Decatur is in line to receive a donation that will jump-start the community’s musings over publicly owned Internet infrastructure.

Foundation Support

The Howard G. Buffet Foundation recently offered the community several million dollars for a range of public projects, including $330,000 toward expanding the city’s existing fiber-optic network. Decatur deployed a fiber backbone to connect a number of its own facilities in 2014. Earlier this year, city leaders began examining the possibility of expanding the backbone to provide better connectivity to Richland Community College and possibly beyond in the future. 

The college is linked to the statewide educational Illinois Century Network (ICN). Like Merit in Michigan, the educational and research network crisscrosses the state, connecting a variety of educational institutions. Increasingly, these state research networks collaborate with local communities to expand publicly owned networks and improve connectivity in places where national providers don't offer the capacity necessary for modern life.

Early estimates of more than $700,000 cooled early enthusiasm for the Decatur project but revised costs estimates now are at approximately $435,000. With the Foundation’s contribution of $330,000 the city would only need to pitch in $105,000.

A Beginning

According to a recent Herald & Review article, a number of local government entities, nonprofits, and healthcare providers have already expressed interest in connecting to the new network as a cost-saving measure. The city also hopes to attract private Internet Service Providers (ISPs) interested in leasing excess capacity to offer retail services in Decatur. Community leaders see the opportunity as a way to improve economic development:

“We can show businesses from outside the community collaboration does exist,” McCrady said. “The broadband access is part of the infrastructure that is important for the community to have in place. We're working in a global economy now more than ever.”

The Urbana-Champaign Big Broadband non-profit (UC2B) owns a community network in the southern Illinois sister cities of Urbana and Champaign. In 2009, these cities partnered with the University of Illinois to create the non-profit UC2B to build a Fiber-to-the-Home (FTTH) network using a federal stimulus grant. In 2014, UC2B partnered with iTV3 to operate the network, but CountryWide Broadband bought iTV3 in early 2016. Now UC2B is looking for a new partner.

On August 22, 2016, UC2B issued a Request for Proposal (RFP) to find a partner to operate and expand the existing UC2B fiber network. Submit letters of Intent to Respond to the RFP by Monday, August 29, 2016 to RFP@UC2B.net. The goal is Gigabit-connectivity in Champaign-Urbana, Illinois.

Pass/Fail Requirements and Some Additional Key Criteria

Interested partners must honor the Three Core Principles of UC2B’s network:
1. An all fiber network; and
2. An open access network; and
3. Ubiquitous access, with no cherry picking.

Respondents will specifically be judged by 10 Pass/Fail Requirements and 9 Additional Key Criteria. These include:

An Initial $8.5 million Investment (p. 7 - 8 of the RFP)

$8.2 million will go to CountryWide Broadband (to buy out their interest in UC2B infrastructure, electronics, and customers), and the remaining $300,000 will be split equally among the City of Champaign, the City of Urbana, and UC2B to cover administrative costs. 

A Community Storefront (p. 10)

The new partner must open a storefront for at least forty hours a week. The store must also have friendly and knowledgeable customer service representatives. 

RFP Schedule 

(Note: the schedule is subject to change)

Kane County, Illinois, is hoping its fiber-optic network will attract more businesses looking for better connectivity. As it turns out, they've had the resources for some time but are now making more of an effort to market the benefits of their publicly owned network.

Sharing The Savings, Services, Speeds

In 2011, reports the Chicago Tribune, the county took advantage of road reconstruction and in a coordinated effort, Kane County and the Kane County Department of Transportation deployed fiber along one of its main thoroughfares, Randall Road. Since then, the county has expanded the network to approximately 47 miles, connecting county facilities in five area cities. Kane County contributed $1.5 million to the construction of the underground network that now offers 10 Gigabits per second (Gbps) capacity.

Since eliminating leased lines, institutions and facilities connected to the network have reported better performance, improved services, and significant savings. For example, Geneva School District 304 needed higher capacity to comply with new state requirements:

The district was paying $9.15 per megabyte for 500 megabytes, which amounted to $54,900 a month, he said.

The district was able get 1,000 megabytes for $24,000 per year through a provider on Kane County's fiber optic network — receiving double the service at half the cost, he said. [emphasis ours]

"From our perspective, it was a win-win," [County CIO Roger] Fahnestock said. "The reseller is working with them and are able to work with them and get this off the ground and get the school district what they needed."

The County hopes to draw in more economic development and increase competition. There are already several companies that take advantage of existing fiber to offer varying services, including connectivity for academic research, colocation and cloud storage, healthcare, and at least one provider that uses the network to provide backhaul in order to offer fixed wireless Internet access to residents and businesses. 

When communities decide to proceed with publicly owned infrastructure, they often aim for open access models. Open access allows more than one service provider to offer services via the same infrastructure. The desire is to increase competition, which will lower prices, improve services, and encourage innovation.

It seems straight forward, but open access can be more complex than one might expect. In addition to varying models, there are special challenges and financing considerations that communities need to consider.

In order to centralize our information on open access, we’ve created the new Open Access Networks resource page. We’ve gathered together some of our best reference material, including links to previous MuniNetworks.org stories, articles from other resources, relevant Community Broadband Bits podcast episodes, case studies, helpful illustrations, and more.

We cover: 

• Open Access Arrangements
• Financing Open Access Networks
• Challenges for Open Access Networks
• U.S. Open Access Networks
• Planned Open Access Networks

Check it out and share the link. Bookmark it!

In late February, private Internet service provider, Countrywide Broadband (CWB), announced that it and Seaport Capital together would acquire assets belonging to iTV-3, Inc. In addition to fiber networks developed in Peoria, Bartonville, and Bloomington, iTV-3 is deeply involved in bringing connectivity to the Urbana-Champaign community. The company leases fiber on the UC2B network, has expanded the network by deploying its own fiber off the UC2B fiber rings, and promised to expand the Fiber-to-the-Home (FTTH) network across the community.

In the agreement with iTV-3, the UC2B nonprofit has a right of first refusal to purchase any local iTV-3 assets deployed if iTV-3 is purchased by another company. In short, UC2B has 60 days from the date of the CWB and iTV-3 purchase agreement to decide if they want to purchase the iTV-3 fiber expansions. If the nonprofit decides not to purchase the fiber, it will continue to own the UC2B rings and CWB will own the expansion fiber.

It was only a few weeks ago that we wrote about the upcoming sale of Bristol's BVU Optinet. It is important for communities to recognize that as these networks are built, they are targets for purchase and consolidation. Fiber networks are a hot commodity and local governments may be tempted to plug short term financial problems with a sale that has implications for decades – long after those elected officials have left office. 

They Chose iTV-3

The open access (FTTH) network, one of the few last-mile projects awarded funding during the first round of the American Recovery and Reinvestment Act (ARRA), cost $26 million to deploy. The network offered affordable access to residents - as low as $19.99 per month. At first, UC2B operated the network, but the organization later sought a private partner to manage and provide services. In 2014, UC2B chose iTV-3, Inc. as a partner to offer triple-play and to expand the network.

Mahomet, Illinois, population 7,200, wanted to do something special to mark the official launch of its community fiber network. The network connects local public facilities as well as some area businesses. Instead of the old-fashioned ribbon-cutting ceremony, the Village held a very 21st century event in November to commemorate the occasion: a "fusion splicing" ceremony.

The local Mahomet Citizen described the proceedings:

With the press of a button, Acting Village President Sean Widener fused two strands of fiber about the width of a human hair. A computer screen showed the progress of the splice for the crowd, which included members of the Chamber of Commerce, elected officials and Mahomet-Seymour administrators.

It was an occasion that might otherwise call for a ribbon-cutting, “but in our industry, cutting is bad,” quipped Mark DeKeersgieter, executive director of the CIRBN.

A Collaborative Initiative

According to a press release, the network is a collaborative effort between the Village of Mahomet, the Mahomet-Seymour School District #3, and the Central Illinois Regional Network (CIRBN), a non-profit organization that operates a statewide fiber optic network in cooperation with the Illinois Century Network (ICN). The CIRBN connects more than 20 communities in Central Illinois with high-speed connectivity.

The Mahomet-Seymour school district initiated the first phase of the new network in 2013 when they connected area schools to the nearby CIRBN. In the next phase of the project, the Village extended the fiber network to reach other areas of the Village and provide gigabit service to businesses and other Community Anchor Institutions (CAIs). By the end of 2014, local hospitals, museums, and city government facilities also had gigabit connectivity. Village officials hope the network can eventually provide service to residents as well.

At a Chicago City Council meeting this month, a newly elected alderman proposed the city stop relying on incumbent ISPs and start using its existing fiber network for connectivity.

Pointing to nearby cities like Aurora, where municipal government eliminated leased lines to reduce costs by $485,000 per year, Alderman Brian Hopkins suggested the switch could save the city “tens of millions of dollars” annually. He also advocated the change in order to provide more efficient services.

“We already have a robust infrastructure in place to build from. Fiber optic resources currently controlled and managed by [the Office of Emergency Management and Communications] for traffic, first-responder, and emergency services is an example,” Hopkins said. "Given the debt Chicago faces, we should follow other cities by switching all municipal government broadband access from private incumbent providers to a taxpayer-owned fiber network. The money saved can be reinvested into the expansion of the municipal network to finally reach those communities that need fast affordable access. Why would we not do this?”

Hopkins’s comments come on the heels of a resolution we reported on earlier this year from four powerful Chicago City Council members calling for hearings on how to use city buildings, light poles and high-speed fiber-optic lines for a wireless network that could raise the city millions.

The city is trying to find ways to generate revenue amidst a major $30 billion employee pension crisis that led Moody’s to downgrade the city’s bond rating to junk status in May.

Earlier this year, we reported on the Village of Gilberts, Illinois, where voters defeated a measure to approve general obligation bonds for a municipal network project. Our story got the attention of Bill Beith, Assistant Village Administrator from Gilberts who contacted us to talk about the project and provide detail on their efforts to educate the voters prior to the election.

The project would have raised property taxes 1.8 percent or approximately $150 per year on a property with a $250,000 market value. Even though the network would have been a publicly owned asset, Beith believes the idea of any new taxes defeated the measure. As the community considered the project, voters stated repeatedly that Comcast or one of the other incumbents should pay for deployment of infrastructure. Unfortunately, the Village had approached incumbents who had no interest in building in Gilberts. They felt the investment would not pay off in a community that is home to about 6,800 people.

The proposed project was to be deployed along side a private fiber network. When the developer of a new housing development learned that fiber significantly increases the value of real estate, he chose to include it to each new home. He also chose to bring the network to a nearby school along with several public safety and municipal facilities at no charge to the Village. 

The project on which voters denied funding would have extended fiber to the rest of the community. According to Beith, the developer still plans to continue his fiber build in an incremental fashion. In addition to the homes in the new housing development, he will focus on commercial connectivity in the Village of Gilberts.

Even though the measure failed in April, the Village will continue to explore ways to work with the developer. According to Beith, he and other advocates for improving connectivity in Gilberts walked away with some valuable lessons for the future.

Chicago is moving in the direction of using municipal fiber to improve connectivity for residents and businesses. According to the Chicago Sun Times, three Aldermen and the Vice Mayor recently introduced a Resolution calling for hearings on ways to use existing fiber assets for personal and commercial use. Text of Resolution R2015-338 [PDF] is now available online.

The City has flirted with a greater vision for its publicly owned infrastructure in the past, including Wi-Fi and fiber. In February 2014, the community released a Request for Qualifications for Broadband Infrastructure [PDF].

This time the City plans to collect information and educate leadership with hearings on ways to utilize the fiber that grace Chicago's underground freight tunnels. They also want to explore city-owned light poles and government rooftops as potential locations for wireless network equipment. From the article:

“These hearings would be a fact-finding mission to help the City Council fully understand the size and scope of Chicago’s fiber-optic infrastructure and explore how it could be shared or expanded to raise revenue for city coffers while making our city more competitive,” [Finance Committee Chairman Edward] Burke said in a press release.

Burke was joined by Zoning Committee Chairman Danny Solis, Economic Capital, Technology Development Committee Chairman Tom Tunney, and Vice Mayor Marge Laurino.

R2015-338 lists many of the communities we have researched as examples to follow, including Chattanooga, Wilson, Lafayette, and Scott County in Minnesota. In addition to exclusively municipal projects, the Resolution acknowledges partnerships between public entities and private organizations, regional projects, and statewide efforts. Clearly, Chicago is open to a variety of possibilities.

While creating more options for businesses and residents is a primary motivator, the City Council is also considering the potential for revenue: