Back in January, Colorado Springs Utilities (CSU) announced it was going to begin building a city-wide, open access fiber network owned, and that Ting would be its first anchor tenant. Construction of the network is expected to begin in the third quarter of this year, with a target completion date of 2028 (originally planned for fifteen years). The network will provide multi-gigabit service to roughly 200,000 homes as well as city businesses and anchor institutions. It’s still early in the process, but projections at the moment have the utility spending $45 million to $100 million a year for the next six years to complete the project. The first phase will see 225 new fiber route miles laid.

CSU Has Long Used Fiber

For thirty years CSU has built fiber across Colorado’s second-largest city. CSU’s dramatic  expansion of this existing network directly benefits the utility by reducing overall costs, improving infrastructure monitoring, and boosting overall utility network resiliency. And it all will come with no rate increases to CSU electric customers.

But the company’s decision to lease access to this fiber expansion also directly aids the local community by lowering consumer utility costs, and delivering universal, affordable, high-speed Internet access. It’s a significant boon to Colorado’s second largest city that’s now an attractive, high-tech growth market. 

In early November, the city of Alexandria, Virginia, began seeking bidders to construct an institutional network to connect city facilities. In addition to developing infrastructure to meet the city administrative needs, Alexandria wants to bring local schools, public safety, and its Smart City Mobility transportation efforts together on a publicly owned fiber optic system.

According to the city's website:

In addition to improving connectivity among City facilities and sites, the Municipal Fiber project will create potential partnership opportunities to expand consumer choice and increase available speeds for broadband services available in Alexandria. In response to consistent feedback regarding the lack of options for cable television and broadband Internet services, the City has actively pursued other potential providers. With the construction of the new fiber optic network, the City is planning to seek new partners who could lease excess conduit space to provide broadband service to residents and businesses. This would allow all providers to compete fairly and would encourage providers to offer consumer services.

The city of Alexandria currently leases an I-Net from Comcast and has decided to make the long-term investment to replace that infrastructure. By eliminating the lease arrangement, Alexandria will have more control over the use of the fiber optic network, giving them the ability to expand it in the future to businesses and households or work with private sector partners if the community chooses. The city will also be able to better plan for financial needs if they don't have to contend with unpredictable rate hikes from Comcast.

Alexandria has been looking at developing a municipal network for several years now, but budgeting has been a roadblock. By eliminating an expensive lease from Comcast, they will be able to redirecting those funds toward better local connectivity through a municipal network project.

In order to reduce the cost of the deployment wherever possible:

In early November, Founder and President from The Broadband Group, Tom Reiman, appeared on Fox Business to discuss partnership opportunities that may indicate a shift in perspective.

Strange Distruption

Reiman discussed the recently announced partnership between CenturyLink and the city of Springfield, Missouri, where the national company has decided to work with the municipal utility. The ISP and the utility will expand the publicly owned fiber infrastructure and CenturyLink will offer services via the network. 

The arrangement is a major shift in the traditional approach that large companies have taken until now: preferring to own and operate their own infrastructure and to serve primarily densely populated regions with high-quality Internet access. Rural areas have typically been forced to rely on, at best, DSL from national companies such as CenturyLink.

Reiman discussed how The Broadband Group reasoned with CenturyLink by highlighting the ease of entry into a market where infrastructure and opportunity already exists. It also became apparent to CenturyLink that the company needs to move forward and improve services in order to stay financially viable in a market in which subscribers’ demands continue to follow innovation.

Watch the Fox Business segment here.

We spoke with Reiman in 2016 about the partnership in Huntsville between the city and Google Fiber, which is similar to the Springfield partnership. He and Stacy Cantrell from Huntsville Utilities described the arrangement in episode 191 of the Community Broadband Bits Podcast.

City Utilities (CU) in Springfield, Missouri, recently announced that over the next four years, they will expand the community’s fiber optic network. CenturyLink will lease dark fiber on the Springfield infrastructure in order to offer Fiber-to-the-Home (FTTH) Internet access to residents and businesses in Springfield and in areas beyond the city. In addition to the great news about this sizeable expansion, experts feel optimistic to see a national ISP working with a pioneering municipal network.

Working with CenturyLink First, Then Others

CU will spend around $120 million to add more than 1,000 fiber miles to their existing 700-mile fiber infrastructure. SpringNet has provided connectivity to local businesses since the late 1990s and has helped spur economic development in Springfield.

CenturyLink, as the first Internet access provider to lease dark fiber on the publicly owned network, and Springfield expect to begin connecting residents and businesses by the spring of 2020. According to CU General Manager Scott Miller, the 15-year arrangement with CenturyLink will fund much of the expansion and rates will not increase for current CU customers.

Miller estimates that CU will complete the expansion within three years. Because the CenturyLink agreement is not exclusive, CU hopes to lease excess capacity to other Internet access companies or businesses. In addition to encouraging options for Springfield, CU wants to deploy more fiber throughout the community to facilitate 5G technology, which requires ample fiber to support high numbers of small cell sites.

Named the Intelligent Community of the Year by the Intelligent Communities Forum in 2012, Riverside, California has continued to work toward broadband expansion, digital inclusion and take full advantage of their fiber optic infrastructure. To offer more options for commercial and institutional entities in the community, the city council approved a dark fiber leasing program to be operated and maintained by Riverside Public Utilities (RPU). Officially launched in 2018, the program makes the city’s 120-mile dark fiber network available for Internet service providers (ISPs), wireless operators, and mobile carriers to lease and provide service to industrial and commercial customers. 

Becoming an Innovation Hub

Riverside’s growing reputation as a smart city has helped turn the community into a hub for start up companies, especially in the technology industry. Located just east of Los Angeles, Riverside was ranked as 19th on MSN Money’s list of the best cities in the U.S. to grow a business and several large companies, such as SolarMax, have recently located there. 

While the fiber network was originally constructed for running the operational facilities of power and water, the city had the foresight to finance and construct fiber to every city facility. With the new leasing program, this original network is now an essential backbone for providing the city’s businesses and industries with the high-speed service they need to compete with surrounding communities. 

Open for Business

For several years now, Tacoma, Washington, has pondered the fate of its Click! municipal open access network. In the spring of 2018, the community issued an RFI/Q searching for interested private sector partners that would lease the network from the Tacoma Power Utility (TPU). After reviewing responses, consulting experts, and comparing potential arrangements, Tacoma has narrowed the field of possible partners. The goal is to put the network on a sustainable and competitive footing both financially and technologically. Tacoma is following a path that will retain public ownership of the Click! network as the network continues to expand.

Click! has offered considerable benefits during its lifetime, but the network retains considerable debt even as it will soon require more upgrades to continue competing with Comcast. The cable television system is rigged against small operators and while the open access Internet side creates many benefits, Click!’s ISPs just don’t have enough subscribers to make the network financially viable into the future.   The discussion around Click’s finances are complicated because the broadband network is used for both external customers and internal utility uses -- the rate modeling around how to allocate costs is a process that requires subjective analysis (e.g. should the costs be allocated based on bandwidth or evenly split among each service). Some have credibly accused past TPU officials with cooking the books to make Click!’s financial status worse than it actually was. Nevertheless, Click! still doesn’t appear to be financially sustainable when costs are allocated more reasonably. Given the upgrades needed by the cable system, we fear that preserving the status quo will do more harm than good to the community over the medium and long terms; Tacoma needs to make a change to avoid being stuck solely with the broadband monopolies that plague the rest of us.

Lenoir City, Tennessee, has actively explored options for broadband for about ten years. After briefly considering broadband over power lines, the Lenoir City Utilities Board (LCUB) decided the time wasn’t right for the utility to offer Internet access to the public. The LCUB, however, is making a move to to open its fiber loop assets to potential partners, hoping to improve service for people in Lenoir City and surrounding areas.

Dark is the Way to Go

At their March 18th meeting, the LCUB members unanimously voted to accept proposals from private sector companies interested in leasing excess capacity on the utility’s fiber loop. According to LCUB general manager Shannon Littleton:

“There’s 80-85 roughly miles of 228-count fiber that’s around the perimeter of our system….We’re utilizing a small percentage of it right now. We plan on using a larger percentage of it in the future. We sat down as a group and decided there’s potentially 100 pair or 200 pair of fiber ... depending on what the board says, that we could put out to the marketplace for a period of time until the electric department decides to take it back for its own use.”

LCUB has already received requests to lease fiber on the network, suggesting potential competition and better options for folks in the rural areas of the LCUB service area. AT&T and TDS Telecom are incumbents with Lenoir City, but in the areas outside of town wired Internet access is difficult to come by.

Feasibility Results

Hilliard, Ohio (pop. 36,000), is moving forward with plans to deploy a carrier neutral dark fiber network after city council approved funds for the project last month. The 25-mile fiber network will connect government buildings and businesses in the Columbus suburb and will be capable of speeds up to 100 Gigabits per second, reports Columbus Business First. Officials hope that improving Hilliard’s broadband infrastructure will help the community attract and retain businesses, encourage local economic development, and reduce municipal connectivity costs.

Deployment Details

During the first phase of the project, Hilliard will run fiber to municipal buildings and local businesses. The carrier neutral network will connect to the Metro Data Center in nearby Dublin, Ohio (home to DubLINK), giving the city government and businesses access to a wide selection of providers, who will have the ability to lease fiber from the city. In the future, the network could expand to serve other entities, such as local schools. The city does not plan to connect residents.

The total cost of the network’s initial phase is $3.17 million; to fund the fiber rollout, Hilliard City Council set aside $2.9 million in January as part of the city’s capital improvements budget. This included a $1.25 million loan from the Franklin County Infrastructure Bank, which has also invested in two similar projects, including Grove City. Hilliard Economic Development Director David Meadows said that the remainder of the funding comes from a conduit and traffic signal project that was approved in the city’s 2018 budget.

Economic Benefits for the City