Broadband could be $125M effort for Fort Collins

Fort Collins, facing west (1875)

Fort Collins, facing west (1875) (Photo credit: Wikipedia)

Apparently no one properly explained how the wholesale model could be the best option for Fort Collins. Using a wholesale model, the city can attract multiple service providers from local to regional carriers that could boost their utilization well over 30%. Another benefit is that they do not have to keep up the technology arms race that Comcast and CenturyLink will be sure to start. Their consultant really should provide them better advice on the wholesale option.

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Fort Collins residents love their internet. And like technology consumers everywhere, they want their connection to be fast, cheap and reliable. Continue reading

Annette Meeks: Municipal broadband puts taxpayers’ dollars in jeopardy

Although I do not paint as dire picture as Annette Meeks on municipal broadband. There are still several cautionary tales out there that need to be seriously considered by localities when embarking on a municipal broadband project. Most of them have been failures due to poor planning and optimistic projections including the miscalculation of how their commercial competition will respond. In some cases there are no other alternatives than a city to offer their own services, but those are few and far between. There are many creative alternatives that municipalities can implement that increase broadband penetration and offer competition. Continue reading

This city’s leaders look to build a broadband network even as Comcast expands 

By

Savannah city leaders are moving forward with a plan that could create a municipal broadband network in the coastal Georgia city.

What’s curious about the move is it comes on the heels of an announcement by Comcast that it will bring a super-high-speed network to Savannah beginning later this year.

The company’s Comcast Business division revealed in March that it will begin construction of a fiber-optic network in the third quarter of the year to bring download speeds of up to 10 gigabits per second to businesses, colleges and government agencies. Continue reading

Commentary: Fiber network not a good deal for Westerly

By MARC BROWN

Westerly’s Town Council is currently considering whether to enter into a contract with SIFI Networks of London to build a $30 million fiber optic network. SIFI is proposing to build the network and the town would lease-purchase it from the company at an annual cost of $1 million to $2.5 million over 30 years. SIFI has promised that a third-party internet service provider will sell broadband packages on the new network, sharing revenue with Westerly to cover the town’s lease cost. SIFI has “guaranteed” it. That guarantee is only backed by the word of the company — a company that hasn’t actually built a single mile of fiber anywhere in the United States. The town can supposedly back out of the contract at any time — but SIFI would then retain ownership of the network, and would be free to use it as they see fit without town involvement.

Steve Blum, a broadband consultant hired to study SIFI’s contract in another community, recently told The Westerly Sun that the town “should assume it will have to be subsidized by some other source, whether it’s a tax or a utility fee…They will not make enough money from operation of the system.” Even a cursory look at the numbers should raise a red flag. Using SIFI’s assumption of 36 percent penetration, the average monthly household bill would have to exceed $200 per month for the town’s revenue to cover the $1.5 million annual lease commitment. Continue reading

South Mississippi cities deserve better than government broadband

Coastal map of the U.S. state of Mississippi, ...

Coastal map of the U.S. state of Mississippi, showing major towns and cities in the 3 coastal counties: Hancock, Harrison, and Jackson County. Also shown are Cat Island, West Ship Island, East Ship Island, Horn Island and Petit Bois Island.The locations of towns, roads and offshore islands are based on NOAA and NASA maps. (Photo credit: Wikipedia)

BY DAVID WILLIAMS

Mississippi will receive $1.5 billion as part of its settlement from the British Petroleum oil spill. A new plan proposes to use a significant portion of that settlement to build a government-owned broadband “fiber ring” connecting several South Mississippi cities including Biloxi, Gulfport and D’Iberville. Biloxi Mayor Andrew “FoFo” Gilich said the total cost of the network, which officials hope will eventually encompass 12 cities and three counties, could top $100 million.

While broadband service is an important tool for students, business owners, job seekers, public safety and health care professionals, spending the BP settlement money on a network owned and managed by the cities is a waste of public funds and puts taxpayers on the hook for future financial exposure. And it is hard to imagine that residents in Biloxi will tolerate the delays the Fiber Ring installation will cause in the current infrastructure projects on the Point. Continue reading

Boulder, Colo., Still Pondering Internet Options

(TNS) — A Boulder City Council operating at less than half-strength pondered Thursday night how the city can best make use of its existing fiber infrastructure to deliver improved Internet service, without assuming too great a financial risk.

There is no debating that fiber is the future of high-speed Internet, and Boulder is sitting on about 100 miles of it. But to get from where it is today to a fiber-to-the-home service that covers the city, Boulder is either going to have to do that itself, a la Longmont, or partner with a private company that would set up the last-mile fiber the city needs, or both. Continue reading

Why the U.S. Has Fallen Behind in Internet Speed and Affordability

Not often will I agree with opinion from “The New York Times,” but in this case they are pretty close to getting it right. After you dig through the comparison to other cities and slamming of our communications service providers they get to the heart of the matter by saying that a duopoly is not competition and competition will lower prices and improve the quality of service. Note that I did not mention “speed.” 

here are structural differences that make the U.S. different from Asian and European countries such as our lower population density and more people living in single-family dwellings. These two facts dramatically increase the cost to build a network to where at best two providers can make a decent ROI. Why do you think that AT&T and Verizon keeps shedding their rural territories? Where we see competition, we see lower prices and better services. Another reason many of these countries have lower prices is that governments have subsidized building of these networks with taxpayer dollars easing the challenge of turning a profit to service providers. In many of these countries service providers use to be owned by the government so they still have a cozy relationship. Continue reading