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Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto

I was troubled to see Broadband Communities publish an odd and misleading story about Palo Alto in the May-June issue [pdf]. Authored by Stephen Blum of Tellus Venture Associates, a consultant that has been hired by Palo Alto in the past, it showed a remarkable level of ignorance about community owned fiber networks and broadband more generally. The title alone, "Can FTTP Work in Palo Alto?" is just odd. Why exactly would FTTP not work in Palo Alto? It works in hundreds of other cities and towns, most of whom are less well positioned than Palo Alto for such a venture. A more honest title would have been "Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto." Blum made a very good case for that narrow argument but fails to lay out any convincing evidence that a variety of other models are doomed. Parts of the article can only be called cable and DSL boosterism - such as repeating the talking point that AT&T's U-Verse and Comcast already offer "high levels of service at competitive rates." Competitive to what? Neither can deliver the speeds offered by modern fiber networks and are only "competitive" if one ignores the much slower upstream speeds, higher prices, lesser reliability, problems of oversubscription, and poor customer service one gets from those providers. Reminds me of "Slick Sam" from Lafayette and the "functional equivalence" between DSL and FTTH.
Blum apparently knows better - that Palo Alto residents are "happy" with the existing services because they have not spontaneously marched down El Camino Real demanding faster speeds at lower prices. This is the wrong measure - reminiscent of the now oft-quoted Henry Ford line that if he asked people what they wanted, they would have said "faster horses." The number of specific errors in this piece are many, and have been well documented by those familiar with the history of Palo Alto's studies. I want to focus on just a few. Let's start here:
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.
YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.

Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto

I was troubled to see Broadband Communities publish an odd and misleading story about Palo Alto in the May-June issue [pdf]. Authored by Stephen Blum of Tellus Venture Associates, a consultant that has been hired by Palo Alto in the past, it showed a remarkable level of ignorance about community owned fiber networks and broadband more generally. The title alone, "Can FTTP Work in Palo Alto?" is just odd. Why exactly would FTTP not work in Palo Alto? It works in hundreds of other cities and towns, most of whom are less well positioned than Palo Alto for such a venture. A more honest title would have been "Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto." Blum made a very good case for that narrow argument but fails to lay out any convincing evidence that a variety of other models are doomed. Parts of the article can only be called cable and DSL boosterism - such as repeating the talking point that AT&T's U-Verse and Comcast already offer "high levels of service at competitive rates." Competitive to what? Neither can deliver the speeds offered by modern fiber networks and are only "competitive" if one ignores the much slower upstream speeds, higher prices, lesser reliability, problems of oversubscription, and poor customer service one gets from those providers. Reminds me of "Slick Sam" from Lafayette and the "functional equivalence" between DSL and FTTH.
Blum apparently knows better - that Palo Alto residents are "happy" with the existing services because they have not spontaneously marched down El Camino Real demanding faster speeds at lower prices. This is the wrong measure - reminiscent of the now oft-quoted Henry Ford line that if he asked people what they wanted, they would have said "faster horses." The number of specific errors in this piece are many, and have been well documented by those familiar with the history of Palo Alto's studies. I want to focus on just a few. Let's start here:
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.
YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.

Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto

I was troubled to see Broadband Communities publish an odd and misleading story about Palo Alto in the May-June issue [pdf]. Authored by Stephen Blum of Tellus Venture Associates, a consultant that has been hired by Palo Alto in the past, it showed a remarkable level of ignorance about community owned fiber networks and broadband more generally. The title alone, "Can FTTP Work in Palo Alto?" is just odd. Why exactly would FTTP not work in Palo Alto? It works in hundreds of other cities and towns, most of whom are less well positioned than Palo Alto for such a venture. A more honest title would have been "Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto." Blum made a very good case for that narrow argument but fails to lay out any convincing evidence that a variety of other models are doomed. Parts of the article can only be called cable and DSL boosterism - such as repeating the talking point that AT&T's U-Verse and Comcast already offer "high levels of service at competitive rates." Competitive to what? Neither can deliver the speeds offered by modern fiber networks and are only "competitive" if one ignores the much slower upstream speeds, higher prices, lesser reliability, problems of oversubscription, and poor customer service one gets from those providers. Reminds me of "Slick Sam" from Lafayette and the "functional equivalence" between DSL and FTTH.
Blum apparently knows better - that Palo Alto residents are "happy" with the existing services because they have not spontaneously marched down El Camino Real demanding faster speeds at lower prices. This is the wrong measure - reminiscent of the now oft-quoted Henry Ford line that if he asked people what they wanted, they would have said "faster horses." The number of specific errors in this piece are many, and have been well documented by those familiar with the history of Palo Alto's studies. I want to focus on just a few. Let's start here:
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.
YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.

Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto

I was troubled to see Broadband Communities publish an odd and misleading story about Palo Alto in the May-June issue [pdf]. Authored by Stephen Blum of Tellus Venture Associates, a consultant that has been hired by Palo Alto in the past, it showed a remarkable level of ignorance about community owned fiber networks and broadband more generally. The title alone, "Can FTTP Work in Palo Alto?" is just odd. Why exactly would FTTP not work in Palo Alto? It works in hundreds of other cities and towns, most of whom are less well positioned than Palo Alto for such a venture. A more honest title would have been "Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto." Blum made a very good case for that narrow argument but fails to lay out any convincing evidence that a variety of other models are doomed. Parts of the article can only be called cable and DSL boosterism - such as repeating the talking point that AT&T's U-Verse and Comcast already offer "high levels of service at competitive rates." Competitive to what? Neither can deliver the speeds offered by modern fiber networks and are only "competitive" if one ignores the much slower upstream speeds, higher prices, lesser reliability, problems of oversubscription, and poor customer service one gets from those providers. Reminds me of "Slick Sam" from Lafayette and the "functional equivalence" between DSL and FTTH.
Blum apparently knows better - that Palo Alto residents are "happy" with the existing services because they have not spontaneously marched down El Camino Real demanding faster speeds at lower prices. This is the wrong measure - reminiscent of the now oft-quoted Henry Ford line that if he asked people what they wanted, they would have said "faster horses." The number of specific errors in this piece are many, and have been well documented by those familiar with the history of Palo Alto's studies. I want to focus on just a few. Let's start here:
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.
YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article:

Ashland, Oregon, Wants To Increase Local Internet Commerce

Ashland, Oregon, home to Ashland Fiber Net (AFN), may soon be taking aggressive steps to bring more online business to the community. According to an Ashland Daily Tidings article, the City Council is seeking public input into proposed goals for the community. A targeted effort to bring more Internet-based businesses to town is one of the draft goals. The goal seems logical for a community with a network already in place.

AFN serves about 6,000 business and residential customers in this community of 20,000 people. In addition to AFN's retail services, four other local ISPs operate on the infrastructure.

The network is HFC, a cable network, but with far fewer homes on each local loop than the big cable companies typically have. This means that subscribers are far more likely to consistently achieve advertised speeds. Residential services range from $35 per month for 6 Mbps / 1 Mbps service to $75 monthly for 20 Mbps / 5 Mbps. AFN is one of the rare community-owned networks to enforce monthly data caps.

Fiber to the business is an option, but popular business packages are $65 per month for 15 Mbps / 4 Mbps and $85 per month for 25 Mbps / 5 Mbps. AFN also offers rural wireless service to a limited area. 

Ashland also sees some common sense advantages to increasing the number of small home based businesses that use its fiber resource. To that end, AFN provides a "Home Office" business Internet package. From the article:

Councilor Greg Lemhouse has championed the goal to increase the number of Internet-based businesses.

"It's an aggressive goal that says the city is committed to growing this industry," he said.

Lemhouse said many such businesses can be operated out of people's homes.

People who want to run Internet-based businesses often are well educated and are committed to their communities, he said.

Home Internet businesses can also be family-friendly, allowing parents to work from home and stay connected to their children, Lemhouse said.

With the discussion also comes some analysis of what sort of Internet businesses are already keeping shop in town. Also from the article: