Tag: "real estate"

Posted August 12, 2015 by phineas

Only one in 11 households in the United States have fiber-to-the-home (FTTH) subscriptions, according to a 2014 Broadband Communities primer, but that might begin to change as more and more studies show the economic benefits of fiber. Most recently, the Fiber To The Home Council Americas funded a study in conjunction with the University of Colorado and Carnegie Mellon that showed a fiber dividend of $5,437 on a $175,000 home. Fierce Telecom reported on the results:

The boost to the value of a typical home – $5,437 – is roughly equivalent to adding a fireplace, half of a bathroom or a quarter of a swimming pool to the home.

The results of the study, which compared roughly 500,000 housing prices over the course of two years, have made their rounds on the Internet, even receiving coverage in the Wall Street Journal. It builds upon a small, but growing, body of research that links fiber deployments in homes and multiple dwelling units (MDUs) to economic growth.

As more research on housing prices and home Internet access surfaces, the value of FTTH deployments appears to be on the rise. A 2014 study by the consulting firm RVA LLC revealed a $5,250 increase in the value of a $300,000 home. Now, according to the newest study, a similar increase in value can be seen in homes worth half this amount.

The benefits of FTTH networks are not just relegated to single family homes. In 2014, the FTTH Council released a report that showed a 1.1 percent increase in GDP in communities that deploy gigabit broadband services, representing about $1.4 billion in total in the 14 gigabit communities studied.

The Council also conducted a survey in 2014 that looked at the effect of FTTH on multiple dwelling units, which we covered in an April story. Access to fiber increased sale and rental prices in MDUs by three and eight percent, respectively.

Some forward-thinking communities, like Loma Linda in California, have gone so far as to...

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Posted June 17, 2015 by lgonzalez

As a major metropolitan community, New York City has found a way to establish a link between connectivity and real estate for potential commercial tenants. 

WiredNYC, a certification program launched in 2013, provides broadband ratings for office buildings in the city. WiredNYC has been renamed WiredScore and now operates across the United States, in partnership with local governments. The program provides a simple survey online at WiredScore.com that analyzes a variety of factors and provides a rating based on:

Building Connectivity: The number of internet service providers, the quality and speed of connections, and the access to provider cabling in the building...

Infrastructure: Factors specific to the building's physical internet infrastructure (i.e., number of entry points, designated utility spaces, and risers)...

Readiness: How ready a building is to improve its connectivity... 

The survey provides feedback based on the survey results and offers a preliminary rating of "Certified," "Silver," "Gold," or "Platinum." In order to complete the certification, the City will send an engineer to the building to verify the survey results. WiredNYC also provides advice for building owners and landlords who have taken the survey but whose structures do not meet the minimum standards for certification or who want to take steps to achieve a higher standard of certification.

Landlords can use Wired Certification to market their building to potential tenants. Their buildings appear on WiredScore.com website and they receive similar benefits.

A March report from the Vertical Systems Group concluded that fiber is now present in approximately 42.5 percent of U.S. commercial buildings. Ten years ago that figure was only 10.9 percent. Fast, affordable, reliable connectivity is quickly becoming an integral component of the real estate market. Programs like WiredNYC will allow entrepeneurs and established businesses find the types of connections that suit their needs.

Update: We have updated the story because WiredNYC expanded to be WiredScore and works with all manner of commercial buildings.

Posted June 3, 2015 by lgonzalez

Earlier this year, we reported on the Village of Gilberts, Illinois, where voters defeated a measure to approve general obligation bonds for a municipal network project. Our story got the attention of Bill Beith, Assistant Village Administrator from Gilberts who contacted us to talk about the project and provide detail on their efforts to educate the voters prior to the election.

The project would have raised property taxes 1.8 percent or approximately $150 per year on a property with a $250,000 market value. Even though the network would have been a publicly owned asset, Beith believes the idea of any new taxes defeated the measure. As the community considered the project, voters stated repeatedly that Comcast or one of the other incumbents should pay for deployment of infrastructure. Unfortunately, the Village had approached incumbents who had no interest in building in Gilberts. They felt the investment would not pay off in a community that is home to about 6,800 people.

The proposed project was to be deployed along side a private fiber network. When the developer of a new housing development learned that fiber significantly increases the value of real estate, he chose to include it to each new home. He also chose to bring the network to a nearby school along with several public safety and municipal facilities at no charge to the Village. 

The project on which voters denied funding would have extended fiber to the rest of the community. According to Beith, the developer still plans to continue his fiber build in an incremental fashion. In addition to the homes in the new housing development, he will focus on commercial connectivity in the Village of Gilberts.

Even though the measure failed in April, the Village will continue to explore ways to work with the developer. According to Beith, he and other advocates for improving connectivity in Gilberts walked away with some valuable lessons for the future.

Ultimately, timing played an important role. Because referendum rules precluded the Village from advocating a position on the project, Beith felt their ability to share the potential benefits was compromised. If the Village...

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Posted April 28, 2015 by lgonzalez

Urban real estate investors take note: FTTH has come of age in the multi-dwelling unit marketplace. (MDU). When looking for new homes, many more renters and owners are now considering FTTH a necessity.

Several studies have established that fiber raises the value of single family homes by $5,000 - $6,000 on a home valued at $300,000. A July 2014 survey, commissioned by Broadband Communities magazine and conducted by RVA LLC indicates that similar results influence MDUs. Clearly, access to FTTH adds measurable value to real estate.

The study examined numerous factors related to knowledge, use, satisfaction, and adoption of FTTH related to MDUs. RVA broke down the results by age, economics, and education attained. While some results were surprising, others were predictable. For example, level of education attained is not necessarily consistent with knowledge of the benefits of FTTH. The study reflects that those with a graduate degree did not have the same appreciation for the technology as those with some college less than a four-year degree.

The level of satisfaction when comparing FTTH to cable, DSL, wireless, and satellite options was not surprising. Of course, fiber-to-the-home far out performed any other technology.

The survey also found that access to broadband has become as important as other utilities: 

Overall, survey respondents indicated that broadband was, indeed, their top amenity. This finding confirms other recent polling and provides finer-grained details: For MDU unit owners, access to good broadband is now the top amenity by a large margin. Renters rated broadband second in terms of amenity importance, close behind “in-unit washer/dryer.” Broadband was valued highly in all types of buildings but especially in student housing and in luxury buildings.

FTTH can influence sale value by 3 percent and rental value by 8 percent. The additional revenue to the building owner far outweighs the initial investment:

For an MDU building owner, outfitting an apartment with FTTH would yield $972 more annual rental revenue and $209 more revenue from lower vacancy rates, the survey shows. Having FTTH at the site would also result in a $120 savings in marketing, administration and maintenance stemming from 31 percent lower churn and more word-of-mouth advertising, according to the survey.

...
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Posted April 9, 2015 by lgonzalez

On April 7th, voters in Glberts, Illinois, chose not to raise taxes to deploy a municipal fiber network, reports the Daily Herald. According to the article, 81 percent of ballots cast voted against the proposal. Voter turnout was low, with only 682 ballots cast out of 4,002 registered voters in town.

As we reported last month, local developer Troy Mertz plans to deploy fiber to each structure in a new housing development, The Conservancy. His fiber company will also install fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. The plan was to issue General Obligation (GO) bonds to finance a publicly owned network throughout the rest of the community. The proposal would have raised taxes approximately 1.8 percent or $150 per year on properties with a market value of $250,000.

For the developer the plan will remain the same:

Mertz still plans to go ahead and connect The Conservancy's planned fiber optic network to municipal and public safety buildings plus Gilberts Elementary School, saying it was built into his development plans.

"The goal of village was always to getting fiber to our industrial areas," said Gilberts Village President Rick Zirk. "As a community, we asked the rest of the village, 'Do you want the same service and the same options that the new part of town and the industrial park?' And it seems that they don't want to pay for it."

There is a definite lesson here for any other communities considering a similar plan - educate the voters and make sure they are excited about it! From what we can tell, there was little effort to make people aware of the plan and the turnout for the vote suggests that no one was particularly excited to make it happen.

Posted March 24, 2015 by lgonzalez

The Village of Gilberts, Illinois, will ask voters in April to authorize up to $5 million in General Obligation bonds to deploy a FTTH network reports the Daily Herald. GO bonds are rarely used for network deployment but often used for public works projects and other publicly owned assets. Due to the funding mechanism in Gilberts, the network would be publicly owned.

"It's something that is not readily available in other communities," Village Administrator Ray Keller said. "It would set us apart and put us on a path to better meet the needs of our residents and businesses as their demands and needs for technology grows."

The community, home to 6,800 people, has experienced rapid population growth since 2000. At that time only 1,200 people lived in this northeast Kane County village.

According to the article and January Board of Trustee minutes [PDF online], the bond issue would increase property taxes 1.8 percent on most tax bills. Properties with a market value of $250,000, which is most common in Gilberts, would pay an additional $150 per year or $12.50 per month to fund the infrastructure deployment. There are approximately 2,400 taxable properties in Gilbert today but as more properties are built, each property owner's share would decrease. 

This is the second time the village has planned for a fiber network to improve connectivity throughout the community. In 2013, Gilberts entered into an agreement with i3, a British company that eventually folded, to deploy fiber using sewers as conduit. In that plan, i3 would have owned the fiber network.

Developer Troy Mertz is spearheading the project. His company is investing in a new housing development that will eventually include an additional 985 new homes. As part of that development and independent of the municipal fiber project, Mertz is installing fiber to each structure at his own expense. His company, iFiber Networks will also run fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. According to the Daily Herald, iFiber is not charging the city for bringing fiber to its facilities or the school.

Mertz...

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Posted August 12, 2014 by christopher

Hunter Newby is back for his second appearance on Community Broadband Bits to discuss his thoughts on carrier neutral approaches to spur our economy with more investment in better networks. We just talked with Hunter in episode 104 on carrier neutral approaches to middle mile networks.

Now we discuss these types of approaches within communities - how to spur more competition without the owner of the infrastructure actually offering services directly. This has been a challenge historically, but we continue to see signs that this approach can be viable in the future.

Hunter Newby is the CEO and founder of Allied Fiber.

Read the transcript for episode 111 here, courtesy of Jeff Hoel.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted June 24, 2014 by christopher

I recall first hearing about Alled Fiber a few years back and not thinking much about it. It seemed like another operator focused on connecting wireless towers and building long haul fiber... but then I heard Hunter Newby's presentation at Mountain Connect in Colorado. When he noted the need to have infrastructure that financiers could not monopolize, I knew I wanted to have him on our show.

Hunter is the Founder and CEO of Allied Fiber, which has just announced its route from Jacksonville to Miami is ready for service.

We talk about how the carrier neutral Allied Fiber approach is different from other approaches, in part by combining colocation and ensuring other networks can interconnect almost anywhere along the route. We also set the stage for a future conversation about what local governments can learn from this carrier neutral approach.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Posted May 22, 2014 by lgonzalez

On May 13, Princeton voters decided to continue their municipal network planning. At the annual town meeting, 91.4% of voters passed Article 4 [PDF], authorizing a new Municipal Light Plant. A year ago, voters approved a measure to proceed with planning.

Princeton, a community of 3,300 residents and 1,270 households, has DSL access available to approximately 49% of residents. Satellite, dial-up, and wireless are the other options. 

Entrepreneurs rent office space in nearby communities with better connectivity. Real estate professionals bemoan bad Internet because it lowers property values. A 2013 survey revealed an overwhelming desire to take action. Residents and businesses want an FTTH option.

The Worcester Telegram reported that the community also voted to appropriate $17,000 to make-ready costs, possible legal fees, construction costs for telecommunications huts, and other possible network costs.

"Passing Article 4 will allow us to start negotiations with the vendor," said John Kowaleski of the Broadband Committee. "Without passing this article we will have to wait two years to approach this subject again."  

According to Selectman Stan Moss, the community continues to explore a variety of options. Community leaders have met with several providers to discuss public/private partnerships. Large corporate players, including Charter and Comcast, are not interested in working with Princeton.

The community is also considering a pilot project as a starting point. MassBroadband 123, the network of the Massachusetts Broadband Institute (MBI) will soon serve local schools and several public facilities in Princeton (it should be noted that MBI has been saying "soon" for a few years). The schools will transistion from T1 lines to the new MBI fiber. Community leaders hope to eventually capitalize on the infrastructure to reduce overall...

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Posted April 1, 2013 by lgonzalez

We recently reached out to Princeton, Massachusetts, after reading several local news articles about the city's ambition to improve broadband in the community. Phyllis Booth of the Landmark has been covering the story. Community leaders recently mailed survey cards to every residence in town and put the survey online to provide ample opportunity for feedback.

With survey results complied, the answer from respondents was an overwhelming, "Yes! We want better Internet!" The Princeton Broadband Committee has since made the results available in a series of visuals that express the community's experiences with speed, customer satisfaction, desirable applications, and other respondent concerns. Detailed survey results are available for review [PDF].

The results come as no surprise to Stan Moss, Board of Selectmen Member who is also on the Broadband Committee. "Everybody has tried everything," says Stan when he describes the survey outcome. The community of 3,300 has access to DSL in about 49% of households and other choices are satellite, dial-up, and wireless. According to Moss, Princeton DSL customers averaged a D+. From the Landmark article:

“Once we invest in the fiber it’s pretty good. It’s not costly to upgrade in the future, it’s reliable once it’s in place,” said [Broadband Committee Member John] Kowaleski. “If the town doesn’t do this, no one will,” he added. The town has contacted Verizon and Charter and “we’re not even on their plan,’’ said Kowaleski. “Princeton has insurmountable challenges. It isn’t profitable for Verizon or any other company to provide the infrastructure to give us the service,” said Kowaleski.

Moss says he receives calls on a regular basis from residents who want to know when the city is going to provide FTTH. Most of those calls come from people who work from home or have school age children.

Princeton, Massachusetts Map

K-8 Schools in Princeton currently use slow and unreliable T1...

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