Fast, affordable Internet access for all.
Fiber to the Home
Fiber to the Home
Although LUS is not releasing the exact number of customers who have signed up for fiber services, Huval said it is "many thousands" and that a higher-than-expected number are signing up for all three services at once.Networks succeed financially when they generate high amounts of revenue per user - ARPU in industry terms. Because the fixed costs are so high to connect users, the low revenues generated by only a single service (like telephone) may take many years to pay off the connection expense. The schools are also making use of the network:
Besides serving residences, LUS Fiber is also being offered to businesses throughout the city, and the wholesale numbers have been at or above expected, Huval said. All Lafayette Parish public schools also are connected to the system, and the technology was used for a partnership among Carencro High School, LITE, Louisiana Public Broadcasting and a San Francisco, Calif. school system, during which students were able to teleconference and collaborate with each other.
City officials have targeted May 31 as the completion date for fiber-optic cable installation, with the network going citywide by Aug. 1.As with several other publicly owned networks, they will be promoting the network with a mobile trailer that will demonstrate the technology to people at block parties and other gatherings around the community.
The mobile trailer will feature computer stations and a living room setting featuring everything the city's fiber-optic cable service offers. "We can roll it into neighborhoods, have small block parties and have people see what a difference it provides," said Mike Crowell, the city's broadband services director.
The summary indicated that total funding costs have decreased from $11,615,791 in December 2008 to $10,663,410 in December 2009. Shaw estimates that operating income would make the system financially feasible after the third year and could enable the city to pay off its debt in 15 years vs. 16 years as had been predicted two years ago.A press release from Uptown Services, a broadband consulting company provided some history:
They originally hired Uptown in 2004 to complete a broadband feasibility study. The results of that study were promising, but the City chose to wait for the economics to improve as the technology matured and costs came down over time. Uptown completed a refresh of the original study in 2008. The case had improved, but the City wanted to fine tune the cost estimates through the completion of an actual system design prior to making any final decisions on a City wide deployment. Uptown was selected in 2009 through an RFP process from a slate of qualified proposals to complete this design.Judging from the local site explaining the networks, they really understand the power of publicly owned broadband. The FAQ include this gem:
Remember this critical point: The incumbents look for a profit and answer to their shareholders, while the City of Dover looks for the betterment of the community and answers to its citizens.They city has Verizon and Comcast as incumbents respectively. I suspect Dover is one the thousands of communities Verizon is trying to dump on Frontier Communications rather than invest in smaller communities. The stumbling block currently appears to be deciding how to finance the proposed network.
Catharine Rice gave a terrific presentation detailing the ways Time Warner has responded to the municipally-owned Greenlight fiber-to-the-home network: raising the rates on everyone around them and cutting great deals to Wilson residents. I saw the presentation on the Save NC Broadband blog which also has a link to her slides - make sure you follow along with the slides. She details how Time Warner has raised rates in towns around Wilson while lowering their prices and offering better broadband speeds in Wilson. Once again, we see that a community building their own network has a variety of benefits: a superior modern network that is community owned, lower prices on the last-generation network from the incumbent, and some investment from the incumbent. Now the question is whether Wilson's residents will be smart enough to support the publicly owned network in the face of Time Warner's low low prices - a recognizing that a few short years of low prices (for low quality) are not worth abandoning the publicly owned network and the benefits it has created in the community.
Cable pricing in the Raleigh-Durham-Cary NC Market from City of Wilson, NC on Vimeo.
A video from Chelan shows the benefits of a publicly owned fiber-to-the-home network in a rural public utility district in Washington State. The network has literally saved lived with tele-medicine applications. Citizens also cite educational advantages and increased business opportunities thanks to this smart investment.
This video is no longer available.Guillot presented the council with more than 100 email replies from Highland Chamber of Commerce members who are in favor of the fiber project, including banks, schools, manufacturers, realtors and other businesses. “There are currently other companies providing like services in Highland. This project will not end their relationships with the city, rather it will give consumers a choice and force competitors to provide a better product or better service to remain competitive,” Guillot said. “This will also keep more revenue in Highland.” Highland resident Brad Korte agreed. “The fiber-to-the-home parallels paving the streets in the 20s, starting the city’s electric system and water department. I would rather spend my money, and take a chance with my money on Highland,” he said. “If we don’t take a chance on this, I think we would regret it in a couple of years.”The project will proceed more quickly if they are successful in an application for stimulus funds under the broadband programs. Regardless, the first phase will be completed in a year and needs a 23% take rate to break even financially (ignoring the many indirect benefits of such a network).
He said he expects the city to apply for federal stimulus money in the first part of the year to move toward that goal. In addition to improving broadband access in homes, the initiative could help Seattle City Light implement smart-grid infrastructure, and improve public safety communications.Another article further notes their shared ambition:
"Mayor-elect McGinn ran on a platform of bringing fiber to every home and business in Seattle, something I've advocated for several years," Schrier commented.No post discussing broadband in Seattle is complete without a reference to Glenn Fleishman - who both wrote another story discussing the situation and then patiently responds to many comments in the thread below it. Discussing Tacoma's publicly owned Click! network, he notes that Tacoma's investment benefited everyone:
Click being built actually helped what has become Qwest and Comcast: by creating a market and making it feasible for professionals who need high-speed Internet access in Tacoma to live there, Click spurred the two incumbents to improve their networks, compete, and gain new revenue. Comcast actually thanked Tacoma Power publicly years ago; not sure it would today, but it was seen as a big boost for the viability of competitive broadband.Photo used under creative commons license from flickr.
The new redundancy brought by fiber that would mean a decrease in the chances for a repeat of the winter 2008 when a third-party contractor working to put up a communications tower for AmerenIP cut a fiber optic cable near Maryville, knocking out phone service, most cellular services and Internet service in Highland for nearly seven hours, Latham [city manager] said.Worried about the future, Latham then spoke with the incumbent provider:
“There was another one for a short span six weeks after that and I spoke with a Verizon official if there were any plans to come in a build a tieback to create redundancy and they said no. The city is fighting for the best interests of this community.”Whether Highland can get broadband stimulus funding in round 2 or not, they are on the right path for ensuring their community is ready for the future.