The UC2B project broke ground in the fall of 2011 and is a joint effort by the cities of Urbana and Champaign and the University of Illinois. The project is funded with a $22.5 million federal stimulus grant, a $3 million grant from the state of Illinois, and a list of other grants from local agencies.

From the beginning, the project policy board resolved to set aside funding from the network to address the local digital divide. According to a Janelle O'Dea article in the Daily Illini, 2-5 percent of the annual revenue from the network will go into this fund. The policy board is now fielding ideas from the public. There will be a series of community meetings and the first brought several ideas. From the article:

Meeting attendees presented several ideas for how to spend the fund. Some suggested purchasing new computers for resident use and training residents to use computers.

Artice James, president of the Champaign chapter of the National Council of African-American Men, suggested using the funds to provide job training for the installation of fiber optic material to area homes. James said he hoped many of these jobs will employ minority residents.

Alkalimat also commented on the issue of creating permanent jobs for Champaign-Urbana residents. He said he could see potential for creating a group similar to Best Buy’s Geek Squad.

UC2B's approach brings more people to the network in a self-nourishing fashion. The local community knows where the digital divide is in their area. Funding and decisions come from the people who will live with the benefits of the network. UC2B is another example of how local communities can build networks to effectively address the digital divide.

Recently, we covered the city-owned fiber optic network in Princeton, Illinois. The network has been serving city facilities, schools, libraries, and businesses since late 2003. The network contributes to economic development by delivering high capacity telecommunications services at affordable prices to local businesses. The City built and owns the network but services are delivered by a private sector partner.

Princeton is also working to bridge the digital divide in its community. The city offers an inexpensive Broadband Over Power Lines (BPL) service to residents and small businesses, using the municipal electricial grid.

BPL was once touted as a great hope for rural connectivity. The technology allows users to send telecommunications over the electrical lines already in place across the country.  After several deployments revealed problems with radio interference, performance issues, and unreliability, the great hope considerably dimmed. However, the technology still has its place.

BPL lives on in Princeton as a supplement to its fiber network. According to Jason Bird, Director of Utilities, subscribers like being able to access the Internet from any room in their home that has an electric outlet. Capacity is very limited - only 1 Mbps service for residential service - but the price is right for those who do not have a large demand for speed. Residential service is $24.95 per month and commercial service is $99.00 per month.

The technology was attractive to the city utility because it was economical and quick to install. Prior to the BPL network, most people in town still used dial-up. As we reported in our post on Princeton's fiber network, the city has forged a long relationship with IVNet, an Illinois ISP. The BPL network is another successful joint project that has been helpful to the community. The two shared the cost of constructing the BPL network and profits are shared with IVNet retaining 70% of the profits.

Kudos to Richard Downey, Village Administrator for the Village of Kronenwetter in Wisconsin. Mr. Downey reminded us that we have yet to write about the fiber network in Princeton, Illinois. While we have noted Princeton in our list of economic development successes, we haven't delved into the network that serves the city, the schools, and the business community.

Princeton is home to about 7,500 people and is located in the north central region of the state in Bureau County. They have their own electric, water, and wastewater utilities and began offering broadband connectivity in late 2003. We spoke with Jason Bird, Superintendent of Princeton Electric Department, who shared the network's story with us.

In 2003, the city’s largest electric and water consumer was also the largest employer. At the time, incumbents served the community with T1 connections. The manufacturing company moved to Mexico, taking 450 jobs with it. The community was stunned.

Approximately 6 months later, Ingersoll Rand, the community's second largest employer with about 300 jobs, also considered moving away from Princeton. While lack of needed broadband was not the only reason, the Ingersoll Rand CEO let community leaders know that it was one of the influential factors. The company liked being in Princeton, and the city would have been on the top of the location list if not for the sad state of connectivity. At the time, the only commercial option was unreliable T1 connections for $1,500 - $2,000 per month. If Ingersoll Rand moved, the community would experience job losses equal to 10% of the population. Community leaders needed to act and do it quickly.

To retain Ingersoll Rand, the City Council decided unanimously to go into the telecommunications industry. They issued an RFP and encouraged incumbents AT&T and Comcast to bid; neither were interested. (Interestingly, once Princeton let it be known that they were going to build the network without them, there were some local upgrades from both companies.)

On September 19th, the Urbana Champaign Independent Media Center (UCIMC) hosted "Models for Building Local Broadband: Public, Private, Coop, Nonprofit." Christopher Mitchell was one of several panelists who discussed local broadband options and challenges.

The presentors live streamed to 138 attendees with 93 watching remotely various locations and 45 at the Media Center. If you were not able to attend or stream the live event, you can now watch the archived version. You can learn a little about the event and watch it at the UCIMC website, or watch the YouTube video here.

The Urbana Champaign Independent Media Center (UCIMC) will be hosting what is sure to be an interesting online discussion about local broadband models. On Wednesday, September 19th at 4:30 CST, an expert panel will be presenting "Models for Building Local Broadband: Public, Private, Coop, Nonprofit." The event will be held at Urbana City Hall in Illinois, but you can also stream the event live here.

In addition to our own Christopher Mitchell from ILSR, we will hear from Joanne Hovis, CTC Technology & Energy (public interest telecom expert and also NATOA President) and Wally Bowen, Mountain Area Information Network (non-profit internet provider in North Carolina).

From the press release:

Tuesday's ceremony was the kickoff to the construction phase of a huge, multi-agency, multimillion-dollar project to deliver that broadband access to 2,500 homes and businesses and 137 community buildings. The agencies, the cities of Champaign and Urbana and the University of Illinois, were notified 18 months ago that they were to be the recipients of a $22.5 million federal stimulus grant to build the Internet infrastructure. That was paired with a $3 million grant from the state of Illinois and hundreds of thousands dollars more from the local agencies. After spending the intervening months planning the network, officials gathered in Douglass Park on Tuesday with shovels and hard hats in hand. Construction crews will be burying 278 miles' worth of fiber throughout Champaign-Urbana during the next months, and organizers hope to be delivering Internet and cable service to eligible businesses and homes within the next year.

The project will be paid for by a $9 million Electric System Revenue Bond issue, utilizing the Build America Bond program, created by the American Recovery and Reinvestment Act, as an incentive to communities to put people back to work. Build America Bonds will allow the City to issue taxable securities and then receive a subsidy from the U.S. Treasury equal to 35 percent of the interest.

The entire concept is expected to cost $13 million. About $9 million of the start-up costs will be funded by bonds - a move voters signed off on last year.