Broadband Bytes for 2015-02-27

Broadband Bytes for 2015-02-13

Back from the dead: New UTOPIA provider may revive FTTH in Springvile

Neighborhood Networks LogoWay back in 2004, Springville had a fiber-to-the-home network covering most of the city, but it had only picked up about 100 subscribers. The city made the decision to shutter the network, purchased from the defunct AirSwitch, since it was operating at a loss and was mostly dark. Now a new UTOPIA provider, Neighborhood Networks, has big plans to bring back fiber in the city and provide gigabit services at the now-standard rate of $70/mo.

The state of the current city network isn’t all that good. Most of the electronics are in need of replacing and many segments didn’t have any installed to begin with. There’s also the question of the state of a network that has gone unused for over a decade. For instance, the fibers or conduit could be broken or there may be a lot of unmapped network assets. Repairing what’s there would be an expensive endeavor, and it’s why Neighborhood networks plans to build from scratch, bypassing the current city assets. I reached out to the Mayor of Springville, Wilford Clyde, to ask more about the network and received no response.

Neighborhood Networks CTO Johnathan Pemberthy says the company sold most of their WISP operations to help finance building out the city. They’re also hoping to take an approach like UTOPIA did in Brigham City (and Google Fiber later emulated in Kansas City, Austin, and Provo) to sign up neighborhoods before starting construction. With a 25% take rate, they’ll build a neighborhood and offer 100Mbps for $40/mo or 1Gbps for $70/mo with an eye towards eventually providing 10Gbps services down the road. The service will come with no caps, no throttling, and no contracts. Most interestingly, they’re offering a standard same-day SLA for residential customers and 4-hour for business customers, what Pemberthy calls their crucial differentiator.

Building fiber is certainly no easy task, even with a good business plan. They’re still negotiating right of way with the city (which will take about six months) and aren’t ready to start seeking out areas of demand just yet. (Seriously. If you call, they’ll probably ask you to call back when they’re ready.) Another challenge is that supplies of fiber equipment are stretched pretty thin as gigabit mania sweeps the nation. It also costs a lot of money to dig trenches and lay conduit, something that’s caused Google investors a lot of heartburn when it comes time to look at earnings statements.

If you’re living in Springville, keep your ears to the ground for some next-gen broadband in your backyard.

Broadband Bytes for 2015-02-06

Broadband Bytes for 2015-01-30

Macquarie Milestone 2: What you need to know

Macquarie’s Milestone 2 proposal has been finally released to the public. Here’s a quick run-down of the most important details.

  • The final cost per address is estimated at $22.60 per month. Macquarie estimates that re-working the deal to account for five cities bowing out trimmed the cost by $8.57 per month.
  • The revenue split is much more generous than I expected, allowing the cities to keep 75% of wholesale revenue after the first $2M per year. It’s expected to completely cover the debt service by 2021 with just a 24% take rate for premium services.
  • The basic level service has also been improved. Instead of 3M/3M service being included at no extra cost, it’s been bumped to 5M/5M. This matches Google Fiber speeds on the free tier. The data cap stays put at 20GB per month.
  • Macquarie will still be in charge of operating the network for opt-out cities.
  • A public vote will determine if the project moves forward in the opt-in cities.
  • Cities are free to determine what, if any, opt-out provisions will be available.
  • Users won’t be charged a utility fee until they connect to the network or six months after the network connection is available, whichever comes first.
  • UIA and SAA users will not pay any utility fee. If you’re already paying for (or have paid) your network connection, there’s no utility fee for you.
  • The UTOPIA NOC would be closed and all NOC operations moved to a Fujitsu facility in Texas. Keeping a primary or secondary NOC in Utah would raise the utility fee by between $1.50 and $1.79.
  • Almost all of the network revenues are being driven by Veracity, XMission, and SumoFiber. Other ISPs are very small by comparison.
  • The majority of currently connected users are in opt-out cities. This only reinforced that the votes there were “we got ours” selfishness.

Overall, this still looks like a great deal for the cities who are moving forward. It could still be a great deal for cities that haven’t figured out what to do about the network yet (looking at you, Orem).

If you want to read the full report, I’ve attached a PDF copy. 

Download (PDF, 1.68MB)

Broadband Bytes for 2015-01-23

Broadband Bytes for 2015-01-16

Broadband Bytes for 2015-01-09