Tag: "study"

Posted October 22, 2020 by Ry Marcattilio

Along the banks of the Columbia River, Multnomah County (pop. 813,000), Oregon is considering a publicly owned Fiber-to-the-Home (FTTH) network after being handed a study more than a year in the making. The report estimates that a countywide network reaching every home, business, and farm in a five-city area would cost just shy of $970 million, and bring with it a wealth of savings and other benefits to the community it serves.

Origins

The study has its origins in a 2017 push initiated by an advocacy group called Municipal Broadband PDX which has sought more affordable and equitable Internet access in the region. In 2018, the County Board of Commissioners agreed that it should be explored and approved the funding of a study, with the city of Portland and Multnomah County each contributing $100,000 and the remaining towns of Fairview, Gresham, Troutdale, and Wood Village joining the effort to collectively contribute an additional $50,000 for funding. Over the next year, CTC Technology and Energy conducted a comprehensive survey, analysis, and evaluation, and the results were delivered at the end of September.

The report offers good news: the majority of residents in Multnomah County want a publicly built and operated FTTH network, and it would be economically viable to provide symmetrical gigabit service to as many of the more than 320,000 households as want it for $80/month. At a projected 36% take rate on a 4% bond over a 20-year period, the network would cost somewhere in the neighborhood of $966 million, depending on a host of local and market factors, some of which are fixed and others subject to change. It would see net positive income by the end of its fourth year of operation, and see a total of more than $54 million in positive net income by the end of its 20-year depreciation period (a standard model for fiber infrastructure, though they often last longer). These numbers change when adjusting the take rate and interest rate, but in the vast majority of scenarios, building a community owned FTTH network in Multnomah County is feasible. 

Broadband in Multnomah County

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