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New report finds city's broadband market sub-par
Costlier, slower, more limited: It is bringing back memories of the teacher comment section on my report cards.
Well, this is a report card of sorts, and "costlier, slower, more limited" is the key phrase in a new study of the city’s Internet broadband market. A consulting team hired by Lawrence City Hall found that the current broadband offerings in Lawrence generally are “costlier, slower and more limited than in other comparable communities.”
Fixing that situation, however, won’t be easy. Every once in a while the idea of the city owning and operating its own high-speed Internet broadband network is brought up. In other words, the city would jump into the Internet service provider market, and compete with the likes of Knology, AT&T and others. But the city would do it with high-speed, fiber-optic cable that runs directly to homes and businesses, as opposed to the slower, more traditional copper telephone and cable lines that serve much of Lawrence.
The idea is a recurring dream for technology geeks. But the latest numbers indicate it may be nothing more than a dream for quite some time. The consultants, CTC Technology & Energy, estimate that it will cost upwards of $70 million to build and deploy such a system in the city. That’s not an impossible number — it's about $25 million more than what the city is spending for a library and a recreation center — but the consultants are urging caution in the matter. Their analysis indicates the city would have to capture at least 50 percent of the entire market share in Lawrence to break even. That would be a tough number to reach, the consultants predict.
But there are other ways the city can make itself a more desirable high-speed Internet city – which not surprisingly, the consultants said will be very important in the future. Here’s a look at some of the recommendations:
• The city could spend around $320,000 to $640,000 to complete a 17-mile ring of fiber-optic cable around the city. The fiber would allow city, county, school and university facilities access to higher-speed Internet connections. The consultants say that alone is worth the cost of the project. But if built in the right way, excess capacity on the fiber ring could be leased out to private companies that have an interest in competing against the two large Internet providers in the city — AT&T and Knology. The report found there are at least three companies that have expressed an interest in such an idea: Level 3, Kansas Fiber Network and Wicked Broadband, which already leases some fiber from the city.
• New development regulations could be written that would require builders to install more fiber-optic infrastructure as a part of their projects. Loma Linda, Calif., has created development regulations that require “cable pathways, fiber connections and internal fiber wiring” be installed as part of any major residential or commercial building project. Sandy, Ore., goes even further. It requires developers to install conduit all the way from the public right-of-way to the home, and then deed that conduit to the city. The idea is that when fiber-optic projects reach a neighborhood, the most expensive part of the process already will be complete, courtesy of developers. The report estimates any new regulations would be a “small burden” to developers. We would see about that, but usually new regulations for developers produce something a bit larger than a “small debate” at City Hall.
• Sucking up to Google may be a good idea. The Google Fiber project in Kansas City is all the buzz in the tech world. The consultants said the city should at least make a more serious effort to have Google consider expanding the project to Lawrence. Google recently did announce that it was expanding the service to Olathe. The consultants reached out to the community manager for the Google Fiber project, and she asked that the city send a formal letter of interest to enter into discussions with Google about an expansion.
As for what the report had to say about Lawrence’s existing broadband providers, it wasn’t much different than what many ordinary folks say. The report found AT&T’s offerings are more limited than in several other comparable communities. With Knology, the consultants found the company’s base pricing is reasonably competitive with other markets, but its use of data caps on many plans makes it less competitive. The report didn’t provide any analysis of the recently-announced pilot project by Wicked Broadband to extend fiber to at least one neighborhood in Lawrence.
The report made several other recommendations and findings, but they were of a technical nature that went beyond my “costlier, slower and more limited” mind.
City commissioners will get a chance to digest the report soon. The City Commission is expected to formally receive the report and discuss possible next steps in the next several weeks.