HomeMy WebLinkAboutMissoula Next-Generation Broadband Feasibility Study FINAL V1.2
Next-Generation Broadband Feasibility Study
BitterRoot Economic Development District
The City of Missoula
Missoula County
July 16, 2014
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Missoula Next-Generation Broadband Feasibility Study
Prepared By Magellan Advisors. 2014.
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Table of Contents
1. Executive Summary ................................................................................................................ 3
2. Background ............................................................................................................................ 9
3. Local Government’s Role in Broadband Expansion .................................................. 10
4. Overview of Broadband Technology ............................................................................. 10
5. Defining Next-Generation Broadband in Context ..................................................... 12
6. The Current State of Broadband ................................................................................... 13
A. Broadband in America ........................................................................................................ 14
B. State of Montana Broadband Initiatives ......................................................................... 15
C. Local Montana Broadband Initiatives ............................................................................. 15
7. Needs Assessment for Next-Generation Broadband ............................................... 17
A. Tech-Oriented and Big Data Businesses ........................................................................ 17
B. Small Businesses .................................................................................................................. 19
C. General Broadband Profile for Missoula Businesses .................................................. 20
D. Missoula Economic Development ................................................................................... 21
E. Healthcare Organizations ................................................................................................... 22
F. Educational Organizations ................................................................................................. 23
G. City and County Initiatives ................................................................................................. 25
H. City of Missoula .................................................................................................................... 26
I. Missoula County ..................................................................................................................... 27
J. Broadband Needs Assessment Summary ....................................................................... 28
8. Overview of Broadband in Missoula ............................................................................. 29
9. Existing Broadband Infrastructure ................................................................................ 32
10. Identifying the Key Issues ................................................................................................ 33
11. Recommendations ............................................................................................................ 30
A. Build Support for Missoula’s Broadband Initiative ...................................................... 38
B. Public Policy Development ............................................................................................... 39
C. Record Keeping and Information Sharing ..................................................................... 40
D. Education and Adoption Strategies ............................................................................... 40
E. Development of Missoula’s Community Broadband Network ................................. 41
i. Ingredients for Success ................................................................................................. 42
ii. Conceptual Network Design ........................................................................................ 44
iii. Benefits of a Missoula Community Network .......................................................... 44
iv. Design of Missoula’s Community Broadband Network ....................................... 45
v. Missoula Community Broadband Network Cost Estimates ................................ 49
vi. Building the Business Case ......................................................................................... 51
12. Next Steps ........................................................................................................................... 61
A. Implementing Public Policy Tools .................................................................................... 61
B. Development of the Broadband Strategic Plan .......................................................... 61
13. Appendix A – Glossary ...................................................................................................... 63
14. Appendix B – Broadband Infrastructure Standards ................................................. 69
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Missoula Next-Generation Broadband Feasibility Study
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1. Executive summary
Affordable, accessible and reliable broadband is a critical community infrastructure like
roads, bridges, water, and power. When local providers and/or networks can’t keep up
with customer demand and people and businesses can’t fully use the online applications
they need to thrive, municipalities have stepped in to improve the price and
performance of broadband services in concert with local providers. As more of our
everyday lives happen online, ultra-fast and reliable broadband becomes increasingly
important for our homes, businesses, and communities. Broadband improves:
• Delivery of healthcare services;
• Educational experiences of children and adults;
• Conserving and managing energy resources;
• Assisting public safety personnel; and,
• Engaging citizens with government agencies
For businesses, next-generation broadband is a driving force behind competitiveness,
innovation, and efficiency. Affordable, available access to broadband means the
difference between cities that thrive in the new economy1 and those that become
obsolete. Missoula ranked 5th for density of high-tech startups in a recent Kauffman
Foundation report2 and ranked first in the small metro category for having the largest
number of new tech companies started between 2000 – 2010. These industries need
fast, reliable access to broadband at prices that small businesses can afford. In Missoula
today, these services are not readily available. The City of Missoula. Missoula County, and
Missoula Economic Partnership (MEP) have targeted and are investing in five key
industry sectors to cultivate economic development within the region.
• Life Sciences
• Information Technologies
• Manufacturing
• Back Office & Creative Services
• Forest Products and Renewables
Every one of these industries relies on a foundation of fast, reliable and affordable
broadband. Once again, these services are not readily available. For the City, County and
MEP to maximize its investment in its current economic development strategy, these
issues must be resolved. Our survey and findings show that Missoula’s small and
medium sized businesses cannot afford the high prices of fiber-based broadband
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1 A coined term describing new, high-growth industries that are on the cutting edge of technology and are the driving
force of economic growth. The new economy is commonly believed to have started in the late 1990s, as high tech tools,
such as the internet, and increasingly powerful computers, began penetrating the consumer and business marketplace.
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2 Path Dependent Startup Hubs. Comparing Metropolitan Performance: High-Tech and ICT Startup Density. Kauffman
Foundation, Sept 2013.
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services; therefore, they are left to utilize lower cost services that do not meet their
needs.
Elected leaders of the City of Missoula and Missoula County want to build on the region’s
strengths to encourage and help develop affordable, high-capacity broadband that will
ensure the community’s current and future needs are achieved, following in the
footsteps of hundreds of municipalities and state governments nationwide. They realize
broadband is a powerful economic development tool that supports education,
healthcare, government and other community functions. If Missoula wants to compete
for high-paying technology and Big Data jobs and retain its growing startup community,
local government must take an active role in solving the broadband problem.
The Feasibility Study’s objective is to provide the information and recommendations to
the City and County that will allow them to make informed decisions investing
responsibly in broadband infrastructure and expanding its use in the community. In the
context of this study, next-generation broadband, fiber-based broadband, and fiber-
optic services are used interchangeably.
Magellan’s recommendations range in cost and risk, including:
Create a Working Group to Carry Out Recommendations:
Missoula’s broadband initiative should continue to be built with grassroots support from
community stakeholders. A working group representing key stakeholders will need to
drive the following initiatives based on our recommendations:
• Why it’s Needed: To help coordinate and receive input from the various
stakeholders and ensure a coordinated approach that maximizes cost savings
and accelerates next generation broadband growth.
• How it Works: For the City and County to be successful in building a
community network, a small working group should be charged with carrying out
the recommendations of the Feasibility Study
• Cost: An organization to manage and coordinate the group.
• Next Step: Ask key stakeholders for a participating member.
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Build a Missoula Community Broadband Network
• Why it’s Needed: To accelerate the deployment of next-generation broadband
services to the community at an affordable rate to help the community remain
competitive in the global economy.
• How it Works: The City and/or County would either entirely or in partnership
with the private sector cover the capital and maintenance costs associated with
building a fiber network and lease excess fiber to local broadband providers who
may use it to deliver more broadband to Missoula’s community.
• Cost: $10.5 million in funding over 5 years, through a combination of federal,
state, private grants and municipal bonds.
• Next Step: Include all of Missoula’s stakeholders to develop and finance a
network that is capable of serving the broadband needs of business, K-12 and
university education, healthcare, government, public safety and community
support.
Implement Broadband-Friendly Public Policy
1. Dig Once: Implement joint trenching agreements between public
organizations, private broadband providers and other utilities.
• Why it’s Needed: “Dig once” policies minimize repetitive installation of
costly broadband infrastructure and allow multiple organizations to use a
“common trench.”
• How it Works: The City and County will change local ordinances to ensure
these organizations and providers are notified of any proposed trenching or
related infrastructure projects.
• Cost: The City and County should develop a CIP fund to pay for
infrastructure that can be used as opportunities arise. Funding amounts will
be dependent on the forecast for upcoming projects.
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• Next Step: Work to incorporate “dig once” policies into City and County
ordinances and identify funding mechanisms to use when opportunities to
install infrastructure arise.
2. Infrastructure Standards: Implement City and County broadband
infrastructure standards for land development code.
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• Why it’s Needed: To ensure cost-effective broadband infrastructure
construction in conjunction with City and County capital projects, as well as
private utility and development efforts.
• How it Works: By incorporating broadband engineering standards into City
and County land development code, these organizations can take advantage
of road, water, sewer and other capital projects to install basic broadband
infrastructure.
• Cost: The City and County should develop a CIP fund to pay for all
broadband infrastructure investments. Funding amounts will be tied directly
to the amount and scope of City and County capital projects where
broadband infrastructure may be installed.
• Next Step: Review, modify and finalize sample broadband engineering
standards supplied in this project and embed them into City and County land
development code.
3. Permitting: Evaluate, streamline and reduce permitting fees to lower
broadband provider construction costs when broadband
infrastructure is being installed, relocated or repaired.
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• Why it’s Needed: To incentivize broadband providers to build more
broadband infrastructure, more quickly and at a lower cost.
• How it Works: Streamlining and reducing permitting fees will reduce the
time and cost for providers to plan, install and manage their broadband
infrastructure in Missoula.
• Cost: Reducing permitting fees could reduce fees collected by the City;
however, it could positively affect broadband investment in the community.
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• Next Step: Evaluate and streamline permitting processes; reduce permitting
fee ordinances for any future broadband infrastructure providers.
4. Uniform Standards: Educate and partner with local developers to
ensure new buildings or retrofits are equipped with basic
broadband infrastructure, in conjunction with City and County
broadband infrastructure standards.
• Why it’s Needed: To promote City and County broadband standards and
ensure that premises are equipped with the infrastructure necessary to
access next-generation broadband.
• How it Works: City and County will work with local developers to identify
low-cost improvements to existing and new developments to meet Missoula’s
broadband engineering standards.
• Cost: There is no direct cost to the City or County.
• Next Step: Implement the broadband infrastructure standards in Item 2.
Discuss the implications with local developers to understand if any obstacles
will be experienced.
Maintain Accurate Records and Share Information
1. Map: Ensure all broadband infrastructure is built according to
the above-mentioned public policy tools and that appropriate
records and accurate data is included in City and County GIS
systems in order to develop a broadband infrastructure map for
the region.
• Why it’s Needed: To give the City and County the ability to track what
broadband infrastructure is being built within the region.
• How it Works: The City and County would require all permits for
broadband infrastructure to identify the location of installation and the type
of infrastructure being installed.
• Cost: There is no direct cost to the City or County.
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• Next Step: Evaluate the City and County systems to ensure they can track
the broadband infrastructure being installed.
Develop Education and Adoption Strategies
1. Information sharing: In cooperation with Missoula’s service
providers, raise awareness in the business community regarding
broadband services that are available in Missoula. City and
County economic development leaders should connect current
and prospective businesses, developers and property owners with
Missoula’s local providers, on an equal and competitive basis.!
• Why it’s Needed: The City and County should promote the local providers
in Missoula so businesses and anchors know what telecommunications
services are available and providers can increase their customers
• How it Works: City and County should co-market with providers to ensure
end users know what services are available.
• Cost: There is no direct cost to the City or County.
• Next Step: Discuss service offerings with each of the providers and identify
co-market strategies.
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www.magellan-advsors.com
2. Background
In June of 2013, The BitterRoot Economic Development District (BREDD), in Partnership
with the City of Missoula, and Missoula County issued a Request for Qualifications
seeking a qualified consultant to develop a Next-Generation Broadband Feasibility Study
for Missoula County focusing on ways to promote the development of next-generation
broadband infrastructure in the community. A Broadband Committee composed of
representatives from the BitterRoot Economic Development District (BREDD), The City of
Missoula, and Missoula County conducted the evaluation and selection of the
consultant. The study was paid for collaboratively by a Big Sky Trust Fund Grant
($26,250), and the City of Missoula and Missoula County each contributed $13,125 to
match those funds.
Magellan Advisors was selected by the
Committee through a competitive procurement
to develop the Study. Magellan Advisors works
with hundreds of municipalities nationwide to
plan for next-generation broadband services
that are essential for their economic future. Magellan specializes in developing
broadband strategies that local governments can use to foster the development of
affordable, high-speed broadband services, in conjunction with local service providers,
community anchors, businesses, and residents.
The study began in September of 2013 and after 8 months of surveys, interviews,
research and analysis, it’s complete. Missoula’s Next-Generation Broadband Feasibility
Study is the product of a comprehensive market analysis that evaluated the current
broadband environment in Missoula and documented the services, pricing, providers,
and availability within the City and around greater Missoula County. From this
assessment, Magellan compared current availability and pricing for services against the
needs of over 100 community stakeholders interviewed and/or surveyed.
After identifying the gaps, Magellan developed community strategies discussed here,
that the City and County could undertake to positively influence the affordability,
availability, and expansion of broadband services in Missoula.
These initiatives are intended to promote the development of next-generation
broadband in Missoula over a 10-year period. The premise of these strategies is that
public organizations and private service providers each have tools at their disposal to
mutually expand broadband services in the region. Cooperation between public
organizations and these private providers has been proven to reduce the cost of local
broadband and hasten its expansion in communities across the country.
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Missoula Next-Generation Broadband Feasibility Study
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3. Local Government’s Role in Broadband Expansion
Broadband is a critical need that is tied to nearly every community function from
education, to healthcare, to economic development, and quality of life. Specific public
benefits tied to next-generation broadband include:
• Online education
• Ensuring technology used by students at school can also be used at home
• Electronic standardized testing
• Blended learning
• Electronic health records and telehealth applications
• Vital communications between emergency responders
• Citizen engagement with local government
• Job creation: both attracting new industries and helping startups grow
• Technology transfer from the University of Montana to local businesses
4. Overview of Broadband Technology
So how does broadband work? Both wired and wireless infrastructure carries digital
signal between end users and the content they want to access, but all wireless
infrastructure is ultimately supported by fiber optic networks that are ultimately
connected to the Internet backbone, which runs along Missoula’s I-90. Broadband is
what delivers content such as websites, television, streaming video, videoconferencing,
cloud services, and even telephone service to consumers and businesses. Robust local
infrastructure results in faster, more reliable access to content. Conversely, local
infrastructure that is aging and built on older technologies, such as copper or DSL cable,
results in slower, less reliable access to content.
Most Americans still use copper-based broadband infrastructure to transmit
information to and from the Internet including twisted-pair copper telephone and
coaxial cable lines. Most of this infrastructure was installed decades ago, but in many
areas of the country, it is still being installed today primarily due to cost.
Underlying problems with copper infrastructure include:
• Broadband signals degrade significantly as distances increase in copper-based
networks; meaning slower speeds;
• Broadband signals are susceptible to electrical interference and signal
degradation in copper-based networks, particularly as they depreciate; meaning
reduced latency (reliability); and,
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Missoula Next-Generation Broadband Feasibility Study
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• Copper-based networks delivering broadband services generally utilize shared
bandwidth among pools of users that results in an uneven distribution of speed
to these users. For example, when you stream your favorite Netflix show at 7
p.m., you are more likely to encounter “buffering” than if you did it at 2 p.m. when
most Internet users are still at work.
Fiber-optic infrastructure is far superior to copper, but the transition is slow. Costs for
deployment of fiber-optic infrastructure are extremely high, particularly in areas where
no fiber-optic infrastructure exists. Providers understand that fiber-optic broadband
provides the only long-term solution to the ever-growing bandwidth needs of homes,
businesses, and community anchors, but they are responsible to their shareholders and
investment horizons of three to five years. Fiber-optic broadband connectivity is
superior to copper in the following ways:
• Fiber-optic technology converts broadband data signals to light and sends the
light through transparent glass fibers about the diameter of a human hair. Fiber
transmits data at speeds far exceeding current DSL or cable modem speeds;
typically by tens or even hundreds of Mbps.
• Fiber-optic service speeds are always dependent on the services provisioned by
the service provider who operates the system however speeds generally range
from 10Mbps to 10Gpbs, depending on the need.
• Fiber-optic services can generally be upgraded to much faster speeds more
easily than copper networks allow.
Figure 4.1 compares traditional broadband technologies such as DSL, cable, and
wireless to fiber-based next-generation broadband. Whereas traditional broadband
technologies have an upper limit of 150Mbps, next-generation broadband surpasses
these limitations and can provide speeds of 1Gbps or greater.3
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3 Actual speed and quality of service will depend on the specific service contracted by the end user, whether using a
traditional broadband service or a next-generation broadband service.
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Figure 4.1: Comparison of Maximum Broadband Speeds to Next-Generation Broadband
5. Defining Next-Generation Broadband in Context
A major goal of the Next-Generation Broadband Feasibility Study is to ensure businesses
in Missoula are equipped with the necessary broadband infrastructure to meet their
current and future needs. Missoula wants broadband infrastructure that supports its
economic development efforts and results in attracting and retaining businesses.
Broadband is also important to Missoula’s Community Anchor Institutions, (“CAIs”) which
include education, healthcare, public safety, local government, and community support
organizations, as described earlier in this document.
The broadband discussed in this study involves a variety of technologies, delivery
systems, service levels, and speeds, but five features remain constant and help arrive at
a working definition:
1. Unlike dial-up services, broadband services are always connected.
2. Services capable of transmitting and receiving large amounts of data in
symmetrical transmission (meaning the same upload and download speed).
3. Services capable of supporting multiple types of traffic simultaneously, such as
voice, video and Internet.
4. Services capable of supporting specific performance requirements of
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applications such as voice and video.
5. Services that are able to provide items 1-4 consistently and without interruption,
supporting critical business and community anchor functions such as video
conferencing and cloud based applications.
6. The Current State of Broadband
Broadband is a vital element of economic and community sustainability that has only
begun to take shape in the early 21st century. Whereas our road systems provide the
infrastructure necessary to connect our communities physically, broadband provides the
digital infrastructure necessary to connect our communities virtually to the rest of the
electronic world.
Throughout history, infrastructure networks have connected people, places, ideas, and
products. The development of major infrastructure networks has facilitated American
innovation, progress, and prosperity. Before the 1800s, port cities were the world’s
economic and educational hubs. In the 19th century, the transcontinental railroad
system allowed people, goods, and ideas to branch out into new territories, creating new
opportunities and encouraging entrepreneurship and prosperity. The 20th century
witnessed the development of large-scale electric grids and the interstate highway
system; innovations that once again, allowed Americans to be more productive, mobile,
and opportunistic. Similarly, communications infrastructure, telephony, radio, and
television also transformed the American economy and culture; now, broadband has
become critical infrastructure that connects people, communities, and commerce.
Broadband is a transformational infrastructure that transcends the physical limitations
of more traditional infrastructures such as the road system or electric grids. Rather than
connecting one community to another, it connects a community to the entire electronic
world and global marketplace. This is a key reason why broadband is so important to the
future of communities. Communities that have access to high-speed broadband will
continue to take advantage of all of the opportunities the global marketplace affords
them, in business, education, healthcare, entertainment, and general well-being.
Communities without access will fall further and further behind, lacking access to those
opportunities and becoming less and less connected to the digital world.
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A. Broadband in America
Realizing its importance in the development of our nation, the U.S. government has
created public policy and funding programs to accelerate the development of
broadband and enhance existing infrastructure. Former Chairman of the Federal
Communications Commission, Julius Genachowski, stated:
“Broadband is the indispensable infrastructure of the digital age – the 21st
Century equivalent of what canals, railroads, highways, the telephone,
and electricity were for previous generations.”4
In early 2009, Congress directed the Federal Communications Commission (FCC) to
develop a National Broadband Plan to ensure that every American has “access to
broadband capability.” Congress also required this plan to include a detailed strategy for
achieving affordability and maximize the use of broadband to advance “consumer
welfare, civic participation, public safety and homeland security, community
development, health care delivery, energy independence and efficiency, education,
employee training, private sector investment, entrepreneurial activity, job creation and
economic growth, and other national purposes.”5
The following goals set out in the National Broadband Plan apply specifically to
expansion of these critical services in communities across the country.
Goal Number 1: At least 100 million U.S. homes should have affordable access to actual
download speeds of at least 100 megabits per second and actual upload speeds of at least 50
megabits per second, by 2020.
Goal Number 2: The United States should lead the world in mobile innovation with the
fastest and most extensive wireless networks of any nation.
Goal Number 3: Every American should have affordable access to robust broadband
service and the means and skills to subscribe if they so choose.
Goal Number 4: Every American community should have affordable access to at least 1
gigabit per second broadband service to anchor institutions such as schools, hospitals, and
government buildings by 2020.
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4 “Oversight of the Federal Communications Commission: The National Broadband Plan” Hearing before the
Subcommittee on Communications, Technology, and the Internet. United States Senate. March 25, 2010
5 “National Broadband Plan” http://www.broadband.gov/plan/executive-summary/. Accessed September 10, 2013.
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B. State of Montana Broadband Initiatives
Most states have recognized that broadband is a key aspect of the long-term
development of their regions and have developed State agencies to manage these
important issues. In 2009, Montana’s Department of Commerce’s Broadband
Technology Opportunities Program provided a pool of funding specifically designed for
States called the State Broadband Initiative (SBI) to complement the new federal
government efforts. This included the Montana Broadband Program that worked to map
statewide broadband infrastructure. The results become part of a federal NTIA
broadband map.
Montana has not done much to expand on this initial program to develop state-funded
broadband program offices that continue to deal with broadband policy, infrastructure,
and adoption issues in their jurisdictions, though Governor Steve Bullock’s Main Street
Montana plan indicates this will be a priority moving forward.
C. Local Montana Broadband Initiatives
Broadband is a local-control issue for communities that want to chart their own
economic destinies. At least three communities in Montana have taken a foundational
interest in local broadband infrastructure in effort to ensure their communities are on
par or better off than others in the region.
City of Bozeman Broadband Master Plan
Affordable broadband access is essential for creating high-paying jobs in Bozeman and
Gallatin County. Technology firms, medical providers, banks, businesses, and startups
require fast, reliable, and secure connections to their clients. Schools increasingly
depend on broadband to provide high quality instruction and meet standards for
integrating technology into the classroom. Broadband connectivity however, is only
available at high prices or is simply unavailable. This initiative seeks to increase access
and significantly lower the cost of broadband for business by stimulating private sector
service delivery through public infrastructure investment. The City has solicited
proposals for a Broadband Master Plan in March 2014.6 Bozeman is increasingly know
as Silicon Prairie and is home to a number of tech companies. Recently Oracle invested
billions in purchasing and expanding a cloud based IT services provider in Bozeman.
City of Butte Community Hybrid Fiber-Optic Network
Butte is the first city in Montana to build a community hybrid fiber-optic network, at the
behest of the local school district. Twenty-eight miles of fiber-optics were constructed
both under and above ground giving Butte’s school district and local government
extremely high-speed Internet and local connectivity. Private businesses can also use
the network.
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6 City of Bozeman Business and Economic Development. https://www.bozeman.net/Departments-
(1)/Administration/Economic-Development/Home.aspx. Accessed March 2014.
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Outside of Montana, communities nationwide have developed broadband initiatives that
range from crafting broadband-friendly public policy to building and operating next-
generation networks to serve their communities. Figure 6.1 illustrates geographically the
municipal and community networks that have been built by cities, counties, and states.
Public organizations that choose to take on these projects generally do so because
service providers have decided not to or cannot make the necessary investments to
upgrade their networks to meet the needs defined by the community or they are not
making these investments rapidly enough to support growing community needs,
resulting in communities “falling behind the curve” in broadband development. In many
of these cases, public organizations utilize public-private partnerships with existing
telecom operators to bring new infrastructure to the community.
Figure 6.1. Community Broadband Network Locations Across the Country
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7. Needs Assessment for Next-Generation Broadband
Community broadband networks are only successful when demand is identified and
aggregated. Most Missoula businesses and community anchors stand to benefit from
next-generation broadband in the long-term. Missoula’s broadband initiative should
incorporate the needs of all potential users in the community into a community
broadband strategy. It’s also essential to partner with private providers since they will
still serve the end users on a community-owned network.
The diagram below illustrates the stakeholders interviewed for this study and who
should be involved in broadband planning efforts.
Figure 7.1: Stakeholders Included in Missoula’s Broadband Needs Assessment
A. Tech-Oriented and Big Data Businesses
Missoula’s tech-orientation and Big Data focus are an important aspect of next-
generation broadband for the business community. These organizations have significant
needs for high-speed, reliable bandwidth, options which can generally only be provided
through next-generation broadband connectivity. To promote Missoula’s focus on the
Missoula Broadband Needs Assessment
Missoula County Public Schools
Missoula Independent School Districts
Healthcare
Entities
Missoula County City of Missoula
Anchor Businesses
Big Data & Tech Sector
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Big Data and Information Technology sectors, it is critical that the region has affordable
access to these services to meet the needs of current businesses and new startups
entering the market.
Lester Dye, CEO & Founder, Quantpost
“As an owner of a company that relies heavily on real-time data analytics to provide our
clients with our product, it is absolutely essential for us to have high speed, consistent,
and reliable broadband. In previous companies based here we have moved computing
resources out-of-state because of the poor service.
Cable companies are monopolies that spend much more on politicians, lobbying and
marketing than engineering. It is likely they do not maintain a graduate engineer in
Montana. Routinely, they market and sell much more bandwidth than they are capable
of delivering because they must purchase out-of-market bandwidth from national
providers. This directly relates to their profit. This is why a 30 Mbit contract will delivery
2-4 Mbit during peak hours. They can test your circuit to Billings and tell you it is
achieving 30 and there is nothing they can do about the “broader Internet”, it is “out of
their control”. Unfortunately, this is complete fiction.
Think about it like this: If you paid for 30 gallons of gasoline and sometimes received 27
gallons then sometimes 2 gallons you would cry fraud. However, in our political system
gasoline pumps are certified by the State but bandwidth, an equally important
commodity is not. Our company requires that employees be able to monitor our
servers located around the world from our office and homes in Montana, 24x7 and not
just in off demand hours. Consumers and businesses have the right to get the
bandwidth they paid for.”
Alex Philip PhD., President, GCS Research
“One of the most important things the Missoula City Council can do for the future of
Missoula is continue to support the implementation of affordable, available, extreme
broadband across the Missoula business sectors,” states Dr. Alex Philp, a high-tech
business owner. “In the very minimum, the City Council should remove any and all
unnecessary and costly permitting red-tape in order to reduce the cost of fiber optic
infrastructure installation. At the maximum, the City Council should act as a leader and
drive a proactive public-private investment partnership to help Missoula secure an
international leadership role in the Big Data economy, leveraging local government,
university and commercial resources in global information analysis. Without affordable
infrastructure, we will struggle to compete for the high-value, high-paying jobs of the
global information economy.”
The businesses from this sector identified the following problems:
1. Affordability of fiber-optic broadband.
2. Speed of current broadband.
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3. Reliability of current broadband services.
B. Small Businesses
Although small businesses do not utilize broadband in the same ways as tech-oriented
and big data businesses, many of the applications they use every day are sensitive to the
speed and reliability of their broadband services. The list below provides an overview of
how these businesses are utilizing their broadband connections today. Lines highlighted
in green represent those applications that are particularly sensitive to high-bandwidth
and/or reliable broadband services.
• 98%: Email and general browsing
• 89%: Gathering online research and
information
• 86%: Online banking and financial
• 86%: Social Media, i.e., Facebook
and Twitter
• 77%: Business applications such as
accounting and payroll
• 72%: Online file sharing and
collaboration
• 66%: Video and/or television, video
conferencing
• 59%: Web hosting
• 55%: Telephone services such as
Skype or Vonage
• 52%: Online credit card processing
• 48%: Online data backup
Additionally, small business interviews and survey results found:
1. Moderate dissatisfaction with existing broadband services
2. Lack of reliability and consistent speed; however, businesses “just lived with it,”
indicating that there was little they could do to upgrade or afford faster, more
reliable services.
3. Affordability factor was a recurring theme for small businesses across the Study.
Missoula Next-Generation Broadband Feasibility Study
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20
!
C. General Broadband Profile for Missoula Businesses – By Size and Type
Type of Business Example Current Products Used Monthly Affordability
Range
Short-Term Benefits
from Next-Generation
Broadband
Long-Term Benefits
from Next-Generation
Broadband
Ability to Pay for Next-
Generation Services In
the Current
Environment
Small Traditional
Businesses
Restaurants, Small
Markets, Hardware
Stores
DSL or Cable Entry-
Level Products < $100 Low High No
Small Professional
Businesses
Engineering Firms,
Architects, Doctors
DSL or Cable Premium
Products $50 - $250 High High No
Small Big-Data Centric
Businesses
GIS Mapping, Software
Development, Web
Analytics
DSL or Cable Premium
Products $50 - $500 High High No
Medium Businesses
DSL or Cable Premium
Products, Fiber-Optic in
Some Cases
$50 - $2,000 High High Some
Enterprises Fiber-Optic > $2,000 Low High Yes
Missoula Next-Generation Broadband Feasibility Study
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D. Missoula Economic Development
Accessible, affordable, next-generation broadband services are a key economic
development tool to attract and retain businesses in Missoula. Missoula Economic
Partnership has identified 5 “best fit” sectors that “that would not only draw capital and
create jobs, but also befit our community’s human, environmental and cultural assets
and values.” These sectors include:
• Life Sciences
• Information Technologies
• Manufacturing
• Back Office & Creative Services
• Forest Products and Renewables
Every one of these sectors has a foundational need for next-generation broadband and
through this project’s outreach efforts, it has identified clear deficiencies in existing
broadband services that either discourage growth of these businesses or keep them
from achieving greater efficiencies and maintaining competitiveness in the market.!The
City of Missoula, Missoula County, and Missoula Economic Partnership are investing in
these businesses to grow the local economy. Therefore, it is critically important that the
City of Missoula, Missoula County and MEP also take an active role in the development of
local broadband, as it positively impacts the investments made in Missoula’s local
economy.
“Missoula’s broadband services are currently not sufficient to
support its economic development strategies”
In many cases, bandwidth consumption outpaces the broadband speeds local
businesses are able to purchase and upgrading is often times not an option due to the
prices businesses are able to afford. When these broadband services cannot “keep up”
with business needs, businesses lose productivity and efficiency; impacting their bottom
line and making them less competitive with regions that have more widely deployed
next-generation broadband services at more affordable prices. This will eventually result
in a less competitive business market from an economic perspective. It also leads to
retention issues as businesses that are not able to gain efficiencies with their existing
broadband services will, in many cases, resettle in communities that have more
availability of these services.
“Math,'computer'science'and'business'
graduates'from'the'University'of'Montana'
provide'a'steady'stream'of'workers'whose'
skills'align'with'the'needs'of'IT'companies.'
UM’s'research'faculty'provide'intellectual'
resources'that'few'other'small'cities'in'
America'can'match.'
'
The'backbone'of'the'Internet'–'the'northern'
eastBwest'line'of'U.S.'fiberBoptic'cable'–'runs'
right'along'Interstate'90'through'Missoula”'
BJames'Grunke,'Grunke'Column:'Big'Data,'I.T.'
a'Good'Fit'for'Missoula'(Grunke,!2014)'
!
Missoula Next-Generation Broadband Feasibility Study
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In terms of attracting new business, a key
focus of the Missoula’s economic development
organizations is to target companies that are
location-independent and value Missoula’s
cities.” Broadband is a fundamental asset that
these types of businesses will require as they
will rely on broadband to maintain
connectedness to the electronic world. The
majority of location-independent businesses
rely on online services to maintain their daily
operations therefore; it is critical that Missoula
is able to promote the availability and
affordability of broadband services in its
recruitment efforts. This can be a true
differentiator for Missoula; through promotion
of the community’s leading-edge broadband services, prospective businesses and site
selectors can be assured that they can locate in Missoula and have robust access to the
rest of the world.
E. Healthcare Organizations
Broadband is important for Missoula’s healthcare providers that are interested in
meaningfully leveraging electronic health records since many of the capabilities of health IT
such as telehealth and electronic exchange of health care information require broadband
capability. Missoula’s two major hospitals currently maintain access to next-generation
broadband services but outside of these organizations, few healthcare providers maintain
this type of access. Doctor’s offices, clinics, and imaging centers all have growing broadband
needs to ensure they stay connected as their organizations transition to the digital
healthcare environment. For these smaller organizations, next-generation broadband
becomes a critical need to fulfill their mission and long-term success.
For organizations such as Providence Health & Services, Partnership Health and Western
Montana Mental Health, the question is whether or not the services they currently have or
have access to will scale to meet the future bandwidth requirements that health IT
applications require. Through our discussions with the health providers, we’ve learned that
several of their remote sites currently operate using legacy T-1 technology as well as point-
to-point wireless which will fall short of future bandwidth requirements.
A locally sourced fiber alternative would allow remote healthcare offices, clinics, imaging
centers and hospitals to interconnect at speeds of 100Mbps and up to 10Gpbs allowing for
full integration of health IT applications and services. In addition, it would allow local
management of network traffic, whereas today, electronic medical records for Partnership
"When it comes to the forest products sector, next-
generation broadband is very much needed. Our
sector uses electronic devices throughout the entire
supply chain from the forest to the consumer.
You’ll find foresters with laptops and GPS in the
woods locating property boundaries and
conducting tree stand analysis. Modern day
logging equipment has onboard computer systems
and mills use computers for everything from log
scaling to inventory control and equipment
maintenance. Building product marketers and the
forest sector's consumers alike use the internet and
social media."
-Craig Rawlings, President Forest
Business Network
!
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Health have to travel from Missoula to Seattle and to Billings where the EMR application is
hosted. “It’s a long trip for a medical record!”
F. Educational Organizations
Missoula County Public Schools
The Missoula County Public School (MCPS) District has received some important
technology upgrades recently, including new computers and technology-based teaching
tools. The District has started to equip students with IPads and IPods in addition to the
laptop carts in the schools. We are also looking to the future to a time when devices can
be taken home to enable more self-study and computer-based learning opportunities.
The District is also looking at the opportunities to integrate more cloud applications into
its environment. These programs can only be successful with sufficient broadband
capabilities, both within the School District’s key sites and at the homes of students who
are equipped with these technology tools.
MCPS currently maintains 100Mbp connectivity between schools in the area and our two
main distribution centers at our Business Building and Sentinel High School. For the
District to take full advantage of these programs and technologies, upgrades to their
existing services will be required. The School District should be planning its activities to
significantly increase its speeds to schools and its centralized connection to the Board of
Education. The District should be planning for 100Mbp upgrades to its schools in the
near term and evaluating the future needs for 1Gbp to every school (depending on the
size of each school’s student body).
The broadband access that students receive at home becomes an important issue for
the School District and community, as students are equipped with take-home
technologies such as IPads, IPods and laptops. Although students may have sufficient
broadband and wireless access in the classroom, many will not have sufficient access at
home to make these technologies truly effective. Two key issues emerge. First,
residential broadband speeds are not evenly distributed throughout the city and county
of Missoula. Some neighborhoods are better served than others. In neighborhoods and
towns with older infrastructure or that have not been upgraded by providers,
broadband speed and reliability will be a challenge to students using these technologies.
Second, the technologies that are enabled in students’ homes pose challenges for
technology-based learning. Without wireless connections in the homes, students will not
be able to take advantage of their technology tools. Homes must be equipped with basic
wireless access to ensure that students are able to utilize the tools provided by the
School District. A wireless router is needed in every home where a student uses an IPad.
In these cases, the household may not have the technical skills to install a wireless
!
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router or may not be able to afford one. In some cases, wireless routers can be provided
with the household’s broadband service; however it is usually at an additional cost and
requires the technical skills for installation. Today, students in MCPS huddle around the
library afterhours to take advantage of its WiFi connectivity. In many cases, this is the
fastest broadband that students can receive in the community. This is symptomatic of
the issues described above and if they are not mitigated, the School District’s
technology-based learning programs will not be fully realized in the community.
Independent School Districts
The Missoula Independent School Districts suffer primarily from the fact that they are
located in rural areas of Missoula County. Through discussions with staff at Woodman,
Frenchtown and Lolo School Districts, we were able to understand the issues faced by
each organization as it relates to their abilities to educate using 21st century technology.
There are concerns that the students living in these areas are falling behind other
students in the more urban areas who have the ability to integrate technology into their
educational experience.
The Woodman School District is in such a rural setting that the only means for online
access is through DSL. There are no cable or fiber solutions in this part of the County to
service the School District or the surrounding residents. When one class is utilizing
computers, all other users must logout to conserve bandwidth. The school has just one
dedicated line, with a second line shared with residents, and no other lines are available
for purchase, nor does the local provider have any plans for adding new lines. Staff
explained the issues associated with providing access to the State mandated online
testing as well as use of the MAPS formative assessment, mainly due to the fact that
online sessions are frequently disconnected which may cause loss of data and the
necessity to retake portions of the test. Access to online content for teaching instruction
is also nonexistent as DSL is unable to support the online media available today.
Additionally, student use of mobile devices such as tablets cannot be supported with the
current infrastructure, nor can students effectively make use of online course work
designed to expand programming to rural schools, such as that offered through the
Montana Digital Academy due to connectivity issues.
Frenchtown K-12 School District has high-speed Internet services via DSL or cable,
yet they receive only a fraction of the bandwidth that’s been
contracted. Frenchtown schools have, in total, over 800 students and many computers,
and in some ways suffer the same issues around online content and state mandated
testing.
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University of Montana
Community engagement, economic development, research linkages to the community
and academic achievement in technology are among the reasons that the University of
Montana supports Missoula’s broadband efforts. UM maintains state-of-the-art network
connectivity on a national and international scale through the Northern Tier research
and education network, supporting UM's stature as one of the great public flagship
institutions of this country. The University, however, has many bases to cover in network
connectivity. Other campus locations, including portions of student residences and
Missoula College, are less than adequately served. As the city embarks on a broadband
effort, UM looks forward to a landscape of competitively priced broadband services that
ultimately helps drive down the cost of education, while bolstering the quality.
Wide access to competitively priced and high-quality broadband would also increase the
probability that K-12 students in and around Missoula will be ready for the increasingly
technology-centric degree programs offered at UM. As UM has a focus on educating
Montanans, ensuring these students have a head start technologically is critically
important. On the faculty recruitment side, UM works to attract the brightest and best
in the nation. The availability of broadband and access to technology resources in the
community are becoming key factors that prospective faculty consider when choosing a
university. Community broadband efforts also increase opportunities to connect rural
communities, a continuing challenge for Montana that affects educational opportunities.
A Missoula broadband effort would have many complementary benefits to what is
happening at UM. Missoula broadband efforts would help increase the probability that
Missoula is not only a great place to learn, teach and conduct research, but also a great
place to set up a successful business. On the whole, access to broadband increases
access to information and the ability to share information. Acquiring information and
sharing information are core attributes of higher education scholarship, which puts a
community broadband effort squarely in the best interests of UM.
G. City and County Initiatives
A broadband network could become a part of region’s long-term strategic planning and
provide a valuable resource that both the City of Missoula and Missoula County can
leverage to achieve their organizational objectives.
By creating a high-speed, redundant and scalable network environment that will support
further growth of municipal services that rely on network resources, more of the City’s
and County’s municipal operations can take place electronically, saving money and staff
time, while increasing convenience for citizens.
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Additionally, this new community network could facilitate greater collaboration between
local government entities within the Missoula County region. These organizations will
potentially benefit in the following ways:
• New opportunities to collaborate with local government organizations across a
common communications platform;
• Share critical needs across multiple local government organizations to increase
efficiency, reduce cost and better serve the community;
• Share municipal applications across multiple local government organizations
including GIS, expanded public safety dispatch/records management systems,
and web applications;
• Develop shared disaster recovery and business continuity programs utilizing
common infrastructure; and
• Reduce taxpayer spending across all participating public organizations in the
Missoula County region.
H. City of Missoula
The City of Missoula supports expansion of broadband facilities throughout the City to
provide better access to businesses and residents. Also, as Missoula grows, the need for
additional City facilities requiring broadband will increase, such as fire stations or Fort
Missoula Regional Park.
The City plans to support new broadband deployment through:
• The review of permit fees for broadband installation in public right-of-way to
ensure the fee is not a barrier while still reasonably covering the City’s cost of
oversight;
• The sharing of infrastructure information to the extent possible through GIS
mapping;
• The review of development standards in key areas to encourage broadband
expansion when construction begins; and
• Partnering where appropriate with UM, MCPS, and other community anchors
and the private sector to leverage resources in order to improve the delivery of
next-generation broadband to those that need it.
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As with any business, available, affordable, and reliable broadband access is critical to
the operations of the City of Missoula. The City participates in the federal Criminal Justice
Information Network making the security confidential criminal justice data of utmost
importance. Thanks to the city’s access to State of Montana pricing and upfront costs
being covered by the vendor, Missoula has constructed Metro, a fiber-optic loop that
connects most City facilities on a closed network that meets all of our federal
requirements. Unfortunately, the same pricing and infrastructure is not available to most
businesses or consumers in Missoula. We are committed to leveling the playing field to
make sure Missoula’s burgeoning technology and Big Data sectors have the ultra-fast
and reliable broadband they need at an affordable price—just like we do at the City
today.
I. Missoula County
The Missoula County local government is a key stakeholder in the broadband discussion
in this area. Being one of the larger employers, and providing a multitude of critical
services to the public it is in Missoula County’s best interest to look for ways to improve
reliability and performance in a cost effective manner being cognizant of tax payer funds.
The demands placed on local government to do more with limited or no increases in
funding are of paramount importance. A very realistic approach to this is through the
use of technology and online services which improves efficiency significantly for County
employees and citizens.
Missoula County’s objectives are:
• Continue to improve connectivity options among County agencies and buildings
through the use of fiber optics for the metro area network at an affordable price.
• Keep current fiber infrastructure up to date with current technologies which
allow the County to upgrade to newer faster equipment.
• Flexibility to adapt to changing needs and technologies in a timely manner.
• Increasing Internet connection speed and reliability over time to continue to
support increased demand for online services.
J. Broadband Needs Assessment Summary
Magellan conducted multiple interviews with over 25 businesses and 15 community
anchors. Magellan surveyed 64 businesses.
Common themes:
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1. All stakeholders need greater bandwidth and reliability.
2. More operations are going online every year, so demand will only increase.
3. Prices for services are too high.
4. Broadband services are not evenly distributed across rural and urban areas.
5. Fiber is present in the City and to a lesser extent the County, but services
needed are cost-prohibitive.
!
Unless service providers can provide significant price reduction in the market,
businesses will continue to utilize the services they currently maintain which are
primarily composed of cable and DSL and forgo the use of fiber-based services. For
community anchors, all but the largest anchors will utilize these services, leaving the
smaller ones to live with their existing services which are also composed of cable and
DSL, therefore; even though Missoula has some availability of fiber-based broadband,
pricing for these services is such that service provider networks will remain “off-limits” to
the majority of Missoula’s community due to high service prices.
!
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8. Overview of Broadband in Missoula
Magellan sought comprehensive information from service providers to better
understand what gaps might exist in Missoula’s broadband infrastructure. Face to face
meetings and conference calls were utilized to collect information and to develop a
better understanding of the infrastructure throughout the region.
CenturyLink – CenturyLink provided general fiber route maps with a shaded service
territory. Pricing for fiber-based services was requested; however, CenturyLink declined
to share this information.
Ronan – Ronan Telephone provided detailed route maps and pricing data and
authorized this data for public release.
Blackfoot – Blackfoot provided general service offerings by region over the course of
several private meetings. Blackfoot did not share fiber route maps or pricing.
Charter – Charter did not provide any data to support this project. No mapping or
pricing data was offered.
Magellan relied on shared data, FCC data, and Montana Broadband Map information.
Map Results/Themes
1. Most infrastructure is concentrated to a large degree within the City of Missoula.
2. Within unincorporated Missoula County, fiber-based broadband services are not
widely available. Existing providers, including CenturyLink, Blackfoot
Telecommunications, Charter Communications, and Ronan Telephone maintain
copper and fiber-optic infrastructure within the City of Missoula as well as
backhaul services that interconnect Missoula with large metropolitan points of
presence throughout cities in the Northwest.
3. Missoula falls into a category of smaller cities that are in between the rural,
underserved communities, and those that are metropolitan and well served.
Outside of the City proper, some unincorporated areas of Missoula County are
rural and suffer from common broadband access issues found in rural
communities. The broadband services that businesses utilize are not always
dependent on the size of the business, but as a general rule, small and medium
businesses utilize cable and DSL services while large businesses utilize fiber-
based broadband services. Community anchors are served similarly depending
on their size and geographic location. Anchors such as schools, hospitals, City,
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and County facilities utilize fiber-optic broadband services while anchors in
unincorporated Missoula County lack this access and generally utilize cable, DSL,
and T1 services.
Out of 65 businesses surveyed, 95% were small businesses with 50 or fewer employees.
The top three sectors by NAICS code were Professional Scientific & Technical Services,
Retail Trade, and Finance and Insurance. The vast majority of businesses surveyed were
within Missoula’s city limits. Businesses reported that Internet services were important
to their operations and the majority reported that interruptions in their Internet services
were detrimental to their businesses. Greater than one third of businesses reported
that their Internet services were not currently meeting their needs due to inadequate
speed or insufficient reliability. Of that percentage, 42% had not upgraded because
services were not available and 42% had not upgraded because the price was too high.
Another 13% had not upgraded because they did not know what options were available
to them.
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!
!
Of Missoula businesses reported
moderate, severe or total
disruption of their business from
Internet problems related to
reliability or speed.
Of Missoula businesses reported
that their current Internet services
are insufficient for their business
needs due to reliability and speed
issues.
!
Of Missoula businesses reported
that they have not upgraded their
Internet services because the price
is too high.
!
Of Missoula businesses reported
that they have not upgraded their
Internet services because the
service is not available
!
Of Missoula businesses reported
that they have not upgraded their
Internet services because they
don’t know what options are
available
73%
38%
Of the 38% of Missoula businesses that reported their Internet services being
insufficient for their business needs:
42%
42%
13%
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When compared with communities of similar population, demographics, and
topographical features, Missoula is served comparably from a general broadband
perspective. Missoula’s providers have available fiber-optic infrastructure that provide
services to businesses and community anchors; however, businesses do not appear to
be utilizing this infrastructure. Based on feedback from businesses surveyed and
individual business meetings in the project, this occurs for the following reasons:
• Businesses cannot afford these services
• Businesses state that these services are not available
• Businesses are not aware these services exist
9. Existing Broadband Infrastructure
It’s important to quantify the degree to which next-generation broadband infrastructure
has been deployed in Missoula to understand where this Feasibility Study can have the
most impact for the community and minimize duplication of potential broadband
overbuild. This study has identified the existence of the necessary facilities, networks,
and backhaul capacity to enable next-generation broadband in Missoula. Providers have
the necessary capabilities, infrastructure, and service platforms to deploy and manage
services within the region and have done so in certain areas.
Fiber-optic broadband services are available in some of the City’s corridors and through
multiple providers. Outside of the City proper, this infrastructure is sparse and generally
follows the highways that interconnect Missoula to neighboring communities. In many
cases, this fiber-optic infrastructure may not be available to provide services directly
because of its use as backhaul to interconnect communities in the Missoula area and to
connect the region to long-haul networks that connect to Internet points of presence in
the Northwest.
Some organizations in Missoula are receiving fiber-based broadband, including larger
businesses, schools, hospitals, public safety, and local government organizations. These
organizations are generally receiving high-speed, symmetrical fiber-optic services from
local providers in the region. Speeds range from 100Mbps to 1Gbps and the networks in
Missoula have the capability to support 10Gbps and greater speeds. Although these
services are available in some areas, a key issue is the affordability of next-generation
broadband services to organizations outside of the above stated customer segments.
Large business and community anchor customers are generally able to afford these
services. In some instances, Missoula schools receive federal subsidies (through the
USAC Schools and Libraries Program) to support their need to procure next-generation
broadband services. Similarly, Missoula’s hospitals are connected through a federal
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program that provided funding support to providers to connect healthcare
organizations with next-generation broadband.
For smaller businesses across most sectors, prices for next-generation broadband
services are beyond their financial capabilities therefore; they generally utilize lower cost
options including cable, DSL, and sometimes wireless services to meet their broadband
needs. In some cases these services are sufficient while others report issues with their
services as evidenced by the survey data collected in this project.
10. Identifying the Key Issues
The two key broadband issues that impact businesses in Missoula include the following:
• Missoula lacks widespread availability of next-generation broadband services
that are accessible by the majority of businesses and anchors in the region.
• Missoula lacks affordability of next-generation broadband services that
Missoula’s businesses and anchors can utilize to support their needs.
These two issues are intertwined with one another. The definition of widespread
availability is important to clarify in the context of this Feasibility Study. It is defined by
the type of fiber-optic broadband infrastructure that is being deployed in the region.
Providers in small to medium sized cities are beginning to deploy fiber-optic broadband
services as part of their distribution strategies. Where once they deployed copper-based
services such as DSL and cable, now they are deploying fiber-optic distribution
technologies; enabling significant upgrades in speed and reliability in their service areas.
Passive optical networks, including BPON, GPON, and EPON are slowly replacing
traditional copper-based networks as providers overbuild this older infrastructure.
Their decision to build these networks is often tied to many factors that include
construction costs, density, market size, demographics, and competition. The
introduction of these new distribution technologies enables greater availability and
affordability of next-generation broadband services by increasing the overall density of
fiber-optic infrastructure in the local area and more cost effective deployment methods.
In Missoula, this Study did not find any fiber-optic distribution technologies being
implemented by current providers. The Study identified fiber-optic connections being
provided to businesses using a more traditional point-to-point model however, no
widespread fiber-optic distribution technology was identified. This lack of fiber
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distribution technologies limits the density of the overall fiber-optic infrastructure
availability throughout the region.
There are a variety of reasons why providers are not making investments in this
infrastructure. The capital cost of doing so is significant and it is important to remember
that private service providers must be able to make a reasonable rate of return on their
investments in these networks. Providers must also continue to invest in their networks
to remain competitive and ensure they meet their customers’ requirements otherwise
they will experience high rates of customer attrition as more competitive providers offer
substitute products and services.
In Missoula, this Study has identified the following key factors that contribute to the lack
of investment in fiber-optic distribution infrastructure:
• Costs for fiber-optic construction are significantly higher than in other
communities due to terrain and topography.
• The build season for fiber-optic construction is significantly shorter than in
other communities due to Missoula’s geography.
• Historically, demand for next-generation broadband services has not
warranted additional investment in broadband infrastructure.
The net result of these issues is a lack of affordable, widespread next-generation
broadband for segments of Missoula’s businesses and community anchors.
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Figure 10.1: Broadband Profile of Missoula’s Businesses – Small, Medium and Large
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Missoula must have affordable access to next-
generation broadband to compete, innovate and
thrive as a community.
Broadband Drives Community Success
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11. Recommendations
Magellan is recommending strategies that fall into three categories: Public Policy Tools,
Information and Adoption Programs, and Active Investment. There are many strategies
that Missoula can utilize to promote the development of next-generation broadband
services in its community. Magellan recommends that these strategies be developed
with the support and coordination of Missoula’s local service providers who play a
critical role in Missoula’s broadband future. To be successful, Missoula should take a
multi-pronged approach to broadband development, utilizing a combination of these
strategies to accelerate the investment in and adoption of local broadband
infrastructure.
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Missoula Next-Generation Broadband Feasibility Study 38
Prepared By Magellan Advisors. 2014.
A. Build Support for Missoula’s Broadband Initiative
Missoula’s broadband initiative should continue to be built with grassroots support from
community stakeholders. A working group representing key stakeholders will need to
drive the following initiatives based on our recommendations:
• Broadband public policy development and management
• Broadband education and adoption programs
• Development of Missoula’s Community Broadband Network
For the City and County to be successful in building a community network, a small
working group should be charged with carrying out the recommendations of the
Feasibility Study. Magellan suggests a representative from each of the following
organizations should participate in the Working Group:
• City of Missoula
• Missoula County
• Missoula County Public Schools
• Missoula Independent School
Districts
• University of Montana, Missoula
• BitterRoot Economic Development
District
• One or Two Key Business
Representatives
• One Key Healthcare Representative
The first objective of the Working Group will be to create a Broadband Strategic Plan for
Missoula. As this work progresses, the Working Group will help guide the development
of the plan with external resources to ensure the Broadband Strategic Plan is aligned
with each stakeholder’s needs and those of the greater community.
The Figure on the following page illustrates the Working Group and how they support
the development of Missoula’s broadband, making recommendations to the public
organizations, whose responsibility it is to set broadband policy, and appropriate
broadband funding.
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Missoula Next-Generation Broadband Feasibility Study 39
Prepared By Magellan Advisors. 2014.
B. Public Policy Development
Magellan recommends that the City and County adopt next-generation broadband
policies of Joint Trenching and Broadband Standards to make it easier and more cost-
effective to install basic broadband infrastructure through their capital project programs.
Road widening, sidewalk, trail, and lighting projects all may be opportunities for the
installation of basic conduit infrastructure at a very low cost. By installing conduit in
concert with these related capital projects, the City and County can avoid incurring the
significant costs of constructing this infrastructure by doing so when the ground is
already open. Since the majority of costs to build broadband infrastructure in Missoula
are incurred through trenching and boring, this strategy can alleviate the high cost of
implementing local broadband infrastructure within the community.
The City and County, in alignment with their CIP budgets, should determine which
projects will help build usable infrastructure (there is no reason to utilize this strategy in
areas that already have available conduit and fiber-optic infrastructure). Magellan also
recommends that the City and County implement Broadband Standards in their land
development codes or engineering standards to ensure that broadband infrastructure
becomes a part of the design for all relevant capital projects. In doing so, these
organizations can determine which projects add relevant broadband infrastructure to
!
Missoula Next-Generation Broadband Feasibility Study 40
Prepared By Magellan Advisors. 2014.
the community and which ones do not. Magellan also suggests that this process be
coordinated with local service providers to minimize overbuilding and to ensure that
service providers have an opportunity to place their infrastructure in capital projects as
well (see joint trenching agreements below). Magellan has included sample next-
generation broadband standards in the appendices to this Study.
In addition to these standards, Magellan recommends that the City and County review
any potential joint trenching agreements they maintain with utility and service providers
in the Missoula area. Joint trenching agreements are developed between organizations
to minimize the cost of constructing conduit in the local area by allowing one another to
taking advantage of trenches that have already been opened through companion
projects. They allow multiple providers to install conduits in a single trench significantly
reducing the cost of underground broadband infrastructure.
If these agreements are not in place, Magellan recommends development of joint
trenching agreements between the City and County as well as between these
organizations and providers in the area (utility and broadband). Joint trenching
agreements must be negotiated between parties individually and are generally exclusive
between each provider and the local government organization. Magellan has included
sample joint trenching agreements in the appendices to this Study.
C. Record Keeping and Information Sharing
The City of Missoula and Missoula County both maintain Geospatial Information Systems
(GIS) that contain detailed maps of the community, right of way, easements, and other
information. As Missoula moves forward with its broadband initiative, the City and
County should ensure that any public broadband infrastructure in the area is
documented in GIS. This will allow both agencies to maintain a clear understanding and
records of locations of broadband infrastructure; which may include conduit, vaults, pull
boxes, transitions, fiber-optic cable, and other outside plant resources. Record keeping
is a critical aspect of developing community broadband networks and if Missoula begins
this process early, it will save significant costs in the long-term and ensure that the
communities understand where this infrastructure exists. This information should be
made available to broadband and utility providers in the area in effort to maintain better
coordination of underground infrastructure.
D. Education and Adoption Strategies
Through interviews and survey data it became apparent that some lack of information
on available services was evident in Missoula. Magellan recommends that the City and
County build awareness of broadband services that are available in the area; particularly
as they look to implement broadband initiatives in the community. Magellan also
received feedback from providers that stated, “We need to do a better job of marketing
our services to the community.” Building awareness in cooperation with local providers
will reinforce availability of services and support growing demand. Increasing the
!
Missoula Next-Generation Broadband Feasibility Study 41
Prepared By Magellan Advisors. 2014.
demand for broadband services will also help local service providers as they are able to
generate additional revenues that may at some point be reinvested back into system
expansion for next-generation broadband infrastructure. Magellan recommends that
the City, County, and local service providers work together more closely to ensure the
market understands what services are available and that local service providers are
aware of the opportunities at hand. These strategies will increase the overall demand
for broadband in Missoula.
E. Development of Missoula’s Community Broadband Network
This Study has confirmed that the City of Missoula and some portions of Missoula
County are equipped with next-generation fiber broadband infrastructure, however; if
large numbers of Missoula’s businesses and anchors don’t utilize this infrastructure
because it is unaffordable, next-generation broadband will remain inaccessible for much
of Missoula. Over time, service providers will upgrade their local broadband networks in
an effort to be more competitive in the marketplace. These investments will be made
based on each service provider’s required return rather than on the community’s needs.
The City and County will need to decide whether to place Missoula’s broadband future
solely in the hands of its service providers, whose investments are driven by their
required return or to invest directly in public broadband infrastructure that is driven by
the needs of the community. If the City and County are intent in accelerating the
deployment of next-generation broadband, Magellan recommends that they develop a
Missoula Community Broadband Network. A community broadband network is generally
built with local community funding and/or grant funding to serve the broadband needs
of stakeholders in the area. Whereas service provider networks are built to achieve a
required return, community broadband networks are built to achieve a total return to
the community (financial and non-financial) while maintaining a financially sustainable
operation. Non-financial returns may come in the form of increased economic
development activity, more jobs, increased GDP, more effective educational institutions,
and enhanced healthcare services. A community broadband network may take many
forms and is dependent on the community’s profile, local broadband environment,
service provider needs, local topography, feasible business models, and available
funding sources.
For Missoula, developing a community broadband network is a significant undertaking
that requires the support of local stakeholders, coordination of local agencies, and
participation of local service providers. The network must be planned and implemented
on a sound business case and using a reasonable business model that promotes fiscal
conservatism and long-term financial sustainability. Although some community
broadband networks provide direct retail services, Magellan does not recommend the
City or County become a direct provider of broadband services to end users such as
residents and business.
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Missoula Next-Generation Broadband Feasibility Study 42
Prepared By Magellan Advisors. 2014.
Instead, Magellan recommends the City and/or County invests only in the broadband
infrastructure including conduit, fiber-optic, and related infrastructure to complement
the networks of local service providers. The community broadband network would
consist of a fiber-optic backbone interconnecting the major corridors of the City and
County and local fiber infrastructure to connect end users to the network including
community anchors, businesses, and potentially even residents7. It would be utilized by
all participating community anchors in the area enabling them to connect to a common
fiber-optic backbone through which they would receive significantly upgraded capacity
at similar or potentially lower costs than they are paying today. It would also seek to
connect new community anchors that currently cannot gain access to or afford fiber-
based broadband services.
The network would utilize the concept of open-access, which defines a community
broadband network that provides equal, non-discriminatory pricing and access to
qualified service providers in the area. The network would promote competition among
providers by enabling a common fiber resource that any qualified service provider could
utilize to reach prospective customers in the Missoula marketplace. It would also equip
service providers with a new source of fiber-based broadband to reach more customers
in the Missoula community at rates lower than currently available.
The open-access network would alleviate the need for service providers to build their
own fiber infrastructure to reach customers in the area. It would assume these upfront
capital costs and recover them through levy of fees to service providers for use of the
fiber infrastructure. By enabling an open-access network that simultaneously enables
competition and lowers the costs of fiber-based broadband, the City and County could
positively impact the availability and affordability of these services for stakeholders
across the community.
i. Ingredients for Success
A number of key factors must be present for Missoula to develop a successful
community broadband network.
1. Missoula’s community anchors must commit to utilizing the network
Missoula’s community anchors will be the largest beneficiaries of the network
and must commit to using its resources. They must be willing to participate and
take services from the network at agreed upon fees.
2. Missoula’s service providers must commit to utilizing the network
Without the participation of Missoula’s service providers, financial sustainability
of the community broadband will be more challenging for Missoula. Secondly,
without service provider participation, Missoula’s businesses will not receive the
benefits from the network in terms of more affordable rates and higher quality
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7 This plan does not recommend investment in fiber to the home broadband services for residents. Instead, the
community broadband network would facilitate buildout of residential broadband services by private service providers
using the public network as a backbone to reach residential areas.
!
Missoula Next-Generation Broadband Feasibility Study 43
Prepared By Magellan Advisors. 2014.
services. A key goal of the network is to make a new source of affordable next-
generation broadband available to businesses. If service providers do not utilize
the network this goal may remain unachieved.
3. Missoula must develop the right operational model for the network
Development of a sound operations strategy for the network is important to
ensure that network performance, reliability, and capacity is managed to the
levels required by both service providers and end users. This includes
determining the party that will provide management of the network and which
components will be maintained by the City and/or County and/or outsourced to
network operators.
4. Missoula must find ways to reduce costs for construction for the network
Costs for underground fiber construction in Missoula are extraordinarily high.
Building the community broadband network without cost reducing construction
methods will yield an expensive proposition for the community and one that may
be challenging to sustain financially. A combination of aerial construction, joint
trenching opportunities, and smart public policy that enable companion builds
are strategies that may positively reduce the cost to the community.
5. The network must achieve an operating break-even and pay its debt service
The network must achieve at minimum a breakeven scenario where incoming
revenues from community anchor organizations and service providers cover all
operating costs and repay debt service over the period of the project. Adequate
financing structures will also need to be achieved to ensure the network’s cash
flows can support its debt service.
!
Missoula Next-Generation Broadband Feasibility Study 44
Prepared By Magellan Advisors. 2014.
ii. Conceptual Network Design
The proposed Missoula Community Broadband Network represents a high-level design
of a community fiber-optic network that would be constructed to connect the public and
businesses throughout Missoula. This network would be utilized for community anchors,
businesses, and even one day potentially residents; providing next-generation
broadband services across the City and into Missoula County. The backbone network
would be built with fully redundant fiber routes in a ring topology and with enough fiber
capacity to accommodate current and future expansion needs of Missoula’s
stakeholders and service providers who would utilize the network. Individual laterals
would be provided for each facility while redundant lateral paths would be available for
specific sites where required.
Conceptual Missoula Community Broadband Network
iii. Benefits of a Missoula Community Broadband Network
The Missoula Community Broadband Network would provide a foundation of fiber
connectivity for use by a comprehensive list of community stakeholders, including:
• City of Missoula
• Missoula County
• Missoula County Public Schools
• Missoula Independent Schools
• Local Businesses & Enterprises
• Missoula’s Hospital & Healthcare
Organizations
• Current & Future Utility Providers
• Broadband Service Providers
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Missoula Next-Generation Broadband Feasibility Study 45
Prepared By Magellan Advisors. 2014.
Potential benefits to the community include:
• Broadband price stability across all anchors connected to the network.
• Enhanced economic development tools to attract and retain businesses.
• A new source of fiber infrastructure for local service providers.
• New capacity for Missoula’s growing tech sector and Big Data companies.
• Improved technology transfer from the University of Missoula to new startups.
• Enhanced services and new capabilities for Missoula’s schools.
• Scalability to accommodate current and future broadband needs.
• A platform for municipal operations that enable new capabilities & reduce cost.
• A platform that supports integrated utilities that help Missoula manage its
water & energy resources.
iv. Design of Missoula’s Community Broadband Network
All fiber routes have been planned using underground placement as this provides the
most conservative cost estimate for construction. It is assumed that aerial fiber
construction can be used in many cases however, this cannot be accurately determined
until a more thorough design and engineering study is performed. There are also many
opportunities to cost share construction of various fiber segments through coordination
of capital projects and with cooperation of utility and service providers in market.
Magellan would advise the City and/or County to share existing fiber routes wherever
available to minimize overbuild with existing providers.
The fiber backbone routes, which are depicted in yellow (Figure 11.1), consist of over
126,000 feet or 48.75 miles of underground construction including a single 288-strand
fiber cable. These routes include all major arterials in the downtown area expanding
into multiple fiber rings throughout the City. From downtown, the main fiber routes
include Toole Ave., N. Russell St., N. Reserve St., S. 3rd St. W., Brooks St., Mt Ave., S.
Higgins Ave., and Madison St. These select backbone routes will allow various ring
configurations for each organization while providing a new fiber backbone through most
of the commercial districts of Missoula. Fiber strands would also be allocated for dark
fiber leasing/swap opportunities to serve the Missoula business community as well as
accommodating the needs of Missoula’s service providers.
!
Missoula Next-Generation Broadband Feasibility Study 46
Prepared By Magellan Advisors. 2014.
Figure 11.1: Missoula Community Broadband Network
!
Missoula Next-Generation Broadband Feasibility Study 47
Prepared By Magellan Advisors. 2014.
The downtown Missoula routes account for nearly 31,000 feet or 6 miles of
underground construction. These downtown routes will provide access to numerous
community anchor facilities including the First Federal CO/Data Center and will provide
support for public initiatives such as downtown wireless, surveillance technologies, and
the Parking District’s Parking Meter Upgrade Project (if warranted). These routes will
also be available to provide access to the businesses located in downtown Missoula
providing a new alternative source of local fiber.
Figure 11.2: Downtown Missoula Routes
Laterals, depicted in green (Figures 11.2, 11.3 and 11.4) have been included in the
design for nearly 50 School, County, City, Higher Education, and Healthcare facilities
throughout Missoula. These laterals include nearly 44,000 feet or 8.32 miles of
underground construction and a single 24 count fiber cable for each facility.
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Missoula Next-Generation Broadband Feasibility Study 48
Prepared By Magellan Advisors. 2014.
Figure 11.3: Missoula North Section
Figure 11.4: Missoula South Section
The conceptual design of the Missoula Community Broadband Network includes nearly
60 miles of underground broadband infrastructure connecting 50 public facilities (this
represents a conservative cost scenario for this network deployment). Aerial fiber
routes could be considered through a more detailed engineering design study and
conversations with Northwestern Energy. Several current providers utilize Northwestern
Energy poles to deliver aerial services. Aerial routes could potentially change a number
!
Missoula Next-Generation Broadband Feasibility Study 49
Prepared By Magellan Advisors. 2014.
of the recommended route options and could have a positive effect on the cost of the
project resulting in the potential savings of between 3-5 million dollars. Additionally, the
opportunity to lease dark fiber from private service providers through long-term IRUs
(Indefeasible Rights of Use) should be considered as well. There are multiple fiber-optic
broadband providers in Missoula who maintain existing fiber networks that may provide
options to reduce the overall capital costs of the Missoula Community Broadband
Network build. These providers may also be interested in swapping or sharing fiber
routes where the Missoula network provides new fiber capacity that isn’t currently
available.
v. Missoula Community Broadband Network Cost Estimates
The Missoula Community Broadband Network cost estimates were developed using a
material and labor costing approach. Magellan Advisors contacted material supply
vendors to obtain current material costs and through discussions with local Missoula
contractors to determine local underground build costs. Assumptions around
underground placement methods such as boring, trenching, and plowing were vetted
with the local contractors as well.
Conservative+Cost+Estimate++
Type Distance Total Estimate (Average)
Backbone (including Downtown) 125,782 feet (48.75 Miles) $12,920,851
Laterals 43,958 feet (8.32 Miles) $4,438,402
Totals: 169,740 feet (57.07 Miles) $17,359,253
In the backbone segments two 2” conduits were utilized, with one conduit containing a
288-strand fiber cable. Underground box placement was planned at every 300 feet.
The backbone segments (including the downtown Missoula routes) total nearly 126,000
feet or 48.75 miles of underground placement at a cost between $9.1 million and $16.7
million with an average cost estimate of $12.9 million.
The lateral segments to connect the nearly 50 facilities include nearly 44,000 feet or 8.32
miles of underground placement at a cost between $3.1 million and $5.6 million with an
average cost estimate of $4.4 million.
The best estimate to construct the Missoula Community Broadband Network is
approximately $17.3 million including all planned backbone fiber routes and lateral fiber
routes to the 50 community anchor facilities. The $17.3 million does not include any
laterals to Missoula businesses or other commercial connections. This estimate also
does not consider any collaborative partnerships, leasing of dark fiber or taking
advantage of capital projects. Those will need to be identified, estimated and used to
drive down the total capital cost of the project.
Downtown Missoula demonstrates the difficulty of underground construction and
represents the most difficult location to build underground infrastructure for numerous
reasons. First, built out urban areas, consisting primarily of concrete and asphalt,
represent a challenge due to the construction methods necessary and the cost of
restoration. For Missoula, there is also an abundance of other underground
!
Missoula Next-Generation Broadband Feasibility Study 50
Prepared By Magellan Advisors. 2014.
infrastructure and old underground structures that can impede the construction
process as well.
Figure 11.5 depicts the conduit and fiber grid that would provide backbone
infrastructure within a few hundred feet of each of the more than 200 commercial
buildings located in the downtown area. This layout models the fiber backbone grid that
would provide access to the many businesses in the area. This represents a total linear
construction length of approximately 30,972 feet or nearly 6 miles of construction.
Through discussions with a local Missoula underground contractor, we were provided
estimated construction costs in the downtown area of $80 - $150 per foot for directional
bore placement and $50 - $80 per foot for trenching placement methods. For
downtown Missoula, directional boring would be the preferred method as restoration
and traffic management could be excessive if other methods were employed.
The backbone construction in this area is estimated to cost of $2.6 - $4.9 million for
conduit and box infrastructure; this equates to a per foot cost of $83.66 - $156.51. The
cost including backbone fiber would be $2.7 - $5.0 million or $86.28 - $160.30 per foot.
In addition, last mile costs to connect the 200 facilities have been determined using
general assumptions for the last mile placement. Those assumptions include 200
premises and an average build distance of 150 feet. There is a drastic difference in last
mile connections based on placement type. For this analysis, directional boring and
aerial placement were both considered. Directional boring is obviously the most
expensive last mile build option, as the build costs would be relatively similar to that of
the backbone underground boring placement. We estimate boring placement to 200
facilities would be in the range of $2.5 - $4.7 million, while aerial placement would be
within the range of $114,500 - $239,000 in capital.
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Missoula Next-Generation Broadband Feasibility Study 51
Prepared By Magellan Advisors. 2014.
Figure 11.5: Downtown Missoula Fiber Routes
vi. Building the Business Case
The high capital cost of a Missoula community broadband network can be reduced
through a combination of companion capital projects, value engineering and
collaboration between public organizations. It can also be reduced through utilization of
aerial placement methods in certain portions of the network where undergrounding is
cost prohibitive. Aerial placement will reduce construction labor costs significantly;
however, other capital costs such as make ready and pole attachment hardware will be
incurred for use of utility poles within the service area. Pole rental costs will also need to
be considered as an ongoing operating cost that the network will incur, depending on
the number of poles utilized in the area. Pole attachment fees range from $5 - $20 per
pole per month, depending on the utility, placement and state regulations governing
pole attachment rates. These additional costs for aerial construction and ongoing
operations have been factored into the business case for the project.
a. Cost Reductions
The $17.3M capital cost of the network has been developed as a conservative estimate
that assumes 100% underground construction and no cost reductions. Magellan has
used this number as a baseline to demonstrate to Missoula the importance of
implementing cost reducing measures, including public policy considerations, joint
trenching, companion capital projects and alternative construction methods. Magellan
also recommends that a detailed engineering design be conducted to more accurately
!
Missoula Next-Generation Broadband Feasibility Study 52
Prepared By Magellan Advisors. 2014.
estimate the true costs of the Missoula Community Broadband Network. An engineering
design will provide the most accurate costs for labor and materials costs, utilizing value
engineering to reduce costs wherever possible.
There are a number of projects throughout Missoula that have been identified as
potential companion projects for deploying broadband infrastructure as well as sections
of the City prime for potential deployment. Road widening, water/sewer projects and
other potential capital projects are ideal opportunities for deploying broadband
infrastructure and reducing the cost of Missoula’s build. For the City of Missoula,
projects such as the 3rd Street and Russell Street widening projects will enable the City to
install basic conduit and fiber at a dramatic savings over new construction projects.
In these projects, there will typically be a marginal cost to include broadband
infrastructure; namely conduit and underground vaults/handholes. In addition, material
and labor costs for placing conduit will be marginal costs for the project. The expected
cost savings on these companion projects is typically 70%; therefore the City and/or
County should analyze all potential capital projects where companion infrastructure may
be installed. In discussions with local contractors Magellan was able to explore the
various costs of constructing underground broadband infrastructure in the Missoula
area. The cost for this type of construction greatly exceeds the average of underground
infrastructure costs when compared to other regions of the country and is either in line
with or higher than typical for mountainous regions in the United States. As depicted in
the following scenarios, significant savings can be realized when planning broadband
infrastructure deployments as a part of existing or future capital projects.
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Missoula Next-Generation Broadband Feasibility Study 53
Prepared By Magellan Advisors. 2014.
Russell Street Widening
The upcoming Russell Street widening project is an opportunity to deploy broadband
infrastructure in the project area from West Broadway Street south to Benton Avenue.
The construction area includes the widening of approximately 1.5 miles of City roads.
For this specific project, Magellan calculated the linear construction length of the
widening project at an estimated 7,880 feet. The City of Missoula could include conduit
and box infrastructure into this project for a cost of $36,000 - $67,000 ($4.59 - $8.61 per
foot). In addition, the City may opt to include fiber-optic cable in this route at
approximately $2.25 to $3.25 per foot bringing the total cost for the entire project to
$55,000 - $95,000 or a per foot cost of $6.96 - $12.02. If this segment were built without
the companion Russell Street Widening, the potential cost is estimated at $300,000 -
$400,000. Using the companion project saves approximately $245,000 to $305,000 on
the total build.
Figure 11.6: Russell Street Widening
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Missoula Next-Generation Broadband Feasibility Study 54
Prepared By Magellan Advisors. 2014.
3rd Street Widening
In addition to Russell Street, 3rd Street is also a potential road-widening project for
consideration of broadband infrastructure installation. The construction area includes
the widening of approximately 1 mile of City roads. For the 3rd Street widening project
Magellan calculated the linear construction length of the project area at an estimated
5,200 feet. The City of Missoula could include conduit and box infrastructure into this
project for a cost of $24,000 - $45,000 ($4.59 - $8.61 per foot). In addition, the City may
opt to include fiber-optic cable in this route at approximately $2.25 to $3.25 per foot
bringing the total cost for the entire project to $36,000 - $63,000 or a per foot cost of
$6.96 - $12.02. If this segment were built without the companion 3rd Street Widening,
the potential cost is estimated at $200,000 - $300,000. Using the companion project
saves approximately $165,000 to $137,000 on the total build.
Figure 11.7: 3rd Street Widening
b. Revenue Generation
To build and operate a sustainable network, the City and/or County must determine the
revenues that are necessary to achieve a reasonable payback, sustain operations and
maintenance costs and pay any financing costs. Revenues are sourced from community
anchors that utilize the network for local connectivity between their facilities. Additional
revenues are sourced from service providers who lease capacity on the network to
reach customers in service area. The City and/or County will have the opportunity to
lease excess capacity to service providers for competitive monthly fees, allowing them to
serve Missoula’s community with a new local source of fiber infrastructure. This allows
the City and/or County to achieve its goals of enabling next-generation broadband to
support economic development and attract and retain businesses.
Commitments from community anchors and service providers are critical to ensure that
Missoula is able to generate enough revenues to cover its operations and pay any
potential debt service for the project. Revenues projected in this business case assume
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Missoula Next-Generation Broadband Feasibility Study 55
Prepared By Magellan Advisors. 2014.
that all of Missoula’s large community anchors utilize the community broadband
network for similar rates that they are paying today. These include the City, County,
Missoula County Public Schools, Missoula Independent School Districts, healthcare
organizations and other anchors in the area. This business case assumes that they will
be willing to pay similar prices as they do currently for significantly more capacity. Since
this will be a dark fiber network, community anchors will be able to utilize whatever
speed they require on the system and upgrade their existing capacity to significantly
greater speeds.
c. Phased Approach to Building the Network
Building the entire Missoula Community Broadband Network as a single project is a
daunting task, financially and operationally. Magellan recommends a tactical, phased
approach to build-out that occurs over a 5-10 year period. Developing strategy and tools
such as companion project builds can allow incremental investments into the Missoula
Community Broadband Network; allowing the network to be built without the
requirement for a significant capital burden in a single year. Following on the
recommendations provided through this Missoula Next Generation Broadband Study,
Magellan has identified several projects that should be identified for broadband
infrastructure investment.
1. Downtown Missoula - Missoula’s downtown area has several opportunities that can be
leveraged in developing a business case for infrastructure deployment. First, there are
large concentrations of Community Anchor facilities that can make use of this network
making downtown a logical area of Missoula to begin deployment. Second, downtown is
a large center of business and has been identified as a future potential economic
development core that would require access to high-speed broadband services.
2. The Missoula Parking District is potentially going to make a large investment in
upgrading the parking meter infrastructure throughout downtown; the use of a fiber
network in support of this initiative should be further investigated. The deployment of
fiber infrastructure throughout downtown could be a multi-year project entirely
dependent on the way in which the infrastructure is built whether using underground
placement methods or aerial.
3. Urban Renewal Districts - Additional projects such as the Urban Renewal Districts
should be investigated to understand what opportunities exist to build infrastructure
throughout the identified areas and in conjunction with potential redevelopment
funding initiatives. For example, construction in the URD-3 (Urban Redevelopment
District) may be considerably easier as the density is less than in the Downtown. Right-
of-ways are less crowded in terms of other underground infrastructure. In discussions
with local underground contractors Magellan was provided estimated construction costs
in the URD-3 area of $50 - $100 per foot for directional bore placement and $30 - $50
per foot for trenching placement methods.
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Missoula Next-Generation Broadband Feasibility Study 56
Prepared By Magellan Advisors. 2014.
d. Business Case Overview
Demonstrating meaningful cost reductions for City and County taxpayers is crucial to
establishing the business case for a building a fiber ring. Capital to network construction
makes sense only when there is a feasible payback on these investments. So far, we’ve
experienced great collaboration between Missoula’s community anchors, and anchors
must commit to using the system if it’s built in order to generate the return needed to
sustain the network. Service providers likewise need to commit to participating in
wholesale leasing of Missoula’s broadband infrastructure. If they don’t, a reasonable
payback on these investments will not be achieved.
To achieve a 10-12 year payback (not including debt service), Missoula needs to achieve
the following factors listed in Figure 11.8. These factors create the necessary cost
reductions in the first 5 years of the project, while the core community broadband
network is built. After the first 5 years, these factors are key to expanding the community
broadband network at the rates shown below.
Figure 11.8: Cost Savings Target
Item Target %
Reduction
Target Dollar
Reduction
Time Period
Aerial placement of broadband infrastructure 25% $4.42M First 5 Years
Companion Capital Projects & Public Policy 10% $1.77M First 5 Years
Collaboration Between Public Agencies 10% $1.77M First 5 Years
Total Projected Cost Reductions $7.96M
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Missoula Next-Generation Broadband Feasibility Study 57
Prepared By Magellan Advisors. 2014.
Figure 11.9 illustrates the impact of cost reductions on the community broadband
network over the first 5 years of the project, resulting in an estimated savings of $7.96M
to the project.
Figure 11.9: Impact of Cost Reductions on Core Network Construction Costs
Figure 11.10 illustrates the cash outflows and inflows for the project over a 10-year
period. Cash outflows (or “uses of cash”) include:
• Capital costs of network construction
• Materials and labor
• Ongoing capital expansion of the network,
• Renewal and replacement reserves
• Ongoing operating costs resulting from the ownership and operation of the dark
fiber system.
Figure 11.11 illustrates these expected costs across a 10-year period. Figure 11.12
illustrates cash inflows or “sources of cash,” which includes all revenues generated by
the project over the 10-year period. If debt is utilized to finance the construction of the
network, interest costs should also be factored into the total business case for the
project.
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Figure 11.10: Cash Outflows (Uses of Cash) Over the 10-Year Period
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Figure 11.11: Cash Inflows (Sources) Over the 10-Year Period
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Figure 11.12: Cash Inflows & Outflows
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This business case is only a preliminary step. Refinement of these figures through an
engineering design will be critical to make sure total costs for construction and
operation of the network are accurate. In addition to the engineering design, Magellan
recommends that a comprehensive financial plan be developed for the Missoula
Community Broadband Network. This financial plan will provide a detailed breakdown of
the ongoing revenues, operating costs, capital requirements and financing structure of
the broadband network over the period. It will also provide scenario and sensitivity
analysis to determine overall risks in the project to ensure that Missoula has a
comprehensive view of the risk/reward profile for its community.
12. Next Steps
Should you follow these recommendations, the City of Missoula and Missoula County
can change the state of broadband for the better for the businesses and organizations
that need it and put Missoula on the map as a tech hub in the Rocky Mountain West.
Based on the findings of this Study, Magellan has identified the following next steps:
A. Implementing Public Policy Tools
The City of Missoula should immediately introduce public policy tools to assist in the
deployment of fiber-optic broadband infrastructure, including Joint-Trenching
agreements and Dig-Once policies. The Broadband Infrastructure Standards for Outside
Plant Facilities (see Appendix B), should be adopted by the City and County, and
implemented in the City’s and County’s engineering standards and applicable land use
and development policies to ensure broadband infrastructure is deployed whenever the
opportunity presents itself.
B. Development of the Broadband Strategic Plan
A comprehensive Missoula Broadband Strategic Plan must articulate the business,
market, technical, operational strategies for Missoula to use to build its network. The
plan would contain a market strategy with participating service providers to determine
how to deliver the best services at the least cost and cover the following items:
• Total costs for construction.
• Operation and management of the network.
• Timeline that Missoula will use for build-out, based on demand from service
providers.
• Phased approach that maximizes the investments made in the network and a
plan to recoup them in the shortest time possible. A comprehensive financial and
funding plan should be created as part of the Strategic Plan to measure financial
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performance of the network, identify sources of funding and estimate the costs
of debt service.
Magellan recommends that Missoula move forward to implement the Strategic Plan
immediately to continue building momentum for the project towards a future
implementation. Magellan estimates that a Strategic Plan can be completed within 5
months. Once completed, Missoula will have completed all planning and will be ready to
begin implementing the community broadband network.
The Missoula Community Broadband Network capital cost of $17.3 million represents a
conservative approach. To lower costs for construction, Missoula should capitalize on
municipal capital projects and through other underground construction efforts
throughout the region. To further identify ways to save money, the City and County
should commission a conceptual engineering design to analyze all proposed routes and
to make adjustments to the placement method of the network. This will provide
accurate cost estimates for construction of the network and develop a phasing plan to
build the network within the funding constraints of the City and/or County.
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13. Appendix A – Glossary
3G – Third Generation The third generation of mobile broadband technology, used by
smart phones, tablets, and other mobile devices to access the web.
4G – Fourth Generation The fourth generation of mobile broadband technology, used by
smart phones, tablets, and other mobile devices to access the web.
ADSL – Asymmetric Digital
Subscriber Line
DSL service with a larger portion of the capacity devoted to
downstream communications, less to upstream. Typically thought
of as a residential service.
ADSS – All-Dialetric Self-
Supporting
A type of optical fiber cable that contains no conductive metal
elements.
AMR/AMI – Automatic Meter
Reading/Advanced Metering
Infrastructure
Electrical meters that measure more than simple consumption and
an associated communication network to report the
measurements.
ATM – Asynchronous Transfer
Mode
A data service offering that can be used for interconnection of
customer’s LAN. ATM provides service from 1 Mbps to 145 Mbps
utilizing Cell Relay Packets.
Bandwidth The amount of data transmitted in a given amount of time; usually
measured in bits per second, kilobits per second (kbps), and
megabits per second (Mbps).
Bit A single unit of data, either a one or a zero. In the world of
broadband, bits are used to refer to the amount of transmitted
data. A kilobit (Kb) is approximately 1,000 bits. A megabit (Mb) is
approximately 1,000,000 bits. There are 8 bits in a byte (which is the
unit used to measure storage space), therefore a 1 Mbps
connection takes about 8 seconds to transfer 1 megabyte of data
(about the size of a typical digital camera photo).
BPL – Broadband over Powerline A technology that provides broadband service over existing
electrical power lines.
BPON – Broadband Passive
Optical Network
BPON is a point-to-multipoint fiber-lean architecture network
system which uses passive splitters to deliver signals to multiple
users. Instead of running a separate strand of fiber from the CO to
every customer, BPON uses a single strand of fiber to serve up to 32
subscribers.
Broadband A descriptive term for evolving digital technologies that provide
consumers with integrated access to voice, high-speed data
service, video-demand services, and interactive delivery services
(e.g. DSL, Cable Internet).
CAD – Computer Aided Design The use of computer systems to assist in the creation, modification,
analysis, or optimization of a design.
CAI – Community Anchor
Institute
Community anchor institutions (CAIs, sometimes called anchor
institutions) are usually non-profit organizations that often provide
essential services to the public. Universities, colleges, community
colleges, K12 schools, libraries, health care facilities, social service
providers, government and municipal offices are all community
anchor institutions.
CAP – Competitive Access
Provider
(or “Bypass Carrier”) A Company that provides network links
between the customer and the Inter-Exchange Carrier or even
directly to the Internet Service Provider. CAPs operate private
networks independent of Local Exchange Carriers.
Cellular A mobile communications system that uses a combination of radio
transmission and conventional telephone switching to permit
telephone communications to and from mobile users within a
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specified area.
CLEC – Competitive Local
Exchange Carrier
Wireline service provider that is authorized under state and Federal
rules to compete with ILECs to provide local telephone service.
CLECs provide telephone services in one of three ways or a
combination thereof: 1) by building or rebuilding
telecommunications facilities of their own, 2) by leasing capacity
from another local telephone company (typically an ILEC) and
reselling it, and 3) by leasing discrete parts of the ILEC network
referred to as UNEs.
CO – Central Office A circuit switch where the phone lines in a geographical area come
together, usually housed in a small building.
Coaxial Cable A type of cable that can carry large amounts of bandwidth over
long distances. Cable TV and cable modem service both utilize this
technology.
CPE – Customer Premise
Equipment
Any terminal and associated equipment located at a subscriber's
premises and connected with a carrier's telecommunication
channel at the demarcation point ("demarc").
CWDM – Coarse Wavelength
Division Multiplexing
A technology similar to DWDM only utilizing less wavelengths in a
more customer-facing application whereby less bandwidth is
required per fiber.
Demarcation Point (demarc) The point at which the public switched telephone network ends
and connects with the customer's on-premises wiring.
Dial-Up A technology that provides customers with access to the Internet
over an existing telephone line.
DLEC – Data Local Exchange
Carrier
DLECs deliver high-speed access to the Internet, not voice.
Examples of DLECs include Covad, Northpoint and Rhythms.
Downstream Data flowing from the Internet to a computer (Surfing the net,
getting E-mail, downloading a file).
DSL – Digital Subscriber Line The use of a copper telephone line to deliver “always on”
broadband Internet service.
DSLAM – Digital Subscriber Line
Access Multiplier
A piece of technology installed at a telephone company’s Central
Office (CO) and connects the carrier to the subscriber loop (and
ultimately the customer’s PC).
DWDM – Dense Wavelength
Division Multiplexing
An optical technology used to increase bandwidth over existing
fiber-optic networks. DWDM works by combining and transmitting
multiple signals simultaneously at different wavelengths on the
same fiber. In effect, one fiber is transformed into multiple virtual
fibers.
E-Rate A Federal program that provides subsidy for voice and data circuits
as well as internal network connections to qualified schools and
libraries. The subsidy is based on a percentage designated by the
FCC.
EON – Ethernet Optical Network The use of Ethernet LAN packets running over a fiber network.
EvDO – Evolution Data Only EvDO is a wireless technology that provides data connections that
are 10 times as fast as a traditional modem.
FCC – Federal Communications
Commission
A Federal regulatory agency that is responsible for regulating
interstate and international communications by radio, television,
wire, satellite and cable in all 50 states, the District of Columbia, and
U.S. territories.
FDH – Fiber Distribution Hub A connection and distribution point for optical fiber cables.
FTTN – Fiber to the
Neighborhood
A hybrid network architecture involving optical fiber from the
carrier network, terminating in a neighborhood cabinet with
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converts the signal from optical to electrical.
FTTP – Fiber to the premise (or
FTTP – Fiber to the building)
A fiber-optic system that connects directly from the carrier network
to the user premises.
GIS – Geographic Information
Systems
A system designed to capture, store, manipulate, analyze, manage,
and present all types of geographical data.
GPON- Gigabit-Capable Passive
Optical Network
Similar to BPON, GPON allows for greater bandwidth through the
use of a faster approach (up to 2.5 Gbps in current products) than
BPON.
GPS – Global Positioning System a space-based satellite navigation system that provides
location and time information in all weather conditions, anywhere
on or near the Earth where there is an unobstructed line of sight to
four or more GPS satellites.
GSM – Global System for Mobile
Communications
This is the current radio/telephone standard developed in Europe
and implemented globally except in Japan and South Korea.
HD – High Definition (Video) Video of substantially higher resolution than standard definition.
HFC – Hybrid Fiber Coaxial An outside plant distribution cabling concept employing both
fiber-optic and coaxial cable.
ICT – Information and
Communications Technology
Often used as an extended synonym for information technology
(IT), but it is more specific term that stresses the role of unified
communications and the integration of telecommunications,
computers as well as necessary enterprise software, middleware,
storage, and audio-visual systems, which enable users to access,
store, transmit, and manipulate information.
IEEE – Institute of Electrical
Engineers
A professional association headquartered in New York City that is
dedicated to advancing technological innovation and excellence.
ILEC – Incumbent Local
Exchange Carrier
The traditional wireline telephone service providers within defined
geographic areas. Prior to 1996, ILECs operated as monopolies
having exclusive right and responsibility for providing local and
local toll telephone service within LATAs.
IP-VPN – Internet Protocol-Virtual
Private Network
A software-defined network offering the appearance, functionality,
and usefulness of a dedicated private network.
ISDN – Integrated Services Digital
Network
An alternative method to simultaneously carry voice, data, and
other traffic, using the switched telephone network.
ISP – Internet Service Provider A company providing Internet access to consumers and businesses,
acting as a bridge between customer (end-user) and infrastructure
owners for dial-up, cable modem and DSL services.
ITS – Intelligent Traffic System Advanced applications which, without embodying intelligence as
such, aim to provide innovative services relating to different modes
of transport and traffic management and enable various users to be
better informed and make safer, more coordinated, and 'smarter'
use of transport networks.
Kbps – Kilobits per second 1,000 bits per second. A measure of how fast data can be
transmitted.
LAN – Local Area Network A geographically localized network consisting of both hardware
and software. The network can link workstations within a building
or multiple computers with a single wireless Internet connection.
LATA – Local Access and
Transport Areas
A geographic area within a divested Regional Bell Operating
Company is permitted to offer exchange telecommunications and
exchange access service. Calls between LATAs are often thought of
as long distance service. Calls within a LATA (IntraLATA) typically
include local and local toll services.
Local Loop A generic term for the connection between the customer’s
premises (home, office, etc.) and the provider’s serving central
office. Historically, this has been a wire connection; however,
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wireless options are increasingly available for local loop capacity.
MAN – Metropolitan Area
Network
A high-speed intra-city network that links multiple locations with a
campus, city or LATA. A MAN typically extends as far as 30 miles.
Mbps – Megabits per second 1,000,000 bits per second. A measure of how fast data can be
transmitted.
MPLS – Multiprotocol Label
Switching
A mechanism in high-performance telecommunications networks
that directs data from one network node to the next based on short
path labels rather than long network addresses, avoiding complex
lookups in a routing table.
ONT – Optical Network Terminal Used to terminate the fiber-optic line, demultiplex the signal into
its component parts (voice telephone, television, and Internet), and
provide power to customer telephones.
Overbuilding Building excess capacity. In this context, it involves investment in
additional infrastructure projects to provide competition.
OVS – Open Video Systems OVS is a new option for those looking to offer cable television
service outside the current framework of traditional regulation. It
would allow more flexibility in providing service by reducing the
build out requirements of new carriers.
PON – Passive Optical Network A Passive Optical Network consists of an optical line terminator
located at the Central Office and a set of associated optical network
terminals located at the customer’s premise. Between them lies the
optical distribution network comprised of fibers and passive
splitters or couplers. In a PON network, a single piece of fiber can
be run from the serving exchange out to a subdivision or office
park, and then individual fiber strands to each building or serving
equipment can be split from the main fiber using passive splitters /
couplers. This allows for an expensive piece of fiber cable from the
exchange to the customer to be shared amongst many customers,
thereby dramatically lowering the overall costs of deployment for
fiber to the business (FTTB) or fiber to the home (FTTH)
applications.
QOS – Quality of Service QoS (Quality of Service) refers to a broad collection of networking
technologies and techniques. The goal of QoS is to provide
guarantees on the ability of a network to deliver predictable
results. Elements of network performance within the scope of QoS
often include availability (uptime), bandwidth (throughput),
latency (delay), and error rate. QoS involves prioritization of
network traffic.
RF – Radio Frequency a rate of oscillation in the range of about 3 kHz to 300 GHz, which
corresponds to the frequency of radio waves, and the alternating
currents which carry radio signals.
Right-of-Way A legal right of passage over land owned by another. Carriers and
service providers must obtain right-of-way to dig trenches or plant
poles for cable systems, and to place wireless antennae.
RMS – Resource Management
System
A system used to track telecommunications assets.
RPR – Resilient Packet Ring Also known as IEEE 802.17, is a protocol standard designed for the
optimized transport of data traffic over optical fiber ring networks.
RUS – Rural Utility Service A division of the United States Department of Agriculture, it
promotes universal service in unserved and underserved areas of
the country with grants, loans, and financing.
SCADA – Supervisory Control
and Data Acquisition
A type of industrial control system (ICS). Industrial control systems
are computer controlled systems that monitor and control
industrial processes that exist in the physical world.
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SNMP – Simple Network
Management Protocol
An Internet-standard protocol for managing devices on IP
networks.
SONET – Synchronous Optical
Network
A family of fiber-optic transmission rates.
Steaming Streamed data is any information/data that is delivered from a
server to a host where the data represents information that must
be delivered in real time. This could be video, audio, graphics, slide
shows, web tours, combinations of these, or any other real time
application.
Subscribership Subscribership is how many customers have subscribed for a
particular telecommunications service.
Switched Network A domestic telecommunications network usually accessed by
telephone, key telephone systems, private branch exchange trunks,
and data arrangements.
T-1 – Trunk Level 1 A digital transmission link with a total signaling speed of 1.544
Mbps. It is a standard for digital transmission in North America.
T-3 – Trunk Level 3 28 T1 lines or 44.736 Mbps.
Tier 1 Network A tier 1 network is an Internet Protocol network that participates in
the Internet solely via settlement-free interconnection, also known
as settlement-free peering.
Tier 2 Network A tier 2 network is a network that peers with some networks, but
still purchases IP transit or pays settlements to reach at least some
portion of the Internet.
Tier 3 Network A tier 3 network is a network that solely purchases transit from
other networks to participate in the Internet.
UNE – Unbundled Network
Elements
Leased portions of a carrier’s (typically an ILEC’s) network used by
another carrier to provide service to customers.
Universal Service The idea of providing every home in the United States with basic
telephone service.
Upstream Data flowing from your computer to the Internet (sending E-mail,
uploading a file).
UPS – Uninterruptable Power
Supply
An electrical apparatus that provides emergency power to a load
when the input power source, typically main power, fails.
USAC – Universal Service
Administrative Company
An independent American nonprofit corporation designated as the
administrator of the Federal Universal Service Fund (USF) by the
Federal Communications Commission.
VDSL – Very High Data Rate
Digital Subscriber Line
A developing digital subscriber line (DSL) technology providing
data transmission faster than ADSL over a single flat untwisted or
twisted pair of copper wires (up to 52 Mbit/s downstream and 16
Mbit/s upstream), and on coaxial cable (up to 85 Mbit/s down and
upstream); using the frequency band from 25 kHz to 12 MHz.
Video on Demand A service that allows users to remotely choose a movie from a
digital library whenever they like and be able to pause, fast-
forward, and rewind their selection.
VLAN – Virtual Local Area
Network
In computer networking, a single layer-2 network may be
partitioned to create multiple distinct broadcast domains, which
are mutually isolated so that packets can only pass between them
via one or more routers; such a domain is referred to as a Virtual
Local Area Network, Virtual LAN or VLAN.
VoIP – Voice over Internet
Protocol
A technology that employs a data network (such as a broadband
connection) to transmit voice conversations using Internet
Protocol.
VPN – Virtual Private Network A virtual private network (VPN) extends a private network across a
public network, such as the Internet. It enables a computer to send
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and receive data across shared or public networks as if it were
directly connected to the private network, while benefitting from
the functionality, security and management policies of the private
network. This is done by establishing a virtual point-to-point
connection through the use of dedicated connections, encryption,
or a combination of the two.
WAN – Wide Area Network A network that covers a broad area (i.e., any telecommunications
network that links across metropolitan, regional, or national
boundaries) using private or public network transports.
WiFi WiFi is a popular technology that allows an electronic device to
exchange data or connect to the internet wirelessly using radio
waves. The Wi-Fi Alliance defines Wi-Fi as any "wireless local area
network (WLAN) products that are based on the Institute of
Electrical and Electronics Engineers' (IEEE) 802.11 standards".
WiMax WiMax is a wireless technology that provides high-throughput
broadband connections over long distances. WiMax can be used
for a number of applications, including “last mile” broadband
connections, hotspot and cellular backhaul, and high speed
enterprise connectivity for businesses.
Wireless Telephone service transmitted via cellular, PCS, satellite, or other
technologies that do not require the telephone to be connected to
a land-based line.
Wireless Internet 1) Internet applications and access using mobile devices such as
cell phones and palm devices. 2) Broadband Internet service
provided via wireless connection, such as satellite or tower
transmitters.
Wireline Service based on infrastructure on or near the ground, such as
copper telephone wires or coaxial cable underground or on
telephone poles.
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14. Appendix B – Broadband Infrastructure Standards
for Outside Plant Facilities
Broadband Infrastructure Standards for Outside Plant Facilities
Communication Conduit for Fiber Optics
Scope of Standard
These guidelines identify and define the <INSERT CLIENT NAME> requirements and policies for
designing and installing telecommunications infrastructure and substructure at all <INSERT
CLIENT NAME> facilities and within the <INSERT CLIENT NAME> limits and rights-of-ways. Use of,
and compliance with these guidelines is mandatory for architects, engineers, and installation
contractors working on <INSERT CLIENT NAME> projects.
Design Guidelines
A. The <INSERT CLIENT NAME> Infrastructure Standard is based upon the code
requirements and telecommunications industry standards contained in the following
guidelines. These guidelines will not duplicate the information contained in those
references, except where necessary to provide guidance, clarification or direction.
B. In instances where several technical alternatives may be available to provide a design
solution, these guidelines will identify the preferred solution to meet <INSERT CLIENT
NAME> needs. However, each facility and project is unique. Design for new construction
will differ from design for retrofit of existing facilities. These guidelines will differentiate
certain design approaches and solutions to be applied to new construction versus
existing facilities, and different types of <INSERT CLIENT NAME> facilities. However,
designers and installers shall always use sound engineering judgment in order to comply
with the requirements of the codes and standards identified in this section.
C. Designs will include, but not be limited to, all man-hole, hand-holds, conduits, roads,
bridges, railway crossings, railways, buildings, utility poles, traffic light structures, traffic
control boxes, other utilities structures, both existing and planned (new) that are
pertinent to the construction of the fiber path.
D. As-builts will be provided in paper 8.5” x 14” format with all construction notes and geo-
spatially correct measurements (verified by GPS), as well as digitally in AutoCAD 2008 or
earlier and projected in the coordinate system <State of California FIPS>. Scale should be
1ft. x 1 ft. As-builts will include cadastral boundaries to include right of ways and
planimetric boundaries that includes edge of pavement. <INSERT CLIENT NAME> base
map can be provided upon request. As-builts shall be provided to designated City
representative, incorporating any changes made during or after construction. Final As-
builts shall be completed only once all Fiber-Optic cables in said project have been fully
installed and tested and tests have been accepted by designated City representative
prior to project closeout.
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Reference Standards
A. Adherence to, and compliance with, the codes and standards referenced, and the
<INSERT CLIENT NAME>’s unique requirements and design solutions identified in the
manual, is mandatory. Requests to deviate from the industry standards and design
solutions prescribed in these guidelines may be submitted, on a case-by-case basis, to
the <INSERT CLIENT NAME> Engineer for review and approval. No deviation from the
requirements of the National Electrical Code will be allowed.
B. Architects, Consultants, and Contractors shall always reference the most recent
standards available. Most references listed below can be purchased directly from the
individual standards organization, or from:
Global Engineering Documents
15 Inverness Way East
Englewood, CO 80112-5776
Telephone: (800) 854-7179 (303) 397-7956
Fax: (303) 397-2740
http://www.global.ihs.com
Codes, Standards, References, and Applicability
Design, Build Firm to follow all standards, references and technical special provisions referenced
below.
A. NATIONAL ELECTRICAL CODE, NFPA 70
The National Fire Protection Association has acted as the sponsor of the National
Electrical Code (NEC) since 1911. The original Code was developed in 1897 as a result of
the united efforts of various insurance, electrical, architectural, and allied interests. The
purpose of the NEC is the practical safeguarding of persons and property from hazards
arising from the use of electricity. The NEC provides the minimum code requirements for
electrical safety. In telecommunications distribution design, the NEC must be used in
concert with the ANSI/EIA/TIA standards identified below, which are intended to insure
the performance of the telecommunications infrastructure.
B. ANSI/TIA/EIA STANDARDS
The Telecommunications Industry Association/Electronics Industry Association (TIA/EIA)
engineering standards and publications are designed to serve the public interest through
eliminating misunderstandings between manufacturers and purchasers. The standards
facilitate interchangeability and improvement of products and assist the purchaser in
selecting and obtaining the proper product for his or her particular need.
The TIA/EIA Standards are updated every five years. Due to the rapid changes in the
telecommunications and electronics industries, TIA/EIA publishes periodic
Telecommunications Systems Bulletins (TSB), which provides additional guidance on
certain technical issues that must be addressed prior to the next scheduled revision of
the standards. The information contained in TSBs is usually incorporated into the
applicable standard during the next standards revision. Standards and publications are
adopted by TIA/EIA in accordance with American National Standards Institute (ANSI)
patent policy. The TIA web site is: http://www.tiaonline.org/
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C. FIBER OPTIC TEST STANDARDS, TIA/EIA-526
The TIA/EIA-455 series, together with its addenda, provides uniform test procedures for
testing the fiber optic components intended for, or forming a part of, optical
communications and data transmission systems. This series contains standard test
procedures for optical fibers, cables, transducers, and connecting and terminating
devices.
D. CABLING STANDARD, ANSI/TIA/EIA-568
The ANSI/TIA/EIA-568-A series, together with its addenda is the Commercial Building
Telecommunications Cabling Standard. This standard defines a generic
telecommunications wiring system for commercial buildings that will support a
multiproduct, multivendor environment. It also provides direction for the design of
telecommunications products for commercial enterprise.
The purpose of the standard is to enable planning and installation of building wiring with
little knowledge of the telecommunications products that subsequently will be installed.
Installation of wiring systems during building construction or renovation is significantly
less expensive and less disruptive than after the building is occupied. TIA/EIA-568-A
series establishes performance and technical criteria for various wiring system
configurations for interfacing and connecting their respective elements.
E. GROUNDING AND BONDING, ANSI/TIA/EIA-607
The ANSI/TIA/EIA-606 (series) is the Commercial Building, Grounding and Bonding
Requirements for Telecommunications. The National Electrical Code (NEC) provides
grounding, bonding, and electrical protection requirements to ensure life safety. Modern
telecommunications systems require an effective grounding infrastructure to insure
optimum performance of the wide variety of electronic information transport systems
that may be used throughout the life of a building. The grounding and bonding
requirements of this standard are additional technical requirements for
telecommunications that are beyond the scope of the NEC. These standards are
intended to work in concert with the cabling topology specified in ANSI/TIA/EIA-568-A
series, and installed in the pathways and spaces designed in accordance with
ANSI/TIA/EIA-569-A.
F. CUSTOMER OWNED OUTSIDE PLANT (OSP), ANSI/TIA/EIA-758
The ANSI/TIA/EIA-758 provides industry standards for the design and construction of
customer owned OSP infrastructure. Unless specified otherwise in the <INSERT CLIENT
NAME>, standard OSP designed and constructed at all <INSERT CLIENT NAME> facilities
will be in compliance with ANSI/TIA/EIA-758.
G. TRANSMISSION PERFORMANCE SPECIFICATIONS, TIA/EIA BULLETIN TSB67
TSB67 is the Transmission Performance Specification for Field Testing of Unshielded
Twisted- Pair (UTP) Cabling Systems. This bulletin specifies the electrical characteristics
and performance requirements of field test instruments, test methods, and the minimum
transmission requirements for UTP cabling. All testing of horizontal distribution cabling at
<INSERT CLIENT NAME> facilities will be performed with a TSB67 Level II test instrument.
H. ADDITIONAL HORIZONTAL CABLING PRACTICES FOR OPEN OFFICES, TIA/EIA BULLETIN
TSB75
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This document specifies optional practices for open office environments, for any
horizontal telecommunications cabling recognized in TIA/EIA-568. It specifies optional
cabling schemes and topologies for horizontal cabling routed through modular office
furniture or movable partitions, which are frequently reconfigured
I. LOCAL AREA NETWORK ETHERNET STANDARD, IEEE 802.3 (SERIES)
<INSERT CLIENT NAME> utilizes the Ethernet LAN protocol at all facilities. All <INSERT
CLIENT NAME> infrastructures must be designed to support the Institute of Electrical and
Electronic Engineers (IEEE) Ethernet 802.3 standards, which define protocols and
signaling technologies. All newly installed cabling must support 1000BaseX Gigabit
Ethernet protocol based on the IEEE 802.3z standard.
J. THE BICSI TELECOMMUNICATIONS DISTRIBUTION METHODS MANUAL
The Building Industry Consulting Service International, Inc. (BICSI) is a
Telecommunications Association whose mission is to provide state-of-the-art
telecommunications knowledge to the industry, resulting in good service to the end user.
BICSI develops and publishes the Telecommunications Distribution Methods Manual
(TDMM). The TDMM is not a code or standard. The TDMM is an extensive volume of
information on the various aspects of telecommunications systems and
telecommunications distribution. The TDMM provides discussions and examples of
various engineering methods and design solutions that can be selected and employed in
order to meet the requirements of the NEC and ANSI/TIA/EIA standards. Designers and
installers are encouraged to use the TDMM as an engineering tool, within the constraints
of the unique requirements of the <INSERT CLIENT NAME> Infrastructure Standards.
K. THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) Refer to the current
standard for CALTRANS Intelligent Transportation Systems, Technical Special Provisions
for Fiber Optic Cable and Interconnect;
L. INTERNATIONAL TELECOMMUNICATIONS UNION – (ITU-T 652 Categories A, B, C, D) Refer
to the international standard on Fiber Optic Cable covering “reduced-water-peak”, “low-
water-peak” and “full spectrum fiber”. Material deployed in the project shall be ITU-T
652.D full spectrum compliant such as Corning SMF-28e for full compatibility and
interoperability with legacy fiber, while providing low Polarization Mode Dispersion (PMD).
Definitions
Fiber Optic Cable: A cable that contains individual glass fibers, designed for the transmission of
digital information, using light pulses.
All Dielectric Self Support (ADSS) Cable: A cable designed and constructed with non-metallic
components, that is designed for aerial applications and does not require a separate cable
messenger.
Loose Tube Cable: A cable designed and constructed with non-metallic components, which is
designed for underground applications. These are "dry" cables using water swellable powders to
protect against water penetration.
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OTDR: Optical Time Domain Reflectometer. A device used for characterizing a fiber, wherein an
optical pulse is transmitted through the fiber and the resulting backscatter and reflections are
measured as a function of time.
Single-mode Fiber: An optical fiber with a small core diameter, in which only a single mode of light
is capable of propagation. All Single-mode glass employed on project shall meet or exceed
.35/.25dB/km optical attenuation and Polarization Mode Dispersion: <0.5 ps / km
Multi-mode Fiber: An optical fiber whose core diameter is large compared with the optical
wavelength and which, consequently, a large number of light modes are capable of propagation.
Splicing: A permanent junction between optical fiber splices. May be thermally fused or
mechanically applied.
Minimum Bend Radius: The minimum radius a fiber may be bent before optical losses are
induced.
Guidelines for Designing Underground Fiber Optic Cable Routes
Governing Caltrans Indexes and regulations should be used as well as all applicable codes in
force.
Conduit Placement
The conduit shall be placed at an offset from the roadway that meets the governing MDT
regulations and indexes while still staying within the ROW. If this cannot be accomplished please
raise issue to the <INSERT CLIENT NAME> Project Engineer or liaison.
Depth (Minimum / Maximum)
The conduit used as the primary carrier of the fiber optic cable should be buried no greater than
42.” and no less than 36.” beneath grade except where code requires otherwise or directed in
writing by the Project Engineer on behalf of the <INSERT CLIENT NAME>.
Grade away from Buildings/Structures
The conduit shall be placed in such a way to as to maintain a gradual grade down away from
buildings and other major structures.
Conduit type/ Inner Duct type
Standard placement shall be of quantity (2), 2” ID HDPE conduit direct buried/trenched/bored as
appropriate to the construction needs (Color Orange and Blue). If specified an outer conduit
shall be of the HDPE type, of suitable strength per the governing MDT indexes for the location of
work. Conduit shall be 6” I.D. in size with quantity (2), 2” ID HDPE conduits (Color Orange and
Blue)
All conduits and inner ducts should be cleared and cleaned prior to capping.
Conduit Turns & Transitions
All conduit turns shall be made with 45-degree bends or sweeps. At no time shall 90-degree
bends be utilized in the outside plant arena, unless it is an already existing conduit, and approved
by the <INSERT CLIENT NAME>.
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Exceptions may be made to this rule for work inside of buildings.
Trace Wire
A minimum #12 AWG trace wire should be placed along with all conduits put in place. This trace
wire should maintain continuity from end station to end station. Where possible it is okay to use
vaults/hand holes for joining the trace wire, while keeping these joints visible and out of the way
of the fiber cable. Where not possible please use the small hand hole for joining the trace wire.
Marker Poles
Easily visible, marked, 6’ fiber optic marker poles should be placed above the conduit at all major
transitions to said conduit (turns greater than 25 degrees, etc.), where applicable. Please get
marking poles approved by the <INSERT CLIENT NAME> prior to installation/purchase.
Conduit Entering Hand Holes/Man Holes
All conduits should be stubbed up underneath the bottom of each manhole/hand hole leaving at
least 8” but no more than 12” of visible conduit exposed. Conduit and inner ducts should be
capped until use, after use they should be plugged appropriately to maintain the integrity of the
conduit/inner duct from dirt and water.
Locate Information
As an as-built information gathering job, all splice points, vaults/hand hole/manhole/conduit turns
of 45 degrees or greater should receive a GPS coordinate that is marked and labeled back onto
the as-built drawings.
Building Entrances
All building entrances should be checked and approved with the <INSERT CLIENT NAME> Project
Engineer or liaison. Preference is given in the following order (but dictated by the facility itself)
utilizing existing conduit to enter the building, core drilling and bringing conduit up through the
floor, bringing conduit up the outside of a facility, attaching a pull box to the exterior of said
building and entering through the wall of the building.
Box Sizing
Please confirm with the <INSERT CLIENT NAME> your selection of boxes and box sizes PRIOR to
utilization of said boxes in quote or design. All boxes utilized MUST meet the MDT applicable
indexes and be on the MDT approved equipment list. The following sizes are to be used
wherever possible:
16x22x18.” (straight wall)
16x22x30.” (flared wall)
17x30x18.” (flared wall)
24x36x30.” (flared wall)
30x60x36.” (flared wall)
Please get all boxes approved during the design phase and prior to purchasing/installation of
said boxes. All box lids shall have a Logo embedded on them. This logo is to be provided by the
<INSERT CLIENT NAME>.
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Guidelines for Installing Conduit
Depth (Minimum / Maximum)
The conduit used as the primary carrier of the fiber optic cable should be buried no greater than
42” and no less than 36” beneath grade except where code requires otherwise or directed in
writing by the Project Engineer on behalf of the <INSERT CLIENT NAME>.
Reel Placement
Have the reel set adjacent to the manhole and use a fiber optic manhole pulling block assembly.
Conduit type/ Inner Duct type
Standard placement shall be of quantity (2), 2” ID HDPE conduits (Color Orange and Blue), direct
buried/trenched/bored as appropriate to the construction needs.
If specified an outer conduit shall be of the HDPE type, of suitable strength per the governing
MDT indexes for the location of work. Conduit shall be 6” I.D. in size with quantity (2), 2” ID HDPE
conduits (Color Orange and Blue).
All conduits and inner ducts should be cleared and cleaned prior to capping.
Guidelines for Installing/Pulling Underground Fiber Optic Cable
Bend Radius
The main risk of damage to the fiber optic cable is by overlooking the minimum-bending radius. It
is important to know that the damage occurs more easily when the cable is bent under tension,
so when the installation is in process be sure to allow for at least the minimum bending radius.
The number of 90-degree turns on a pull shall not exceed four (4).
Reel Placement
Have the reel set adjacent to the manhole and use a fiber optic manhole pulling block assembly
from Sherman & Reilly (or similar).
Cable Slack
Please coil 150 feet of cable at transition points, termination points, and every 1500 feet.
Splices
All splice locations will be designated by the <INSERT CLIENT NAME>.
Strength
The fibers in the cable will shatter under considerable impact, pressure or if pulling tensions
exceed 600 LB, although from the outside of the cable this will not be apparent. With fiber optic
cable the jacket of the cable and the Kevlar layer directly beneath give the cable its strength so
please be sure to note and repair all nicks and cuts.
Installation
When installing use a swivel eye for pulling the fiber optic cable and conduit system.
Precautions
Please review the manufacturer's installation instructions prior to commencing with the
installation. If any questions arise during installation please refer to the manufacturer's
installation instructions, or notify the Project Engineer.
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Testing
Perform OTDR test on each fiber in the installed cable, to verify the parameters of each fiber
meet the system design criteria. Power meter tests should also be performed. All test results
should be provided to the <INSERT CLIENT NAME> Project Engineer in PDF format.
Safety
Contractor to provide proper work zone safety through an approved site-specific MOT
(Maintenance of Traffic) plan.
Contractor to ensure that all personnel working in the field adhere to all PPE (Personnel
Protection Equipment) requirements needed for the particular job location at all times.
Contractor to conduct pre-work safety briefings with workers prior to starting work each day/shift
in the field. This briefing should be conducted by supervisor/manager in the field. All safety
briefings should be logged in paper and this log easily accessible by <INSERT CLIENT NAME>
personnel in the field.
Locating Fiber Optic Cables
Aiding the locators, please install a #12 gauge wire. Pull #12 gauge wire in with the fiber cable for
the underground conduit systems.
Terminate the ends of the #12 gauge wire in a handhold box. This box can be used by the
locating contractor.