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Palm Coast's FiberNET Produces Dramatic Savings Locally
We last took a look at Palm Coast’s FiberNET over two years ago when Broadband Communities featured the open access fiber network along Florida’s upper east coast. Due to its initial focus on community anchor institutions and incremental build out, FiberNET serves as an outstanding example of how to justify a network investment with cost savings. We recently spoke with Courtney Violette who created the initial business plan for FiberNET under his previous role as Palm Coast’s CIO; he is now a Managing Partner with Magellan Advisors, an international broadband planning firm.
A presentation on the Palm Coast government website shows how FiberNET generates hundreds of thousands of dollars in annual cost savings for the City of Palm Coast, Flagler County School District and Florida Hospital. The data is impressive. The City of Palm Coast alone saves around $160,000 per year by switching to FiberNET for its networking needs.
Flagler County School District is likely the biggest beneficiary of cost savings in the community. Before FiberNET came onto the scene, the District paid Bright House Networks more than $500,000 per year for network services over a hybrid fiber-cable network. Now Flagler County School District pays around $300,000 for faster, more reliable services over FiberNET’s all-fiber network. These savings paid for the schools’ initial cost of connection after just one year.
Florida Hospital and its affiliates are also saving big. Affiliated doctors’ offices and clinics are required to maintain a 10-Mbps (minimum) connection with the hospital. Before FiberNET, these connections cost around $900 per month from the local incumbent. FiberNET now offers them for $250 per month. Similarly, the Hospital itself saves tens of thousands on its annual networking costs by switching to FiberNET.
Oklahoma Free Wi-fi: Can Muskogee Follow Ponca City's Lead?
Muskogee, located in east central Oklahoma, is considering free Wi-Fi across the community to boost economic development. As a model, community leaders are looking at Ponca City. A recent Muskogee Phoenix article quoted the Interim City Manager:
“Our hope is that the public Wi-Fi initiative will distinguish us from other cities when it comes to attracting economic development, all the way from retail to industrial,” Interim City Manager Roy Tucker said. It “will most certainly increase the quality of life and educational opportunities of our citizens.”
Local citizens developed the Action in Muskogee (AIM) initiative to improve the community; the idea to provide free Wi-Fi grew out of the initiative. Muskogee hopes a Wi-Fi network will also improve public safety, government efficiency, and Internet access for citizens.
AIM participants hope to emulate Ponca City and its award-winning mesh network. City officials installed the wireless network in 2008. Residents of Ponca City save an estimated $3.9 million a year in avoided ISP costs. In other words, the network helps keep $3.9 million in the Ponca City economy.
Ponca City began its network in 1997 with a few miles of fiber to improve communications between municipal facilities. Each year the network grew and Ponca City now has over 350 miles of fiber. Municipal facilities, schools, hospitals, healthcare clinics, businesses, and even casinos use the fiber network. According to the article, Ponca City sells Internet access via the fiber to local business customers to fund the mesh network and free Wi-Fi for the community.
Muskogee has no plans to install a publicly owned fiber network like Ponca City's. Another Phoenix article suggested Muskogee leaders may pursue a public-private arrangement:
Washington State Law Change Transformed Fiber Project in Poulsbo
The story has been updated to fix errors. The original story described the project as a partnership but we have since learned it is a project of the Kitsap Public Utility District that is encouraged by the City.
We reported on Poulsbo, Washington, last fall after the community began a wireless pilot project providing a free high-capacity wireless mesh network throughout downtown. Kitsap Public Utility District is running the project, with encouragement from the City. An interview with Poulsbo City Council member Ed Stern filled in more details on this local project.
A wireless mesh pilot project was not the original plan. The public utility district had been investing in a fiber optic network to reduce costs for local government and provide better broadband for schools and hospitals. Stern and other city leaders also recognized that encouraging telecommuting would keep local dollars in the community. Poulsbo is very close to Seattle and city leadership hoped to draw employees from Seattle offices and encourage economic development. They offered a high quality of life and knew better broadband would draw more employers to Poulsbo.
The partners installed a fiber backbone throughout the city and had planned to expand last mile connections in the near future. Poulsbo also codified changes in conduit policy with new ordinances to better manage public rights-of-way. The code requires private providers to first use existing city conduit and the city reserves the right to lease it to them. This policy prevents unnecessary wear and tear and traffic disruption on local streets.
However, the state legislature erected barriers that derailed the full project by revoking PUD authority to offer direct retail services. To this day, public utility districts are required to wholesale access, which rarely creates enough revenue to justify the initial cost of building networks. Community leaders knew that wholesale-only models carry more risk because they split an already tight revenue stream. With the change in state law, the community re-evaluated the fiber network plan.
Glasgow EPB Helps Community Hospital Expand
Lakeland Dark Fiber In Depth - Community Broadband Bits Podcast #58
Dark Fiber Paying Off in Florida's Lakeland
Near the center of Florida sits Lakeland, the largest city between Orlando and Tampa with 98,000 residents. The area boasts 38 lakes, citrus crops, and a growing healthcare industry. Lakeland also owns a fiber optic network serving education, business, and government. To learn more, we spoke with Paul Meyer, Lakeland Electric City of Lakeland Fiber Optics Supervisor.
The city's municipal electric company, Lakeland Electric, began generating and providing electricity to customers in its service territory in 1904. In the mid 1990s, the utility began replacing older copper connections between substations with fiber-optic cable. Soon after, the Polk County School District asked Lakeland Electric to connect school facilities via the fiber network for video transmissions. By 1997, almost 50 school facilities were connected to each other via using dark fiber provided by Lakeland Electric. In 1994, the District paid $219,582 $84,737 to the utility to design, construct, and install equipment for video connections in four schools. The school received an indefeasible right of use for two fibers for twenty years. over which Verizon delivers data and voice services to the School District on its own lines.
Meyer noted that the fiber project likely cost more than the school paid but the installation gave them the opportunity to expand the network. Further expansion connected the police department, libraries, and water facilities. Over time, the electric utility has incrementally expanded to every building engaged in city business. The network is aerial, using the utility's own poles to mount the fiber.
In Colorado, City of Durango Does Dark Fiber
This southwest Colorado community of about 17,000 contends with state barriers, but still makes the most of its fiber assets. We contacted Eric Pierson, Information Services Manager for the City of Durango, and Julie Brown, the City Finance Manager. The two shared some information on Durango's fiber network.
Currently, fifteen miles of City owned fiber run through town, providing connectivity for municipal and La Plata County facilities. Installation began in 1994 and the build-out continues. A combination of City capital improvement funds, grants from the State of Colorado Department of Local Affairs (DoLA), and funds from the Joint City/County Sales Tax fund have contributed to the $1.7 million network over the past twenty-one years.
Durango leases dark fiber to businesses and nonprofits to boost economic development and fund maintenance for the network. While dark fiber leasing could be far more lucrative, Durango's goal is to break even each year. According to Brown and Pierson, 2013 will yield about $10,000 to be shared with La Plata County and the Southwest Colorado Council of Governments.
Mercy Regional Medical Center partnered with Durango to install fiber as its primary bandwidth connection. Mercy is now an important anchor institution for a large medical office complex in what used to be an undeveloped area. In addition to the clinic, new businesses and residents continue to expand in the area.
According to Brown and Pierson, local ISPs that lease the fiber to serve residents and businesses have increased bandwidth for customers. A significant number of professionals that live in Durango work from home.
Even though Durango is not able to freely expand the network due to state restrictions that limit how it can use the fiber absent a costly referendum, community leaders found a way to optimize their network for residents and businesses. And should the state be wise enough to repeal this anti-competitive barrier, Durango will be well positioned to benefit local businesses.
Schools, Health and Libraries Broadband Coalition Gather in DC May 1-3
DC is the place to be May 1 - 3 to see how broadband and telecommunications policy will affect education, research, and healthcare. The Schools, Health & Libraries Broadband Coalition (SHLB) annual conference will be at the Marriott Wardman Park Hotel.
The conference this year is titled "Getting to a Gigabit" and speakers will address a range of issues that will impact community anchor institutions, including E-Rate, BTOP and BIP funded projects, new programs developed to address the digital divide, state and local government broadband programs, and the Universal Services Fund.
A range of talented speakers will present, including Lawrence Strickling from the NTIA. Sunne McPeak from the California Emerging Technology Fund, Blair Levin, and a long list of other distinguished professionals in telecom.
You can still register to attend and there are also sponsorship opportunities available.
LaGrange Muni Network Serves Business and Government in Georgia
As the Georgia legislature considers HB 282, a bill that will restrict local governments from investing in telecommunications networks, we are continuing coverage of the communities that will be harmed by passage of the legislation.
Should the restrictions become law, existing networks will not be able to expand. No expansion means fewer opportunities to reap the benefits that flow naturally from community networks. While this means few residents will receive access in places like Thomasville and Moultrie, it also means fewer businesses will receive access in places where networks exclusively serve commercial customers and government offices.
LaGrange's IT Director, Alan Slaughenhaupt, told us a little about its municipal network that began in 1996. The community decided to build its own network when no private provider would. The first goal was to get the K-12 schools connected. Bonds funded the network build out and were paid off within five years. At the time, the city partnered with ISN (Later Earthlink) to get the schools connected. LaGrange now partners with Charter Communications to bring connectivity to students.
The LaGrange network now connects hospitals, most city, county, and state government facilities, and provides connectivity for businesses. Alan describes how a T1 connection cost local businesses $2,300 per month in 1996. Now, thanks to competition created by the community owned network, local businesses can pay just $100 for a connection with better capacity. The municipal network serves about 400 commercial customers.
Alan explained that the automaker Kia moved a manufacturing facility near LaGrange in 2009 that used Just-In-Time inventory control. It needed a high-speed connection between the main plant and suppliers that LaGrange could deliver.
Community Built Network Saves Local Jobs in Princeton, Illinois
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.)