Tag: "supernet"

Posted December 12, 2012 by lgonzalez

Back in 2010, we reported on SuperNet in Alberta, Canada. We noted how, even though it resulted in significant middle-mile infrastructure expansion, there were still many, many Canadians along the route that were not connected. We drew a parallel between that experience and the focus on middle mile infrastructure via the broadband stimulus programs.

In October, Broadband Communities Magazine carried Craig Settles' article on Olds, a small community in Alberta that overcame the last-mile challenge by working for over 10 years to create that last-mile connection, culminating in O-Net. This town is an inspiration for other communities who decide to take matters into their own hands and find a way to get members connected and engaged. 

Settles tells how the process began as a collaborative effort to get organized and revitalize the economy. A technology committee was charged with bringing fiber throughout the county, but the expense was prohibitive. From the article:

"The initial estimate to lay fiber optic cable throughout the county was approximately $80 million [Canadian dollars], well beyond OICRD's [Olds Institute for Community and Regional Development] funding ceiling,” states Joe Gustafson, who was OICRD chairman at that time. “The Tech Committee subsequently refocused on just the town of Olds and its population of just over 8,000, which brought the estimate down to $13.5 million, or about $3,140 per premises passed.”

The story goes on, taking us through several stops and starts the community experienced when working with private providers:

“To date, few incumbents see value in working with a community on a network such as this,” states Craig Dobson, currently the director of Olds Fibre Ltd. (OFL) and initially a consultant for the institute. “In essence, they believe strongly in facilities-based competition and appear to be threatened by market- based services competition that open- access networks enable.” Open-access networks rely on service providers for revenue – without them, the networks are not sustainable.

After working with the private...

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Posted September 21, 2010 by christopher

Perhaps the biggest disappointment from the broadband stimulus program was its focus on middle mile investments in a bid to avoid overly upsetting powerful incumbent providers who do not look kindly upon competition (something we discussed here). Some claimed that by increasing middle mile options, the private sector will have greater incentive to invest in the next-generation broadband networks communities desperately need. While this is undoubtedly true, it ignores the biggest hurdle facing network deployers: the high cost of building the network. Reducing the operating expenses of a new network by dropping backhaul prices does very little to allow a deployer (private, public, etc) to better afford the high capital cost of building the network. To illustrate, I could greatly improve my vertical but I still would not play in the NBA (apparently, that requires talent also). Remarkably, we have a fantastic test case of what happens when a government builds massive middle-mile connections and expects the private sector to complete the last mile build: Alberta Province in Canada. Ten years ago, Alberta began building the Supernet, a massive mostly fiber backbone delivering 100Mbps into just about every town in the province (we wrote about this in the back of our Breaking the Broadband Monopoly report). Despite the fact that anyone could get affordable backhaul, a recent Calgary Herald article revealed that half a million people still only have access to dial-up. This illustrates an important lesson: by making ubiquitous backhaul available, the private sector did invest. Unfortunately, it invested only in the profitable areas and has left perhaps a larger problem behind for the public sector to solve.

The plan was to leave it up to private Internet service providers to supply the final leg of the connection between the SuperNet and individual users. Unfortunately for many residents who live outside of major urban centres, there's often little financial incentive for providers to do so.

Some munis in Alberta have built last mile networks themselves...

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