Tag: "optinet"

BVU OptiNet Update: Deal Coming Together

Posted April 24, 2017 by Lisa Gonzalez

A little over a year ago, we first shared the news about Bristol’s decision to privatize its FTTH network, OptiNet. Virginia based Sunset Digital Communications offered to purchase the network for $50 million. The network has saved Bristol millions of dollars, stimulated economic development, and cut telecommunications costs for local residents and businesses. Nevertheless, after several corrupt officials drove the network into a dark period of scandal, all those advancements paled and Bristol was ready to sell the network.

After months of negotiations with BVU’s partner in the Cumberland Plateau area service area, the details for the sale are coming together.

When There's A Partner

One of the last steps to completing the sale required approval from the Cumberland Plateau Company (CPC), which operates as a partner with BVU to bring connectivity to four additional counties in Virginia. As a partner with OptiNet in those areas, CPC owns approximately 50 percent of the assets.

When Sunset Digital offered $50 million for the BVU assets, CPC obtained the right of first refusal for the assets in the four counties where BVU and CPC work together as partners according to their contract.

Back in the fall of 2016, CPC was concerned about the legality and the details of the proposed transaction; they decided to wait for federal and state review before granting approval. Because the NTIA, the Economic Development Administration (EDA), and the Virginia Tobacco Commission provided grant funding to the CPC region for the deployment, the agencies needed to review and approve the proposal. The agencies approved the sale, but required that a large amount of BVU debt be paid. One of the claims that they required be paid was a claim for $8 million from CPC.

Approving The Offer

As part of the offer, Sunset promises to invest $6.5 million to connect more homes and businesses in the CPC region. They estimate CPC will gain about $21 million in revenue over 13 years while Sunset operates the network. CPC will retain ownership of its assets in the CPC service area and Sunset will transfer ownership of equipment in the CPC area to CPC.

After several rounds of...

Sale of OptiNet: BVU Caught Between Virginia's Rock And A Hard Place

Posted February 12, 2016 by Lisa Gonzalez

For more than a decade, the people of Bristol, Virginia have enjoyed what most of us can only dream about - fast affordable, reliable, connectivity. In recent days, we learned that Bristol Virginia Utilities Authority (BVU) has entered into a deal to sell its OptiNet triple-play fiber network to a private provider. The deal is contingent on approval by several entities.

As we dig deeper into the situation, we understand that troubles in southwestern Virginia and Bristol have led to this decision. Nevertheless, we urge the Bristol community to weigh the long-term consequences before they sacrifice OptiNet. Once you give up control, you won’t get it back.

"...A Few Bad Apples..."

If the people of Bristol surrender this valuable public asset to the private market, they run the risk of undoing 15 years of great work. None of this is a commentary on the private provider, Sunset Digital Communications, which may be a wonderful company. The problem is that Sunset will be making the decisions in the future, not the community.

OptiNet has helped the community retain and create jobs, attracting and retaining more than 1,220 well-paying positions from Northrup Grumman, CGI, DirecTV, and Alpha Natural Resources. Businesses have cut Internet access and telecommunications costs. Officials estimate around $50 million in new private investment and $36 million in new annual payroll have come to the community since the development of OptiNet. The network allowed public schools to drastically reduce telecommunications expenses and introduce gigabit capacity long before such speeds were the goal among educators.

Schools and local government saved approximately $1 million from 2003 - 2008. Subscribers have saved considerably as well, which explains OptiNet's high take rate of over 70 percent. Incumbent telephone provider Sprint (now CenturyLink) charged phone rates 25 percent higher than OptiNet in 2003. The benefits are too numerous to mention in one short story.

However, BVU is emerging from a dark period marked by corrupt management. This sad reality actually makes its considerable achievements all the more remarkable. Last...

Bristol Virginia Utilities to Offer Home Management Services

Posted November 13, 2013 by Lisa Gonzalez

BVU in Bristol is now offering Quantum Home, a security and home management system that uses the community's publicly owned fiber network. The system allows home owners to also manage lights, temperature, and appliances from anywhere using a computer, tablet, or smartphone. For a quick video demo, check out the BVU website.

Installation costs range between $200 to $2,000 for installation and monthly charges are $39.95 - $49.95. Comcast offers a similar service, Xfinity Home, and requires installation fees to be paid in full when the system is installed. BVU plans to allow customers to amortize the installation fees over 12 months if they wish.

BVU launched OptiNet in 2001 and offers reliable triple-play at affordable prices in Bristol and surrounding areas. We talked with Jim Baller about the history of publicly owned networks in Episode #57 and Episode #63 of the Community Broadband Bits podcast. BVU's OpiNet played a prominent role as one of the first publicly owned completely fiber triple-play networks.

Tricities.com reporter David McGee recently attended a BVU Board of Directors meeting where management described the new service.

“This is an exciting new service that is actually in the market and we’ve already been selling it,” [Authority interim CEO Mike] Bundy told the board... "It will be not just home security but home automation. It’s cutting-edge technology.”

Bristol Gets Stimulus Funds for Middle Mile and Starts Smart Grid

Posted July 14, 2010 by Christopher Mitchell

Bristol Virginia is again expanding broadband access in rural Virginia. Following a $22.7 million BTOP (broadband stimulus) grant and matching $5.7 million grant from the Virginia Tobacco Commission, in combination with in-kind contributions from the Virginia Department of Transportation, BVU will greatly expand middle-mile broadband throughout 8 counties in Southwest Virginia. The project is expected to take 2.5 years to complete.

The Bluefield Daily Telegraph covered the story:

“With this broadband network, Bristol Virginia Utilities will enable service to more than 120 of what we refer to as anchor institutions,” [US Senator] Boucher said. “That includes schools, libraries, hospitals, clinics, major government facilities and other large public facilities. The new network will also come within two miles of 18,000 homes and 500 businesses. That makes it feasible for what we refer to as last mile service to be provided to these 18,000 homes and 500 businesses. Some of these have broadband today, but not all of them do.”

This project will add onto the economic development successes resulting from previous networks built by the publicly owned utility:

Boucher said the original broadband line deployed across the region several years ago has already helped to create a number of new jobs, including 137 new virtual call center jobs that have been created in the region by DirectTV, and another 700 plus jobs that have been created by the Northrop Grumman and CGI technology centers in Lebanon.

Read BVU's press release on the grant award [pdf].

Though BVU is expanding middle mile access, it cannot offer last-mile services in most of these communities. Virginia law prevents BVU from offering some services outside its existing footprint - a policy that is great for telco profits but terrible for people that actually want modern telecom services.

For its existing broadband subscribers where it is allowed to offer services, the utility has boosted downstream and upstream speeds [pdf]. The new tiers remain asymmetrical, as with a number of the earlier muni broadband networks....

Community Savings

Posted May 13, 2009 by Christopher Mitchell

In terms of fiber-enabled cost savings, 120 businesses in Bristol reported an average of $2,951 in savings per year, while, in Reedsburg, 33 cited annual cost savings averaging $20,682. Twenty Jackson businesses reported cost impacts due to fiber, with one large organization reporting a total of $3 million in savings. The other 19 Jackson respondents reported a net average cost increase of $3,150 per organization.

BVU School Connections