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Test Selling "Last Mile" Fiber to Homeowners Under Way in Canada

Ars Technica is covering an interesting pilot program taking place in Ottawa, CA. 400 homes are being outfitted with fiber optic cables; however, the "last mile" of fiber is going to be sold outright to the homeowners rather than providing internet at a monthly fee. "In the future, it could become commonplace for homes to come with 'tails.' These customer-owned, fiber-optic connections would link them to a network peering point. Without the expense of rolling out last mile infrastructure to every home, many more ISPs could afford to serve a given neighborhood by running wiring to the peering point, leading to more competition and lower prices. Perhaps best of all, the growth of customer-owned fiber could make debates over 'open access' and network neutrality moot, as robust telecom competition should prevent the worst of the monopolistic behavior exhibited by telco and cable incumbents."

18 of 196 comments (clear)

  1. won't prevent anything by Anonymous Coward · · Score: 4, Interesting

    I remember back in the day a wealthy friend of mine had a line to his house that he had actually paid for, a quarter T I believe it was -- he was still liable for all full payments (even more), and susceptible to shutoffs at a whim.

    1. Re:won't prevent anything by statemachine · · Score: 2, Interesting

      susceptible to shutoffs at a whim

      Your friend had a fractional T1 and didn't have an SLA?

  2. Looking forward to this... by PC+and+Sony+Fanboy · · Score: 4, Interesting

    This will be great... so much better than being at the whims of our ISPs (which are going the way of AT&T and comcast - changing policies and restricting access because they can).

    I do shudder at paying for repairs to 'my' section of fibre optics - I mean, what happens when they get cut because someone is out digging in the yard? It is pretty hard to get other people to pay for their mistakes... especially if they're expensive!

    But, I certainly could go for a community network, even if it was partly independant of the internet - it would make p2p much faster, and more difficulty to monitor.

  3. $2700 is a lot of money, sorry folks. by garcia · · Score: 3, Interesting

    Paying $2700 for a fiber connection may seem like a lot, but plenty of people spend more than that on other high-tech gadgets. High-end gaming machines and laptops still cost more than $2700. And, Wu notes, a fiber connection will probably sell with the house; a couple thousand dollars is a pittance compared with the amounts many customers pay for remodeled kitchens and bathrooms, new windows, and the like.

    I have fiber running less than 100 feet from my house. Why the fuck can't I just access that? I realize that they are talking about Ottawa Canada here, but why can't someone just ask me if I want to pay money to tap into the cables that are so close to me? While I don't believe $2700 is at all reasonable for what they are asking (especially in the United States) and I couldn't tell you more than a handful of people that would even know what Fiber to your door means let alone have it be a selling point, I still want someone to come to me and say, "hey, you can use that McLeod fiber that is right there -- today -- enjoy."

    Ah, my dreams.

    1. Re:$2700 is a lot of money, sorry folks. by bockelboy · · Score: 4, Interesting

      Doesn't always work like that.

      My university is about 2 miles from the fiber backbone which connects Denver to Chicago. I believe it's the primary line from the East Coast to West Coast. Tons and tons of capacity.

      However, after doing a cost analysis, the university bought IRUs on fiber to a peering point about 150 miles south of us solely because the cost of tapping in to the nearby fiber would have been insane. In fact, that was the last option - it would have been cheaper to buy fiber from here to Chicago, 500 miles away.

  4. Internet as a utility? by atfrase · · Score: 5, Interesting

    When I read this, the first thing that came to mind was that in theory, you could do a similar thing with electricity, and then maybe the electric company wouldn't have to be a sanctioned monopoly anymore.

    And then that thought went the other direction: maybe the broadband internet access market will start looking more like the electricity market, rather than the other way around.

    As things stand now (in the US at least), broadband competition is all but non-existent for the same reasons as more conventional utilities: the prohibitively high infrastructure cost for competitors to enter the market. If this experiment doesn't enable viable competition, maybe it's time to think about applying the regulated-monopoly idea to internet access.

  5. This would solve so many problems for us. by DragonTHC · · Score: 4, Interesting

    I would definitely pay to have fiber drawn at my house.

    I think a peering agreement is way easier than using an ISP.

    This increases competition and provides infinitely more options to customers.

    For instance, I could peer with a large network provider and ask for 100Mbits both way. The price would drop significantly since it's just a simple network connection after that.

    --
    They're using their grammar skills there.
    1. Re:This would solve so many problems for us. by Mr.+Underbridge · · Score: 4, Interesting

      For instance, I could peer with a large network provider and ask for 100Mbits both way. The price would drop significantly since it's just a simple network connection after that.

      I'm assuming you went for funny and the mods missed it.

      Just in case you were serious...why the hell would they peer with you? Unless a whole lot of their customers were sitting inside your network (ie, in your house), they'd be carrying all your traffic and you none of theirs. So that peer agreement would be rather imbalanced.

      I dare you though - call up Verizon and tell them you want a peer agreement. Would be a good prank if nothing else.

  6. Limit the monopoly by WindBourne · · Score: 4, Interesting

    I have suggested many times, that a monopoly should be created from the block level green box, to the house. That monopoly should not do anything BUT that monopoly. Nothing else. Then it should allow up to 50-100 providers to come to each box. Any smart company who goes block level to CO will then sell hookups to others. Of course, competition means prices will be kept low.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Limit the monopoly by Deadplant · · Score: 2, Interesting

      Absolutely, although I would suggest at least neighbourhood level aggregation, not blocks.
      (depending on what size of blocks we're talking about here)

      Also, if this organization is to be a monopoly then it will have to be heavily regulated.
      A co-op or condo-association model might work better and be more efficient.

  7. Pitch in... by Thelasko · · Score: 2, Interesting

    with your neighbors and buy it together, then share it with a wireless mesh network.

    --
    One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  8. Necessary move by Migraineman · · Score: 3, Interesting

    In my neighborhood - suburb of DC - I can't get Verizon's FIOS because I live in a low-ish density single-family community. I live 7500 feet from the CO and have DSL. The townhouses on either side of me have FIOS, as do the apartments across the street. Apparently there isn't enough incentive to bring their fancy fibers my way. I'd love to run privately owned dark fiber to a co-lo where the bastards *would* take my money. I'd expect a better rate due to the need to use *my* infrastructure. I've been speaking to the Verizon customer service reps on and off for several years now, and they expect to have the service in my area "any day now." Uh huh ...

    1. Re:Necessary move by Solandri · · Score: 3, Interesting

      Work the phones and talk with Verizon's FIOS people. Not the customer support folks, but the technical folks who lay the cable and stuff (if you can catch one of their vans out there laying out cable, talk with the workers). They can get you in touch with managers and supervisors who make the actual go/no-go decisions on who gets FIOS.

      My previous workplace was in the same situation with FIOS available literally on the other side of the street, but Verizon unwilling to bring it to their building because it was too far back from the street. After a lot of talking, they came up with an arrangement to split the cost of the fiber install to the building 50/50 (which was still way cheaper than the T1 they were using). Last I heard Verizon decided to just pay for the whole thing. So get on the phone and talk with Verizon.

  9. No Easement, No Fiber by statemachine · · Score: 2, Interesting

    So, I pay $2700 for a company to "pull" fiber directly to my house/condo. But, according to the article, even though it throws around the word "ownership" there's nothing defining that ownership.

    When this company goes belly up in the future, I will lose this fiber because I don't have an easement for it. And because there isn't an easement, nothing gets transferred with the property, except a gentleman's agreement. And what's to stop this company from doing something else with the fiber?

    This sounds suspiciously like a cableco/telco that allows you to use another network on their physical line. I own nothing. I have no rights. It also sounds like a subscription music service.

  10. Re:What happens when something goes wrong? by argent · · Score: 2, Interesting

    I currently pay a monthly fee to my association and it covers lawn care, water, sewer, snow removal and garbage removal.

    Me too. It also pays for them to dig a hole in my yard, not fill it in, then send me a nasty notice threatening me with fines if I don't fix the hole in my yard. Depending on them for Internet access, too? God almighty!

  11. Baby Bells RULE! by iplayfast · · Score: 4, Interesting

    I'm on a farm in the country (in Ontario) that is serviced by a "baby bell" This is a co-op where all the people on the line have a share in the company.

    The neat thing about this is, Bell and Rogers and all the baby bells go to Ottawa to discuss what a proper service rate is. Rogers and Bell, present their case that it costs $$$$ to do their thing. My co-op costs $$$, but because of anti-competition rules the bigger guys their their way with $$$$ and the co-op has to have the same prices.

    So I'm paying $$$$ for my phone service. BUT.....

    All is not lost, remember the share in the company? Well if it only costs $$$ to run a service that $$$$ is being charged, then the owners receive a dividend at the end of the year! Whee.

    Or alternatively we get better service!

    Whee!!!

    On Tuseday (yup this really is relevant!) they were installing Fiber Optic in front of my house. In the near futures I'll be getting it inside.

    Don't forget, I live on a Farm, in the middle of the farming area.

    Don't you wish you didn't have to deal with the monopolies?

  12. Re:Bragging rights by jedidiah · · Score: 2, Interesting

    Don't scoff. A neighborhood only dark network for "sharing"
    stuff could be a very interesting possibility. It would be
    like a neighborhood private BBS and could be completely
    invisible to prying eyes.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  13. Re:I would be willing to do this by Kristoph · · Score: 2, Interesting

    In fact my new house is in a community (in WA) where, during the plan of the subdivision, they mandated fiber to every home.

    The service provider is owned by the local council. They provide 24x7 support. All hardware, including the hookup and the fiber router is free.

    The only drawback is that every home owner - even those who do not use the service - have to pay the minimum fee, which is $42 per month for 6MB symmetrical / 20MB symmetrical is an extra $50.

    I think this service has been around for about 5 years.

    ]{