Updated on Sibley County FTTH – cities must decide

Last week stakeholders in Sibley County met to discuss their next steps towards a community fiber network. Dave Peters from MPR’s Ground Level was there to report back. He described the project succinctly…

It’s an ambitious plan that would require the community to borrow $63 million and then pay off those bonds with revenue from the service. The county-owned operation would offer the usual cable-phone-Internet triple plays, and backers are promising that right out of the gate it would be at a speed of 20 megabits per second, upload and download. That’s quite a bit faster than what area residents get now via DSL or cable or wireless.

The stakeholders have until the end of February to decide whether they are in or out…

The next month or so will show how much buy-in there is. By the end of February, the 10 governments — Sibley and Renville counties and the cities of Gaylord, Arlington, Winthrop, Fairfax, Henderson, Gibbon, Green Isle and New Auburn — will each decide whether they want to create a joint powers board. Not all will have to opt in, but, Winthrop city administrator Mark Erickson noted that if Sibley County doesn’t join, it will be tough to continue to include all the farms in the project.

(The inclusion of neighboring farms has been an issue in the past.)

The next step would be a market research survey – asking every house and business if they would be interested in fiber. That sort of buy in is required to make the project financially feasible, they have determined. Also it primes the pump for getting the super majority required for a referendum to allow the community network for provide telephone services.

Regular readers will know that the super majority (65%) required has been a sticking point for communities in the past. It is an old law but until passed a community can provide data and video services – but not telephone. In a world where customers want the triple play (voice, video, data) missing one piece can be the difference between success and failure.

After that they may be looking at $63 million in bonding.

So we might say the process sounds more like a modem connecting than the whirr of fiber – but it’s going. Frontier Communications, which provides some service in Sibley, feels that their plans are ambitious. I suspect that we may hear more from them as the project gets to the market survey and telecommunications referendum stages.

But the good news as Dave Peters puts it in we’re inching forward.

2 thoughts on “Updated on Sibley County FTTH – cities must decide

  1. Chris – thanks for the link. I think your comments of success vs failure for a municipal network was spot on. Not only does it take years to succeed but money saved – for the city and citizens – is also part of the equation for a municipal network…

    (below is a quote from Chris’ blog)

    A representative from Frontier attended and passed out some financial data from Windom (I did not see it) – likely suggesting that Windom has “failed” because it has not yet broken even financially. But, as we have frequently discussed, these networks (especially small, rural networks) take many years to break even. I doubt the Frontier rep included a discussion of how many jobs Windom’s network has created or preserved, or the many other benefits that have accrued as a result of the network.

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