On September 11th, we interviewed Todd Murren, Director of SpringNet, for our Community Bradband Bits podcast. Todd told us the story of how travel giant Expedia, chose Springfield, Missouri, as the location for their call center and how SpringNet services them with its high capacity network.

Expedia originally planned on working with a large national carrier to provide connectivity. When it was time to seal the deal, however, promises were broken - the telecommunications company revealed it would not be able to provide the needed bandwidth after all. Expedia almost walked away from Springfield. Thanks to SpringNet, however, and its 350 fiber miles and first class business services, Expedia stayed. SpringNet saved 400 new local jobs.

Todd gave us more examples of how SpringNet has contributed to the local economy as it serves over 200 business clients. In addition to these examples of how SpringNet directly influences the local economy, keep in mind the positive ripple effect. Here a quick list from Todd:

Not long ago, we shared information on MINET, the municipal network in Martinsville, Virginia, that serves schools, municipal facilities, and about 30 local businesses. We noted that businesses are attracted to the area and cite the capabilities of the fiber network as a driving force.

The Martinsville Bulletin now reports that city leaders have been approached by more local businesses interested in saving money by connecting through the network. The Bulletin spoke with City Manager Leon Towarnicki who said "we are essentially maxed out”  in staff and resources. Obviously, economic development through MINET is moving along well. The City Council is now considering the costs and benefits of expanding.

The city is working with CCG Consulting to develop a business plan. CCG will soon begin a business and residential survey and review of the city's current network. The survey and plan will explore the possibility of deploying a fiber-to-the-home network and communication system, but Martinsville will shy away from operating a cable television system. From the article:

Asked if the city would try to provide cable TV service again, City Attorney Eric Monday said, “We tried it. We litigated. We lost. We’re done.”

Martinsville made an attempt to acquire a retail cable television service in 2006, but found itself in a long and expensive court battle. Adelphia had previously provided cable in the area but filed for bankruptcy in 2002 and as a result, failed to honor its franchise agreement. At the time, the city landfill had just closed and the city was looking for other ways to generate revenue. They wanted to purchase the network and tried to block Time Warner Cable and Comcast from doing so. Time Warner Cable wanted to purchase the network and then engage in a like-kind exchange. This technique is a common tool large cable corporations have used to ensure geographic monopolies.

Just on the heels of Time Warner Cable announcing 81 new jobs in Kansas City in response to the newly competitive environment created by Google's Gig, we learned that Comcast is adding more jobs to its workforce in Chattanooga.

In talking points, the lobbyists and spokespeople for these major carriers often claim that community networks will result in less investment from the existing providers, not more. This is theoretically absurd, as competition drives increased investment. And empirically, we almost always see existing providers invest more as a response to losing their monopoly, not less.

According to Ellis Smith of the Chattanooga Times Free Press, 150 new jobs will be added by the end of the year. Ellis spoke with Jim Weigert, vice president and general manager of Comcast Chattanooga:

"Chattanooga is often at the top, not only in our division but across the country in terms of performance,” Weigert said. “Our strength and record of success made it a contributing factor when they selected a location."

Comcast and others, including AT&T, have had to step up their game in Chattanooga to keep customers who suddenly had a real choice. 

Regardless of whether or not today's Chattanoogans connect to its publicly owned network, they benefit. Consumers get better service, affordable rates, and advanced technology simply because the network has created competition.

The company, which currently employs about 900 locally, wants to fill customer service, finance, sales and other positions.

"We move a lot of data and need high capacity," CEO Carter Beck told the Journal last week. His company specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry. The relocation of companies like Secure Customer Relations, Inc.

Chattanooga is once again using their municipally owned network to improve the quality of life and save money at the same time. New LED street lamps have been installed all over the City and the anticipated energy savings are expected to be significant. In addition to the obvious, saving money with more efficient LED lights, the City anticipates cutting costs in other ways associated with the change. From a recent Mary Jane Credeur Bloomberg Businessweek article:

Almost a third of Chattanooga’s annual energy bill comes from old high-pressure sodium streetlamps. At any given time 5 percent of the bulbs are burned out, and they sometimes go on during the day, needlessly adding to electric bills. “You’ve got a certain amount of lights out but you have no idea where they are, so workers literally drive around in a truck looking for them, and it’s a real waste,” says David Crockett, director of the city’s office of sustainability.

The change to LEDs is expected to cut energy use by 70%. City officials, however, have taken it one step farther and have installed a whole new system that will drive those savings up to 85%, or approximately $2.7 million. Global Green Lighting, a local company, developed a sophisticated lighting system using a wireless network that is fed by EPB Fiber. The system provides the ability to control each light's output 24/7 to tailor the level of light specifically to each lamp, the environment, the time of day, and even what might be happening on the ground. When a light is not working, it can self-diagnose and send a message to maintenance describing what is broken and what is required to fix it. There is no need for manual meter readers because energy usage reports back to the electric company via the network.

The community sees enhanced public safety from the new lighting. Prior to the install of the new system, Chattanooga had frequent criminal activity in several parks at night. Also from the Credeur article: