayor Gonzales and the City’s Economic Development Division invite you to celebrate activating the first gigabit district in Santa Fe through Santa Fe Fiber, the City’s innovative broadband infrastructure project.

...

On Monday, December 14th from 9 until 11 AM Mayor Gonzales will be joined by special industry guests to flip the switch and experience first-hand the power and potential of gigabit-speed Internet delivered over the City’s newly completed fiber optic backbone. The community is invited to bring devices and try out the new speed!

PILOTing Positive in Tennessee

As the Sixth Circuit Court of Appeals reviews the FCC's February decision to scale back state anti-muni laws in Tennessee, at least two munis in the Volunteer State are giving back by saving dollars. Networks are also contributing substantially to  public coffers via Payment in Lieu of Taxes.

Clarksville, Tennessee, Network Becomes Revenue Positive in 2015

As of June 2015, the city’s utility provider CDE Lightband paid off all outstanding expenses related to their fiber optic network. General manager Brian Taylor described how the network has improved the city’s utility services and overall economic picture:

Our fiber project has proven to be an investment that benefits the electric system, the customers and the community. It has allowed us to enhance our distribution system and improve our system reliability; provide customer choice in video, Internet and telephone services and offer another tool in economic development. Every year access to high speed Internet becomes more critical in the recruitment of new business. We are proud to be an integral part of the growth and development of our community.

In a recent press release, CDE Lightband said their 1,200 mile fiber optic network saves the City of Clarksville a total of $4.5 million annually through technological upgrades that have improved the overall safety, reliability, and speed of electrical maintenance and service. The city has also seen 27% growth in broadband service customers over the past year. The network’s cost savings, along with direct revenues from electrical and broadband services, spell major dividends for CDE Lightband coupled with continued optimism for future growth.

Two Fiber Networks Collaborate: Aim to Bridge Digital Divide in Georgia

In October, the North Georgia Network (NGN) cooperative announced the formation of a new partnership with Georgia Public Web (GPW), a pairing that will conjoin two large fiber optic networks that together cover most of the State of Georgia. The newly announced partnership will enable the two organizations to more effectively confront their shared mission to improve broadband access across the state. Paul Belk, president and CEO of NGN, expressed his enthusiasm for the new partnership:

GPW is a great company for NGN to work with, as we have similar goals to serve communities challenged with ‘the digital divide.’ The companies are great links to each other because GPW serves most of the state with the exception of NGN’s footprint. Together we create a complete solution.

Two Networks Become One

This partnership connects GPW’s nearly 3,500 mile fiber optic network that stretches across most of the state to NGN’s 1,600 mile network. As Mr. Belk noted, a look at NGN’s network map shows that it covers one of the few remaining service areas in Georgia that GPW’s massive network map does not reach.

What's Next For Southern Tier Network?

With construction of a major community broadband network behind them, local leaders in New York State’s Southern Tier region are now considering the potential for the recently completed dark fiber network.

Since becoming operational in 2014, the Southern Tier Network (STN) is already serving over 100 industrial and government service entities across the region. STN is a not-for-profit, local development corporation that built, owns, and manages the network for the region.

Jack Benjamin, president of economic development organization, Three Rivers Development Corporation, explained the value of the network to the region in a July Star Gazette article:

This backbone fiber that we've got here is a huge benefit for us going forward. As this technology piece continues to be even more important in the future, because it's going to be changing all the time, we will have the base here that allows us to change with the marketplace. Part of our thought process here is we want to keep what we've got in terms of businesses and provide the infrastructure that allows them to stay here and be competitive.

Building Out for the Future

When we wrote about the STN in 2011, the planned backbone of the network included a 235-mile fiber-optic ring stretching across Steuben, Schuyler, and Chemung counties. Glass producer Corning paid for $10 million of the initial $12.2 million cost to deploy with the remaining balance paid for by the three counties where the network is located. The STN is now 260 miles total, including strands that run to city centers and select business areas in the tri-county area.

Upper Arlington, Ohio Forges Ahead with Public Partners on City-wide Fiber-Optic Network

The City Council of Upper Arlington, Ohio on Oct. 26 approved several contracts that will enable the community to build a municipal fiber-optic network to key anchor institutions for an estimated $2.5 million.

Upper Arlington’s project will provide high-speed Internet service for the city’s buildings, the Public Library, Upper Arlington city schools, and most city parks according to a news report from the Upper Arlington News. The 30-mile fiber network will serve about 40 locations around the boundaries of the city (population 34,000).

Besides establishing better connectivity between the three public partners’ buildings, the network is expected to provide opportunities for commercial companies to lease telecommunications services. The network would allow the city to lease some of the 288 fiber strands to commercial companies, such as other Internet Service Providers (ISPs).

Financing and Break Even

Under the cooperative arrangement, the library will contribute $17,616 annually, the city $68,484 per year and the school district $177,900 each year until the project is paid off. “These costs are derived from the amounts that each entity is currently paying for leased broadband connectivity between their facilities,” Upper Arlington Assistant City Manager Dan Ralley told us. 

The period anticipated to pay off the network construction is nine years with the school district and library able to extend the parties’ shared-services agreement for an additional 15 years after. The extensions would occur in three five-year segments.

Cost savings, broader bandwith

Ralley says the primary benefits of the new city fiber-optic network will be significantly lower long-term bandwidth and broadband access costs.  For example, the city of Upper Arlington expects to save about $1,280 a month for Internet service by building its own fiber network. Over 10 years, the city’s savings would total about $150,000.

And the municipal network will be a boon for the Upper Arlington public schools. In an Oct. 19, 2015 staff report, Ralley said:

Roanoke Valley Broadband Authority Moving Forward

After multiple delays, the much anticipated Roanoke-Salem fiber network in Virginia has its feet on the ground. The network has secured an executive director who will provide greater project oversight and find Internet service providers (ISPs) to operate on the open access network.

Now that the project is under way, it is moving at a rapid pace. The Broadband Authority already secured a contract for $2.9 million to lay the conduit for the fiber optic cable, and crews are already at work. By year’s end, the project should finally be complete.

Two years ago, a completion date seemed far-fetched. The cities of Roanoke and Salem and the counties of Roanoke and Botetourt met to discuss the growing problem of poor Internet access in the region. The area had the reputation for being in a "doughnut hole" - too large to qualify for federal grants but too sparsely populated to attract investment from large telecom providers. The city of Roanoke, for instance, ranked 409th out of 429 US metropolitan areas for basic Internet access.

Grand Junction Asks "Fiber? Where?"

While other communities in Colorado are just starting to reclaim local control over their broadband futures, the city of Grand Junction has moved forward. In April, the people overwhelmingly overturned SB 152 – the state law that prohibited them from pursuing the best broadband solution for their community. Now Grand Junction is investigating its options.

The city council and the Downtown Development Authority (DDA) are in the process of hiring a consulting firm to develop a broadband strategic plan for the city of 60,000 and seat of Mesa County. One of the main tasks is to determine where to locate the fiber backbone of the proposed municipal network.

Where Will the Fiber Go?

In September, months after the vote, the city agreed to enter into a contract with the consulting firm. The city will pay for the majority of the cost – up to $83,000. According to DDA meeting minutes from September, the Authority will pitch in up to $16,000 [pdf].

The study will take two or three months and will look specifically at the pros and cons of a fiber backbone deployment through downtown Grand Junction. The downtown area houses many banks and businesses, as well as both city and county government buildings. Fiber would provide much needed high-speed connectivity for those facilities, reports the Daily Sentinel. Available office space, ideal real estate for tech firms, is also plentiful in downtown Grand Junction.

Next Steps

After the consultants complete the study, the city may choose to issue bids for Requests For Proposals (RFPs) from contractors interested in constructing the network. The DDA has a $1 million line of credit backed by the city and will take responsibility for the cost of installing fiber in the downtown area.