Background

Searching for a way to diversify its revenue streams after the 1992 deregulation of the electric utility industry, Tacoma Power originally planned to build a fiber optic network as a way to offer non-electric services to its customers without incurring heavy monetary costs.

In 1996, Tacoma Power deployed a fiber optic backbone to connect its power stations, allowing the utility company to substantially increase reliability and efficiency through load management and automatic utility monitoring. With this fiber backbone already in place, Tacoma Power then found itself in a position to build out a telecommunications network throughout the community at relatively little cost.

Process

Tacoma Power began the process of building out a telecommunications network by first eliciting primary research to evaluate the options, opportunities, and risks of entering the telecommunications services field. Results of this primary research indicated a potential market for telecommunication services, including cable TV and high-speed Internet. Based on these results, Tacoma Power took the next step and developed a broad-based telecommunications business plan.

In April of 1997, the Public Utility Board and the City Council approved the business plan. Within six months, Tacoma Power had hired a team of telecommunications experts to manage the process of providing telecommunications services to customers in the community. In 1998, after four years of extensive research and consideration, construction of the network finally began.

Construction now stands at over 700 miles of Hybrid Fiber Coax (HFC). The network consists of redundant fiber loops with battery back-up at all mission-critical locations and no more than 4 active components from node to home. A carrier-grade network, the system operates at 99.999% reliability.

To brand its new services, Tacoma Power contracted the services of an outside marketing company, who tested a variety of names and logos. After several months of testing, Click! Network was born.

Services

Click! Network operates via a limited wholesale model, with multiple third-party providers delivering Internet service over the system, while Tacoma Power provides its own cable TV service.

Cable Television

Cable television was Click! Network’s first service offering. It includes digital music and WorldGate (Internet over television). Currently, the network serves approximately 19,700 cable TV customers. Some neighborhoods have a 35-40% penetration, with an overall 30% penetration throughout Tacoma. Over 20% of Cable TV customers use WorldGate.

High-Speed Internet

High-speed cable modem Internet service is offered through a variety of providers serving the greater Tacoma area. Today, there are over 3,000 cable modem users.

High-Speed Data

Click! offers a variety of high-capacity data services, ranging in bandwidth from a DS1 through an OC48.

Results

Tacoma now markets itself around the world as “America’s #1 Wired City.” According to the Click! Website, over 100 new businesses have relocated, opened, or expanded in Tacoma since construction of the system began, “in part, due to the new telecommunications services.”