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Canadian Town of Olds Gets 1 Gbps for $57
Town Got Tired of Waiting, Deployed Service Themselves
by Karl Bode 04:10PM Friday Jul 19 2013
A small town in Alberta was tired of waiting on better service from Canadian incumbents, so they're now offering their own 1 Gbps service. According to the CBC, the rural Alberta community of Olds is now offering users 1 Gbps connections (technically a little less, since the article says 1 Gbps is shared between four houses or so) to all 8,500 residents -- for around $57 to $90, depending on whether or not users bundle phone services. The town had originally built the $14 million network with the idea of letting carriers come in and compete on top (open access), but Canada's incumbents refused to play, leaving them to operate the ISP themselves.

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East Amherst, NY

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reply to The Limit

Re: $3.5m grant for 8500 residents + $6 million loan

The math doesn't work out that way unfortunately. The actual article said it was around $14m and that is for 8k or so RESIDENTs, meaning maybe 3-4k POPs. And if they do a stellar job and have 50% penetration that means 2000-2500 subscribers.

That puts the initial capital cost around $5,600 per sub, so we are easily talking a 20 year ROC assuming a 30 point operating margin.

You guys think this stuff is cheap, it's not... That is why these community operators go out of business...


Springfield, MO

2 recommendations

reply to Joe12345678

seem people lost there long term vision
no one wants to do any thing if they cant get returns yesterday