Portsmouth, Virginia, recently announced that they intend to invest in fiber optic infrastructure to reduce telecommunications costs, encourage economic development, and keep the city competitive in the region. The project is also part of a regional effort to foster economic development in the Hampton Roads metropolitan area.

In the April press release, the city announced that the project will include a 55-mile fiber optic ring around the city that will connect municipal facilities and anchor institutions. The plan will use a five-year multiphase approach for the estimated $9 million capital project and construction is likely to begin this summer.

According to city CIO Daniel Jones, costs for the first year will come in at around $2.7 million. Portsmouth is currently reviewing bids for the project.

Significant Savings

Portsmouth CIO Dan Jones noted, “Right now, Portsmouth is internet carrier dependent. The broadband network will improve municipal operations at a substantial cost savings.” 

Last year, the city adopted a Fiber Master Plan, which analyzed potential cost savings, should Portsmouth choose to invest in its own Internet network infrastructure. Consultants estimated that the city and public schools spend more than $1 million on connectivity costs per year for municipal facilities, schools, and public libraries. The community’s schools’ telecom expenditures are almost $638,000 per year; libraries spend around $29,000 per year. Portsmouth schools receive an 80 percent reimbursement from the federal E-rate program, which allows the school system to receive a subsidy of more than $510,000 annually. Portsmouth plans to use E-rate dollars to help fund network construction in areas where it serves school facilities.

Earlier this year, we shared the story of Clarksville, Arkansas, and described how they used supervisory control and data acquisition (SCADA) to make efficiencies in their municipal electric utility. The resulting fiber optic infrastructure reduced energy costs and allowed them to better manage other utilities but also gave Clarksville the opportunity to explore high-quality connectivity for the community. Their investment is paying off and bringing new jobs to Clarksville.

Stepping Up Economic Development

In a recent press release, the Clarksville Regional Economic Development Organization (CREDO) announced that Monro Shoe has entered into a partnership with Clarksville Light & Water (CL&W), the city, and CREDO to expand its production and add 25 new positions. The community’s gigabit fiber optic network played an instrumental role in the expansion. In addition to better connectivity, CL&W will provide an energy audit to help the company cut production costs.

Serving The Clarksville Community

Clarksville’s population is just under 10,000 with Tyson Foods, Haines, and motor control manufacturing processor Balder as some of the largest employers. University of the Ozarks also employs many of the people in Clarksville. CL&W plans to connect the University to the network in the near future.

Community leaders wanted to be sure to use the network to serve all sectors of Clarksville when they pounded out their plans for the network in 2015. They chose to allocate a designated number of strands each for educational facilities, healthcare institutions, public safety needs, and government facilities. The municipal utilities used another segment, and a sizable segment was left open for future economic development use, such as the connectivity arrangement for Munro Shoes. As Clarksville’s network serves more entities we expect to see more positions added to the community; after all, they're just getting started.

This is the transcript for episode 273 of the Community Broadband Bits podcast. Grace Simrall and Chris Seidt of Louisville, Kentucky, join the show to discuss how their community is taking advantage of the statewide network KentuckyWired. Listen to this episode here.

Grace Simrall: This overbuild has significant access capacity. We designed and built for the future.

Lisa Gonzalez: This is episode 273 of the Community Broadband Bits Podcast from the Institute for Local Self Reliance. I'm Lisa Gonzalez. Louisville, Kentucky is taking advantage of an opportunity to drastically reduce the cost of fiber deployment as the state's KentuckyWired Project routes through the area. In this interview, you'll hear Grace Simrall, and Chris Seidt explain how the city will expand their fiber footprint. They'll describe their plans to use the new resource for municipal facilities, public safety, and smart city applications to improve life for residents, and visitors. Now, here's Christopher with Grace, and Chris talking about what's happening in Louisville.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell from the Institute for Local Self Reliance up here in Minneapolis, and today I'm speaking with Grace Simrall, the chief of civic innovation and technology for local metropolitan government in Louisville. Welcome to the show.

Grace Simrall: Thank you so much for having me, Chris.

Christopher Mitchell: We're also joined by Chris Seidt, the civic technology manager for the city. Welcome to the show.

Chris Seidt: Thank you so much for having me.

Christopher Mitchell: I think a good place to start would be to just, you know, for people who haven't been there, it's a wonderful place. Grace, maybe you can tell us a little bit more about what people should know about Louisville.

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.

Last we checked in with Steamboat Springs they had just finished a connectivity project. Now the community is taking another step to improve local connectivity in this northwest Colorado ski resort town.

The goal is to connect large community anchor institutions throughout town with a fiber backbone which could become the basis for a larger network. Several community anchor institutions have pooled their resources and pledged $748,000 while also securing a matching grant to install 9 miles of fiber across the small town of 12,000. Funding is in place, but the agreement between the institutions must be finalized before sending out an official request for proposals to find a company to install the fiber.

Matching Grants & Community Connectivity

The Colorado Department of Local Affairs (DOLA) intends to match the community’s contributions towards the project. DOLA will provide $748,000 in grant money for the fiber backbone. According to Routt County Manager Tom Sullivan in Steamboat Today, the fiber design will have splice points to allow private providers to provide last-mile connectivity to residents’ homes and businesses from the fiber backbone.

So far, the large institutions pitching in for the 9 miles of fiber are: Routt County’s public safety complex, Yampa Valley Electric Association, the city of Steamboat Springs Mountain Fire Station, Yampa Valley Medical Center, Colorado Mountain College, and the Steamboat Springs School District. Several of these institutions had previously collaborated with the Northwest Colorado Broadband group and the Steamboat Springs Chamber Resort Association on the community's first connectivity project.

The Carrier Neutral Location

Plans for a fiber network collaboration between the city, school district, and county will save hundreds of thousands of dollars in Stormlake, Iowa. The school district recently voted to take advantage of significant savings for connectivity by switching to the publicly owned infrastrucutre as soon as the network is ready.

The Storm Lake Pilot recently reported that under the current contract with Vast Broadband, the district pays $7,500 per month to lease two strands of fiber. The new arrangement will allow the district to lease 12 fibers from the city-owned network for $14,000 per year or $1,167 per month - a reduction of approximately 85 percent. The city and the school district will enter into a 10-year agreement to ultimately save the district a total of $760,000 or approximately $6,333 per month during the term of the lease.

The school will still need to pay for Internet access and as part of the agreement will be responsible for purchasing its own equipment. The School Board voted unanimously to approve the agreement.

As we reported in July, the Stormlake project began as a way to better communication between water and wastewater utility facilities but then evolved into a public safety and cost saving initiative. All three entities - Storm Lake Community School District, the City of Storm Lake, and Buena Vista County - anticipate considerable savings and heightened reliability. We expect to report on more public savings as the community uses this valuable fiber asset.

Project costs for the system of conduit and fiber, which does not include hardware, are estimated at approximately $1,374,000 to be shared by all three entities. This first phase of the project is scheduled to be completed by December.