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Hi-Tech Real Estate

This project report by Tom Seiler from U-M Technology Management Office provides an overview of the fiber infrastructure, service inventory, and community efforts related to the Hi-Tech Real Estate project. The report includes a statement of work, methodology, findings, and recommendations.

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Hi-Tech Real Estate

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  1. Hi-Tech Real Estate Fiber Inventory Project Report by Tom Seiler, U-M Technology Management Office

  2. Overview • Project Background • Deliverables • Fiber in the City • Service Inventory • Community Efforts • Statement of Work

  3. Project Background • Intern with University of Michigan Technology Management Office • Inventory Fiber in Ann Arbor, Benchmark Other Communities and Determine Best Use of Potential Government Funds • SmartZone Proposal • LinkMichigan • Concept • Community Planning

  4. Deliverables • Formal Report • Fiber Infrastructure • Service Inventory • Community Efforts • Methodology • Statement of Work

  5. Fiber in the City • Methodology • Telecom permits • City clerk’s office, 2nd floor city hall • Merit and U-M also provided information • Findings • Companies known to have fiber • McLeod, Norlight, KMC Telecom, MCI, Ameritech, U-M/Merit, Level3 • Washtenaw County efforts • County Metropolitan Planning Commission • 734.994.2435 • Erin Perdu: perdue@co.washtenaw.mi.us

  6. Service Inventory • Methodology • Developed detailed questionnaire • Data • Contacted 28 companies • Received 15 filled out questionnaires • Used City Hall and IT Zone as reference locations

  7. Service Inventory Findings • Wide range of services are available • High speed services are available • T1 pricing starts from $400 to over $1,500 per month; much higher speeds are available • Fiber, cable and copper • Distance from a colocation facility impacts pricing • Primary differences • Pricing approaches – term commitments, usage commitments, pricing types • Service level agreements –performance areas covered and performance levels guaranteed

  8. Community Efforts • Methodology • Research Internet for community examples • Determine types of approaches • In-depth research • High-level documentation • Contacted community representatives

  9. Community Efforts Findings • Approaches • Locally owned • Local government with direct network ownership or indirect through a government owned utility. • Examples include LaGrange Georgia, Tacoma Washington and Coldwater Michigan • Gov’t owned networks face potential conflict of interest and regulatory issues • More popular with rural and small communities • Utility Telecommunications Digest claims 65 municipalities have made “end runs around their cable or phone monopolies to offer telecom services” (9/2000) • Long lead time requirements

  10. Community Efforts Findings • Approaches: • Demand aggregation – bring together buyers of services, request RFPs and then build the network and provide services • With government services – communities such as Chicago are using city services as a starting point; 62 firms responded to RFI; RFQ sent on 5/11/01; • LinkMichigan approach • Without government services – communities in New England are having great success using this approach; approximately 15 months from starting project until signed contract with provider • http://www.bconnect.org • http://www.mtpc.org/cluster/connects.htm

  11. Community Efforts Findings • Approaches: • Promote network build out • Worcester Massachusetts has encouraged telecommunications providers to build out the network; not successful • Private-sector builder of fiber-optic networks called NEESCom, which was established as the telecom subsidiary of the electric utility formerly known as New England Electric System, installed it at no expense to the city • Utility Telecommunications Digest claims more than 150 private electric utilities have entered the telecom market (9/2000) • Last mile problem remains • Approximately $100M has been invested in Worcester, similar to the amount in Tacoma but with vastly different results • In today’s environment, service providers no longer believe in the Field of Dreams approach, they need to see customers

  12. Statement of Work • Potential to apply for state funds • SmartZone – MEDC Core Community funds until tax increment revenues are realized • LinkMichigan Community Assistance – no timetable has been provided • Steps for using those funds • Identify and survey users to evaluate needs • Identify locations to target for services • Determine approach to fulfill those needs • Implement approach • Leverage efforts of other communities

  13. Questions??

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