lessons learned

Content tagged with "lessons learned"

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More Details Emerging about Fibrant in Salisbury

The nation's newest community fiber network (FTTH) is launching in Salisbury, North Carolina, in the next month. Fibrant, a $29 million project financing by general obligation bonds, is slightly behind schedule but way ahead of the cable and DSL competition. The City Council has approved the network's pricing in anticipation of hooking up customers in October. Some 70 people have been testing the network, but it will soon be available to everyone in the community. The basic tier of broadband speeds is 15Mbps and they have a second tier at 25 Mbps. The network is capable of much faster speeds but these are the tiers they will start with, making them the fastest basic tier available in North Carolina. They are offering over 460 television channels, of which 100 are HD. HD quality over fiber-optics tends to be the highest quality viewing experience (though not everyone can tell, depending on their level of obsession with picture quality) but the first year or so of video service on Fibrant may suffer from occasional problems as they iron out the quirks of the new system. Reports of the broadband and voice services are tremendously positive. They have made it clear that they cannot get into a price war with incumbents (Time Warner Cable and AT&T) and cannot beat the "promo" prices these companies offer for the first x months. However, Fibrant's rates are 7-10% lower than the regular rates of the incumbents and will come with local, superior, customer service. Big companies like Time Warner Cable often claim they are at a disadvantage relative to these municipalities but the reality is that the massive scale of national cable and phone companies give them many more advantages to offer lower prices for their services (which tend to also be lower in quality).
“If you get deal you can’t refuse from someone else, just thank Fibrant for it because you wouldn’t have gotten it if we hadn’t been here,” Clark [Fibrant Marketing Director] said.
Fibrant aims for a 30% take rate (4400 subscribers) by the end of year 3 and a positive cash flow in year 4. Pricing and channels lineups are available at the end of this Salisbury Post article.

Jackson Energy Authority Adds Tantalus for Smart-Grid

Jackson Energy Authority in Tennessee, long the largest community fiber network in the US, is investing in greater smart-grid capabilities. If you aren't already familiar with this network, an article in Electric Light & Power offers some history:

After receiving local government support and revenue bond issue funding, JEA went ahead with the $54 million project. Now its FTTP network boasts 16,500 cable, 10,843 Internet and 7,000 telephone subscribers. JEA is preparing for the next phase of its FTTP deployment with a smart grid initiative expected to begin in 2010.

The article also makes an important point that many find confusing in understanding the economics of these community fiber networks:

In the early years, JEA focused on subscriber growth as its key performance metric, rather than average revenue per user (ARPU). The capital-intensive cost of acquiring and hooking up new customers, however, can create significant cash flow problems for a network operator, especially when growth substantially exceeds the business plan. JEA had to secure more financing to support its incremental growth. The utility also adjusted its business model to focus instead on ARPU and increasing the number of existing subscribers using two or three services. JEA employed special promotions and service packages that took advantage of the huge bandwidth capabilities of its fiber network to build customer loyalty and overcome the customer churn typical of the industry. Today, JEA’s network has passed more than 30,000 homes, more than 16,000 of which are subscribers.

This is a good example of a community encountering a problem and overcoming it. The article also offers other lessons learned along the way. Moving forward, JEA has decided to work with Tantalus to add smart-grid capabilities to the fiber network.

Breaking the Broadband Monopoly

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The Institute for Local Self-Reliance is pleased to release this comprehensive report on the practices and philosophy of publicly owned networks. Breaking the Broadband Monopoly explains how public ownership of networks differs from private, evaluates existing publicly owned networks, details the obstacles to public ownership, offers lesson learned, and wrestles with the appeal and difficulty of the open access approach.

Download Breaking the Broadband Monopoly [pdf]