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

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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

Dr. Tim White

Provost and Executive Vice President

Oregon State University

Crisis = Opportunity

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 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.”


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

Oregon State University works with NoaNet Oregon

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

Ben Doty

Chief Executive Officer

[email protected]

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

  • 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/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

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?”

  • 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

  • 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

Future Options and Immediate Results

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 – Jon

  • You can afford this!

  • We used $20k/mi as an estimate

  • Partner with City and Utilities especially

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

  • Value of Relationships, Relationships, Relationships


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