Los Angeles: Citywide Gigabit Access for Homes and Businesses
November 5th, 2013People living in shipping containers with fiber optic links to the Metaverse? *chortle*
Via: Arstechnica:
Los Angeles is about to unleash one of the most ambitious city-led broadband projects to date, with the goal of bringing fiber to all of its 3.5 million residents and all businesses.
Next month, the city plans to issue an RFP (request for proposals) “that would require fiber to be run to every residence, every business, and every government entity within the city limits of Los Angeles,” Los Angeles Information Technology Agency GM Steve Reneker told Ars today. The City Council this morning unanimously voted to move forward with drafting the RFP and will vote again in a few weeks to determine whether it’s ready for release, he said.
LA expects the fiber buildout to cost $3 billion to $5 billion, but the cost would be borne by the vendor. “The city is going into it and writing the agreement, basically saying, ‘we have no additional funding for this effort.’ We’re requiring the vendors that respond to pay for the city resources needed to expedite any permitting and inspection associated with laying their fiber,” Reneker said. “If they’re not willing to do that, our City Council may consider a general fund transfer to reimburse those departments, but we’re going in with the assumption that the vendor is going to absorb those up-front costs to make sure they can do their buildout in a timely fashion.”
The new fiber network would offer free Internet access of 2Mbps to 5Mbps (possibly subsidized by advertising) and paid tiers of up to a gigabit. The fiber network would also power Wi-Fi hotspots in public areas.
The winning bidder would not be required to offer landline phone service or television, but it’s likely that they would. “I would think that’s how they’ll justify the buildout, is being able to offer triple play [packages],” Reneker said.
Residential broadband in LA today typically ranges from 5Mbps to 50Mbps from the likes of AT&T, Time Warner, Verizon, Cox, and Charter. Gigabit speeds are available to businesses, but at a higher price than other communities, Reneker said. By expanding gigabit access and hopefully lowering the price, LA hopes to attract new entrepreneurs and keep existing businesses from leaving the city.
Reneker said the network would be open, meaning the vendor would have to sell access on a wholesale basis to other network providers that want to deliver services over the fiber. “We’re not looking at trying to… be monopolistic and try to force anybody out of the market,” he said. The winning bidder should make out well, though, as it would gain lots of new residential, business, and government customers.
