Broadband Communities

MAY-JUN 2018

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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M AY / J U N E 2 0 1 8 | w w w. b r o a d b a n d c o m m u n i t i e s . c o m | B R O A D B A N D C O M M U N I T I E S | 4 3 equally divided among the participating properties. e amount due then is attached to the property and paid for over 20 years at a low municipal bond rate. Alternatively, the property owner can pay the amount in full at any time. Using standard utility financing mechanisms results in annual payments of less than $200 (less than $17 per month) for properties receiving fiber. Additionally, 100-percent cost recovery for the project is guaranteed not by the city but by the participating properties. Operational expenses are paid to the city as an additional line item on residents' monthly utility bills. Because the capital costs associated with installing the infrastructure are dealt with separately through a municipal bond attached to properties, the monthly utility fee in Ammon is $16.50. Economic separation also allows property owners to avoid this nominal fee, if they desire, by suspending the service. Again, this is standard utility practice, as property owners can suspend water and sewer service for periods of time. e city uses these fiber optic utility fees to maintain the infrastructure that provides members with access to a virtual marketplace where they shop for services. PROVIDERS It's important to note that although the Ammon Model treats the infrastructure as a utility by using cost-recovery frameworks, the services are market driven – open to both competition and innovation. Anyone can become a provider. All it requires is a service or product and some initial provisioning. Because there is no need for a provider to install its own equipment at the premises, there is really no investment required on the part of the provider beyond the initial setup. ere also is no need for on-site support at the premises as all the services are in software and the utility is responsible for the hardware. Consider your experience using an application on a mobile device. You pay the cost to purchase a device, either up front or over time, thereby providing the infrastructure to connect. en you pay a monthly fee for connectivity to access the store. Finally, you shop for an application that meets your needs and purchase it in the store. ese three separate and distinct costs all are associated with achieving the desired An Ammon operator uses a directional drill to install a fiber drop through a private yard to the side of a home. Final Assessment Calculations FIBER OPTIC LOCAL IMPROVEMENT DISTRICT NO. 1 Total Principal Amount and Number of Participating Properties Total Project Cost $ 795,002.38 Total Properties Passed 379 Total Properties Connected 269 73% Allocation of Costs Total Project Cost $ 795,002.38 Participating Properties 269 ÷ $ 2,955.40 per Property Total Assessment per Property $ 2,955.40

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