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ONE Burbank, the dark fiber network that has provided connectivity for studios since 1997, is bringing a number of benefits to Burbank schools and taxpayers, reports the Burbank Leader. The network is saving public dollars, generating revenue, and providing better connectivity to schools and public facilities.
Five years ago, we reported on Burbank's asset and its primary customers - Hollywood studios. That trend has continued but now the network generates even more revenue. As a result, all electric customers served by Burbank Water and Power save with lower utility bills:
Last year, ONE Burbank generated $3.4 million in revenues for the utility, [General Manager Ron] Davis said in May. That’s compared to roughly $205,000 in 1997 and about $1.5 million five years ago, according to data Davis presented to the City Council.
“The bulk of that [$3.4 million] is all margin and helps keep electric rates down,” Davis said. “[We do] basically zero marketing and collect that margin.”
By connecting city facilities rather than leasing from a private provider, Burbank has all but eliminated past telecommunications expenses, lowering costs by 95% and saving, $480,000 in total thusfar. The school district has saved $330,000 since connecting to ONE Burbank.
ONE Burbank is also providing four times as much bandwidth to the school at a much lower rate that it once paid to the private sector, cutting its costs from $18,000 per year to $9,000 per year.
In August, Burbank Water and Power began using the dark fiber network as backhaul for free Wi-Fi service available throughout the city. There is no service level guarantee but it is open to any device:
“It’s just out there if you can get it,” Ron Davis, the utility’s general manager, told the City Council last week.
The dark fiber has helped retain and attract business, reports city leaders, and they want to continue the current trajectory to bring in high-tech companies and turn Burbank into a "Silicon Beach."
The program was selected for this award in the economic development category for the network's effectiveness in attracting technology companies to the city and supporting existing Santa Monica businesses with a leading edge broadband infrastructure, city officials said. Santa Monica City Net's model is being replicated by the cities of Burbank and Long Beach, and is in review by Chicago and Calgary.As we explained in Breaking the Broadband Monopoly, Santa Monica started with an I-Net on which they could not run commercial traffic and slowly built their own network that had no conditions on how it was used. In the past, this network has received the "Significant Achievement Award" from the Public Technology Institute (PTI). This press release recaps some details from their network:
The City created a telecommunications master plan and built a fiber optic network that connected 59 buildings used by the City, Santa Monica-Malibu Unified School District, and Santa Monica College. Savings realized by this project enabled the City to construct its own municipal fiber optic network, Santa Monica City Net, to support traffic cameras, security cameras, real-time parking advisory systems, a traffic signal synchronization system, and real-time mass transit signs. The City also leases dark fiber and lit services to local businesses for affordable broadband. The results of Santa Monica's advanced broadband initiative are a reduction in construction costs of new broadband service, an increase in purchasing power of connected local businesses, and a broadband market expansion for global Internet Service Providers that now offer service to small, medium and large commercial buildings.
Burbank first laid its fiber in the late 1980s and began leasing in the mid 1990s, said Robert DeLeon, a senior electrical services planner in Burbank. It currently leases to 15 studios, such as Warner Brothers and Disney, or studio-related businesses, like post-production companies. Like Santa Monica, Burbank's main goal in leasing its dark fiber was to attract business. But at $200 per strand per mile, Burbank is currently making approximately $1 million that is being put back into the general fund.Santa Monica's revenues from leases have been more modest, but the benefits of leasing go far beyond regular payments. The network increases economic development and improves the quality of life with free Wi-Fi in a variety of public areas. Further, the city no longer has to overpay for the data connections it needs for municipal functions.
Santa Monica is also leasing to 15 businesses that include hospitals, entertainment companies and new media outlets, among others, but is only making $270,000. It was never Santa Monica's intention for the leasing of dark fiber to be a major source of revenue, Wolf said.Santa Monica - UCLA Medical Center uses city-owned fiber because the city has better customer service:
Though there are other options for obtaining a fiber optic connection, such as AT&T, Kacperski said the hospital decided to lease from City Hall because hospitals are community based and because City Hall has better customer service than private carriers.As we have often maintained, locally owned networks win on customer service (and often reliability). Community networks may not always win on prices because massive incumbents can engage in predatory pricing by cross-subsidizing from non-competitive markets, but they can win on providing a better experience for subscribers.