California

Content tagged with "California"

Displaying 261 - 263 of 263

How Publicly Owned Networks Start

On the Daily Yonder - offering coverage of rural issues - Craig Settles offers advice to community networks on the need to attract institution and business customers because networks rarely generate enough revenue to make debt payments by focusing solely on residential subscribers. When communities compare the costs of different technologies, they often get too caught up in the upfront costs and ignore the ongoing costs (operating costs, or opex). He offers an example of a modest wireless network:
It’s important to understand that while it costs a lot of money to create a broadband network, over a five-to-ten-year period, it costs even more to operate that network than to build it. Say it costs $1 million to build a wireless network. During the municipal wireless heyday, it was estimated to cost 20% of buildout expense to operate the network annually – to pay for customer service, maintenance, upgrades, etc. That’s $200,000 a year.
This is a great intro article for those who may not be used to thinking about the economics or business plans networks need. For the rest of us, it is a strong reminder of how many networks start (and a good path for those who want to create a network):
Santa Monica, California, had a legacy PBX phone system and slow connection circuits from incumbents. The city pooled money it was already paying for voice and data services, using this capital to build a fiber network and implement new communication technology. City CIO Jory Wolf states, “By switching to fiber we realized a $500,000 savings in data circuits and $250,000 savings in voice circuits, all of which stayed in our fund. Ongoing savings enabled us to provide our police with video streaming in their vehicles. We have excess bandwidth, so we provide (a) large number of sites with free wireless access.” Wolf said that the city is also selling companies fiber lines that haven't yet been turned on. “Our network budget is self-sustaining,” he said, “and I have $2.5 million in capital.”
I remember Tim Nulty saying that Burlington Telecom started the same way. They figured out how much they were paying each month for telecom as a city.

Muni Fiber in San Francisco Eats into Digital Divide

San Francisco has leveraged its municipally-owned fiber in a program to overcome the digital divide. Projects like this are a good early step for larger communities. First, invest in fiber to public buildings, schools, etc., to cut costs from leased lines (often, while upgrading capacity). Second, begin to leverage that fiber to increase affordable broadband availability in the community. Expand until community needs are met.

Services Comparison

Community broadband networks offer some the highest capacity connections at the lowest costs. Many of these communities, before building their networks, were dependent on 1.5 Mbps connections that cost hundreds of dollars, or less reliable DSL and cable networks. The community broadband networks below are full FTTH networks, so the advertised speeds are the experienced speeds -- unlike typical cable advertised speeds, which users pay for but rarely experience due to congestion on the shared connection. In comparing some of the fastest publicly owned broadband networks to some of the fastest national private sector networks, we found that the publicly owned networks offer more value per dollar. Update: A few weeks after this was published, Verizon upped its speeds and prices for several of the tiers. 

Image
Download
Image
Upload

  The data we used is below. We thought about comparing also Qwest's "Fiber-Optic Fast" speeds, but their fastest upload speeds are below 1 Mbps, which makes them too pokey for the above networks.  
 

Community Broadband Networks: The Best of the Best

Note: Speeds are expressed as Mbps Down/Up. Each network has distinct offering for each tier.

  Tier 1Tier 2Tier 3Tier 4 
CityStateSpeedPriceSpeedPriceSpeedPriceSpeedPriceNotes
LafayetteLouisiana10/10$28.9530/30$44.9550/50$57.95--All connections come with 100Mbps connections to others on the local network.
WilsonNorth Carolina10/10$34.9520/20$54.9540/40$99.9560/60$199.95There is also a 100/100 tier for $299.95. These prices come from the bundled options. There is one unbundled option - 20/20 for $59.95
UTOPIAUtah15/15$39.9530/30$49.9550/50$59.95100/100$147This is an open access network, 100/100 is not offered by all service providers
TullahomaTennessee10/1$37.955/3$49.9520/5$59.9550/15$149.95There is also a 100/30 tier for $299.95
Loma LindaCalifornia5/5$29.9510/10$49.9515/15$99.95-- 
Compare to the best from the private sector:
ComcastDOCSIS 3 in MN1/.384$39.9512/2$59.9516/2$69.9522/579.95A higher tier of 50/10 is available for $139.95/month. These are unbundled prices, bundling generally saves $15/month. Speeds are "up to" depending on neighborhood congestion. Comcast marketing makes it difficult to understand what speeds you are paying for.
VerizonFiOS10/2$49.9920/5$59.9520/20$69.9550/20$144.95These are unbundled prices - bundling with phone reduces monthly price by $5. FiOS is not available throughout Verizon footprint.

The table reflects real rates, not short-term introductory rates. Do not be fooled into thinking that community broadband networks are able to offer the best deal because they are use taxpayer dollars. Very few community networks have ever used taxpayer money. Most networks are built using revenue bonds - which means that private investors fund the network, and are typically repaid over a period of twenty years using revenues generated by the services. Some cities choose to "back" the bonds with taxes -- which means that if the network does not generate sufficient revenue, the city will make up the difference with public money. Other cities choose not to back the bonds; this is a choice made by each community and impacts the interest rate on the bonds. In most cases, community networks have been safe investments that have not missed debt payments because the communities had an urgent need for broadband. In many cases, they have so many people wanting to take service, they have long lists for the installers. The idea that these networks frequently fail is an utter myth. However, not all community broadband networks offer the blazing speeds at great prices displayed above -- some were built five years ago, when those speeds were sufficient. Others do not feel the need to push the envelope, the community is content with what they have. However, they are able to meet higher demands if a citizen requires it. So even if a community network advertises its highest tier as being an 8/1, it is likely able to offer an even faster connection to those who need it. This is one of the many benefits of community broadband - the network is accountable to the community. The community broadband networks being built today almost always offer the fastest speeds currently available - as seen above with two ongoing builds, Lafayette and Wilson.