About 50 cities across the U.S. – from Ammon, ID, (population 14,000) to Chattanooga, TN, (12 times larger) already operate their own municipal fiber optic networks. While the concept may be premature for St Pete Beach, the idea was broached by Planning Board member Michael Lehman at a Commission meeting last fall. “I suggested the city hire a consultant to develop a master plan for funding, design and construction of transportation, storm water and utility capital improvements,” he said. “These elements have an interdependent relationship and, taken together, form the foundation of our city’s future built environment. We have the opportunity to consider these elements together in the context of best practices, to plan and design them in an integrated and collaborative fashion, and to have a planning document in place that can be leveraged in a variety of ways, not the least of which is to attract desired investment and development to the city.
“A working master plan is an excellent marketing tool for attracting investors and developers of choice — those who will play integral roles in making our comp (comprehensive) plan vision a reality. It sets expectations, establishes process, outlines available incentives for investors/developers, fosters confidence, identifies potential funding sources, and otherwise provides a road map to desired outcomes. The process of developing such a plan can identify opportunities for the city to establish additional channels of revenue.
“For instance, as we move toward placing utilities underground, we should explore the possibility of laying a city-owned fiber optic backbone that could be segmented and leased. Fiber optics is the pathway for data, software operations and entertainment media of the foreseeable future, and our homes and businesses are increasingly becoming dependent upon high-speed internet access. City-owned would allow us to create an environment of competition rather than dominance by a single supplier of internet and entertainment, and to diversify businesses on the beach to include small design and technology businesses.
“As an example, consider the west end of Corey, a full block of development potential for mixed-use that can include eight floors of live, work and play in a single large development with an active street front. City-owned would allow us to attract satellite studios or posts from local colleges and universities – creative arts, digital arts, gaming design, medical device design, etc. In addition to fiber optics, the city could demand the installation of underground smart grid technology for energy/information transfer by Duke Energy.
“Again, this is the future of energy — a decentralized rather than centralized system. As residences and commercial buildings begin to generate their own energy, here primarily through solar, and begin to demand a more market-driven method of buying and selling electricity, a smart grid allows the two-way flow of both energy and communication that the market requires.
“Revenue streams may be established by a variety of methods that are now conceptual and emerging, so the opportunity to influence the type of infrastructure that goes underground and to develop additional channels of revenue is worth pursuing.
Leesburg Fiber Network
Lehman invited Jim Lemberg, General Manager of Leesburg’s Communications Utility, to make a presentation to the Planning Board and Commission about his city’s experience with a community-owned and operated Fiber Network. His November 20 PowerPoint presentation covered: Why Consider a Municipal Fiber Network?; What Are Municipal Fiber Networks?; Ownership & Revenue Models; Statutory & Regulatory Matters; and Resources.
Why municipal fiber networks? Pent-Up Demand due to Inferior telephone, CATV, Internet or data service; Excessive telephone, CATV or Internet prices; Limited choices/competition; Smaller customer base; Infrastructure isolation.