More and more cities are turning to public-private partnerships (PPP's) in building Internet networks that meet the needs of 21st century homes and businesses. If a city builds its own fiber and leases it to a trusted partner, they can negotiate for activities that benefit the public good, like universal access. 

In this video Christopher Mitchell interviews Dr. Robert Wack with Westminster, Maryland and Elliot Noss, CEO of Tucows, the parent of Ting. The two talk about their revolutionary public-private fiber partnership.

The video outlines a basic economic principle: "Ownership equals control, and control means leverage." If you don't have that leverage (such as ownership of infrastructure) you won't get a good deal from your private ISP.

Noss has long been active in preserving and expanding the open Internet. Dr. Wack is a city council member and driving force behind the open access fiber network partnership. 

For a much more detailed look at public-private partnerships, check out our guide: "Successful Strategies for Broadband Public-Private Partnerships". The term "public-private partnership" has been muddied in the past. The report clears up the confusion: public entities and private companies must both have "skin in the game" to balance the risks and amplify the rewards.

Greenfield city officials and school administrators recently agreed to cooperatively build a fiber-optic institutional network (I-Net). The Milwaukee suburb of about 37,000 expects to trim thousands of dollars from its annual network bill and bring its students, teachers, and local government up to speed.

Dig Now, Save Now

Just like many communities across the U.S., Greenfield realized that it was paying too much to connect its community anchor institutions (CAIs) to the Internet. In April 2015, Greenfield school district approved a bandwidth upgrade with a private provider that would cost the schools $45,588 annually. Within half a year, they had already hit their new bandwidth limit. In November 2015, they needed to upgrade again to the tune of $119,141 per year. 

With classrooms and public institutions demanding increasingly higher bandwidth, local officials decided to ditch the incumbent providers to build a fast, affordable, reliable network in the coming semester. Their investment will allow them to make long-term budgeting decisions, direct more money toward classroom expenses, and use technology to offer rich educational experiences. 

Construction started in June on the fiber-optic network that will connect Greenfield school district, neighboring Whitnall school district, Alverno College, and Greenfield public safety buildings. With installation slated to finish by summer’s end, local institutions expect immediate savings. 

Financial Terms

The City of Greenfield, Greenfield School District, and Whitnall School District all applied for state trust fund loans through the Board of Commissioners of Public Lands of Wisconsin (BCPL). 

The city of Grover Beach, California, recently finalized a 10-year agreement with Digital West, Inc., to bring gigabit speed fiber to local businesses. The coastal town in San Luis Obispo (SLO) County wants to attract tech companies like those making waves in Silicon Valley and the "Silicon Beach" in Los Angeles. 

Terms of Agreement

The agreement specifies that Grover Beach will maintain ownership of the conduit system and lease Digital West conduit access at an annual rate of 5.1 percent of total fiber revenue. Digital West will build, own, and maintain the fiber-optic network, several lines of which will be leased to the city for public administrative use. Upon approval from both parties, the 10-year agreement can be renewed in 5-year increments.

A May 2016 Grover City staff report provided an optimistic forecast from Digital West:

The forecasted revenue amount speculated by Digital West Network, Inc. for the City is estimated to grow from a first year projection of $4,437 to $112,302 in year 10, for a total over the 10 years of $602,285. This amount is much higher than the originally predicted 10 year projection of $32,038 per year represented by Digital West Network, Inc. in 2014. The increase projections are due to the fact that they plan to add the residential market to our options which is projected to fall under the lease agreement. This brings greater benefit to the community, as well as more revenue commission to the City. 

We outlined the network’s projected costs in a story last year.

Fiber Surfin’ USA

The Central Californian coastal city hopes its unique location near a trans-Pacific cable landing station will attract scores of investment and cause the moniker “Silicon Dunes” to stick. Pacific Crossing’s undersea cable is part of a four point fiber ring connecting the Japanese cities of Shima and Ajigaura with Harbour Pointe, Washington, and Grover Beach.

As the city of Santa Cruz and local Internet service provider Cruzio bring their negotiations to a close, the parties have been working diligently to dot all the i's and cross all the t's. Announced in June 2015, this public private partnership intends to build a multi-million dollar fiber network throughout the city.

[W]e’ve been locked away in our Santa Cruz Fiber Project underground bunker with our partners at the City, engaging in high-level cogitation, extreme fine-tuning and the general hashing out of every little detail of the project and the agreement.

Local news station KION covered the benefits of faster Internet service, especially for the small business community in Santa Cruz. The news station also includes a clip from a recent “City Hall to You” community meeting where people learned more about the network.

A Small Business Town

“It's absolutely critical. Without high-speed Internet activity here, we would be dead in the water,”

Explained Susan Pappas, the owner of True Olive Connection, a local olive oil store. She described how her business would fall apart without high-speed Internet access. Everything from printers to inventory would stop working.

At the “City Hall to You” meeting, Santa Cruz Economic Development Manager J. Guevara laid out the facts, emphasizing how Internet access is not just for tech startups. High-speed Internet access makes small businesses function and helps job-seekers find employment. Guevara told KION,

“Over 82 percent of the businesses in the city of Santa Cruz are 10 or fewer employees. This is a small business town and Internet is the infrastructure that makes it all possible.”

Infrastructure from Santa Cruz and Cruzio

Warren County, Kentucky, issued a Request for Information (RFI) in June to find partners in order to improve connectivity for local businesses and residents. County officials want to develop a Fiber-to-the-Premises (FTTP) network and are willing to consider both publicly owned and privately owned options. RFI responses are due July 8th.

The community has prioritized the following in its RFI:

1. A community-wide FTTP work to serve both businesses and homes
2. An open access model to encourage competition
3. A financially sustainable network
4. A network that provides affordable base-level service for everyone

Warren County

There are approximately 120,500 people in Warren County with about half living in the county seat, Bowling Green. After Louisville and Lexington, Bowling Green is the most populous. Located in the south central area of the state, Warren County is about 548 square miles. This region of the state had a relatively high growth rate of 24 percent between 2003 and 2014 and Warren County officials want to continue that trend with better connectivity.

In addition to Western Kentucky University, there are several other colleges and technical colleges in the region. STEM education at both the college and K-12 levels is prevalent in Warren County. The area is home to the Carol Martin Gatton Academy of Mathematic and Science,  which was named best high school in America three years in a row by Newsweek.

There is a range of industry, including finance, health care, agriculture, and manufacturing. The community seeks to improve connectivity to retain a number of its employers as well as diversify its economy further, encourage better services for residents, and spark competition.

Don't Delay

Get the details on Warren County's RFI by accessing their Bids Calendar. Responses to this RFI are due by July 8th. You can also contact Brenda Hale with questions: brenda.hale(at)ky.gov.

The high-speed, municipal fiber network in Westminster, Maryland, (pop. 18,000) is making possible another intriguing resource service for the community’s businesses and residents.

In May, Westminster officials and the city’s fiber network partner, Ting, held a ribbon-cutting ceremony to mark the coming this fall of the first Ting Makerspace, a service featuring 3-D scanning technology, including “an electronic router that can carve digital designs into physical objects and laser engraving," reports the Carroll County Times. 

Ting Makerspace And 3D Printing

The Times story notes:

The 3-D scanner “takes any object smaller than a sofa and records the shapes and contours using light patterns, digitizing it,” according to the news story. Then, the digital rendition can be printed on a mini 3-D printer, “which can scale down the scanned object or print original computer designs. The 3-D printer ejects layers of heated, rapidly cooling plastic to create plastic models of these designs.” The newspaper reported that the subscription fee for using the 3-D scanner will be $5 a day, $30 a month or $300 a year. 

The Makerspace will encourage development from local entrepreneurs who would not otherwise have access to affordable 3-D scanning technology.

Westminster Municipal Fiber Network 

Like electricity in the last century, advanced communications services and capabilities can become the drivers and enablers of simultaneous progress in economic development, education, government services, digital equity, and just about everything else that matters most to our communities.

This Blue Ribbon Panel explores the challenges of establishing effective partnerships to bring better connectivity to local communities. The video is from the Broadband Communities Summit in Austin, Texas, on April 5 - 7, 2016.

Moderator: Lev Gonick - CEO, OneCommunity

Panelists: 

Chris Mitchell – Director, Community Broadband Networks Initiative, Institute for Local Self-Reliance

Nicol Turner-Lee – VP and Senior Research and Policy Officer, Minority Media and Telecommunications Council 

Rollie Cole – Senior Fellow, Sagamore Institute for Policy Research

Doug Kinkoph – Associate Administrator, NTIA

In April we wrote about the Mid-Atlantic Gigabit Innovation Collaboratory (MAGIC), an innovative new educational program in Westminster, Maryland, that gives local high school students opportunities to learn new technology skills through hands-on, real world projects. After the success of the program’s first project, the MAGIC program created a temporary wireless network for a second project -- this time for the city’s annual Westminster Flower and Jazz Festival held during Mother's Day weekend.

The MAGIC program is a collaborative effort between Ting Internet and Freedom Broadband, with Ting offering networking equipment and Freedom supervising the project. Ting is the private partner and operator of the City of Westminster’s open access municipal fiber network. Freedom Broadband is the leading provider of wireless Internet in the surrounding Carroll County region.

Festivals and Fiber

The temporary network gave festivalgoers access to extremely fast, high bandwidth wireless connections that connected to Westminster's fiber network. While strolling through the festival to see local jazz musicians and sampling from hundreds of vendors offering food, flowers, and crafts, attendees were be able to wirelessly connect their phones, tablets, and other devices to the city's fiber network during the one day event.

For the program’s first “Tech Incubation” project in April, the MAGIC program’s 15 students also created and operated a temporary wireless network that the City of Westminster used at its annual Celtic Canter and Downtown Irish Celebration. These first two projects are part of a continuous series in which the students have opportunities to further expand and refine their technology knowledge.

Leveraging Municipal Fiber for Economic and Cultural Benefits