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Exarnple - City oj� Palo Alto, CA <br />In 1996, Palo Alto built a 33 -mile optical fiber ring routed within the city to enable better <br />Internet connections. Since then, the City has been licensing use of this fiber to businesses. <br />For the past decade, this activity has shown substantial positive cash flow and is currently <br />making in excess of $2 million a year for the city. Palo Alto now has that money in the bank <br />earmarked for more fiber investments. <br />GOVERNMENT SERVICES PROVIDER <br />Municipalities that become a government service provider will utilize a fiber-optic network to <br />interconnect multiple public organizations with fiber-optic or wireless connectivity. These <br />organizations are generally limited to the community anchors that fall within their jurisdiction, <br />including local governments, school districts, higher educational organizations, public safety <br />organizations, utilities, and occasionally healthcare providers. The majority of these anchors <br />require connectivity and often, the municipal network provides higher capacity at lower costs <br />than these organizations are able to obtain commercially. Municipal and utility networks across <br />the country have been built to interconnect cities, counties, school districts, and utilities to one <br />another at lower costs and with long-term growth capabilities that support these organizations' <br />future needs and protect them from rising costs. In these cases, government service providers <br />may be cities, counties, or consortia that build and maintain the network. The providers utilize <br />inter -local agreements between public agencies to establish connectivity, rates, and the terms <br />and conditions of service. <br />Exarnple-Serninole County, l" I <br />Seminole County owns and operated a 450 -mile fiber-optic network that was installed over <br />the past 20 years by the County's Public Works department primarily to serve the needs of <br />transportation. Since that time, the network has grown to connect the majority of the <br />county's facilities, five cities within Seminole County, Seminole Community College, Seminole <br />County Schools, and other public network to a common fiber-optic backbone. The network <br />has saved millions of dollars in taxpayer dollars across the county and has become a long- <br />term asset that enables the county and the other connected organizations to meet their <br />growing connectivity needs. <br />OPEN -ACCESS PROVIDER <br />Municipalities that adopt open -access generally own a substantial fiber-optic network in their <br />communities. Open -access allows these municipalities to "light" the fiber and equip the <br />network with the electronics necessary to establish a "transport service" or "circuit" to service <br />providers interconnecting with the local network. Service providers are connected from a <br />common interconnection point with the open -access network and have access to all customers <br />connected to that network. Open -access refers to a network that is available for any qualified <br />201 <br />