[1st-mile-nm] Palo Alto, CA: Open Fiber Network News

[Richard Lowenberg]

Palo Alto has been attempting to deploy various fiber networking initiatives
over many years.   Last year we reported that the City had selected a proposal
from PacketFront and 180 Connect, though it has taken until very recently for
all parties to come to terms on a workable plan.  The latest version of the
proposed 'open service provider network' fiber system includes Axia Net Media,
a Canadian content and services provider, which has promised to 'put up the
money'.  With this proposal, the City of Palo also does not have to use public
funds or bonding to pay for the deployment.   More below.
RL
-----

Palo Alto Daily News
Tuesday Jul 15

Council approves ultra-high-speed broadband plan

Business plan bypassed

By Kristina Peterson / Daily News Staff Writer

The Palo Alto City Council late Monday night approved expediting a proposal to
bring ultra-high-speed broadband Internet access to the city.

Rather than waiting to develop a full business plan, the council voted to direct
city staff to start working on a less detailed letter of intent that would nail
down only general concepts with the companies who have proposed to build,
operate and manage the open network.

Under the conceptual plan approved Monday, a consortium of companies - broadband
specialist Packet Front, network installer 180 Connect and major investor Axia
Net Media - will build a high-speed, network-neutral fiber infrastructure over
the next three years that will stretch across the city.

The city, which won't have to make a monetary contribution, will provide some
city assets, including part of its dark fiber ring, its basic fiber network. In
25 years, the city can purchase the entire system for $1.

The council's decision ended nearly a decade of unsuccessful efforts to bring
ultra-high-speed Internet to local homes and businesses.

"Nobody's going to criticize the city of Palo Alto for rushing into this," joked
Michael Eager, past president of the Palo Alto Fiber Net group.

In fact, the council's two youngest members, Sid Espinosa and Yiaway Yeh pressed
their colleagues to take the slower, more traditional route of fleshing out a
full business plan before proceeding.

"There are significant risks we're taking on," Espinosa said. "The health of our
partner in this venture is critical."

But Mayor Larry Klein argued that the project's structure permits the involved
companies to keep some of their business ideas confidential.

"It's not for us to second guess because they're putting in their money," he
said.

A motion drafted by Klein and Council Member Yoriko Kishimoto to move forward
without a business plan but bring on additional legal staff and technical
consultants ultimately proved more successful, earning unanimous approval,
except from Council Member Jack Morton, who recused himself.

At least a dozen residents spoke in favor of the proposal at Monday's meeting,
including many locals who have been lobbying for fiber to the home for nearly a
decade.

Senior center Avenidas board member Richard Adler said the proposal could help
bring remote health care to aging baby boomers, as well as encourage
independent living for longer.

"This is very exciting for Palo Alto's older residents," he said.

Eager said the plan met the shared hopes of the local tech community for an
ultra-high-speed, open data network.

"This is what we asked for," he said.

But several local businessmen whose companies use the city's dark fibers
expressed reservations about plans to cede management of their contracts to the
new network operators.

"It's kind of alarming to hand the dark fiber contracts to the (consortium),"
said Geoff Dale, vice president of engineering at Neapolitan Networks, one of
the city's dark fiber customers. "There's always a chance something might
happen."

Though the details will be hammered out in the upcoming negotiations, the
council Monday approved paying the network operators a fee for managing its
dark fiber customers after the city's fixed costs have been recovered.

City staff will bring an estimated budget for consultants and attorneys to the
Aug. 4 council meeting and the detailed letter of intent is expected to be
ready by September.


-- 
Richard Lowenberg
1st-Mile Institute
P.O. Box 8001, Santa Fe, NM 87504
505-989-9110;   505-603-5200 cell
rl at 1st-mile.com  www.1st-mile.com

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