Financing

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Chelan PUD in Washington Reconsiders Broadband Stimulus Grant

For the last 6 weeks in Chelan, Washington, the Public Utility District has had to make some hard decisions regarding expanding its rural FTTH network using a broadband stimulus award from the federal government. Chelan was an early pioneer of rural FTTH, operating a network that serves over 2/3 of a rugged county that offers great rock climbing and hiking opportunities (I checked it out personally). As we reported last year, Chelan's citizens had strongly supported accepting the stimulus award and paying for their required match by modestly increasing electrical rates (which are among the least expensive in the nation). At that time, the PUD believed its network passed over 80% of the county. But after reassessing their coverage and changing the leadership of the group in charge of the fiber-optic aspect of the utility, they found the network passed closer to 70% of the population. They also re-examined assumptions about the cost of expanding the network's reach:
The PUD’s financial review resulted in a series of revised statistics that PUD engineers presented to commissioners Monday. Of the county’s 43,000 premises — mostly homes and businesses — 30,000 have access to fiber. Some 6,000 don’t have access because they live in areas where hookups are more costly, despite their often urban settings. In these areas, the cables that supply electricity are buried directly in the ground. Fiber hookups require costly trenching and installing conduit. Another 7,000 premises don’t have access because they’re very rural. Fiber access to all but the most rural of these locations will be funded jointly by a $25 million federal stimulus grant and PUD matching funds of about $8 million.
Of the 30,000 with access, some 37% are taking a service (though they have to subscribe through independent service providers that contract with Chelan PUD due to Washington State law denying the opportunity for PUDs to offer retail services on their own network. Nonetheless, they are signing up 100 new customers per month. The problem is that some of the new connections are in high cost areas (whether due to distance or underground utilities).

Chelan PUD in Washington Reconsiders Broadband Stimulus Grant

For the last 6 weeks in Chelan, Washington, the Public Utility District has had to make some hard decisions regarding expanding its rural FTTH network using a broadband stimulus award from the federal government. Chelan was an early pioneer of rural FTTH, operating a network that serves over 2/3 of a rugged county that offers great rock climbing and hiking opportunities (I checked it out personally). As we reported last year, Chelan's citizens had strongly supported accepting the stimulus award and paying for their required match by modestly increasing electrical rates (which are among the least expensive in the nation). At that time, the PUD believed its network passed over 80% of the county. But after reassessing their coverage and changing the leadership of the group in charge of the fiber-optic aspect of the utility, they found the network passed closer to 70% of the population. They also re-examined assumptions about the cost of expanding the network's reach:
The PUD’s financial review resulted in a series of revised statistics that PUD engineers presented to commissioners Monday. Of the county’s 43,000 premises — mostly homes and businesses — 30,000 have access to fiber. Some 6,000 don’t have access because they live in areas where hookups are more costly, despite their often urban settings. In these areas, the cables that supply electricity are buried directly in the ground. Fiber hookups require costly trenching and installing conduit. Another 7,000 premises don’t have access because they’re very rural. Fiber access to all but the most rural of these locations will be funded jointly by a $25 million federal stimulus grant and PUD matching funds of about $8 million.
Of the 30,000 with access, some 37% are taking a service (though they have to subscribe through independent service providers that contract with Chelan PUD due to Washington State law denying the opportunity for PUDs to offer retail services on their own network. Nonetheless, they are signing up 100 new customers per month. The problem is that some of the new connections are in high cost areas (whether due to distance or underground utilities).

Chelan PUD in Washington Reconsiders Broadband Stimulus Grant

For the last 6 weeks in Chelan, Washington, the Public Utility District has had to make some hard decisions regarding expanding its rural FTTH network using a broadband stimulus award from the federal government. Chelan was an early pioneer of rural FTTH, operating a network that serves over 2/3 of a rugged county that offers great rock climbing and hiking opportunities (I checked it out personally). As we reported last year, Chelan's citizens had strongly supported accepting the stimulus award and paying for their required match by modestly increasing electrical rates (which are among the least expensive in the nation). At that time, the PUD believed its network passed over 80% of the county. But after reassessing their coverage and changing the leadership of the group in charge of the fiber-optic aspect of the utility, they found the network passed closer to 70% of the population. They also re-examined assumptions about the cost of expanding the network's reach:
The PUD’s financial review resulted in a series of revised statistics that PUD engineers presented to commissioners Monday. Of the county’s 43,000 premises — mostly homes and businesses — 30,000 have access to fiber. Some 6,000 don’t have access because they live in areas where hookups are more costly, despite their often urban settings. In these areas, the cables that supply electricity are buried directly in the ground. Fiber hookups require costly trenching and installing conduit. Another 7,000 premises don’t have access because they’re very rural. Fiber access to all but the most rural of these locations will be funded jointly by a $25 million federal stimulus grant and PUD matching funds of about $8 million.
Of the 30,000 with access, some 37% are taking a service (though they have to subscribe through independent service providers that contract with Chelan PUD due to Washington State law denying the opportunity for PUDs to offer retail services on their own network. Nonetheless, they are signing up 100 new customers per month. The problem is that some of the new connections are in high cost areas (whether due to distance or underground utilities).

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.

FairPoint Undermining Broadband Access in Vermont

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure). FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.
Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.
Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private. The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:
Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service.