They can’t. That’s the problem. After it becomes a budget drain for a while, it either gets sold, shut down, or the price goes up which costs more customers. Then there is the assumption they can actually build it out for the price they claim. Most of those projects have financial issues with contractors and don’t meet the numbers which delay them further. Go after them.
Rory From: Af [mailto:af-boun...@afmug.com] On Behalf Of Christopher Gray Sent: Monday, July 6, 2015 12:10 PM To: af@afmug.com Subject: Re: [AFMUG] Plan to Compete with Municipal Fiber? About $40M is grant funding from the state for "last mile" services that is only available to municipalities. The balance of the funding is coming from town borrowing. My town will receive about $1.2M from the grant and will vote in September whether to authorize $2.3M of borrowing that would be paid with property tax. I'm 95% sure this will go through, and the network would be lit in about 3 years, but I can't get their numbers to work out. I cannot see how they can actually provide service and maintain their network and offer a base service of only $50 / month. If that jumps to $100, I could see remaining competitive, though. On Mon, Jul 6, 2015 at 1:58 PM, Chuck McCown <ch...@wbmfg.com<mailto:ch...@wbmfg.com>> wrote: Where is the funding coming from? I would not be comfortable building in an area where I am sure to get over built. From: Christopher Gray<mailto:cg...@graytechsoftware.com> Sent: Monday, July 06, 2015 11:56 AM To: af@afmug.com<mailto:af@afmug.com> Subject: [AFMUG] Plan to Compete with Municipal Fiber? Several of the rural towns in my planned coverage area are looking into municipal fiber (average density about 10 premises per fiber mile, all above ground). They're claiming $50 for 25 Mbps service, $79 for 100 Mbps, and $109 for 1 Gbps. They already have funding authorized in about half of the towns they are targeting... but they'd be about 3 years from providing any service. Is it reasonable or possible to compete with such a thing? Should I ignore any area that plans to fund this, or might it be worth getting a foothold before their system is lit? Thanks - Chris
