The following stories have been tagged fiber-to-the-business ← Back to All Tags

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 SB 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.

Exploring Santa Monica's Incremental Fiber Approach - Community Broadband Bits Episode 90

Just a few weeks after releasing our case study of Santa Monica's City Net, we have an opportunity to interview Jory Wolf, CIO of Santa Monica, and the chief driver of City Net. This is episode #90 of the Community Broadband Bits podcast.

We talk about how City Net got its start with a smart approach to the cable franchise negotiation. Adelphia built a number of fiber paths that Santa Monica would mange to connect anchor institutions. The savings from no longer leasing services provided the basis for expanding a network that would meet Santa Monica's needs long into the future.

They took that network and added on, eventually serving businesses with dark fiber and even some lit service. The model is applicable to any local government - financed by saving money and reinvesting that back into the network.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 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 Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Santa Monica City Net Case Study

Publication Date: 
March 5, 2014
Author(s): 
Eric Lampland
Author(s): 
Christopher Mitchell

Santa Monica has built a fiber network called City Net that has lowered its own costs for telecommunications, helped to retain businesses, and attracted new businesses to the community. Built incrementally without debt, it offers a roadmap any community can draw lessons from.

Unlike the majority of municipal fiber networks, Santa Monica does not have a municipal power provider – City Net is run out of the Information Systems Department. The vision for the network and its expansion was created in the Telecommunications Master Plan in 1998, standardizing the procedure that we now call “dig once.” Careful mapping and clever foresight laid the foundation for growth.

Santa Monica's Telecommunications Master Plan

In 1998, Santa Monica created a Telecommunications Master Plan that has guided it for the past fifteen years in building an impressive fiber network connecting all community anchor institutions and many business districts. We have just released a case study detailing this effort, entitled: Santa Monica City Net: An Incremental Approach to Building a Fiber Optic Network.

Below, you will find the original Master Plan and Exhibits. Santa Monica got it right - this document can still be a model today for communities across the United States. This document is particularly important for local governments that do not have a municipal electric department because it offers an alternative model run out of the IT department.

EPB Offering Services Local Businesses Need

EPB in Chattanooga offers a service to business clients that offers a good reminder that local service providers have to be able to offer a variety of business services because different businesses have vastly different wants and needs. In 2012, the publicly owned utility began offering telephone service with cloud characteristics.

The service saves money by limiting the need of small businesses to commit to capital investment and personnel costs while offering the capabilities that larger firms with larger IT staffs have. A TimesFreePress article on the service from 2012 reported:

"We looked at an average business that had nine sets and eight lines, and it comes to about $320 per month, instead of thousands of dollars in up-front costs," [Katie] Espeseth [EPB's head of product development] said.

When businesses install them on their own, the systems and devices require employees to maintain, at a time when many companies are looking to streamline their IT departments.

"It really takes the burden of installing and maintaining your telephone equipment off your own employees and puts it with our company," said Espeseth. "In Chattanooga, if a small business can take the capital they were going to spend on a new phone system and invest it in their business, it makes sense to spread that cost out over time."

EPB did their homework and now provides a service that small businesses need at affordable rates. Understanding the needs of local businesses and offering a range of options is key to the success of local providers.

OnLight Aurora Partners with the City for Better Connectivity in Illinois

Nine years ago, Aurora officials decided it was time to reduce telecommunications costs and upgrade to a faster, more reliable network. The local government built a fiber network to service municipal government, but developed long-term ideas for the network to benefit the entire community.

Nonprofit OnLight Aurora now uses the City's fiber optic network to provide high-speed connectivity to educational institutions, businesses, healthcare facilities, social service entities, and major non-profits. The organization leases fibers from the City's fiber optic network and provides Internet access at affordable rates.

Aurora is the second most populous city in Illinois. The municipal government spans 52 buildings over 46 square miles. Before the city's fiber network, connections were a patchwork of varying speeds and capabilities. Employees in a building with a slow connection would need to travel to City Hall to access a high-speed connections to use the city's bandwidth intensive applications. The network was old, unreliable, and expensive. The Director of Onlight Aurora recently spoke with Drew Clark from Broadband Breakfast :

"In 2005-2006, we came to the conclusion that we were paying $500,000 a year [to telecommunications providers] for leased line expenses,” said Peter Lynch, Director and President of Onlight Aurora.

The 60-mile network, constructed from 2008 - 2011, cost approximately $7 million to deploy. At the beginning of the process, payback was estimated at 10 years. While the short-term goal was to cut municipal connectivity costs, community leaders intended to expand its use in other ways. The City now saves approximately $485,000 each year from having eliminated leased lines. From a Cisco case study on Aurora [PDF]:

Conduit

“With local governments increasingly facing limited resources, you have to be able to find efficiencies in operations.” Although the cost savings are gratifying, [Ted] Beck,[Chief Technology Officer] notes that that was just the beginning: “The priority for the fiber optic network was initially cost savings; however we’re realizing that the benefits don’t end there. We’ve had some super wins with this technology, and we’re going to keep leveraging the infrastructure.” Mayor Weisner confirms these successes: “Pretty quickly, we saw a return on investment, both financially and otherwise. We have a much greater capability and fewer problems.” 

In 2011, Aurora received a Congestion Mitigation and Air Quality (CMAQ) grant from the Federal Highway Administration (FHWA) administered through the Illinois Department of Transportation. When the FHWA sought communities for the pilot program and accompanying grant, Aurora's existing fiber network was a plus. During construction of the city network, Aurora had installed extra fiber strands in its conduit. City traffic engineers used several strands to synchronize intersections to improve traffic flow. The grant, of approximately $12 million, upgraded 60 traffic signals. It also allowed Aurora to eliminate all remaining debt on the network.

From the Broadband Breakfast article:

“We have been able to see better movement of traffic, which alleviates congestion and air quality,” said Eric Gallt, the city’s Traffic Engineer. The fiber loop enables city traffic officials “to see what is going on remotely, and it decreased the cost of the project by 50 percent or more.”

That same year, Mayor Tom Weisner formed a broadband task force to field specific ideas for best utilizing the fiber optic network. In 2012 the group created non-profit OnLight Aurora. The organization received a $25,000 grant and a three-year $150,000 loan from the City. OnLight and Aurora entered into a 20-year agreement for OnLight to lease network fiber strands from the City. OnLight would then lease access to the fiber backbone to other entities at affordable rates.

Aurora Illinois

In 2012, OnLight Aurora received a $1 million Illinois Gigabit Communities Challenge award. The Illinois Department of Commerce and Economic Opportunity awarded the grant as seed money. OnLight Aurora also received another $1 million in matching public and private funds. The organization used the funds to offset costs of connecting customers and to expand to better reach developing business parks and healthcare facilities. Schools, medical centers, social services agencies, arts & entertainment entities, and businesses now connect to the network at speeds of up to 10 Gbps.

In August 2013, Indian Prairie School District 204 announced its plans to expand its technology program. The connection allows the District to connect two of its data centers. District 204 obtains a 10 Gbps connection from OnLight Aurora for $39,600 per year. OnLight provides ample bandwidth for the district's bring-your-own-device initiative. A portion of the $1 million Illinois Gigabit Communities Challenge grant paid for the cost of connecting the fiber.

OnLight also offers wireless connections as an economical way to serve small- and medium-sized businesses. OnLight uses city-owned towers and buildings that are already connected to the fiber for wireless point-to-point connections. The wireless complement will connect schools, businesses, and other entities when a lengthy fiber connection is too costly.

Businesses in Aurora are connecting to the fiber. An August Beacon-News article on the wireless plan also tells the story of security company Alarm Detection Systems (ADS). The company went from T1 connections at 1.5 Mbps to 20 Mbps connections from OnLight for approximately $500 per month. From the aricle:

While cases vary based on a number of factors, the upfront installation cost for Alarm Detection Systems offices to connect directly to the fiber network are about $19,000, according to [company IT Manager Mark] Schramm. But the reliable and fast connection will save the company money in the long run.

“We’re saving money and believe we’re getting a better product,” he said.

According the a recent Beacon-News article, OnLight Aurora is now reaching out to local businesses through seminars. An article about the January 29th seminar quoted a city official:

“Attendees will receive the necessary tools to better understand and employ the OnLight Aurora network resource for their businesses and organizations,” said Clayton Muhammad, Aurora Director of Communications.

OnLight Aurora's three year plan includes doubling it's current length to 100 miles. The network is completely underground and any carrier has access to the infrastructure.

Ponca City Fiber: Serving Businesses, Schools, and Offering Free Wi-Fi

Its extensive free Wi-Fi has brought Ponca City into the limelight but the mesh network did not appear overnight. The community effort began with miles of fiber network that provide connectivity and enable the mesh network financially and technically.

Ponca City, home to 25,000, is located on Oklahoma's north central border; Tulsa, Oklahoma City, and Wichita are all more than 90 miles away. The petroleum industry flourished in Ponca City until the oil bust in the 1990s and the population began to decline as workers moved away. Community leaders sought ways to salvage the local economy through economic development. They began to focus on the technology, manufacturing, and service industries.

The municipal electric department, Ponca City Energy, installed the first five miles of fiber in 1997 and five more in 1999 to connect outlying municipal buildings to City Hall. Line crews from the utility and the City Technology Services Department handled all installation to keep expenses down. The City continued to add to the network incrementally, exapanding it to over 350 miles. The network also serves the City's SCADA system.

In 2003, Ponca City Energy connected the local schools, and the Ponca City Medical Center to the network. The network also began providing Internet to the University Learning Center of Northern Oklahoma, now named the University Center at Ponca City. The Center collaborates with thirteen higher education institutions to provide distance learning in 48 online degree programs.

Ponca City eventually began offering Internet access via the fiber to commercial customers. According to Craige Baird, Technology Services Director, most businesses in the community purchase Internet access from the City. Revenue from commercial Internet customers, approximately $36,000 per month, pays for the wireless mesh network.

In 2008, Ponca City installed the wireless network for the City's public safety entities. The wireless complement allowed employees in the field to immediately transfer information that in the past required a drive back to the office. In addition to police and fire, employees such as electrical linemen, ambulance attendents, and code enforcement officers use the network. The City connected 25 percent of its 500 wireless routers to the fiber optic network, creating a robust mesh with ample bandwidth over 150 square miles. The City chose to use the excess bandwidth to provide free Wi-Fi to the public.

Wi-Fi logo

City officials estimate the network saves residents almost $4 million a year in Internet fees. Over 17,000 people use the free service, allowing them to keep more dollars in the local economy. The Wi-fi speeds range from 7 - 12 Mbps download. The network will support the community's upcoming technology plan to supply laptops and tablets for students. 

The City has also implemented a virtual desktop solution, allowing city employees to access their desktop from any Internet connection. To insure redundancy, the City has mutual fiber lines between its server rooms and its Disaster Recovery site, located miles away. The City received a 2013 Municipal Innovations Award from the Oklahoma Municipal League for its infrastructure and disaster recovery. From the Oklahoma Municipal League announcement:

Overall, Ponca City has started the technology move over twelve years ago with the first installation of fiber optic cable. But now that basic installation has grown to provide the backbone for an entire network that provides services not only to the employees but to the citizens and businesses in Ponca City. Technology will continue to be an important part of Ponca City’s future.

Policy Brief: Building Community Broadband Access

In partnership with the Center for Popular Democracy, we have created a new policy brief: Building Community Broadband Access. We offer examples of communities that have acted to improve access by using smart strategies that facilitate community owned networks.

This fact sheet provides information to legislators, advocates, or concerned citizens who want to educate others about the benefits of publicly owned networks. This is the latest in our growing collection of convenient, compact, and instructive fact sheets. 

The Center for Popular Democracy works with a long list of local, state, and national groups to exercise grass-roots democracy. 

Download the Policy Brief [PDF].

Fact Sheet on Financing Municipal Networks

We are adding a new fact sheet to our growing collection with the new, Financing Municipal Networks Fact Sheet. Many have assumed that municipal networks are funded with taxpayer dollars, but this is not true in the overwhelming number of cases.

When a community decides it needs to establish its own publicly owned network infrastructure, one of the biggest challenges is financing the investment. Each community is unique but three main methods of financing are most popular. This fact sheet offers a quick look at these common approaches and provides real-world examples.

Download the Fact Sheet [pdf]