The newly completed Medina County Fiber Network (MCFN) in Ohio will soon add Medina County government as the next customer.

The Medina-Gazette reports the County Commission recently voted unanimously to enter into a five-year agreement with MCFN and drop Armstrong Cable. County Administrator Chris Jakab says the county will save $600 per month. Currently Medina County pays $3,300 per month and the new monthly fee will be $2,700 per month.

Apparently, Armstong Cable did not take the news well. At the County Commissioners meeting, Armstrong questioned the decision:

Minutes after the commissioners unanimously approved changing service providers, Armstrong’s General Manager Karen Troxell disputed Jakab’s figures.

Troxell said the Armstrong bill is made up of a $2,474 fiber-optic lease and an $826 Internet fee. She said the new agreement only covered the fiber-optic lease. She said the county still would have to pay for Internet access, which would bring the total bill to more than $3,500.

“I think this decision needs to be rethought,” she told the commissioners. “Or I need an explanation as to why you’re willing to pay more money for these services.”

Jakab said Troxell was mistaken, saying the fiber network’s $2,700 fee includes a $300 fee for Internet access.

The community recently celebrated completion of its 151-mile network, owned by the Medina County Port Authority. Last summer, the Highland School District connected to the network when its contract with Time Warner Cable ended. The move saves the school district approximately $82,000 in annual connectivity fees.

Business and community leaders began planning for the network 10 years ago as a way to spur economic development and create a more competitive telecommunications environment. A Port Authority revenue development bond issue and a stimulus grant administered by OneCommunity paid for the $13.8 million project. 

Joanne Hovis, President of CTC Technology and Energy, recently published a must-read article in Broadband Properties Magazine. Whether you are a community leader investigating the possibility of a publicly owned network or an engaged citizen looking for pros and cons, this piece explains practical benefits succinctly. In her article, The Business Case For Government Fiber Networks [PDF], Hovis looks at life beyond stimulus funding. She points out how we should evaluate municipal networks in an environment where shareholder profit is not the first consideration.

Hovis gives a brief history of how local communities reached this point of need. As many of our readers know, local communities used to be able to negotiate with cable providers for franchise opportunities and rights-of-way. Often cable providers would construct broadband infrastructure in exchange for a franchise to operate in a given community, creating I-Nets for local government, schools and libraries. Once states inserted themselves into the process with state-wide franchising, local negotiating power evaporated. Many of those franchise agreements are ending and local leaders are considering municipal fiber optic networks.

Hovis stresses that municipalities do not function in the same environment as the private sector. While they still have a fiscal responsibility to their shareholders (the taxpayers) the main function is providing public safety, encouraging economic development, offering education, and using tax dollars to better the quality of life. Hovis describes how redefining return on investment (ROI) needs to go beyond the balance sheet bottom line. 

These benefits have nothing to do 
with traditional financial measures. Rather, they represent the return 
to the community in terms of such largely intangible societal benefits 
as enhancing health care quality, narrowing the digital divide, providing enhanced educational opportunities to school children, delivering job search and placement opportunities at public computer centers and helping isolated senior citizens make virtual social connections.

Back in December, 2009, Vice President Biden travelled to Dawsonville, Georgia, to officially kick off the American Recovery and Reinvestment Act (ARRA) program. The first award, a grant of $33.5 million, went to the North Georgia Network Cooperative. The group combined that grant with local and state funding and in May, 2012, lit the North Georgia Network (NGN).

We spoke with Paul Belk, CEO of NGN, who shared the network's story and described how it is improving economic development while serving schools and government across the region. We also recently published a podcast interview with Paul Belk.

In 2007, Bruce Abraham was the Lumpkin County Development Authority President and could not recruit new business to the region. Atlanta is only 60 miles away but companies and entrepeneurs were not willing to branch out toward north Georgia. Business leaders repeatedly told Abraham they were not interested because of the lack of broadband. DSL was available from Windstream, but businesses kept telling Abraham, "That's not broadband." North Georgia was losing jobs and there was no strategy to replace them.

Abraham found economic development representatives from Forsyth, White, Union, and Dawson counties shared the same problem. With North Georgia College & State University in Dahlonega, the group decided to address the problem together.

In 2008, they received a OneGeorgia Authority BRIDGE grant. They used the $100,000 award to commission a feasibility study that suggested the area had potential as a new tech hub. The study also indicated that the region's traditional manufacturing and agricultural industries would continue to dwindle. The group, determined to pursue the establishment of a new tech economy, knew the first step would be next-generation infrastructure.

We recently learned about Aztec, New Mexico's, free downtown Wi-Fi  so we decided to contact Wallace Begay, the IT Director, to find out more. This desert community of about 6,600 people not only offers the free service, but uses its fiber to serve government, schools, and even four-legged residents.

Begay tells us that in 1998 the city and school system coordinated to install the original fiber and the entities share ownership. The school wanted better, affordable connectivity for students while the city wanted economic development opportunities. Community leaders used E-rate funding and a Gates Foundation grant to construct the original fiber aerial route.

The town provides water, wastewater, and electric services through municipal utilities with its SCADA system. The public library and all ten Aztec Municipal School facilities connect to the fiber network. Municipal government facilities also use the network.

Even though the city is a co-owner, it took several years for municipal offices to get on the fiber network. Aztec City Council originally decided to install the fiber network as a way to bring in revenue by leasing dark fiber, not as a way to connect offices. When Begay started at the city in 2001, administrative offices still used dial-up connections. Twenty dial-up accounts (and the crawling speeds associated with them) added up to $500 each month.

At the time, Qwest (not CenturyLink) was the provider in Aztec and could only offer microwave or copper connections. Connecting 13 facilities at 1.4 Mbps would have cost the city $1,200 each month. Begay used $500 from the electrical enterprise fund to purchase equipment and pay for tech labor to move municipal offices on to the existing network. The city electrical enterprise fund pays for expansions and updates. The network is now about 12 miles.

Community leaders in Medina County, Ohio, recently celebrated the completion of the Medina County Fiber Network (MCFN). Loren Grenson of the Medina Gazette reported on the celebratory breakfast event where officials proclaimed, “The monopoly is dead. Long live the fiber loop."

Local businesses already rave about the county owned MCFN, which offers Internet access, data tranport, and dark fiber leasing. From the article:

Automation Tool and Die in Brunswick is one of 20 entities already tied into the fiber network. The network provides better service to the company’s four buildings in Brunswick’s Northern Industrial Park, said Jacob Mohoric, company IT manager.

“It’s a blazing-fast Internet connection at all four of our buildings at an effective cost,” Mohoric said.

Company co-owner J. Randy Bennett said the network provided the first decent bandwidth for his company since it moved to Brunswick in 1983.

“We had no good bandwidth source and we paid through the nose for what we did have,” Bennett said.

Last July, the Highland School District was near the end of an expensive contract with Time Warner Cable. The network was not complete, but enough MCFN infrastructure was in place to connect the schools for Internet and phone service. Highland Schools now pay about $82,000 less per year for connectivity.

Community leaders began working on the project over ten years ago. After years of planning, the Medina County Port Authority (MCPA) secured $14.4 million in bonds and a $1.4 million stimulus award. The stimulus funding is part of a 2010 grant to nonprofit OneCommunity, charged with extending fiber to 22 Ohio counties. OneCommunity will manage the network.

The 151-mile asset belongs to the MCPA but the entire community considers itself an "owner." Bethany Dentler, executive director of the Medina County Economic Development Corp., also spoke at the celebration:

Ottawa, located in east central Kansas, recently launched its own municipal fiber network. The community of 13,000 in Franklin County watched nearby Chanute build and establish its own broadband utility. Ottawa plans a similar incremental strategy. Both communities boast strong farming traditions and host industrial employers that could not get what they needed from the existing providers.

I spoke with Chuck Bigham, IT Director for the City of Ottawa, who gave me some nuts and bolts on the network. I also touched base with City Manager Richard U. Nienstedt, both are heavily involved in the establishment of the network.

Like in Chanute, local leaders have long nourished a vision for better connectivity. In recent years, they realized the vision was not only attainable, but necessary for the community to thrive.

Approximately seventeen miles of fiber, installed by USD 290 and Franklin County in the 1990s, was already in the ground when the project began. Students and staff connected to the Internet and linked the 8-10 school district facilities via its fiber network. These pre-existing resources became the backbone of Ottawa's new utility. Cooperation between the City Municipal Utility, USD 290, and Franklin County facilitated the configuration of the new network. Ottawa now provides business Internet access, expanded educational opportunities, and a higher level of service than was previously available.

Two years ago, the City and its Chamber of Commerce reached out to major businesses to determine the need for broadband. They found businesses in Ottawa were connected through existing providers, but were unhappy with price and level of service. The community's industrial park seemed especially disadvantaged. Businesses needed better upload speeds than the existing T1s, which ran up to $600 per month. While DS3 connections were available, they were unaffordable and there was no level of service between the two options. Businesses could not convince AT&T to offer something they could afford and, as Bigham noted, the telecom giant appeared to be "milking the cow."

The City of Royal Oak, Michigan, a Detroit suburb and home to 57,000 residents, just announced it will be partnering with the school district to build a fiber optic network. According to the Royal Oak Patch, the cost is estimated at $400,000 and will link together eight city facilities and nine school buildings. According to the article:

“We are spending money now to save money long term,” said Manager of Information Systems Scott Newman.  “The new network will be much quicker, more reliable, have increased capacity, and cost the City less to operate.”

The cost of the project is being split between the City and the School District.  The School District will own and operate the network, and the City will have dedicated fiber for its share of the network’s capacity.  Construction is scheduled to begin this summer, and is planned to be completed this fall.

Update: We contacted Shawn Lewis-Larkin, Superintendent at Royal Oak Schools, for more detail on the project. He replied via email:

We obtained a price from a vendor for meeting the needs we have without constructing our own fiber network.  For 60 months the cost was going to be $775,656

vs.

Our 5 Year Cost to build and operate our cooperative network with the City will be $205,192.

Savings for Royal Oak Schools:  $570,463 Over 60 Months or yearly savings of $114,092

We are still amazed when public schools report such incredible savings, even though we encounter these savings on a regular basis.

Carroll County is a bedroom community, with a variety of economies all around it. Washington, D.C., Camp David, Baltimore, Harrisburg, Fort Detrick, and the Aberdeen Proving Ground are a few of the places surrounding Carroll County. There is very little major transportation infrastructure and no major waterways. Many of the county's 167,000 people commute daily to jobs outside of the bullseye.

Gary Davis, Chief Information Officer at the Carroll County Public Schools (CCPS) and Chairman of the Carroll County Public Network (CCPN) started at the school district in 2002 and immediately recognized that the telecommunications arrangement was insufficient.

Schools and other facilities were connected to the hub via 1.5 Mbps T1 connections and the whole wide-area-network was connected to the Internet via an expensive Frame Relay DS3 connection. The total cost ran as high as $600,000 per year.  

When CCPS approached Verizon about increasing bandwidth, Verizon’s proposal was extremely cost-prohibitive. Verizon wanted a long-term commitment that resulted in more than 10 times their current costs. Basically, Verizon would own the network but capital costs would be funded by CCPS and maintained with ridiculously high recurring fees. The return on investment for Verizon was just too low owing the community demographics.

At that time, Davis met Robert Wack of the Westminster City Council and the two compared notes. Davis' vision for Carroll County Public Schools and Wack's ideas for Westminster and Carroll County were very similar. Both involved a high-speed network and Westminster is currently involved in its own municipal network project (to be covered in an upcoming post).