Gigabit Internet access will soon be reaching more residents in Westminster. The high-speed municipal fiber-to-the-home (FTTH) network in Maryland will soon add more than 2,000 new homes to the network map.
The Incredible Expanding Network
The network is a product of a public-private partnership with telecommunications company Ting. The expansion provides more evidence of the continuing success of the network in this city of just under 19,000 people about 35 miles northwest of Baltimore.
The network was originally planned as a pilot project confined to small, select areas of Westminster, but high demand prompted community leaders to broaden the reach of the project. Eventually, Westminster budgeted for citywide infrastructure.
City Manager of the Ting project, Valerie Bortz, recently said of the network "we are super busy and happy with our progress.” In October 2015, the city released an RFP calling for bids from contractors to provide maintenance on the expanding network - more proof of the city's commitment to ensure the network’s growth and success.
More Money, More Fiber
The Phase 2 expansion was made possible by a $21 million general obligation bond agreement with SunTrust Bank, approved at a September City Council meeting. According to Common Council President Robert Wack, the bank’s willingness to buy the bonds came in part as a result of the proven high demand for fast, reliable, affordable, symmetrical fiber service in Westminster. He also added:
We don't want to spend money unless there is revenue from the payments to support the debt payments. The bank liked the fact we were being cautious about this. I'd like to go full steam ahead but we need people to sign up.
The bond agreement has been in the works for some time now:
All along, our plan was to borrow the money necessary to continue the build out. We are getting ready to take down the first draw that will be spent on engineering the next phase.
The city will pay off the bonds on a 30-year amortization schedule but have the option to convert the debt to a 15-year schedule if they find profits from the network allow a faster payment schedule. The city’s ability to pay off the loan faster will depend on the success of the network. The city can draw off the $21 million in bonds for five years.
Growth of the Partnership
Beyond this second phase of the project, Wack expressed optimism about the timetable for completing the two additional phases in the network map. "Ideally, we'd like to be done in three to four years, but it could easily go five to six," he said. Construction variables and the rate of new subscribership will influence the timetable.
In January 2015, Westminster and Ting entered into a partnership which was recognized as 2015’s “Community Broadband Innovative Partnership of the Year” by the National Association of Telecommunications Officers and Advisors (NATOA). The city owns, funds, and maintains the network while Ting has a 2 year exclusivity contract to lease the fiber and provide equipment and retail services. At the end of 2 years, the city will have the right to invite other providers to offer services via the infrastructure.
Ting, which markets itself as a provider of “crazy fast” fiber Internet service, also provides high speed broadband service in Charlottesville, Virginia with plans to make Holly Springs, North Carolina the next “Ting Internet Town.”
Listen to Chris interview Dr. Robert Wack, the man who spearheaded the initiative, in episode 100, and Tucows CEO Elliot Noss, parent company of Ting, in episode 134 of the Community Broadband Bits podcast.