dslreports logo
site
spacer

spacer
 
   
spc
story category
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.


62 comments .. click to read

Recommended comments



elefante72

join:2010-12-03
East Amherst, NY

2 recommendations

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...



elios

join:2005-11-15
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