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Jun 9, 2015
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On page 39:
"This analysis indicates that the City is in a favorable position because of its ability to focus on long-term goals in its pursuit of Fiber to the Premises. Fiber tends to be a capital-intensive endeavor with a somewhat slow return on investment (ROI). The City is at an advantage because of its bonding power and ability to prioritize goals other than only a bottom line (unlike most private companies). If the City is able to partner with Seattle City Light and build fiber in the power space as well as seek cooperation internally, it has a better chance at succeeding. The City’s weakness is that it has never taken on an endeavor like this."
We've never done a lot of things. That doesn't mean we shouldn't leverage our favorable position to start.
I just went to with CenturyLink (12 Mpbs) and I'm as pleased as punch with it.
Sure, it's ADSL2+ but all that means is that the last hundred feet or so are twisted pair. Then it connects up to optical fiber.
Meaning...CenturyLink has already laid in the all the fiber into the neighborhoods.
All we're talking about is running a fiber from the DSST to to the home.
The survey also asked about 100 mbit internet and 72% of those surveyed (with home internet now?) would be 5-very likely to switch at a $55 price point. Another 8% rated that as level 4 likely. If you go up to $65, 5-very likely and 4 still add up to 62%.
http://www.thestranger.com/seattle/screw…
Maybe bonds would be easier to sell if all city light smart meter reads were transmitted back to the head office over smart meters at $2/month as a pledged fee ? And those luddites who are afraid of RFs can pay a bit extra and $10/month for a special "hardwired, low-RF" meter that plugs into a city-supplied router.
SIGN ME UP!
SPU and SCL do a credible job. A fiber-optic municipal broadband network makes sense as another municipal service and their is cost sharing and synergy between all three functions.
What I would like to see, if law permitted it, would be some sort of hybrid where the city provides the infrastructure, installaton, and billing/customer service functions and buys the rest through some wholesale purchase program (although I confess that I don't exactly know what "the rest" entails). That is a model that most municipal utilities are comfortable and familiar with.
http://www.grantpud.org/customer-service…
http://www.clickcabletv.com/internet/
Chalk up yet another "victory" to that famous Seattle "can't do" attitude which is responsible for us being about forty years late on rail-based mass transit.
But look on the bright side: any time some billionaire wants goodies for the entire neighborhood he owns, or a new sports stadium, or someone wants to spend billions on a new freeway, the City of Seattle sits eagerly waiting to bark on command.
Final note: We live in one of the world's tech hubs. Our residential internet service is just embarrassing and going to drive companies away.
Yes, because the past decade has most certainly been marked with a mass exodus of tech companies from Seattle. Perhaps intrepid reporter Ansel Herz could look into this angle - is the current status of broadband in Seattle a deterrent to companies (I'm talking big companies, not bar owners who are pissed off about occasional outages). Again, what is the problem that's being solved by this aside from potentially slightly cheaper monthly bills (if everything pencils out correctly) and the smug satisfaction of knowing that we spent half a billion dollars to tell Comcast to fuck off. Why not just have our local Banksy wannabe hang a "Fuck" above Comcast's Seattle office?
- Provide 2,736,844 new Metro service hours (more than 10 times what we got with $45 million in Prop. 1).
- Complete our $240 million, 10 year bicycle master plan twice over, adding 908 miles of bike lanes, paths, sharrows and signed bike routes.
- Potentially cover 1/3 of the cost of light rail between Ballard and UW, or almost half of a Westside Transit Tunnel: http://www.seattletimes.com/seattle-news…
- Almost triple the $229 million annual budget of the Seattle Housing Authority.
This is an unfathomable amount of money to consider spending on something that's, at worst, a minor annoyance for your average citizen.
P.S. Don't even get me started on his heel-digging on real, actual community control of our renegade SPD.
What the city is also not telling you, is we lost a lower cost option to use the City's dark fiber because of McGinn's and the Councils approval to lease all the excess to private corporations for their exclusive use. We have a mayor who does not bat an eyelash at a 900 million plus transporation levy, a record high Parks levy with no accountablity, and who designates his department heads to take the flack for his own incompetence, pandering, and fear.
That no one can bring themsleves to devote up to 50 percent of bonding capacity and make serious efforts for state and federal economic development federal grants in lieu of direct taxation for someting that has a cost benefit far beyond that is classic neoliberalism. This is not really all about the money. This is course disguised as prudent caution and playing the role of the "serious" admistrator on this issue. They are all amaeturs. We have a bunch of feckless, dullard, uncreative servants of the incumbent ISP's masquarading as serious people. This is the Nickles administration all over again.
Speak up Mayor Murray, and prove me wrong.
"It would be a really cool thing to have a municipal broadband system" is not a compelling reason to spend public funds on a project! If we're starting projects on the basis of being a really cool thing, I'd rather see the Seattle Center turned into a Wild Waves with beer, but that's just me.
There is also no indication that the City of Seattle will be any better at building and running this utility than Comcast is today. People are losing their minds over dumb customer service and a couple of outages, but these problems are endemic to any infrastructure service, regardless of ownership.
Finally, with our present public infrastructure track record, we have no basis upon which to assume this project will be on time, on budget, or high quality (e.g. Bertha).
It's kind of like BECU vs Chase. BECU pays you interest and doesn't hit you with fees while Chase looks for every opportunity to ding you with a fee. BECU reinvests their earnings into the local company while all the money Chase makes goes to Jamie Dimon and to their investors.
The upfront cost, which is considerable, will be recouped and then we'll own it. The rates wouldn't have to increase to appease investors appetites for profits.
Look at the cities that own their power utilities vs those that depend on private companies. Guess who pays considerably more? Back when Enron was fucking with California with rolling blackouts and 1000% rate increases, I was doing some work in Burbank. No problem there since they owned their own power utility. When I went up north of there to some other sites we were being idled fairly often. That's a real economic impact beyond the initial investment.
I don't really see the point of a city forming an internet utility if they can't directly serve the customer. They would still have the middle man in there.
So Jeff MacIsaac loses $2K to an evening without internet. What's his solution? Cancel his internet!
Clearly he did not, because losing $2K in one evening is better than losing it every single night of the year. He switched to a different service. Why doesn't the article talk about how he found a better solution that Comcast? Or that for someone where $1,200 a year internet can cost them that amount in four hours should probably have a backup? (a cellular modem is $40 a month and makes a great backup).
What I see missing is the primary goal of a municipal internet. Is it more reliability? Uptime costs big dollars even if it's run at zero profit (99.99% percent uptime is only 45 minutes a year offline). Is it lower per month costs? Faster speeds? Nicer people on the phone when you call?
I know I sounds like a huge apologist, but given that there actually are a multitude of options for internet, I'm not 100% sure what people are hoping to get out of internet run by a municipality.
You might want to check the actual statute and contact the State Public Utility Commission yourself. There is a lot of misinformation out there, a lot of incorrect assumptions, and a lot of people who don't see the big picture and can can't see past the end of their nose, as demonstrated with some of the posts in this thread.
From an electrical governance standpoint, PUD's and Munis are quite similar (the main difference being PUD's answer to a local utility board, and the municipals answer to city councils). I did not know that PUD's are precluded from offering retail telecom, while state law appears to allow Munis to do so. It's just that nobody has done so.
Tacoma went the route of the PUD's in operating a wholesale system with third party operators, probably because they were afraid of lawsuits, or starting a whole new line of business.
(Fun fact: Tacoma Power used to be called Tacoma City Light until some administrator decided to waste a bunch of ratepayer money by "rebranding" it.)
So it would be up to one of the cities to develop their own internet utility. As I said in an earlier message, I would be in favor of a system where the city handles the billing, customer service and backbone/service connections, with a third party handling the technical stuff.
Guess what? A house fire that melts the fiber optic trunk feeding an entire neighborhood will still cause an outage even if the city owns it instead of Comcast. The fact that the article mentions outages as a reason to want a city-owned system is ridiculous.