Jason Bird Explains how Princeton Kept Jobs in Community with Publicly Owned Fiber Network
In 2007, the City of Amherst, Massachusetts received a $150,000 grant from the Defense Advanced Research Projects Agency (DARPA) and the National Science Foundation (NSF) to build a wireless mesh network. DARPA and NSF have long been interested in developing mesh networks that are more resilient than traditional hub and spoke type networks.
The City IT Department, UMass Amherst Office of Information Technology Department, DARPA and NSF collaborated to deploy the network that now covers much of the city.
According to GazetteNet.com, the city is now investing another $50,000 to upgrade the system which now extends a mile through downtown. From the article:
“We definitely have the fastest and largest outdoor Wi-Fi network in the state,” said Information Technology Director Kristopher Pacunas.
The new system, which replaces aging equipment that was part of a smaller municipal Wi-Fi system, will be a boon to those who live, work and shop in downtown Amherst, said Pacunas, who anticipates as many as 2,000 different people will use the system daily.
“We’ve seen data in the short time we’ve had this (that) people will come to downtown areas with free Wi-Fi,” Pacunas said.
While the new upgrades were not officially launched until the start of 2013, Pacunas said that over 10,400 people used the system in the weeks leading up to the new year. Pacunas also notes that the network has limited functionality indoors, being designed mostly for public outdoor spaces downtown.
The Town of Amherst Public WiFi website describes how the design was meant to blend in with the look of the city and the light and utility poles that house the access points. There are 30 wireless mesh access points and burst speeds up to 80 Mbps. This is another example of how a municipal network can create direct benefits AND indirect benefits simply through its implementation. Also from the article:
Alex Krogh-Grabbe, director of the Amherst Business Improvement District, said he sees the benefits of the system.
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.
Back in 2010, we reported on SuperNet in Alberta, Canada. We noted how, even though it resulted in significant middle-mile infrastructure expansion, there were still many, many Canadians along the route that were not connected. We drew a parallel between that experience and the focus on middle mile infrastructure via the broadband stimulus programs.
In October, Broadband Communities Magazine carried Craig Settles' article on Olds, a small community in Alberta that overcame the last-mile challenge by working for over 10 years to create that last-mile connection, culminating in O-Net. This town is an inspiration for other communities who decide to take matters into their own hands and find a way to get members connected and engaged.
Settles tells how the process began as a collaborative effort to get organized and revitalize the economy. A technology committee was charged with bringing fiber throughout the county, but the expense was prohibitive. From the article:
"The initial estimate to lay fiber optic cable throughout the county was approximately $80 million [Canadian dollars], well beyond OICRD's [Olds Institute for Community and Regional Development] funding ceiling,” states Joe Gustafson, who was OICRD chairman at that time. “The Tech Committee subsequently refocused on just the town of Olds and its population of just over 8,000, which brought the estimate down to $13.5 million, or about $3,140 per premises passed.”
The story goes on, taking us through several stops and starts the community experienced when working with private providers:
“To date, few incumbents see value in working with a community on a network such as this,” states Craig Dobson, currently the director of Olds Fibre Ltd. (OFL) and initially a consultant for the institute. “In essence, they believe strongly in facilities-based competition and appear to be threatened by market- based services competition that open- access networks enable.” Open-access networks rely on service providers for revenue – without them, the networks are not sustainable.
We have covered developments in the town of Indianola, Iowa, where the community decided to build their own network in 1998. The original purpose for investment was to use the network to enhance public safety and increase efficiency with SCADA applications. In 2005, however, the network began offering telecommunications services to local businesses. As of October, Indianola Municipal Utilities (IMU) began offering fiber-to-the-home to residents as it gradually begins expanding the use of its fiber asset.
You can now hear firsthand about the network, its history, and how the municipal utility navigated the journey to its next-generation open access network. Craig Settles interviewed Todd Kielkopf, General Manager of IMU, in an August Gigabit Nation podcast. The two discuss IMU's evolution since 1998. They also talked about the unique advantages that exist when a community considering network infrastructure investment already has a municipal utility in place.
Kielkopf tells how the driving factor for the fiber installation was to allow easier management and communication between utilities. When a 1990 franchise agreement with MediaCom was about to expire, the city investigated options. Hopes were that that the city could build a fiber network and MediaCom would offer services over that network, but that vision was never embraced by MediaCom.
Iowa law allowed the city to hold a referendum asking residents for permission to provide telecommunications services through the municipal utility's network. The referendum passed and they created a five year financial plan. Financing was with taxable and tax exempt bonds. The electric utility would build and own the network and a new telecommunications utility would license to a private partner that would offer retail services. Now, IMU and Mahaska Communication Group (MCG) have an agreement whereby MCG provides retail services over the network. While the agreement is not exclusive, no other providers currently use the network.
We told you earlier this year about Indianola, Iowa's network, filling the gap for businesses where private providers had failed. At that time, the network only served local businesses and community anchor institutions, but plans to provide fiber-to-the-home in their community of 15,000 are now unfolding. The town passed a referendum back in 1998 to build a fiber ring which was used first by the local Indianola Municipal Utilities (IMU) for SCADA and for public safety. The goal was to expand incrementally. It later partnered with Mahaska Communications Group (MCG), located in Oskaloosa, Iowa, about 50 miles west of Indianola.
According to the IMU website, residential retail services will be available from MCG after October 1, 2012.
Monthly rates will include triple play at $99.95, double play packages between $49.95 and $94.95, and 25 Mbps symmetrical Internet at $39.95. Residents can upgrade to 50 Mbps for $5 extra or 100 Mbps for an additional $10.00. Home Wi-fi is only and additional $5.95 per month. For complete details, check out their rate sheet PDF.
The network also leases fiber that connects community anchor institutions to the Iowa Communications Network, which provides video to K-12 schools, higher education, hospitals, state and federal government, National Guard armories, and libraries. The network also connects to BroadNet Connect, which is the network used by Iowa Health Systems for telemedicine in rural Iowa.
Quite some time ago, we let you know about the plans and funding for the Medina County Fiber Network (MFCN). The network, owned by the Medina County Port Authority (MCPA) began construction in March, 2011, and is nearing completion. Jennifer Pignolet, reported in the Medina GazetteOnline, that the network just signed on their first customer, Highland Schools.
Apparently, the schools contract with its current provider, Time Warner Cable, is about to expire. While connecting Highland Schools now may be ahead of schedule, the county fiber committee can accommodate their needs. As an added bonus, the new relationship is more economical for the schools. From the article:
“Their situation needing to be addressed immediately certainly moved them to the front of the line,” [said Jim Gerspacher, chairman of the county’s fiber committee].
While the $14 million network is still months away from full completion, Gerspacher said there is enough infrastructure in place to get Highland online.
The school will have full Internet and phone service and will have all its buildings connected to one network.
Highland Technology Director Roger Saffle said the district will save close to $90,000 a year by switching from Time Warner to the Medina County network.
“It will maintain the access we already have with a cheaper cost,” Saffle said.
Highland Schools is moving from a $100,000 per year Time Warner Cable contract (or about $8,333 per month). The schools now will pay $1,500 each month to the MCPA and, according to Saffle, will be able to apply for federal grant funding to recover 40% of that monthly fee.
In 2008, OneCommunity and the MCPA began a partnership to plan and build the network. OneCommunity received a $44 million broadband stimulus grant in 2010 to extend fiber to 22 Ohio counties. MCPA received $1.6 million of that stimulus for their County network. The remainder of the $13.8 million project was covered by 20-year revenue development bonds issued by the MCPA.
Arlington County, Virginia is taking advantage of a series of planned projects to create their own fiber optic network, ConnectArlington. The County is moving into phase II of its three part plan to improve connectivity with a publicly owned fiber network.
Some creative thinking and inter-agency collaboration seem to be the keys to success in Arlington. Both the County and the Arlington Public Schools will own the new asset. Additionally, the network will improve the County Public Safety network. Back in March, Tanya Roscola reported on the planing and benefits of the ConnectArlington in Government Technology.
Arlington County's cable franchise agreement with Comcast is up for renewal in 2013. As part of that agreement, the schools and county facilities have been connected to each other at no cost to the County. Even though there are still active negotiations, the ConnectArlington website notes that the outcome is uncertain. The County does not know if the new agreement will include the same arrangement. Local leaders are not waiting to find out, citing need in the community and recent opportunities that reduce installation costs.
Other communities, from Palo Alto in California to Martin County in Florida, have found Comcast pushing unreasonable prices for services in franchise negotiations. Smart communities have invested in their own networks rather than continue depending on Comcast.
Like schools all around the country, Arlington increasingly relies on high-capacity networks for day-to-day functions both in and out of the classroom. Digital textbooks, tablets, and online testing enhance the educational adventure, but require more and more bandwidth and connectivity. From the article:
Through ConnectArlington, Arlington Public Schools will be able to take advantage of Internet2 for distance learning. At no cost, students will be able to communicate with teachers and access electronic textbooks and online courses from wireless hot spots.