The following stories have been tagged grant ← Back to All Tags

Time Warner Cable Successfully Blocks Funds for Community Network in Maine; Project to Continue

Time Warner Cable recently fought to prevent a collaborative project in Maine from receiving $125,000 in state broadband funding, reported the Bangor Daily News

We reported in December that Old Town, Orono, the University of Maine, and GWI had been awarded ConnectME funds. The collaborators earmarked the funding for a stretch of about 4 miles of fiber which could serve about 320 subscribers and would ultimately be integrated into a much larger network for businesses and residents. The network would connect to Maine's Three Ring Binder network.

Old Town and Orono want to establish gigabit connectivity to a nearby industrial area to transform it into a technology park for economic development purposes. Several businesses, including a health clinic that, have expressed interest in setting up shop in the planned development.

Old Town and Orono formed OTO Fiber, an independent entity to have authority to design, install, maintain, and manage an open access network. In typical fashion, TWC took action prevent local citizens and businesses from ever capitalizing on a gigabit, rather than work with the municipalities to deliver TWC services over the publicly owned infrastructure.

The ConnectME Authority voted in TWC's favor, based on the arguments as presented in an earlier Daily News article:

The company argues that the agency only has the ability to give grants in areas it deems “underserved” or “unserved,” and that projects getting grants should overlap with less than 20 percent of the customers of an existing provider.

The towns, which formed the company OTO Fiber to develop the project, argue that the service does not duplicate existing services and that other Internet service providers would be able to contract with the company to use the open network that would be built by Networkmaine, a unit of the University of Maine System.

TWC's behavior is by no means surprising. Nevertheless, the project will proceed:

Belle Ryder, assistant town manager for Orono, told the board Thursday that the project still would move ahead, but with municipal funds that, with the grant, would have gone toward other municipal uses.Ryder told the Bangor Daily News on Thursday that the town has money from a tax-increment financing district that could be used for the purpose.

Minnesota Border to Border Broadband Awards Announced

The Minnesota Office of Broadband Development recently announced the recipients of the Border to Border Broadband grants, funding established by the state legislature in 2014 to facilitate rural broadband projects. Seventeen public and private entities will share a total of $19.4 million in Greater Minnesota.

According the the Department of Employment and Economic Development (DEED) press release, the projects will help bring better connectivity to 6,095 households, 83 community institutions, and 150 businesses in areas of the state considered unserved or underserved. This funding pays for up to 50 percent of the cost of each project. 

The need in rural areas of the state is intense; 40 projects submitted applications for a total of $44.2 million in requests. Among the recipients are some familiar projects.

RS Fiber Cooperative is awarded $1 million for its FTTH project in Renville County and and parts of Sibley County. We wrote a case study on the RS Fiber project in our report All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. According to the press release:

Total project costs are $3.32 million; the remaining $2.32 million (70 percent local match) will be provided by a line of credit that R-S Fiber Telcom has committed and partner equity. This project is part of a larger cooperative project estimated at $38.46 million that will upgrade broadband services to several thousand locations in the region. Hiawatha Broadband Communications will provide operational capacity. 

Federated Telephone, sister cooperative to Farmers Mutual Cooperative will also receive an award for a project in Big Stone County:

Federated Telephone Cooperative, Big Stone County. Awarded $3.92 million to construct broadband infrastructure that will make service available to 1,072 unserved premises. The full project cost is $7.92 million; the remaining $4 million (51 percent) in matching funds will be raised through tax abatement bonds, with the county loaning the bond proceeds to Federated. This project will cover the north half of Big Stone County, as well as the western tract that runs from south to north surrounding the city of Ortonville. The area will include the communities of Barry, Beardsley and Johnson along with the rural parts of western and northern Big Stone County.

Farmers Mutual Cooperative worked in partnership with Lac Qui Parle County to bring FTTH to the rural western community and turn it into one of the best connected regions of the state. The Farmers Mutual/Lac Qui Parle partnership is also detailed in the All Hands On Deck report.

Other cooperatives around the state that will use Border to Border awards to improve rural connectivity include Consolidated Telephone Cooperative, Alliance Communications Cooperative, and Interstate Telecommunications Cooperative.

There were a number of smaller, local telephone companies that are deploying or expanding in rural areas including Sjoberg Cable in Roseau, Otter Tail Telecom in Fergus Falls, and Dunnell Telephone Company in Dunnell. DEED also posted a map [PDF] that shows the locations of the funded projects.

CenturyLink, Frontier, and Mediacom, who have poo-pooed public investment in publicly-owned infrastructure, labeling it as "unfair," also applied to receive public funds. They will receive approximately $2.5 million collectively. The private sector cleaned up, as is usual when it comes to collecting taxpayer dollars.

Last fall, we interviewed Minnesota's Senator Matt Schmit and Representative Erik Simonson, authors of the bill establishing the fund, and Danna Mackenzie, Director of the State Office of Broadband Development. Listen to their conversation with Chris in episode #119 of the Community Broadband Bits podcast.

These seventeen projects demonstrate a need that is just the tip of the iceberg. While $20 million is only a fraction of what it will take to bring fast, reliable, affordable connectivity to all Minnesotans, these projects will help lay the groundwork for future planning. We encourage the Minnesota Legislature to get serious about expanding Internet access across the state and in particular, focus on investing in coops and munis that will keep the money in the community.

OneCommunity's Middle Way - Community Broadband Bits Podcast 135

OneCommunity is a nonprofit organization in northeastern Ohio that has connected thousands of community anchor institutions with high capacity connections. Created as OneCleveland before expanding, it has remained a rather unique approach to expanding high quality Internet access. This week, CEO Lev Gonick joins us to talk about OneCommunity and its contributions to the region.

As neither a private company nor a local government, Lev believes that OneCommunity offers a third way, something they often call a "community-driven" approach. We discuss how a big city like Cleveland needs to think about solving the problem of expanding Internet access broadly.

OneCommunity has just announced the recipients of its Big Gig Challenge and Lev shares some of the lessons they learned in evaluating proposals and working with the communities that competed for the prize.

Lev and I will be on a panel together again with some other great folks in Austin for Broadband Communities in the middle of April. Great deal to attend here.

Read the transcript of this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 23 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

OneCommunity Announces "Big Gig Challenge" Award Recipients

Last fall, nonprofit ISP OneCommunity  created the "Big Gig Challenge" to jump start expansion and promote gigabit applications in northeast Ohio. The organization recently announced the winners and provided some information about their projects.

The West 25th Corridor project, running through Ohio City, Tremont, Clark-Fulton, Brooklyn Centre, and Old Brooklyn is a four mile stretch that will affect small business, the Cleveland Clinic, two MetroHealth Systems campuses, and several other large employers. This project also reaches 14 sites that could be developed and over 900 properties. It is a collaborative project that includes four Cleveland Wards.

The Village of Greenwillow plans to expand its existing network and work with private sector business owners and land developers. Likewise, Lorain County Community College will build off its existing network connections to create a community fiber road map. From a press release on the award, as printed in BBC Mag:

In response to receiving the grant, Dr. Roy Church, president of Lorain County Community College said, “We are honored to be selected as a grant recipient. This award will enable our community to dramatically increase access to the existing fiber network, positioning us to become a more globally competitive region. The funds will be used to engage stakeholders from government, healthcare, higher education and local businesses to create an implementation plan to increase high-speed connections and foster greater efficiencies.”

South Euclid, currently utilizing the OneCommunity network, received a grant to expand to to the city's municipal facilities and build out to its industrial area.

The Big Gig Challenge offered funds to cover up to 25% of the projects costs up to $2 million.

In addition to the Challenge launched last fall, OneCommunity launched a new collaborative effort with the City of Cleveland in November. A new fiber pipe, capable of 100 Gbps speeds, will be deployed along Cleveland's Health-Tech Corridor (HTC) connecting downtown to University Circle.

The $1.02 million project is funded by a $700,000 Economic Development Administration (EDA) grant, funding from the City, and a contribution from OneCommunity. Construction is expected to start early this year. It will be available for local businesses, many of which have already expressed an interest. From a Cleveland City Hall Press Release:

“We are extremely enthusiastic about our partnership with the City of Cleveland and excited to be at the forefront of a project that is destined to become the new “Gold Standard” for broadband connectivity. Consistent with our mission, we embrace 100 gigabit as a job creation engine for the City. Offering the first 100 gigabit capability, specifically in the Health-Tech Corridor, incentivizes local and national fast-growing companies to locate and remain here,” says OneCommunity CEO Lev Gonick.

We just spoke with Lev Gonick from OneCommunity on Community Broadband Bits.

Massachusetts Towns Consider WiredWest Opportunity

Eleven Select boards in Franklin County are ready to take the next step with WiredWest Cooperative. According to the Recorder, the towns of Ashfield, Charlemont, Colrain, Hawley, Heath, Leyden, New Salem, Rowe, Shutesbury, Warwick and Wendell have all approved nonbinding resolutions taking them into the financial planning phase.

Last fall, the organization and the Massachusetts Broadband Institute (MBI) agreed to meet on a regular schedule. The two organizations began meeting with town Select Boards in order to update them on financial obligations to help them decide whether or not to participate.

WiredWest Cooperative has worked with The Western Massachusetts Legislative Delegation On The Last Mile Broadband Solution to create a strategy to improve connectivity statewide. In addition to WiredWest, the group included MBI, the Franklin Regional Council of Governments (FRCOG), and the Mass TechCollaborative. Several state lawmakers, including Senator Stan Rosenberg, participated in the delegation.

The state will supply approximately $40 million in grant funding to MBI, that will disburse the funds, to defray the costs of deployment in hill towns. The Recorder reported:

[Monica] Webb, [speaking for WiredWest Cooperative] said the first thing town officials want to know is how much of that $40 million grant will be available to reduce their town’s share of the cost.

“The first step was to determine which towns want to participate,” said Webb. “Now that we know, there’s detailed engineering to be done. ... The numbers the towns will get will be our best estimate. We’re still refining our best estimates, but I expect that will be done over the next month.

“Towns have told us they need that information as soon as possible,” she added. “We’re working to make that happen.

“The other thing we’re going to focus on, over the next months, is a pre-subscription campaign. We won’t build out (the fiber optic network) in a town until the town has at least 40 percent (of its subscription base), who have signed up and given a deposit.”

Webb said pre-subscribers will be asked to pay a $50 deposit, which will go into an escrow account; once the town is wired, that deposit will be used to reduce their first Internet service bill.

The cooperative has more than 40 member communities. Their pre-subscription campaign will begin in late January. In February and March, WiredWest and MBI will hold informational meetings with local officials and work on business and operational plans.

As WiredWest makes its way across Massachusetts, local communities are deciding whether or not to invest to take advantage of the new connection to the big pipe that is MassBroadband 123. Leyden, population approximately 700, will vote at its annual spring town meeting whether or not to work with WiredWest to deploy fiber in Leyden.

A December article in the Recorder reported that the Selectboard voted to support the measure which would require a two-thirds vote at the annual town meeting. A debt exclusion vote will be held if that measure passes and requires a majority vote. The debt exclusion will allow Leyden to borrow in order to fund the municipal build out.

The current estimate for a network in Leyden is between $900,000 and $1.77 million. The most recent decision by the Selectboard will allow MBI to develop a more accurate plan and detailed estimate according to the Recorder.

Part of Leyden has DSL service but a 2012 WiredWest survey indicated that 56% of Leyden residents were interested in better connectivity. Popular opinion in Leyden among locals is that lack of fast, affordable, reliable connectivity scares away potential home buyers and new businesses. Al Woodhull, Leyden's alternate WiredWest delegate told the Recorder:

A new DSL connection was one of the reasons Woodhull bought his home five years ago.

“The house had been on the market for several years, and the previous owner had been very pleased to get DSL, because she hadn’t been able to sell the house without any kind of high-speed Internet,” he said.

Elected officials in these smaller communities have tossed around the investment for months. Few of these small communities are accustomed to such large investments and political leaders understand the risk aversion. From a November Recorder article:

“I don’t think this is a hard sell for a finance committee, but I think it’s a terribly hard sell for a town meeting,” said Charlemont Finance Committee member Toby Gould. “Unless marketing comes up with proposals that are easily understood, they won’t buy it. ... They have to be convinced this project is worth investing in.”

Local channel WWLP spoke to Leyden residents in December [video below]:

James Finney has lived in Leyden over a decade and would welcome high speed internet access. He said, “If all the other places in the county are getting the high speed and we’re back in the older technology, it certainly is going to diminish the chances that we’re going to be able to attract the businesses and the educational opportunities that are out there.”

Bill to Establish Broadband Grant Program in Montana State Legislature

In Missoula and Bozeman, momentum is building for improved connectivity by way of community network infrastructure. As usual, funding a municipal network is always one of the main challenges, but the state appears uninterested in helping them. State Representative Kelly McCarthy recently dropped HB 14 into the hopper, a bill to create a broadband development fund primarily for private companies.

The bill authorizes $15 million in general obligation bonds for broadband infrastructure projects for middle-mile and last-mile connectivity in rural areas. Unfortunately, projects built and maintained by private entities have priority per the language of section 3(2)(b).

The state legislature would be wise to follow Minnesota's lead and establish a program that is available to all as in the Minnesota Border-to-Border Broadband Development Grant Program. Private entities are eligible to apply along with public entities and nonprofits, but do not receive special consideration.

If anything, the long history of success from cooperatives and local government approaches in infrastructure is favorable to the history of consolidation and poor services that big monopolies have offered in rural areas.

It never ceases to amaze us that people designing programs to use taxpayer money in expanding essential infrastructurel would earmark it only to subsidize entities that are the least accountable to the communities they are supposed to serve. Ultimately you have to wonder whether these programs are designed to benefit local communities or just the companies that can best afford lobbyists.

Metronet Dark Fiber Network Expanding Education in South Bend, Indiana

In South Bend, the Trinity School at Green Lawn recently connected to the Metronet Zing dark fiber network thanks to a grant from Metronet and nCloud. According to Broadband Communities Magazine, the new connection has brought new opportunities to teachers and students at the high performing school.

The Metrolink Fiber Grant program, new this year, awards grants to schools to encourage innovative approaches focused on outcomes improving broadband capacity to implement innovation. To receive the grants, schools must have a specific plan, an implementation strategy, a way to measure success, and an accountability plan. Schools must also demonstrate that there will be adequate training and that staff will remain supportive and committed to the plan.

Like many other schools, Trinity at Greenlawn had to limit technology in teaching because its capacity was so poor. In classes where students exchanged information for projects, they often emailed from home where connections were better or exchanged flash drives.

Bandwidth is no longer an issue. From the BBPMag article:

Danielle Svonavec’s seventh-grade students study music composition using online software. A year ago, just half the class could be connected at a time. Even with that limited number, slow connections meant wasted time as students waited for the software to store and process their work. This year, all students are online. Response is seamless. Instead of being frustrated by computer issues, students work without distraction. The class is able to take full advantage of the software and learning is enhanced as students hear their compositions played back instantly as they work.

Trinity also has campuses in Minnesota and Virginia and are making plans to use the network for distance learning opportunities with students at all three campuses.

We introduced you to Metronet Zing in 2013. The dark fiber open access network provides connections through South Bend, Mishawaka, and St. Joseph County. The non-profit serves government and education while its for-profit sister entity, St. Joe Valley Metronet, serves commercial clients.

DubLINK Network Supports Economic Development, Health Care, and Supercomputing

Award-winning supercomputing apps, medical research, economic development, and quantum computing advances. What do they all have in common? They all depend on the DubLINK network running underneath Dublin, Ohio, a suburb on the Northwest edge of Columbus. The city of 43,000 people has 125 miles of fiber optics in the ground, both within its own boundaries and in the form of fiber purchased by the city within metro and regional networks. 

DubLINK began in 1999 as a public private partnership with the Fishel company to build an institutional network. In the wake of the 1996 Telecommunications Act, Dublin worried that a recent massive investment of $70 million in streetscaping would be undone as competing providers dug up newly paved streets to install fiber optics. To avoid this, the City signed a franchise agreement with Fishel to install a multi-conduit system, with the city receiving some conduit for its own use.  

Using 1.25” conduits installed in the city’s existing sewer system, the network runs for 25 miles underneath Dublin’s business district and connects six city buildings, who use their own lit fiber for data and voice services, eliminating expense leased line fees. This has allowed the city to save approximately $400,000 per year for the last 12 years in connectivity and information technology expenses.

In 2004, Dublin spent $3.5 million to purchase 96 strands running 100 additional miles through Columbus FiberNet, bringing the total length of the DubLink network to its current 125 miles. FiberNet is a duct system that runs throughout a significant portion of central Ohio, including Columbus and its surrounding suburbs.

The following year, the City of Dublin struck a deal with the Ohio Academic Resources Network (OARnet). OARnet is a 1,600 mile statewide fiber backbone connecting K-12 schools, colleges, universities, federal research labs, and other institutions. A $500,000 grant from the Ohio Board of Regents allowed DubLINK to make its connection with OARnet, and the city gave OARnet an indefeasible right to use 4 of its 96 fiber strands throughout its entire 125 mile network. They called their partnership CORN, for the Central Ohio Research Network. Earlier this year, the Ohio State Legislature awarded DubLink $300,000, which along with a $250,000 National Science Foundation grant and a $328,000 local contribution, will allow DubLINK to match OARnet’s 100 Gbps speeds throughout its entire network.

Seal - Dublin, Ohio

According to Dana McDaniels, Dublin's Director of Development, the city has spent approximately $5.5 million over the years in building, purchasing, and upgrading DubLINK. For this investment, he estimates that the city has received at least a $35 million return on investment already. This includes avoided costs around $4.8 million ($400,000 per year over 12 years), leases to telecoms and other entities of about one third of the city's dark fiber that amount to $3.2 million, and the much more significant gains in employment and thus tax revenue that have resulted from companies expanding or relocating in Dublin to take advantage of its incredible connectivity.

Dublin has a two percent income tax, one quarter of which is dedicated to a wide variety of capital improvement projects. It also uses a small part of this revenue as collateral for tax-increment financing bonds, which it has used to fund some of its share of network construction costs, with the rest of the $5.5 million in total network investments coming from the regular capital improvements budget.

The network is currently being used by a wide variety of public, private, and nonprofit institutions, including National Mutual Insurance, Nestle, Dublin Methodist Hospital, and online reference catalogue company OCLC Inc. OCLC connects to 70,000 libraries around the world, but relies on DubLINK to secure its data by connecting to backup data centers throughout the region.

Rather than narrowly focusing on network revenue, Dublin takes a broader economic development approach to its fiber resources. Development Director McDaniels uses fiber connectivity to lure businesses to locate or expand in Dublin the way other cities use tax credits or land giveaways. Ohio Health, which runs six hospitals in the state and has various other facilities, was granted 4 strands of DubLINK's fiber, which helped them decide to headquarter in the city. They now light and manage the fiber themselves, using it connect to all of their facilities throughout the region. Because they are able to so easily run their operations from Dublin, they have expanded their employment in the city from 300 to 1,200 people.

This September, one of DubLINK’s institutional anchors announced that they would be using DubLink to test new applications for quantum computing. Battelle Memorial Institute, a nonprofit applied science and technology company, signed a five-year deal with DubLINK to use the city’s fiber for their Quantum Key Distribution network, the first commercially-funded network to use quantum computing to encrypt information. Using subatomic particles instead of binary code to transmit information, Battelle claims they have created a form of encryption that will be hack-proof even if quantum computers make traditional encryption techniques obsolete. 

DubLINK proved its usefulness in 2013 as well, when a collaborative including representatives from the City of Dublin, the University of Missouri, and The Ohio State University were recognized for creating the “Best Application for Advanced Manufacturing” at the Next Generation Application Summit in Chicago. The team developed an app called Simulation-as-a-Service, which allows small businesses and labs to remotely access supercomputing capability. Small manufacturers would be able to use the app (in combination with a robust fiber optic connection) to run design simulations through supercomputers on the Ohio State campus, as well as trade design information in massive data files. 

According to Prasad Calyam, an assistant professor of computer science at the University of Missouri and the leader of the team developing the app: 

“The app really requires the infrastructure,” said Calyam. “The infrastructure is not the end goal of the project. It’s really the app. But we couldn’t build the app without the infrastructure.”

“Our work on Simulation-as-a-Service is one example where having a city invest in broadband infrastructure will help economic development,” said Calyam. “It helps companies to move there, to use the infrastructure, and essentially build new kinds of collaborations.”

Expedient Logo

The combination of DubLINK’s fiber infrastructure and proximity to The Ohio State University has also helped attract a growing number of data centers and medical research operations. Dublin-based Cardinal Health opened a research center in the city earlier this year, and Expedient Data Centers recently announced plans for a $52 million data center.

An even bigger fish is on the line for Dublin, which is competing with neighboring suburb Hilliard to be the location for a new $1.1 billion Amazon data center. Amazon has been secretive about its plans, but Ohio Governor John Kasich recently confirmed earlier leaks that the center would be located in the Columbus area. 

Dublin is pushing ahead with the expansion of DubLINK in the coming months and years. In conjunction with the upgrade to 100 Gbps speeds, the network is also beginning to move towards an open access Fiber-to-the-Premise model for major office and multitenant buildings in the city. Rather than bringing fiber to the curb and waiting for building owners to take advantage, the city will be bringing the fiber directly into at least 20 buildings this year and about 10 each year thereafter, with the option to increase the pace if it incents businesses to locate or expand in Dublin.

DubLINK has also struck a deal with a local data center that will serve as a "meet me" room and is in talks with ISPs, which will allow those intitutions using DubLINK fiber to connect to whatever ISP they wish over the publicly owned fiber. It will also allow them to connect to OARnet, the National Science Foundation's GENI rack, and the Ohio State University's supercomputer remotely - all at 100 Gbps. 

The local schools are on the docket for connections as well, with the three city high schools and administration building at the head of the line. They all stand to gain 100 Gbps network connections, and will also benefit from the nearly limitless educational resources of Ohio's universities and research organizations available through OARnet.

Whether or not Dublin successfully woos Amazon, its fiber optic network has proven to be a valuable community asset. It has allowed the city to partner with a local provider to launch a city-wide Wi-Fi system over 24 square miles, which uses DubLINK for backhaul and in return allocates 25% of its bandwidth to the city for its own uses, such as police communication and logistical support for large public events. It has supported medical and computing research, creating good jobs in the process. For all these achievements, Dublin has twice been named a Top 7 Community by the Intelligent Communities Forum, and last year Dana McDaniels, who oversaw DubLINK's development, was given ICF's Lifetime Achievement Award.  

More Muni Fiber Projects in Maine

Local communities in Maine are mobilizing to jumpstart economic development, expand educational opportunities, and improve Internet access. The town of Orono, located near the center of the state, announced earlier this month that it will working with nearby Old Town and the University of Maine to deploy an open access fiber network pilot project in an area they wish to promote as a technology park.

The news highlights connectivity improvements in Maine happening at the local level. In August, Rockport solidified its plans to bring fiber to its downtown with partner GWI. Soon after, South Portland announced a similar partnership with GWI to spur economic development. Sanford and Isleboro [PDF] have commissioned studies.

The Main Campus reports that Orono, Old Town, the University of Maine, and GWI have been in the planning phase for some time, but lacked funding to deploy:

“We tried to be the first on the map [with fiber-optics], but there were too many obstacles. Now we have the opportunity to do something,” said Orono Town Manager Sophie Wilson at last Monday’s Economic Development Committee meeting, where the opportunity was presented.

In early 2012, the town was in talks with Old Town and Maine broadband service provider GWI about connecting the towns and the University of Maine to the Three Ring Binder, an 1,100-mile long highway of fiber optic infrastructure that passes underneath Bennoch Road. In order to take advantage of the opportunity, the towns planned on coming together in a collaborative called Old Town-Orono Fiber (OTO Fiber) and applied for grant funding to go through with the project.

Although they weren’t able to receive the necessary funds in 2012, the town is in a better position this time around.

The Three Ring Binder, an open access dark fiber network owned by the Maine Fiber Company, was funded with ARRA stimulus dollars and private investment. The network went live in 2012 but providers have not built out last-mile connections as anticipated. To fill the gaps, these communities are taking matters into their own hands and investing in that last-mile fiber infrastructure.

The partners recently received a $125,000 grant from ConnectME Authority but will need to secure matching funds from the Northern Border Regional Commission. The Commission was created as part of the 2008 Farm Bill to support economic development projects in Maine, Vermont, New Hampshire, and New York. The pilot project will connect to the Three Ring Binder that runs near the park. Cost to the city is estimated at $25,000 - $30,000.

A new tenant, Eastern Maine Health, signed a lease contingent on the pilot project. Other entities are also interested in the location. 

According to Town Planner Evan Richert, Eastern Maine Health could potentially bring 150 new jobs to the area.

“It’s going to fill two buildings that have been vacant for two to three [or more] years and which have had quite a drag on the impression of our vitality [as a town],” Richert said.

“It’s also dragging the valuation down at the tech park, part of that $4 million loss in value [reported for fiscal year ‘14] was directly related to lack of rented space out there,” Wilson said.

Columnists from local press are opining about the state's poor connectivity. Bill Nemitz from the Portland Daily Press recently wrote about Wired West in Massachusetts, challenging readers to demand better from elected officials. Some of them already understand the need. Nemitz wrote:

As U.S. Sen. Angus King, a broadband cheerleader if ever there was one, put it in an interview Thursday, high-speed broadband is as important to rural Maine as stringing electrical wires to outlying homes and farms was back in the 1930s.

“We’ve absolutely got to do it,” said King. “It’s an economic death sentence for a community that can’t get broadband.”

In June, Bruce Segee, University of Maine professor of electrical and computer engineering, spoke with the Bangor Daily News about the pilot project:

“If [municipalities] want prosperity, [they] need to make something and bring people from outside to buy it,” Segee said.

Orono, Old Town, South Portland, and Rockport have decided to stop waiting for providers to bring that "something" to their communities and do it themselves. The Daily News:

A desire to attract and grow businesses is part of the reason why Orono and Old Town have taken steps toward building fiber for homes. For Richert, “the economic development of small communities rests less [now] with big developments and real estate but more with startups and established small companies innovating with new products.”

There’s no time to wait for Internet service providers to step up and make the investment themselves.

“We can’t afford to wait,” Richert said. “We need to grow small businesses.”

Cortez To Expand Open Access Network

A recent vote by the Cortez city council cleared the way for a major expansion in the city’s open access network. By committing $1 million in local funds, the city unlocked a matching $1 million grant from the Colorado Department of Local Affairs, which disperses revenues from federal mineral leases in the form of a variety of economic development grants around the state.

This $2 million infusion will enable Phase II of the city’s network plan to go forward next year, making connections newly available to 400 businesses along two major highways. This builds on the existing Phase I network, which is capable of offering connections to about 650 businesses along Main Street. About 250 businesses have already signed on in Phase I, good for nearly a 40% take rate. The city plans to add 27 miles of fiber in 2015. 

The $1 million in local matching funds that enabled the Department of Local Affairs grant are pledged from a combination of sources. The network's own reserve fund will contribute $250,000, while the remainder will come in the form of interdepartmental loans from the city's general fund ($250,000) and equipment fund ($500,000). 

The city does not offer its own services over its fiber, favoring an open access model that lets independent service providers compete using its infrastructure. The network currently has seven mostly local ISPs competing for customers. The long term plan, as described by City General Services Manager Rick Smith in a Broadband Bits podcast back in May, is to build a fiber to the home network throughout the city. Smith sounds pretty determined to make that happen:

“Just because we live here in rural Cortez, there’s no reason why we shouldn’t have access to affordable broadband. It’s a necessity in today’s digital age.” 

“It would probably take more than $10 million to finish out the entire city,” Smith said. “That could take at least five years, but we have a roadmap. We have a plan.”

Cortez has taken a gradual approach towards developing its fiber infrastructure, beginning with an I-Net for local anchor institutions in 1999. Over time, the town of less than 9,000 residents has become a regional fiber optic hub, thanks to several grants from the state, partnerships with neighboring governments, and smart local investments. Cortez serves as the nexus for the western half of the Southwest Colorado Access Network (SCAN), which connects public institutions in a five county region to backbone fiber. 

Cortez has also benefitted from good timing: it began leasing extra capacity on a few of its fiber optic lines to a handful of private companies in 2005. This allowed Cortez to be grandfathered in as an exemption to SB 152 which passed later that same year, meaning that unlike nearly all other Colorado municipalities, Cortez did not have to pass a referendum to use its fiber optic infrastructure to offer retail services.