Stimulus winner NebraskaLink enthusiastic about middle mile approach

When seven small independent Nebraska telcos formed a consortium called NebraskaLink, their initial goal was to create a backbone network to serve all of the members. But as they worked together, their plans became more ambitious--particularly after they realized they might be able to obtain broadband stimulus funding.

In August, the group was awarded an $11.5 million grant from the National Telecommunications and Information Administration to help build three fiber rings in Nebraska. The members are contributing an additional $4.5 million toward the project.

“We will support TDM and Ethernet services, as well as the sale of optical services to another carrier that might want to use some part of the fiber network,” NebraskaLink CEO Paul Ludwick told Connected Planet.

Ludwick believes NebraskaLink won the stimulus funding because of “a basic need in Nebraska.” Most places, you talk about the number of people per square mile. But in some parts of Nebraska, he said, “it’s the number of miles per person.”

The community Anchor Approach

In making its awards, the NTIA focused on “middle mile” or “community anchor” networks such as the one NebraskaLink is building. The idea was to bring high-speed backbone connectivity to remote areas with the hope that other network operators would then want to build last-mile connectivity within communities served by the backbone network. In several different speeches to announce broadband stimulus awards, U.S. Commerce Secretary Gary Locke referred to this approach as “getting more bang for the buck.”

The NebraskaLink network is an example of a project that hopes to leverage that approach. “When we applied we provided maps of our proposed network,” explained Ludwick. “We included our three basic core network rings and we also included a lot of lateral builds into some of the smaller cities within Nebraska. We’ll put fiber into those locations, including tribal agencies, educational institutions, and public service agencies.”

The NTIA calls the sorts of institutions to which NebraskaLink plans to connect “anchor institutions.” NebraskaLink is not offering special discounts to these institutions but Ludwick believes many of them will opt to purchase service because this will be the first time high-speed service will be available to them at market rates.

He also believes other network operators will be more motivated to deploy “last mile” broadband networks to homes and businesses within their communities. “There are many companies that need cost effective network access--whether it's direct Internet access or Ethernet point-to-point private line type services,” said Ludwick. “If you have a two-lane highway, people will use it, but if you have four lanes, more people will use it.”

Equipment Choices

NebraskaLink is nearing completion on the first phase of its network, which would have been built even if the consortium had not obtained stimulus funding. The company hopes to break ground on the second ring before the ground freezes later this year.

According to the rules of the stimulus program, the entire project must be completed within three years. “We think with good planning it can be done quicker,” Ludwick said.

The NebraskaLink network will rely on equipment from several key suppliers, including Adran customer premises equipment, Brocade routers, and the Z-series multi-layer transport platform from Cyan. Ludwick said both the Brocade and Cyan equipment is well suited to projects of NebraskaLink’s scale.

“For us to be successful, we have to start out small and think big,” said Ludwick. “Cyan gave us the opportunity to start with one OC-192 used for TDM and Ethernet simultaneously and is very effective at doing both. Some other suppliers could do both but used the bandwidth inefficiently.”

Data Center Opportunities

Nebraska is unique in that the state operates its own power grid. “We have a tremendous power grid to all areas,” Ludwick said.

By augmenting that power grid with high-speed service through the NebraskaLink network, Ludwick believes small Nebraska communities will be well positioned to operate data centers for large Internet-based businesses. “With the addition of bandwidth, and with a work force already available in these small cities, it’s a great place for companies to locate.”

Several small Nebraska cities already are looking at the possibility of establishing data center parks, Ludwick said