Last December, we reported on Chanute’s choice to move forward with plans for a FTTH network. The community has a fiber and wireless network in place that serves utilities, public facilities such as libraries and schools, and numerous firms. The network also offers zero cost Wi-Fi across the community. Chanute developed its network incrementally over two decades without any borrowing or bonding.
In a city commission work session on May 5, officials reviewed a range of solutions for an FTTH network. In a nutshell, the city is contemplating their involvement in the operation of the future network.
Two alternatives stood out for the working group members:
Scenario 3 calls for the construct out of city provided fiber optic-to-home broadband net services. Service drops would only be provided to households that want the world wide web services.
Beneath Scenario 3, the up-front purchase would be about $10,926,842 to make the fiber core. The city would want $9,468,033 in funding to complete the project. The project would develop into profits-flow positive in two years, one month. It would take five years, nine months to pay back financing for the project. The 20-year net present value for the complete strategy would be an estimated $40,623,151.
Scenario 4 calls for a establish out of the fiber optic-to-the-home method for private communications organisations to pay a fee to the city to lease the network and provide services to residential clients. The city would seek private businesses for voice, video and world wide world wide web services.
Below Scenario 4, the original purchase would be about $13,906,416 to complete the create out. The city would need $9,468,033 in funding to complete the project. The project would turn into profits-flow positive in one year, seven months. It would take eight years, ten months to pay back financing for the project. The 20-year net present value for the overall approach would be an estimated $25,667,301.
Below an altered Scenario 4, the city would lease out the fibre network for five years to a private company that would offer triple-play services to residents. At the end of the time period, the city would take over.
A couple city officials expressed an aversion to city run video services. There is not much profit in video, Provisioners are pretty much naming the fee on that. From a business standpoint, providing video is going to expense us more, We are not going to be in a position to see a return on that monetary commitment. It is as critical to us as electricity, water and gas, We save about $30,000 a year over what we were paying by way of AT & T to provide that service. If we didn’t have fiber, we couldn’t have college anymore, When we’re getting text books and we’ve text book rotation, half of what we pay for a text book is internet-based material. When those teachers turn on their intelligent boards which are hooked to a computer, everything they’re pulling down is off sites, thanks to the truth everything is web-based.
At the public meeting in April, commissioners addressed troubles about a five percent franchise fee that commenced in December 2013. The network serves public telecoms and utility operations and now demands replacement equipment. The franchise the fee will cover the costs. We were talking about being brief income for equipment, We were attempting to figure out a way, without raising mill levies, the approach to come up with this income. With the franchise fee you are going out over a bigger region. You’re going outside the city. With the franchise fee, you can pick how much electricity you use.