Tupelo, Mississippi, received a special visit from President Franklin D. Roosevelt in 1935 to celebrate the community as the “First TVA City.” The title described the community’s new electrification by the Tennessee Valley Authority, an event that incorporated federal assistance, local workers, and the start of rural electrification. Now, Tupelo is aiming for publicly owned fiber.

Yesterday Electricity...Today Fiber

Community leaders haven’t decided on a model yet, but they recently expressed an interest in expanding the Tupelo Water & Light fiber optic loop that runs around the city. The exiting network provides communications and management between utilities substations. Their goal is to put the infrastructure in place and collaborate with a private sector provider to bring better connectivity to local residents and businesses.

The Daily Journal reported that the project is a priority for the current administration:

The mayor believes that an expansive fiber optic network in the city will boost Tupelo’s desirability, particularly for the young professionals he wants to call the city home.

“We want to provide the incentive for people that need that high speed Internet to live here,” Shelton said.

Once a robust fiber optic network is in place, Shelton’s administration has discussed the possibility of a partnership with a private provider who would actually offer the residential access and manage the customer base.

Tupelo, Lee County, Mississippi

The city used to be well known as a transportation hub in the days when railroad intersections created busy urban centers. In recent years, Tupelo has capitalized on its bragging rights as the birthplace of Elvis Presley and as the location of the Trace State Park. Hikers start or end their long journey on the Natchez Trace Parkway, a 444-mile trail that was used by Native Americans and Explorers. The trail is a historic trek attracting nature enthusiasts.

Sandpoint, Idaho’s fiber-optic infrastructure is ready to lease to Internet Service Providers (ISPs) interested in serving the north Idaho town. A regional provider recently announced that it will take advantage of the community’s fiber to expand its network by leasing dark fiber from the city to serve local commercial subscribers.

Big Plans Begin To Unfold

The city installed fiber during road project construction over a five-year period. About a year ago, Sandpoint released a Request for Proposals (RFP) to help the community of 9,700 people make strategic use of its dark fiber network. In addition to leasing dark fiber to providers, the network will serve municipal needs such as public safety and city offices. In February, the City Council established rates for dark fiber leasing and maintenance.

Things have been somewhat quiet until Intermax Networks announced that it has entered into an agreement with the city to lease excess capacity on Sandpoint’s network and will use the new infrastructure to offer connectivity to local commercial subscribers.

President Max Kennedy said in an official statement:

"We’ve provided fiber services to commercial businesses in Sandpoint for years, but today we are proud to be the first private partner with the City of Sandpoint to expand our network by licensing space on the city’s new fiber infrastructure.

…

Sandpoint has been an integral part of Intermax since the company was founded in Sandpoint in 2001. This year we are going to be dramatically expanding our service capacity in Sandpoint, and we’re pleased to be working with the city on this great project."

Intermax serves commercial sites throughout northern Idaho with fiber and connects to peer networks in Seattle and Portland. The company also provides a variety of services to residential customers and anchor institutions in Kootenai, Bonner, Boundary, and Spokane Counties.

Don't Forget Mr. And Mrs. Sandpoint

For local schools, finding ways to cut costs can be challenging but allows more money to be spent directly on students. While trimming small costs here and there adds up, eliminating leased lines from telephone companies and making the change to VoIP phone systems can be a big savings with improved service. Pitt County Schools in North Carolina are one of the latest to upgrade and save big.

Goodbye Copper, Hello Fiber

The district owns a fiber optic network and has ditched copper wire telephone service in favor of a new VoIP system at nine of its facilities. The cost to replace the phone system at those facilities was $32,000 but the district reclaimed $13,000 so far by eliminating the need to lease copper phone lines.

District officials plan to replace all the phones in the district with a fiber based system at a cost of $210,000, pending the availability of funding. They estimate annual savings will be approximately $107,000, so the project will pay for itself in less than two years.

More Than A Trend

Carroll County Public Schools (CCPS) in Maryland and Austin's public schools in Texas found that switching from traditional phone lines to VoIP supported by fiber saved their districts significantly. CCPS began saving approximately $400,000 per year when they partnered with the county and several other entities to develop the Carroll County Public Network (CCPN). Austin Independent School District (AISD) collaborated with several other entities in Austin, Texas, and AISD’s investment in their network paid for itself in less than 3 years. In 2011, AISD estimated they saved almost $5.8 million in telephone and Internet connectivity avoided costs.

It's Not All About The Money

In Pitt County, school officials are finding better service is an added benefit:

Schools in Greeneville, Tennessee, are about to save on Internet connectivity to the tune of $50,000 per year, thanks to a partnership with the municipal electric utility.

Local Utility, Local Solution

Greeneville City Schools (GCS), which obtains Internet access via the state’s Education Networks of America (ENA), used to obtain cable connections from big providers that worked with ENA. Comcast and CenturyLink are two of the local providers that lease lines to the schools with ENA as the entity that arranged the connections. Not anymore.

GCS, ENA, and the Greeneville Light & Power System (GLPS) have entered into a new partnership to use GLPS fiber-optic infrastructure to bring Internet access to school facilities. As a result, the school will cut telecommunications costs by approximately $50,000 per year and double their capacity.

Assistant Director of Schools and Chief Technology Officer Beverly Miller told the Greeneville Sun:

“GCS is extremely pleased and excited about moving network fiber optic cabling dependence to the local community power provider. GLPS is an exceptional electrical provider with a stellar reputation for reliability and high performance. In addition to the expectation of improved service, the school district anticipates significant financial savings as a result of this new partnership.”

According to GLPS General Manager Bill Carroll, the utility already had significant infrastructure in place, which it uses for its own facilities. Connecting GCS schools and administration facilities wasn’t a difficult undertaking. In fact, GLPS hopes to reproduce the plan for the Greene County Schools to reduce their costs in a similar fashion:

“We have 2,200 miles of high voltage (power) lines and just 60 miles of fiber, mostly in the city,” Carroll said. “We’ve been routing fiber very carefully to pass by government buildings, schools and other folks we can serve in the future. At some point, we can do the same for Greene County’s schools and government buildings, but it’s a matter of logistics.”

Starting With The Schools

Laurinburg, North Carolina, is considering opening its fiber-optic network to private providers.

It’s been over a year since the community contracted with a consultant to inventory the community’s assets and provide options for expanding its use to the private sector. Since then, community leaders have discussed looking for potential partners and have met with private providers. According to the Laurinburg Exchange, the city will likely release a Request for Proposals (RFQ) as a way to let providers know they are interested in investigating ways to make excess capacity available.

Community leaders believe providers could make use of the publicly owned fiber for fixed wireless service, lease fiber for business Internet access and telephone services, web hosting, and other services. City Manager Charles Nichols said:

“The city has the capability to offer all those services now; we know this is an asset to this community and we’re trying our best to figure out a way to utilize it.”

Laurinburg already connects ten entities with its network, including County facilities, schools, healthcare clinics and hospitals, the airport, and several local businesses. Community leaders want to spur economic development by offering high-quality connectivity in Laurinburg to more businesses.

Tapping An Existing Resource

The city deployed its fiber-optic network in the mid-1990s to improve communications between city hall and its public works facilities. It later leased excess capacity to other public entities, including several facilities that obtained Internet access and data transmission through School Link. As the city has expanded network footprint, it now consists of a 100-mile ring that surrounds the county.

Laurinburg prevailed in a lawsuit commenced by BellSouth in the early 2000s when the provider argued the city had no authority to operate the system. When the trial and appellate courts examined the prevailing statute and the technology in place, however, both found for the city. Since then, state law has changed but Laurinburg’s right to operate its system is grandfathered in; they are still, however, subject to the state prohibition on expansion

Iowans in the small town of Osage have been able to obtain cable Internet access from the community’s municipal utility since 2001. The community is about to take the next step; Osage Municipal Utility (OMU) is acquiring a fiber-optic backbone from a private provider. The purchase will get them started on what will eventually be a Fiber-to-the-Home (FTTH) upgrade.

Serving Osage For More Than 125 Years

Osage, the Mitchell County seat, is home to about 3,600 people and located in north central Iowa. The electric utility began as Osage Electric Light, Heat and Power Company in 1890. After several ownership changes, the municipality became the owner in 1941. In 1959, the utility began supplying natural gas and in 2001, the utility added a communications system. In addition to Internet access, OMU also began offering cable TV and telephone service.

OMU is also developing a Voluntary Community Solar Program in which customers can purchase units of Solar Array capacity and in return they receive a production-related credit on their monthly utility bill.

Another Local Tool

Josh Byrnes, general manager of OMU, described the backbone as “another tool in the economic toolbox.” He noted that the line will create opportunities for people outside of OMU’s service area that live along the backbone to potentially obtain service from private providers.

In addition to providing FTTH to customers in the future, Byrnes noted that OMU will also be bringing much needed redundancy in the area. Incumbent Omnitel Communications is the sole provider of fiber-optic services in Mitchell County. OMU will offer fiber in Mitchell, one of the towns in the county where Omnitel has no fiber presence.

“We are simply getting connectivity to Osage and build out from there. There are going to definitely be opportunities for savings to our rate payers long term. Even more important is the dependability of services moving forward. It’s hard to put a price on that.”

The Missoula County Public Schools (MCPS) plans to save $150,000 per year by investing in its own fiber infrastructure. Over a 20-year period school officials expect to save approximately $3 million.

Fiber For Education And Savings

MCPS will be the first in the state to self-provision its wide area network (WAN), the connections between district facilities. Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN.

School officials were already leasing lit fiber service when they began investigating options to compare cost and service. They also looked at leasing dark fiber, which would mean they would need to maintain the equipment to light the fiber themselves, and investing in an Indefeasible Right of Use (IRU). The IRU would give the school district the ability to use a designated number of fiber strands to use as they wished for a fixed period of time. 

As other school districts around the country are discovering, the best choice for them was to own the infrastructure and control it themselves:

"We're saving the district $3 million over the next 20 years in the general fund that will be able to be allocated to other things," Littman said of self-provisioned fiber. "It's more than $3 million, actually. The reason we say we'll only end up saving the general fund $3 million in the end is because we do have some annual maintenance costs to incur to protect the fiber."

Leasing lit fiber for the speeds MCPS needs would have cost $1.5 million to $3.1 million for only a five-year contract. A dark fiber 10-year contract would have cost about $3 million.

Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN. The school will still need to contract for Internet access from an Internet Service Provider (ISP).

Duck River Electric Membership Corporation (DREMC) in Tennessee announced in September that it has launched a feasibility study to investigate ways to use a proposed fiber-optic network to bring better connectivity to members.

Exploring Added Value

According to the announcement, DREMC is considering investing in a fiber-optic loop to improve communications between its offices and substations. DREMC recognizes that this initial investment can be a first prudent step in considering the future of the cooperative and the vitality of rural Tennessee:

A fiber-optic loop has been proposed to connect all offices and substations, including the co-op’s emergency operations center. This project could also provide capacity for community purposes: fiber that could be leased to other parties, even Internet-to-home providers.

The broadband feasibility study will explore how the proposed fiber-optic loop might help improve connectivity in rural areas served by DREMC.

Within The Confines Of The Law

In Tennessee, electric cooperatives are prohibited from providing Internet access to residents, but DREMC still wants to use its publicly owned infrastructure for the benefit of members.

DREMC serves the areas south of Nashville. Columbia and Tullahoma are some of the more densely populated areas and have their own electric utilities, which also provide Gigabit connectivity. Rural areas outside of the cities rely on cooperatives like DREMC for electricity; the state restrictions will keep those communities in that last century for Internet access because national providers have no desire to serve them. 

From the announcement:

“This is a first but very important step,” says DREMC President and CEO Michael Watson.

“Today, so much depends on connectivity. Economic development, job creation and retention, healthcare, education, and public service are all enhanced by access to broadband Internet. But many rural households and communities do not have the connectivity they need.”