Hudson, Ohio's upcoming municipal network, Velocity Broadband, may be serving commercial customers as early as September, reports the Hudson Hub Times. At a July 22nd Rotary Club meeting, Assistant City Manager Frank Comeriato presented details on the plan. The city has no plans to serve residents but once business services are in place, they may consider a residential build out.
The gigabit network, to be owned and operated by the city of Hudson, will be deployed incrementally. Incumbents Time Warner Cable and Windstream serve local businesses but a majority complain of unreliable connections and unaffordable prices in the few places where fiber is available.
Earlier this year, the city conducted a survey and businesses responded:
"They wanted better service and speed," [Comeriato] said. "After only two vendors responded to the city to offer the service, the city decided it could offer the service like it offers public power, water and other infrastructure."
Hudson officials realize that it connectivity is an essential service for economic development and that businesses have no qualms with relocating to places where they can get the bandwidth they need:
"Economic development is 80 percent retention, and Hudson businesses are unhappy with their current service, he added. "They want something like this."
Hudson Public Power has been preparing by training crews to deploy the infrastructure. Like other communities that have recently decided to invest in municipal networks, Hudson will focus only on Internet access and voice.
Earlier this year, the City Council approved the initial $800,000 capital expenditure to begin the deployment. According to Hudson Communications Manager Jody Roberts, the city expects to spend another $1.5 million in 2016 on infrastructure before they light the network, scheduled for 2016.
"We will then determine any additional amounts needed in [future] years, since by then we will be bringing in money in the form of monthly fees from customers," Robert said of anticipated costs. "It is our goal for this service to become fully self-sustaining. And, we anticipate by offering this service, we will attract more businesses to Hudson (more income tax) and retain more businesses."
Local public relations firm AKHIA will be one of the beta testers as the network progresses. They upload and download large data files on a daily basis and their current 5 Mbps connection is inadequate. Ohio.com reported:
“Our [current] Internet is constantly going down,” [Jan Gusich, part-owner and chief executive officer] said. When that happens, her staff leaves to find other places with available Internet, such as coffee shops, she said.
Hudson is home to approximately 23,000 people and located in the northeast corner of the state. In 2014 they released an RFP for a Broadband Needs Assessment and Business Plan; the survey was part of that assessment.
After consultants reviewed the city's assets and developed an option that incorporated its I-Net, their February 2015 estimate came to approximately $4.9 million for infrastructure to four commercial areas of town for an open access model. At the time, the consultants suggested that the price would increase to $6.5 million if the city chose to take on the role as retail provider.