User-financed FTTP fails in a competitive market
broadband, business, community networks, dark fiber, feasibilty study, fiber market study, finance, ftth, fttp, municipal broadband, palo alto, telecommunications, telecoms
A user-financed, municipal fiber-to-the-premises broadband system would be a financial nightmare if launched into a market with mainstream competition, even if it’s subsidized and supported by a profitable city-owned utility.
That’s the finding of a study presented to the City of Palo Alto’s Utility Advisory Commission last night by Tellus Venture Associates. The report assessed the financial potential of user-financed municipal FTTP options, including upfront payments ranging from $1,000 to $5,000, substantial capital contributions by the City and ongoing subsidies of up to $2,000,000 per year.… More