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The Dalles Pays off Its Network Debt Ahead of Schedule
Of the more than 400 communities around the country that have built and benefitted from community networks, the town of The Dalles in Oregon may have a case for the title of “most bang for the buck.” Their commitment of $10,000 12 years ago to leverage a $1.8 million “QLife” fiber optic network has lead to a massive, $1.2 billion dollar investment from Google in the form of a huge data center, employing nearly 200 people and generating millions in tax revenues for the local community. And at the end of September, the QLife board of directors announced that they had paid off the loans used for network construction more than three years ahead of schedule.
We covered part of The Dalles’ network story two years ago: a small city of just 13,000 was told by Sprint in 2000 that it would have to wait 5 to 10 years for broadband Internet access. Meanwhile, local manufacturing was declining and employers were overlooking the town due to its outdated infrastructure. Before building the QLife network, The Dalles had no access to the major long haul fiber pathway that happened to run right through town. As city manager Nolan Young told Andrew Blum in an interview for his book “Tubes,” it was like “being a town that sits next to a freeway but has no on ramp.”
The city decided enough was enough, and partnered with the county and the local public utility district on a plan for a $1.8 million, 17 mile fiber optic loop through the community that would connect anchor institutions and offer middle mile access to private providers.
CenturyLink Seeks Apartment Buildings for Gigabit in Portland
Video Explains the Public's Rights-of-Way
The publicly owned rights-of-way (ROW or PROW), are a misunderstood resource in many communities. Local governments manage them on behalf of the public, but are under pressure as very large, very profitable cable and telephone companies seek to prevent local governments from charging rent to those using the PROW.
This video from Oregon quickly explains some of the key issues around the PROW .
Smart Conduit Policy in Sandy, Mount Vernon Reduces Network Cost
More communities now embrace "dig once" policies to facilitate installation of future and current networks. The idea is to be mindful of trenching for transportation and utility projects and encourage collaboration between agencies. However, this is implemented in a variety of ways, some more effectively than others. By establishing requirements for conduit installation in development codes, communities can save big dollars if they build or expand a network in the future.
Communities such as Sandy, Oregon, and Mount Vernon, Washington, have instituted such policies. Both communities require private developers to install conduit when disturbing existing roads or building roads for new subdivision construction. Conduit itself is inexpensive and the digging is already done, so the added burden is light.
Both of these communities have plans, including maps, that allow them to be strategic in where they require conduit to be placed. They are not simply adding conduit blindly, though that policy may be better than doing nothing at all (experts are divided on the matter).
In Sandy, the code change (see Sec. 17.84.60) was a simple expansion of existing policy. The city added "broadband (fiber)" to the list of public facilities, such as public water, sanitary sewer, and storm drainage. Underground communication lines join a list of other required improvements that are to be installed in new developments at no expense to the city. Other items on that list include drainage facilities, mailbox delivery units, street lights and a underground power lines. (see Sec. 17.100.310).
Anticipated connectivity raises the value of new homes and makes them more attractive to today's buyers. Scott Lazenby, City Manager in Sandy, spoke to us for a recent podcast and told us how a developer in the area is excited about the potential. SandyNet plans to offer 100 Mbps Gbps residential service via the new conduit at an incredibly low $40 per month; the developer sees that as a major selling point.
Exploring Conduit Policies - Community Broadband Bits Episode #48
Ashland, Oregon, Wants To Increase Local Internet Commerce
Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.
AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.
The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.
Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area.
Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:
Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.
"It's an aggressive goal that says the city is committed to growing this industry," he said.
Lemhouse said many such businesses can be operated out of people's homes.
People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.
With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:
How a Muni Network in The Dalles Led to a $600 million Data Center
As I recently mentioned in my endorsement of Tubes by Andrew Blum, the book explains how a municipal fiber network helped to attract Google to town. Google sited its first "built-from-scratch data center" there, a $600 million investment according to Stephen Levy. According to Blum, it all started back in 2000 when the community got fed up with incumbent telephone company Sprint.
The Dalles was without high-speed access for businesses and homes, despite the big nationwide backbones that tore right through along the railroad tracks, and the BPA's big network. Worse, Sprint, the local carrier, said the city wouldn't get access for another five to ten years. "It was like being a town that sits next to the freeway but has no off-ramp," was how Nolan Young, the city manager, explained it to me in his worn office...
The Dalles was suffering economically due to its reliance on industrial jobs that were slowly disappearing.
New Fact Sheet: Community Broadband and Public Savings
We have already published a fact sheet on the critical role community broadband plays in job development. Now, ILSR presents a collection of how community owned broadband networks save money for local government, schools, and libraries while providing cutting edge services. The Public Savings Fact Sheet is now available.
Though schools, libraries, and other community anchors need access to faster, more reliable networks, the big cable and telephone companies have priced those services so high that they are breaking the budget. But when communities create their own connections, affordable high capacity connections are only one of the benefits. A community owned network offers the promise of self-determination -- of upgrades on the community's time table and increased reliability for emergency responders.
The Public Savings Fact Sheet is a great piece to share to mobilize other members of your community. Share it with decision makers and use it to start meaningful conversations. Distribute it widely and often.
We are always developing new resources. If you have an idea for a new fact sheet, we want to hear it.
Community Broadband Bits 17 - Joe Knapp of Sandy, Oregon
Oregon's SandyNet to Use Sewers for Fiber Deployment
SandyNet, of Sandy, Oregon, recently announced that it plans to expand Internet service with fiber to every home and business in the city. The network, which has serviced the community for ten years, currently offers fiber to businesses along the Highway 26 corridor. Wireless service is available throughout town and in some rural areas around the City.
SandyNet plans to provide a range of tiers for fiber connectivity. Preliminary rates include residential fiber service of 100 Mbps for $39.95. Business service will vary from $69.95 per month to $499.95 per month for 1 Gbps. Construction is scheduled to begin spring of 2013 and the utility estimates service to be available by the end of the year in most neighborhoods.
The City will be working with i3 America, which uses city sanitary and sewer storm pipes as a makeshift conduit for fiber optic cable. i3's "FOCUS" system uses special armorerd cable designed to withstand a harsh environment and does not affect operation of clean or wastewater systems. Because this method uses existing pipes, construction costs can be up to 70% lower than traditional burying of conduit and fiber. The location of cable is much deeper in the wastewater pipes, so there will be less chances of damage due to construction or the elements.
From the press release:
The City of Sandy last year sponsored a "Why Wait for Google?" contest to gauge interest in fiber Internet service, and to select a neighborhood for a pilot program. Resients in every neighborhood expressed interest in the service , and i3 approached the city with a proposal to extend fiber to every building in the town.
Similar to the Google Fiber deployment in Kansas City, neighborhoods that show the most interest will be hooked up first. Residents and businesses are encouraged to sign up now.
Joe Knapp, IT Director and General Manager of SandyNet offered some details via email: