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Johnson City Teams up with BVU Authority for Broadband

We have been watching Johnson City, Tennessee, examine its options to improve broadband options in their community using extra capacity from fiber-optic investments for smart-grid implementation. Johnson City has been looking for a partner that would offer services to local businesses and perhaps residents. We were concerned about that approach as a private-sector partner may be interested only in finding the most lucrative high-margin customers rather than seeking ways to serve the whole community. We are now relieved to learn that Johnson City and BVU Authority have made an initial agreement and are working toward a final contract. BVU Authority originated in and continues to be based out of nearby Bristol, Virginia. We have long covered BVU Authority and just recently published a case study about them. BVU Authority should be an excellent match as they provide excellent business services (they are tremendous pioneers in this regard) and have a focus on serving the community as a whole. BVU Authority's investments in southwestern Virginia have led to strong job growth and we expect them to have similar success in northeastern Tennessee.

How Chattanooga, Bristol, and Lafayette Built the Best Broadband in America

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We are thrilled to finally unveil our latest white paper: Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks. This report was a joint effort of the Institute for Local Self-Reliance and the Benton Foundation. We have chronicled how Bristol's BVU Authority, Chattanooga's EPB, and Lafayette's LUS built some of the most impressive broadband networks in the nation. The paper presents three case studies and then draws lessons from their common experiences to offer advice to other communities. Here is the press release: The fastest networks in the nation are built by local governments, a new report by the Institute for Local Self-Reliance and Benton Foundation reveals Chattanooga, Tennessee, is well known for being the first community with citywide access to a “gig,” or the fastest residential connections to the Internet available nationally. Less known are Bristol, Virginia, and Lafayette, Louisiana – both of which now also offer a gigabit throughout the community. A new report just released by the Institute for Local Self-Reliance (ILSR) and the Benton Foundation explains how these communities have built some of the best broadband networks in the nation. Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks is available here. “It may surprise people that these cities in Virginia, Tennessee, and Louisiana have faster and lower cost access to the Internet than anyone in San Francisco, Seattle, or any other major city,” says Christopher Mitchell, Director of ILSR’s Telecommunications as Commons Initiative. “These publicly owned networks have each created hundreds of jobs and saved millions of dollars.” “Communities need 21st century telecommunications infrastructure to compete in the global economy,” said Charles Benton, Chairman & CEO of the Benton Foundation. “Hopefully, this report will resonate with local government officials across the country.” Mitchell is a national expert on community broadband networks and was recently named a “Top 25 Doer, Dreamer, and Driver” by Government Technology. He also regularly authors articles at MuniNetworks.org. The new report offers in-depth case studies of BVU Authority’s OptiNet in Bristol, Virginia; EPB Fiber in Chattanooga, Tennessee; and LUS Fiber in Lafayette, Louisiana.

Design Principles from Virginia's nDanville Open Access Network

The nDanville network of rural southern Virginia has long been a favorite of ours (previous coverage is available here). The network has helped Danville go from being notable for having the highest unemployment rate in Virginia to being ranked as the third top digital city in the nation, according to a recent article. Danville's City Manager was honored by the Southern Piedmont Technology Council for developing the nDanville network:
Danville City Manager Joe King received the Chairman's Award for his leadership in advancing the development of a modern telecommunications infrastructure in the region, a key factor in Danville's economic development renaissance.
King had been the director of the city-owned utility when it drew up plans for a fiber-optic network to be built incrementally until it could connect every home, business, and community anchor institution in Danville Utility's territory. At the time, Danville was suffering tremendously from the loss of tobacco and textile industries.
Today, the nDanville net-work connects hundreds of businesses, has sharply re-duced costs for local gov-ernment, health care provid-ers, and local schools, and has introduced more competition into the telecommunications marketplace.
Danville Utilities has 44,000 electric meters, half of which are located in Danville (44 sq miles). The others are scattered across over 450 sq miles surrounding the city. The Southern Piedmont Technology Council serves the technology industry in Danville as well as nearby counties and another city. Even in 2004, many in Danville did not have broadband access to the Internet, as outlined in an early document explaining the network. Verizon barely offered DSL and Adelphia offered limited cable modem service. Andrew Cohill, a consultant assisting the project, has offered more background in a recent article of Broadband Communities.

Community Fiber in Virginia Offers Wi-Fi to Festival Folks

Bristol, Virginia, holds a unique place in the heart of community broadband advocates because it was the first muni broadband network to provide triple-play services over a full fiber-optic network (OptiNet). It is well known among NASCAR aficionados for the Bristol Motor Speedway as well. What I didn't know, prior to my visit to Bristol this week, is that it is also home to a music festival celebrating the community's important contributions to country music. The second page of the Fall Newsletter from Bristol Virginia Utilities [pdf] discusses how BVU's OptiNet has built a Wi-Fi network downtown to offer free connectivity to festival-goers. But it doesn't end there - they also provided laptops and HDTV to those who wanted to hang out. From the newsletter: BVU offers Wi-Fi at Music Festival
At the 2011 Bristol Rhythm & Roots Festival, BVU set up the “BVU Pavilion,” a temporary technology hotspot. The pavilion offered free WiFi Internet, public laptops, as well as high-definition televisions and seating to festival guests throughout the entire weekend. In addition to the BVU Pavilion, housed in downtown Bristol VA, BVU also installed equipment to provide WiFi Internet access throughout the twin city’s downtown areas. The access was a huge plus for users of mobile devices such as smart phones. Users could download festival applications like artist schedules, stage maps and more. “As our second year providing this service, we knew people would be looking for us again. This is simply a gift to our city,” explains Gail Childress of BVU. “We are avid supporters of making our community a great place to live and visit. This complimentary service is just one way that we can say ‘Welcome’ to our visitors and ‘Thank you’ to our full-time residents.” “BVU has been great to work with,” says Leah Ross, Executive Director for Rhythm & Roots. “This allows our fans to check their email, log onto Facebook or Twitter, blog about the festival or just surf the Internet. It’s really a win-win for everyone.” Rhythm & Roots guests who prefer to use their own laptops or devices found available space within the pavilion to sit and log on.

Open Access nDanville Network Goes Residential

The open access fiber-optic network in Danville, Virginia, is officially going FTTH. We have long watched nDanville's progress and are excited to see the network expanding into residential access after significantly improving telecom services to businesses and schools. Last year, City Council debated and ultimately rejected a more ambitious plan to expand the network more rapidly. But the utility has secured permission for a smaller project area this year, allowing it to expand without incurring debt. This project will be financed out of the reserves they have built up from net telecom revenues over the years. That's right, they have been running in the black and are reinvesting those funds into connecting more of the community. The utility has $250,000 to use for the build, allowing them to connect some 250 homes (maybe double that if they can stretch the funds) in this phase. If things go as well as they have historically, they will roll through the community in this fashion, undoubtedly increasing their capacity as the model proves itself. Additionally, as new developments are built, they will likely be connected due to the extremely low cost in so-called greenfields. They have one provider lined up to offer video services on their open access network (the utility provides no services themselves) but as they gain subscribers, more service providers will begin offering services. This network is creating jobs directly (by expanding the physical infrastructure) but is also encouraging many more jobs indirectly -- the local service provider is expanding and local businesses are doing better than they would if mired in the duopoly so many other communities find themselves.

Franklin County, Private Partnerships, and Wireless Broadband

Craig Settles has been pumping out some in-depth interviews with community networks on his new Gigabit Nation audio show. This show discusses a wireless network built using a public-private partnership in Franklin County, Virginia. The approach is outlined in this case study [pdf] and excerpted here:
Franklin County formed a partnership with a local wireless Internet service provider (WISP) to expand the County's local government wide-area network and provide broadband options for the citizens. The project leveraged County structures such as towers and water tanks for WISP transmitters and receivers. We were in the process of upgrading the public safety radio system at the same time, so the two efforts worked together to identify possible new tower locations that would improve radio coverage and meet broadband demand. The partnership provided the WISP with a fast-path to business growth through additional funding and access to existing infrastructure. The County provided space on towers, tanks and poles in exchange for Internet service at County offices. This arrangement lowered deployment costs for the WISP, expediting business growth. The partnership expanded the WISP customer base in Franklin County from 98 customers in early 2005 to approximately 1000 in early 2008. In addition, 15 fire and rescue stations were added to the County’s wide-area-network (WAN) in addition to five other County offices. There are many advantages to moving remote offices onto the WAN, including reduced costs and improved communications and data sharing across County Administration. The wireless mesh network supports data and voice and the WISP is currently segmenting the County's voice traffic on their network to ensure quality of service (QoS).
A case study from Motorola [pdf] notes that Franklin County has received awards for its approach:
At the 10th annual Commonwealth of Virginia Innovative Technology Symposium in 2008, Governor Timothy M.

nDanville's Quiet Success in Rural Virginia

nDanville, the open access fiber-optic network operated by the City's public power company, has been quietly succeeding in southern Virginia. This network has already connected half of the communities health care facilities, allowing them to improve medical care with 100Mbps and gigabit circuits at affordable prices.
The medical network connects Danville Regional Medical Center and about half of the area’s medical facilities to nDanville, a fiber optic network established by the city. The high performance fiber allows real-time access to patient medical records and allows for the exchange of CT and MRI scans instantly.
Another article notes praise for the city's efforts:
"It enables us to better serve our patients by having their information available across multiple sites," Deaton [CEO of Danville Regional Medical Center] said. "We will continue to support the city's efforts in linking our medical community together, and I want to commend the city for the success of this network and making healthcare a top priority."
The Intelligent Community Forum brought the above success to my attention in awarding Danville a recipient of its 2011 Founders Awards. (Chattanooga is in the running for Intelligent Community of year and really, how could it possibly lose?) But ICF details more impressive details from nDanville: logo-icf.gif
On average, fiber connections for these facilities provide twice the bandwidth of the previous connection but at a 30% savings. More than 90% of the medical facilities (approximately 125 locations) are to be connected by December  2011, said Jason Grey, the Broadband Network Manager of Danville Utilities, who led Danville’s charge to become a recognized intelligent community by ICF. … ICF further noted that the nDanville Network provides a crucial link between the Danville Diagnostic and Imaging Center and the Danville Regional Hospital.

Examining Virginia's Broadband Problems

The Roanoke Times recently published an extensive story about broadband, covering everything from what it is to why it is needed and who doesn't have it. Aside from providing an excellent primer on these issues to those who are new to broadband discussions, Jeff Sturgeon writes about problems often ignored by the media, like the difficulties for companies and other entities can encounter when they need extremely high capacity connections:
Skip Garner directs the Virginia Bioinformatics Institute, which unites the powers of biology and information technology to advance medicine. It is at Virginia Tech. Garner said he, too, finds computing power a constraint. In spite of a 1 gigabit connection, "we are limited in what we could do," Garner said. When the lab's DNA sequencers pile up data, "we will often put it on a 1-terabyte drive ... and FedEx it to our customers," Garner said. An upgrade to 10 gigabits is coming. He expects it still won't be enough. It might appear that new facilities would not have such problems, but even the 5-month-old Virginia Tech Carilion Research Institute near downtown Roanoke is not satisfied with its Web service. While the speed is good at 10 gigabits, the cost it pays to service providers is staggering. "It's in the tens of thousands of dollars a month," said Executive Director Michael Friedlander.
This is one world. Communities with their own fiber networks are another -- where these connections are not prohibitively expensive. And yet another world is the world of several rural Minnesota Counties, who cannot even get T.1 lines from incumbent phone providers. In Cook County, in 2008, a company was quoted $600,000 to install a T.1 line. Yes, $600,000 - I had to hear it twice to make sure I wasn't imagining it. The article explores Design Nine founder Andrew Cohill's thoughts on improving broadband access. Cohill mentions Wired West, a network we have written about previously.
"We think it's got to be treated like essential public infrastructure," he said. That way, access would be open to any service provider on equal footing. Just as anyone could launch a cab company or food delivery service over the road system, anyone will be able to use the information highway's new lanes.

Bristol Virginia Utilities Refinances Debt

BVU, which operates OptiNet (the nation's first triple-play muni FTTH network), has transitioned from being owned by the City to being an independent authority. In its last fiscal year (2010-11), the public power utility finished with net income. OptiNet finished ahead of projections. Having split from the city, BVU is taking advantage of the Virginia Resource Authority to issue $44 million revenue bonds to refinance its debt.
“We’re going through the VRA pool which helps fund 88 cities and service authorities. Because of that – and because of the market – we’re potentially looking at very low interest rates of 3.3 percent,” Rose told the board during his presentation.
The debt currently has an interest rate approaching 5%. After refinancing, the utility expects to save some $500,000 to $750,000 a year - for a period of 20 years. The cost of refinancing is $900,000. This story is worth noting for two reasons:
  1. Restructuring debt is not necessarily a sign of weakness -- BVU's OptiNet is quite successful.
  2. A reminder that small communities can benefit significantly by pooling bonding through programs like Virginia's VRA. States should help communities to work together in this way.

Intelligent Communities in US Invested in Community Networks

The Intelligent Community Forum has released their list of 2011's 21 smart communities.
The 2011 Smart21 ... highlights communities from 12 nations and includes 7 that appeared on last year’s list. Two communities, Issy-les-Moulineaux and Northeast Ohio, returned to the list after a 1-2 year absence. There were two Chinese, one Indian and one Australian communities on the list, as well as six from the USA, four from Canada and one each from the UK, France, Hungary and Brazil.
As usual, the list of US Communities that made the list is dominated by communities that have taken greater responsibility for their broadband infrastructure. Chattanooga was on the list (how could it not be?) with its 1Gbps community fiber network that we have covered. Dakota County, Minnesota, is on the list and was a pioneer in county-owned fiber and conduit. For some reason, ICF is under the mistaken impression that the county has been well served by commercial providers… as my parents live in the County as well as a number of friends, I strongly disagree. Danville, Virginia, has built an open access fiber network for local businesses and plans to expand it to residents (our Danville coverage).