economic development

Content tagged with "economic development"

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After Gutting the Gulf, BP Funds Pave Path to Better Broadband

Communities along Mississippi's Gulf coast have recently suffered through disasters both natural and not, from Hurricane Katrina to BP's Deepwater Horizon blowout and aftermath. But they are investing some of the relief funds into infrastructure of the future to help recover. 

Biloxi and Gulfport city officials recently passed resolutions approving an intergovernmental agreement to bring better connectivity to Mississippi Coastal communities. The vote was the next step in the Mississippi Gulf Coast Fiber Ring initiative announced this summer by Biloxi Mayor Andrew "FoFo" Gilich to encourage municipal networks in the region.

The agreement will establish the Gulf Coast Broadband Commission, a public utility  charged with deploying, operating, and maintaining a fiber optic network in and between the two cities. The agreement also specifically grants the Commission the ability to seek out financing to perform its function. Other municipalities and counties can join the agreement as members after the Commission is established.

If other local governments want to participate, they must agree to minimum standards for expansion. Members must promise to offer symmetrical gigabit connectivity, commit to serve every residence and business within a community within 7 years of joining, agree to offer free public Wi-Fi, and require ISPs using the infrastructure to have a local customer service presence. The agreement requires state approval before it is finalized.

In July, Mississippi Governor Phil Bryant pledged $15 million to the project from the fund created by the Restore Act. The Act establishes how the state will disburse $2.2 billion paid by British Petroleum as fines for the Deepwater Horizon disaster in 2010. Biloxi settled with BP in a separate suit, accepting approximately $5 million and is considering directing at least some of those funds toward municipal fiber deployment.

Nonprofit Bozeman Fiber Secures Funding From Eight Local Banks

Good news from Montana! Bozeman Fiber has secured funding to begin construction of a 23-mile open access community fiber network. Through an impressive partnership among eight local banks, Bozeman Fiber secured $3.85 million.  

First Interstate Bank, Rocky Mountain Bank, Big Sky Western Bank, Opportunity Bank, U.S. Bank, American Bank, First Montana Bank and Bank of Bozeman all came together to support the fledgling network. During a press conference, First Interstate Bank President Bruce Parker described how this level of collaboration was possible. He initially approached twelve banks in April about the project. Now, six months later, eight banks have committed to providing funds. Parker expressed a high level of confidence for the network’s impact:

The project really speaks for itself in terms of what this infrastructure will do for the Bozeman community. 

Bozeman Fiber is itself a remarkable collaboration between public and private sector interests. The city of Bozeman will not manage the network themselves. Instead, the City Commission voted to form a separate nonprofit entity to direct the project. In order to consider the many diverse needs of Bozeman from the economic to the educational, the board of this newly formed nonprofit features seven members from the public and private sector. The end result is this unique public-private partnership. 

A purpose for the fiber network is economic development, in part by providing affordable fiber access to small businesses and startups. The press conference took place at the headquarters of Elixiter, an online marketing company that has grown rapidly in the past four years. The founder, Andrew Hall explained how Bozeman Fiber will benefit companies like Elixiter:

LeverettNet Meets Demand for Better Connectivity in MA

On October 2nd, a group of residents, business owners, and educators met with elected officials to celebrate the early success of LeverettNet. The municipal gigabit fiber network now serves 650 of 800 households in the Massachusetts town of 1,800.

This spring, the network began serving limited areas of town, offering telephone service and gigabit Internet access. LeverettNet's instant success is no surprise, considering a number townsfolk depended on unreliable, slow dial-up service over antiquated copper infrastructure for years. Some in town used DSL, satellite, and wireless devices; others had no Internet access at all. Telephone service was equally dismal - sometimes the community would lose service when it rained.

Leverett connects to MassBroadband 123, the statewide middle-mile network deployed by the Massachusetts Broadband Institute. Greenfield, Massachusetts Internet service provider Crocker Communications, is partnering with Leverett to offer gigabit service via the publicly owned infrastructure. 

The community chose to fund the network with a modest property tax increase and from revenue collected from subscribers. After they did the math, Leverett realized they could obtain better, faster, more reliable services for less if they built their own network. Take a few minutes to listen to Chris interview Peter d'Errico from Leverett's Broadband Committee and Select Board, in episode #113 of the Community Broadband Bits podcast.

At the celebration, d'Errico described the way the community came together:

EPB Turns Up The Speed To 10 Gigs

Chattanooga's EPB Fiber Optics now offers 10 gigabit Internet service to all households and businesses in its service area. The ultra-fast service is available for $299 per month with free installation, no contracts, and no cancellation fees, announced community leaders at a press conference on October 15th.

In addition to 10 gig service, EPB is also offering "Professional" products available in 3 gig, 5 gig, and 10 gig for large businesses. Smaller businesses have the option of choosing 5 gig or 10 gig Internet products. According to the press release, prices on all the new products vary.

Since the network was launched in 2010, Chattanooga has transformed from one of the "dirtiest cities in America" to a haven for the entrepreneurial culture. Chattanooga experienced explosive economic development leading to thousands of new jobs, substantial public savings due to the network's smart grid capabilities, and new educational opportunities for students and workforce development.

From the press release:

Chattanooga’s fiber optic network has produced tangible results. A study recently released by University of Tennessee at Chattanooga Finance professor Bento Lobo shows “the Gig Network” helped the Chattanooga area generate at least 2,800 new jobs and at least $865.3 million in economic and social benefits. The study also found the EPB smart grid, which is the cornerstone application of the utility’s community-wide fiber optic network, has allowed customers to avoid an estimated 124.7 million minutes of electric service interruptions by automatically re-routing power (often in less than a second) to prevent an outage or dramatically reduce outage durations.[read the study here

Businesses in Fort Collins, Colorado, Advocate for Local Authority

As the city of Fort Collins prepares for a November ballot issue seeking to reclaim local telecommunications authority, local business leaders are articulating their support. Walt Lyons, the owner of a Fort Collins-based video production company and member of the Fort Collins Citizens Broadband Committee, believes slow broadband access should be a central priority for this city of more than 150,000:
“This is more important than widening I-25,” Lyons said. “This is not going to make much difference to me because I’m getting ready to retire. But it will make a difference for my kids and my grandchildren. The kinds of places they will work and what they do will depend upon it."
The city has access to many miles of fiber optic networks as Fort Collins is connected to a ring that the Platte River Power Authority (PRPA) built to connect its four partners: Fort Collins, Loveland, Estes Park and Longmont. At present, only government-owned facilities in Fort Collins can use the fiber network.  Because Colorado State University is among the places that can access the PRPA network, the school’s vice president of IT and dean of libraries, Pat Burns, sees firsthand the enormous gap between the broadband speeds he gets at home versus those available on campus:
“The best service you can buy from the private sector, like to a residence in Fort Collins, is not as good as the crappiest service we deliver on the CSU campus,” Burns said. “It just cripples what can be done.”
A number of Colorado communities have voted to reclaim local authority in the past year. A few places, like Rio Blanco County and Firestone, have moved forward with feasibility studies or are already planning for public investment.

Fibrant Rolls out 10 Gbps, A Look At Salisbury's Challenges in FTTH

Salisbury, North Carolina's Fibrant, now holds the distinction of offering the fastest Internet access in the country. The municipal network is making 10 Gbps symmetrical connectivity available for residents and businesses.

Fibrant's first 10 Gbps customer is Catawba College, a local school that will use the ultra-fast connections for its new Digital Media Creation and Collaboration labs. In a press release Joanna Jasper, Catawba CIO stated:

"By moving to Fibrant's 10 Gbps speeds, the College is in a better position to differentiate itself. We can bring world-class broadband services to our campus community to support the next generation of educational applications."

"The future is all about rich immersive digital media and being able to communicate and collaborate with others in real-time regardless of where people are in time and space."

The city of Salisbury hopes this new standard will set it apart from other North Carolina communities and entice more economic development. From a BizJournals article:

“It helps us differentiate ourselves” among cities and states seeking technology companies, [says Kent Winrich, Director of Broadband and Infrastructure Services]. “It will attract international companies. It’s not sniping businesses from Charlotte.”

Winrich sees Salisbury attracting technology companies that need the bandwidth for real-time connections to clients and suppliers — software developers and data centers, for example.

The network, which already offers gigabit connectivity to businesses and residents for around $100 per month, has attracted several businesses to a community that once struggled with job loss. Mayor Paul Woodson told WFAE that the investment in Fibrant grew out of necessity:

More Colorado Communities Will Ask Voters To Reclaim Local Authority

This November 3rd, more than ten communities in Colorado will attempt to escape the local-authority-revoking effects of SB 152 by overriding its restrictions at the polls: Archuleta County, Bayfield, Boulder Valley School District, Durango, Fort Collins, Ignacio, La Plata County, Loveland, Moffat County, Pitkin County, San Juan County, and Silverton.

Many of these communities participated in a $4.1 million fiber infrastructure project which currently provides public entities (municipal buildings, libraries, and schools) with cheap, plentiful Internet access. To determine how to better utilize that existing fiber infrastructure, the Southwest Colorado Council of Governments received a $75,000 regional planning grant. The 10 year old law in question, SB 152, prevents local governments from taking full advantage of local fiber assets by removing local authority to offer any services that compete with incumbents; voters must reclaim that authority through a referendum.

Under the restrictions, localities cannot partner with local ISPs to provide high-speed Internet to community members via publicly owned infrastructure or create municipal FTTH networks. Local government entities must also be careful to not lease too much fiber or risk running afoul of the law. Statewide organizations have worked to amend the law, but without success:

“It’s an obnoxious law that was passed by the industry to protect their monopoly,” said Geoff Wilson, general counsel for the Colorado Municipal League.

The league tried to get the law amended during the 2015 legislative session after hearing from communities across the state about how it was blocking them from improving Internet access for residents.

“The law is designed to protect the provider of inferior service from the local government doing anything about it,” he said.

Wilson Business Thrives With Muni Fiber Network - Community Broadband Bits Podcast 171

When Wilson decided to build its municipal fiber network in North Carolina, it found a strong opponent in Tina Mooring, store manager of Computer Central. One of the local business' sources of revenue was connecting people to the Internet and they were fearful that they would lose customers to what became Greenlight, the municipal fiber network that delivered the first 100 Mbps citywide service in the state and later the first citywide gig as well. 

As we noted in a post in August, Computer Central became a strong supporter of Greenlight and now believes that Computer Central would be best served by allowing Wilson's municipal fiber to expand to nearby communities. In this week's Community Broadband Bits, Tina Mooring gives us the background and reasoning for this interesting change of heart. This is a short interview, but we hope to see more of these collaborations and partnerships in other communities, where local businesses can use municipal fiber networks to sell business-to-business services. 

This show is 10 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

New Video on Economic Development and High-Speed Connectivity in Tennessee

Tennessee Fiber Optic Communities has released another quality video focused on restoring local telecommunications authority. This three minute feature describes the importance of high speed connectivity to local economic development.

The video offers specific examples of businesses that relocated to places like Jackson and Chattanooga, comparing business connectivity in places with municipal networks to areas where high-speed connections from incumbents are costly and hard to come by.

Check out the video from the Tennessee Fiber Optic Communities:

TNFOC_EconomicDevelopment2 from TN For Fiber on Vimeo.

Avoid Partisan Fights with a Personal Face on Economic Development

The following commentary comes from Mike Smeltzer, one of the key people responsible for the UC2B network in the Illinois twin cities of Urbana and Champaign. Mike had this comment after a question about how we can elevate local bipartisan conversations from the local level to the state and federal level without getting lost in political bickering. He wrote this and gave us permission to republish it.

The Urbana City Council could be confused for Madison's, while Champaign's Council is far more conservative. I spoke to both of them on a regular basis in the early days of UC2B seeking their support. I learned early on that I could not tell Urbana's Council what they wanted to hear on Monday night, and then change the message to better please Champaign's Council on the next night. Those dedicated public servants watch each other's meetings on the PEG channels.

The only message that rang true with both councils was economic development. That should not come as any surprise, but as we look to elevate the discussion, I believe that we need to personalize that message. Joey Durel does it more eloquently than anyone, but I have heard the same theme from other mayors and elected officials from across the country.

The first time I heard Joey was on a NATOA field trip to Lafayette 4 or 5 years ago. After he served us his home-made gumbo, he told us the bottom line on how a conservative businessman became a leading advocate for Lafayette's fiber broadband system.

Joey saw fiber broadband as his community's best opportunity to create a local business environment that would allow his adult children (and their children) to work and live in Lafayette. There is no greater gift to parents than to be able to participate in the lives of their adult children and grandchildren. Without fiber in Lafayette, Joey was concerned that his kids would have to move away to find jobs after college or high school in order to find rewarding work.

Any parent from any political perspective understands that. I am lucky that both of my daughters live in Champaign. I get to see them and my grandchildren often. Wouldn't it be great if my luck was more generally shared?