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Building a Champagne Network on a Beer Budget

Building a Champagne Network on a Beer Budget. Jon Dolan, Data Svcs. Mgr., OSU Ben Doty, CEO, NoaNet Oregon Curt Pederson, VP of IS, OSU . Overview of Presentation. Introduction The Crisis/Opportunity The Partnership Approvals, Money, and Politics Results Parting thoughts.

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Building a Champagne Network on a Beer Budget

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  1. Building a Champagne Network on a Beer Budget Jon Dolan, Data Svcs. Mgr., OSU Ben Doty, CEO, NoaNet Oregon Curt Pederson, VP of IS, OSU

  2. Overview of Presentation • Introduction • The Crisis/Opportunity • The Partnership • Approvals, Money, and Politics • Results • Parting thoughts

  3. Dr. Tim White Provost and Executive Vice President Oregon State University

  4. Crisis = Opportunity

  5. The Crisis • Dramatic increase for research bandwidth • State funding decreasing • We had limited and expensive options (traditional telco’s wanted as much as $564,000 a month for one Gb circuit to Portland) • “Ain’t it awful?”

  6. The Crisis • Described in AP newswire story Dec. 10th 2002 – “Outside of the Portland, Salem and Eugene areas, it's rare to find much competition for local broadband connections, creating high monopoly pricing that reduces the number of services sold.” • http://www.cnn.com/2002/TECH/biztech/12/10/miles.cable.ap/

  7. The Opportunity • 15 miles away is the “Gold Mine” of fiber • Dec. 2002 AP article estimated $1 Billion had been spent in the 1990’s on fiber in Oregon • How do we stake our claim in the gold mine?

  8. The Partnership Oregon State University works with NoaNet Oregon

  9. In the Beginning • Ben Doty, NoaNet, visits Oregon State • Introduced to Network Engineering • Recipe for success: for best results “mix” well! • OFF (Old Friends Factor) was a key ingredient to success.

  10. NoaNet Oregon Ben Doty Chief Executive Officer Bdoty@noanetoreogon.net www.nanetoregon.net

  11. NoaNet Oregon is … • Nonprofit, Co-operative (501.c.12). Members are primarily community owned electric utilities. To include 7 Oregon Co-op’s, 1 IGA 2 Municipalities and a Tribe • Operate by lease BPA’s “Public Purpose” fiber….900 miles in Oregon. Over 2,000 miles across 4 states • Construction started in Oregon – completed in December 2002. • Open for Business, ready to go in Washington!

  12. The Joint Venture OSU/NoaNet • NoaNet to Construct and operate approximately 20 miles of fiber between Corvallis and Albany. • OSU to pay for build; retains ownership and right to use 16 fibers. • NoaNet will operate and revenue share with OSU the balance of the fiber.

  13. The Joint Venture OSU/NoaNet • Connects local governments and education communities in two counties to each other and to State-wide network. • No restrictions on use of fiber. • Economic development tool for commercial entities.

  14. Would have been easy except for Money and Politics

  15. The Money • Finding the money was the easiest part • $350K up front for initial build-out • 10% of NoaNet’s revenue for a lease • Goal is to make $60K a yr. within 5 years • Even if we don’t, we avoid up to $6 million a year in commercial rates.

  16. “Mother, May I?” • University Legal Counsel • University Contracts Office • Department of Administrative Services • Oregon Department of Justice • Oregon University System • Local Utilities/Municipalities • Over 12 months later – “Yes you may”!

  17. Money and Politics • Right of way issues with the City of Corvallis were challenging. • 26% of City General Fund revenues come from permits and franchise fee’s • Permit to occupy right of way could cost $17K a year. • Settled on Franchise Agreement – 7% of revenue.

  18. The Result Future Options and Immediate Results

  19. The Result • Dramatically increased our existing off-campus connection and enhanced our existing partnerships • Provided new networking options for OSU (such as connecting to Pacific Northwest National Labs) • Other NoaNet opportunities for satellite facilities in Oregon such as Hatfield Marine Science Center, Cascades Campus, and Extension Services

  20. Parting Thoughts

  21. Parting Thoughts – Jon • You can afford this! • We used $20k/mi as an estimate • Partner with City and Utilities especially

  22. Parting Thoughts - Ben • Community Development • A side benefit – City,County, and K-12 schools in the two municipalities involved also working together on fiber plants.

  23. Parting Thoughts - Curt • Value of Relationships, Relationships, Relationships

  24. Q&A?

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