In June, Governor JB Pritzker signed the Rebuild Illinois capital plan, a $45 billion effort that will repair and improve all manner of infrastructure in the state. Within the plan, state leaders intend to dedicate $420 million to upgrade and expand broadband infrastructure. Such a significant investment can make a real difference in the state, as long as decision makers adopt smart policies and allow local communities to receive funding for broadband projects.

Gas Tax for Gigabits

An increase in the state’s motor fuel tax will fund most of the broadband initiative. The increase in gas prices at the pump, which took effect on July 1, jumped from 19 to 38 cents. Similarly, a special fuels tax on diesel, liquefied natural gas, and propane increased from 2.5 cents to 5 cents. State analysts anticipate the increase will garner an additional $1.24 billion to state coffers in 2020.

The Rebuild Plan also grants state bonding authority for infrastructure projects and Cook County municipalities are permitted to raise their gas taxes by an additional three cents per gallon. There are also title and registration fees that will contribute to the fund.

As part of the plan, Illinois created the Connect Illinois initiative, which is part of the Illinois Department of Commerce. One of the goals of the initiative's Broadband Office is to provide all K-12 students with high-speed Internet access at no charge. As part of the Rebuild Illinois plan, $20 million will be used to update and expand the Illinois Century Network, which serves K-12 schools, colleges and universities, public libraries, and Internet access providers.

Connect Illinois and the initiative’s Broadband Office will administer the grants made possible by the fuel tax increase. The office will also work to determine federal grants that are available and how best to access them to advance the state's goals.

Connectivity Council

When utilities, including broadband providers, need to cross railroad rights-of-way to serve customers, some railroad operators have been known to press their advantage. Several states have addressed utility complaints by establishing standardized rates and setting up processes to create a more reasonable and predictable system. Eliminating this obstacle to deployment is another step in bringing broadband to the communities that need it the most.

Party Concerns

Often railroads obtained title to real property during 19th century acquisitions as the infrastructure was being built. They want to preserve as much of their authority and title rights as possible and to ensure that they can receive the maximum value for their interest in the land.

For utilities, cost of deployment is a primary concern. When railroads demand unreasonable fees at crossings or drag out negotiations as a delay tactic, they also impinge on a utility’s ability to meet operational deadlines. Safety and engineering integrity can be negatively impacted by difficult negotiations, unreasonable demands, or exorbitant costs.

Different States, Different Stories

Few states have addressed the problem with statutes establishing standard utility fees for railroad right-of-way crossings. David L. Thomas, Managing Member of the strategic utility planning firm Eagle 1 Resources (E1R) has worked with telecommunications companies and other utilities to negotiate railroad crossing arrangements. He's seen that standard crossing fees set down in statute benefit deployment by ending delay and reducing costs and would like to see the trend pass to every state.

After finishing its first phase of broadband build out covering businesses and industrial parks, Rock Falls, Illinois, will begin focusing on residential customers in early 2019. While residents living close to business areas will have early access to the gigabit fiber network, the city of 9,000 will use the fiberhood approach to reach its remaining residential areas.

Growing a Gigabit City

The plan to invest in citywide Fiber-to-the-Home (FTTH) began taking shape when Rock Falls residents became increasingly frustrated with the incumbent cable provider Comcast. Mayor Bill Wescott called for support for the project during his 2017 State of the City address, saying “The time is now to advance Internet in Rock Falls.” Later in April, the City Council approved the use of a $5.3 million general obligation bond issuance to fund the first phase of the build out, and an overall cap of $13 million for the duration of the project. The estimated cost of the project ended up being significantly reduced because the Rock Falls Electric Department (RFED) had already installed extra fiber-optic cable to connect substations as early as 2004.

By using GO bonds to finance their infrastructure deployment, Rock Falls departs from the typical funding approach. Most municipalities issue revenue bonds or employ interdepartmental loans and money they've saved from avoided costs when ending expensive leased lines to telecommunications companies. In recent years, other methods of funding fiber optic build outs have become increasingly popular as broadband infrastructure has obtained utility status in local communities.

Last fall, the City Council in Aurora, Illinois, approved a grant to OnLight Aurora to help fund the publicly owned network expansion to more commercial facilities along South River Street. This year, community leaders plan to move north and bring fiber optic infrastructure to RiverEdge Park along the Fox River as they turn the location into a “smart park.”

RiverEdge Park hosts festivals and other events, including summer concerts at it’s pavilion. Public officials want to take advantage of the community’s publicly owned broadband infrastructure for better security and to control parking. The city’s CIO Michael Pegues says that with better parking monitor and control, the city will be able to provide quicker emergency response and more efficient energy use. OnLight Aurora at RiverEdge Park may also generate revenue with kiosks for advertising.

Pegues and other city officials want to continue to grow Aurora’s increasing reputation as a tech-savvy community and to possibly expand the network to serve the nearby communities of Naperville and North Aurora.

“Smart” Attraction

Community leaders, including Pegues and Mayor Richard Irvin, want to cultivate Aurora’s growing reputation as a “smart city.” They’ve already leveraged OnLight Aurora to attract high-tech jobs, such as luring wireless communications company Scientel Solutions from Lombard. Scientel leadership described OnLight Aurora as “a big attraction.” The company will build its new headquarters near CyrusOne, a data center that connects to the fiber network.

The addition of a “smart park” is another creative way to use the publicly owned infrastructure in ways that serve lifestyles of people in the community. Aurora hopes to soon be named a “smart city” by the D.C. Smart Cities Coalition. The Coalition's video describes what characteristics "smart cities" share:

I3 Broadband, the private sector partner working with Champaign-Urbana to deliver high-quality connectivity, continues to expand throughout the region and announced that it will aim to offer services to 3,000 more premises during 2018.

One Step At A Time

The company has mapped out the community into neighborhoods and decides order of deployment on several factors, including proximity to areas already being served and level of interest. Residents can indicate their interest online at the company’s website or request the company send them a form to fill out and mail back. I3 will consider bringing the network to a neighborhood when 30 - 45 percent of households express interest in signing up for the Fiber-to-the-Home (FTTH) service.

I3 serves premises in 24 neighborhoods in Champaign-Urbana, which includes neighborhoods that UC2B built out with fiber and areas where iTV-3 deployed fiber.

When the communities of Champaign and Urbana began looking for a partner to offer services via the publicly owned UC2B network, they first chose iTV-3 because the ISP was a local company with a community minded approach. In 2014, they began working with iTV-3, but within two years, iTV-3 decided to sell its assets to Countrywide Broadband. 

The UC2B leadership chose iTV-3 in part because the company had expressed a commitment to keep expanding the network to other neighborhoods. The sale raised concerns because Countrywide was a larger entity taking over a local interested provider, but the community hoped that Countrywide would be better able to expand the infrastructure because it held considerable assets. Champaign-Urbana chose not to exercise the right of first refusal to purchase fiber assets that had been deployed by iTV-3, but they retained ownership of original UC2B assets. Countrywide began serving customers under its subsidiary i3.

On October 24, the Aurora, Illinois, City Council Finance Committee approved a $40,000 grant to OnLight Aurora to extend the city’s fiber optic network to River Street Plaza area commercial properties.

The City of Light And Dark Fiber

OnLight Aurora is the nonprofit ISP that leases publicly owned fiber optic infrastructure to serve the city’s municipal government, community anchor institutions (CAIs), two data centers (Bytegrid and CyrusOne) and local businesses.

Prior to OnLight Aurora’s network, the city’s previous network was a patchwork of varying speeds and capabilities. The network was old, unreliable for government employees, and expensive. In 2005-2006, city leaders estimated that Aurora was paying nearly $500,000 a year for leased line expenses to telecommunications providers. Now, the city of Aurora saves approximately $485,000 each year by utilizing their municipal fiber optic infrastructure.

OnLight Aurora, the nonprofit ISP serving Aurora, Illinois via publicly owned infrastructure, is bringing more companies to the second largest city in the state.

"One Of The Reasons We're Here"

Scientel Solutions, a wireless communications company with headquarters in Lombard, Illinois, is making a move to Aurora. The company plans to build its own 12,000 square foot office building and an accompanying warehouse in the community where they will be near a local data center.

The data Cyrus One data center was only one reason Scientel chose Aurora, according to the company’s attorney Richard Williams:

“In addition to being near Cyrus One, Williams told aldermen the company also was lured by OnLight Aurora, the city's fiber optic network.” 

"Fiber was a big attraction to us," Williams said. "That's one of the reasons we're here."

Rather than continue to lease its Lombard location, the company has decided to invest in its own property. In addition to constructing the facilities, Scientel will erect a communications tower on its new site. Lombard is approximately 25 miles east of Aurora, closer to downtown Chicago.

Scientel will bring 30 Lombard employees to Aurora and hire 20 more employees to work at the new headquarters.

Unexpected Benefits

Back in 1995, city leadership decided to invest in publicly owned infrastructure to reduce telecommunications costs, upgrade to a faster network, and obtain the reliability they couldn’t get from incumbents. At the time, the city used patchwork of different connections and while some facilities obtained adequate connectivity, others in the more far-reaching areas of the community depended on old leased lines that weren’t up to task. Employees in some offices traveled to offices where connectivity was better in order to complete specific tasks that required better connections.

Private sector i3 Broadband recently announced that it will begin expanding infrastructure in the Champaign and Urbana, Illinois, communities. Construction will begin no later than August 1st.

Trading Partners

Nonprofit UC2B obtained $26 million in American Recovery and Reinvestment Act (ARRA) funding to deploy its urban Fiber-to-the-Home (FTTH) project. The project offered residents high-quality Internet access for as little as $19.99 per month.

UC2B found private sector partner iTV-3 to take over operations and invest further in the network in 2014. One of the reasons UC2B chose iTV-3 was the company’s commitment to invest its own resources into expanding so others in the Urbana-Champaign community would have access. iTV-3 expanded, but slowly.

When iTV-3 decided to sell its assets to Countrywide Broadband in 2016, UC2B had the right of first refusal for fiber deployed by iTV-3, but decided not to exercise that right. Countrywide created i3, based in Peoria, to serve current and future subscribers in the region. While those watching the transaction were concerned about losing a local partner, folks the area were also optimistic because i3 has the capital for a more aggressive expansion schedule.

Aggressive Five-Year Plan

Mike Whitaker, VP of sales and business development of i3 told the News-Gazette that the upcoming expansion will serve an additional 2,500 homes. The company plans to add the same amount each year for the next five years with half in Champaign and half in Urbana.

Deciding where to expand is based on several factors, including whether or not a neighboring area already has service and the percentage of interested households. When early partner iTV-3 used pre-registration to determine where to build, they required a 50 percent sign up rate in a neighborhood prior to deployment; i3 will use a lower 35 percent threshold.