User-financed FTTP fails in a competitive market
7 June 2012 by Steve Blum
broadband, business, community networks, dark fiber, feasibilty study, fiber market study, finance, ftth, fttp, municipal broadband, palo alto, telecommunications, telecoms
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