gigabit squared – Steve Blum's Blog

Illinois says Gigabit Squared lied repeatedly, wants $2 million back

31 March 2014 by Steve Blum
broadband, chicago, community networks, ftth, gig u, gigabit seattle, gigabit squared, illinois, public policy, seattle

Once upon a time, it was strictly formal dress for sunrise.

The company that sold magically cheap fiber and a business case built on fairy dust to Seattle, then left town owing fifty grand is in even bigger trouble in Chicago. The state of Illinois gave Gigabit Squared a $2 million grant to deploy “ultra high speed” Internet access on the city’s south side and, to say the least, isn’t seeing results, according to a story in the Chicago Sun-Times (h/t to the Baller-Herbst list for the pointer)…

Gigabit Squared, a Cincinnati-based company that last May touted the high-speed project in nine South Side communities, “has lied repeatedly” about its intentions and may have spent only $250,000 of the grant money for legitimate purposes, said David Roeder, spokesman for the Illinois Department of Commerce and Economic Opportunity, which issued the grant.

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Mayor closes the curtain on Gigabit Seattle's political theater

10 December 2013 by Steve Blum
broadband, community networks, ftth, gigabit seattle, gigabit squared, public policy

Running with the bull.

Gigabit Seattle will quickly fade away in the new year, judging by the lost faith of its most prominent cheerleader, outgoing mayor Mike McGinn. In an interview with GeekWire, McGinn expressed the sort of caring doubt politicians use to distance themselves from, say, a blood relative who’s been busted for indecent familiarity with farm animals for the third time…

“We’re now a year into it and the question is, will it work or not?”

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Slow broadband a drag on Seattle mayor's re-election campaign

28 July 2013 by Steve Blum
broadband, centurylink, comcast, community networks, condointernet, ftth, gigabit squared, public policy, seattle

I’ll have what she’s having.

Seattle mayor Mike McGinn is running for re-election and the editorial page of the Seattle Times, which has never particularly cared for him, is homing in on his failure to build fiber to every home and business in the city…

With a campaign pledge of broadband Internet for all, Mike McGinn promised big, delivered small, and hopes voters won’t notice the difference.

KUOW-FM, Seattle’s University of Washington-owned NPR powerhouse, reached a similar conclusion, although in a better researched and more nuanced way…

When Mike McGinn ran for mayor in 2009, he campaigned on the promise of high-speed internet for all of Seattle.

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Gigabit Seattle raising FTTH attention but not cash

25 June 2013 by Steve Blum
business, capital cost, community networks, finance, ftth, gigabit squared, municipal broadband, seattle

Adding lift to a trial balloon.

The Gigabit Seattle team is trying to tap into Google Fiber’s buzz by releasing a fiber-to-the-home pricing plan that sounds a lot like what’s on offer in Kansas City, albeit for a few dollars more and with a little less freebie time. Otherwise, there’s been precious little in the way of specific information about the project since it was announced six months ago.

What I wrote then is true today: Gigabit Seattle’s financial vehicle is still a concept car.… More

The problem with FTTH is there's no problem

17 December 2012 by Steve Blum
business, business model, capital cost, dark fiber, demand, feasibility study, fiber market study, ftth, fttp, funding, gigabit squared, municipal broadband, private capital, public private partnership, seattle

It’s not about finding a mass market solution. It’s about finding a sufficiently acute mass market problem.

The struggle to develop a general fiber-to-the-home (FTTH) or premises (FTTP) business model for city-wide deployments doesn’t result from a market failure. Quite the contrary. It’s evidence that the laws of supply and demand are in full effect.

Demand, meet supply.

People generally get the broadband service someone else – a business or government agency mostly – is willing to give them for the price they’re willing to pay.… More

Gigabit Seattle's financial vehicle is still a concept car

16 December 2012 by Steve Blum
business, business model, capital cost, dark fiber, demand, fiber market study, ftth, fttp, funding, gigabit squared, municipal broadband, private capital, public private partnership, seattle

Car of the Future as conceived by Studebaker's Director of Styling, Raymond Loewy, in the August 1950 issue of Science and Mechanics. Loewy wrote about the new styling for tomorrow's rocket age population. Via Wikimedia Commons.

Thanks for the down payment. Just need to find someone to co-sign the loan.

“Gigabit Squared is providing the capital, although details of the financing model aren’t clear,” wrote Stacey Higginbotham in a story for GigaOM following Gigabit Squared’s announcement last May that it had formed a partnership with Gig.U and was bringing $200 million to the table to fund fiber networks in as many as six cities.

The financing model was equally unclear last week when the City of Seattle and the University of Washington blessed a plan by Gigabit Squared to build a demonstration fiber-to-the-premises network in 12 Seattle neighborhoods.… More

Seattle passes the fiber (50 mega) buck

14 December 2012 by Steve Blum
business, business model, capital cost, dark fiber, demand, feasibility study, fiber market study, ftth, fttp, funding, gigabit squared, municipal broadband, palo alto, private capital, public private partnership, seattle

The unveiling of Gigabit Seattle yesterday is just the first step on a long road to building a fiber to the premises (FTTP) service for residents. The City of Seattle and the University of Washington have endorsed a plan by a consulting firm – Gigabit Squared – to “begin raising the capital needed” for a demonstration project.

It’s not small change. The 200 miles of fiber needed to reach 50,000 homes and businesses in 12 neighborhoods will cost something like $50 million to install and light up.… More