Building a champagne network on a beer budget
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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

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

Overview of Presentation

  • Introduction

  • The Crisis/Opportunity

  • The Partnership

  • Approvals, Money, and Politics

  • Results

  • Parting thoughts


Dr tim white

Dr. Tim White

Provost and Executive Vice President

Oregon State University


Crisis opportunity

Crisis = Opportunity


The crisis

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?”


The crisis1

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/


The opportunity

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?


The partnership

The Partnership

Oregon State University works with NoaNet Oregon


In the beginning

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.


Noanet oregon

NoaNet Oregon

Ben Doty

Chief Executive Officer

[email protected]

www.nanetoregon.net


Noanet oregon is

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!


The joint venture osu noanet

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.


The joint venture osu noanet1

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.


Would have been easy except for money and politics

Would have been easy except for Money and Politics


The money

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.


Mother may i

“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”!


Money and politics

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.


The result

The Result

Future Options and Immediate Results


The result1

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


Parting thoughts

Parting Thoughts


Parting thoughts jon

Parting Thoughts – Jon

  • You can afford this!

  • We used $20k/mi as an estimate

  • Partner with City and Utilities especially


Parting thoughts ben

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.


Parting thoughts curt

Parting Thoughts - Curt

  • Value of Relationships, Relationships, Relationships


Building a champagne network on a beer budget

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