community savings

Spanish Fork Community Network Adds Telephone

In 1999, the city of Spanish Forks in Utah began building a $7.5 million publicly owned cable network to offer broadband and cable television services. Since then, the network has created some $2 million in community savings from the lower rates created by competition. In February of 2009, Spanish Fork Community Network received the "Business of the Month" award from the local Chamber of Commerce.

Last month, they announced that they will be adding telephone services to the network by contracting with a private provider that will actually offer the service.

When most people think of Utah and broadband networks, they think of UTOPIA, the open access network that has had a variety of problems. The Spanish Fork Network has been quick to note their successes (I suspect they are also frequently attacked by the incumbent-loving Utah Taxpayers Association group):

Bowcut gave his budget report and said SFCN had over $400 thousand in retained earnings. "We are not going under."

He also added that they built the network at a time when private providers refused to invest in the community.

Hat tip to FreeUTOPIA for noting these stories.

Wilson's Greenlight Keeps Time Warner Prices Low in Community

Catharine Rice gave a terrific presentation detailing the ways Time Warner has responded to the municipally-owned Greenlight fiber-to-the-home network: raising the rates on everyone around them and cutting great deals to Wilson residents. I saw the presentation on the Save NC Broadband blog which also has a link to her slides - make sure you follow along with the slides.

She details how Time Warner has raised rates in towns around Wilson while lowering their prices and offering better broadband speeds in Wilson. Once again, we see that a community building their own network has a variety of benefits: a superior modern network that is community owned, lower prices on the last-generation network from the incumbent, and some investment from the incumbent.

Now the question is whether Wilson's residents will be smart enough to support the publicly owned network in the face of Time Warner's low low prices - a recognizing that a few short years of low prices (for low quality) are not worth abandoning the publicly owned network and the benefits it has created in the community.

Video: 

Jackson, Tennessee, Profiled

The Jackson Energy Authority (JEA) network now has over 16,000 subscribers and offers speeds up to 100 Mbps for local businesses and 25 Mbps for standard residential users.

Jackson is considered one of the most technologically advanced cities in the U.S. We have four competitors in the market with AT&T, Bell South, Charter and JEA. We computed that over $8 million to $9 million has been saved by residents in this city when compared to other cities of its size because of the competition.

These are the kind of hard-to-quantify savings that too often go unnoticed in discussions about the value of publicly owned broadband projects. What is the value of competition? How much economic development has occurred directly from the JEA network and indirectly from the lower prices and greater investments that result from competition?

Award-Winning Network Ensures Continued Survival of Small Town's Economy - Scottsburg, IN

Publication Date: 
June 1, 2006
Author(s): 
Alvarion
Publication Title: 
Vendor Case Study

Another real-world example of why communities cannot depend on the private sector to build the infrastructure needed by the community, Scottsburg Indiana suffered from telecommunications underinvestment and was about to lose jobs because the companies could not get the connections they needed.

This article reports that the cost of T1 lines was $1600/month but other sources suggested they were as low as a mere $1300/month. Nonetheless, the costs were prohibitive and benefits from building a publicly owned system were immense:

Muni FTTH Snapshot - Jackson Energy Authority

Publication Date: 
October 6, 2008
Author(s): 
Broadband Properties Magazine
Publication Title: 
Broadband Properties

The Broadband Properties Muni Snapshot of Jackson Energy Authority, serving Jackson Tennessee, offers a fiber-to-the-home network. As is common to the snapshots, it is heavy on technical data.

Muni FTTH Snapshot - Morristown, TN

Publication Date: 
November 3, 2008
Author(s): 
Broadband Properties Magazine
Publication Title: 
Broadband Properties

Another snapshot, mostly containing technical data on the Morristown FTTH network - FiberNET. Like many networks in Tennessee, this network is run by the municipal utility. They started signing up customers in May 2006 and by late 2008 already had a take rate of 33%.

Perhaps the most significant sign of success is that neighboring communities want service as well.

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