[1st-mile-nm] Press Release: CityLink Halts Gigabit Fiber Project for Santa Fe NM

[John Brown]

CONTACT:
John Brown
CityLink Fiber Holdings of Santa Fe, LLC
505 938 6309
john at citylinkfiber.com

CITYLINK HALTS GIGABIT FIBER PROJECT FOR SANTA FE NEW MEXICO 


SANTA FE, NM --  CityLink today announces that it has decided to abandon
its project to build an open access, neutral fiber optic network in the
City of Santa Fe, New Mexico.  

The company has reviewed the latest draft of the proposed Master
Ordinance and continues to find significant ambiguity with the language.
The company has repeatedly asked the City Attorney to clarify the
language and has not received any response from the City Attorney on the
requested clarifications. Upcoming City Council meetings are closed to
public comment. Except for the final meeting when City Council will vote
on the ordinance.  At that time it is too late to make changes to the
documents.

The company is also concerned that the City maybe setting itself up for
more litigation given that certain sections of the ordinance appear to
create different classes of providers.  Some providers may not have the
newer, additional expenses that CityLink would face.  Yet, other
sections imply that existing providers would be forced in to the new
terms and also have higher costs.  This ambiguity creates significant
legal risk for the City and for potential franchisees.

Certain sections of the Master Ordinance would make it financially
impossible to deploy economical Fiber to the Home (FTTH) or to Small
Businesses.  According to the current Master Ordinance, the company
would have to pay a PER CUSTOMER land use application fee of up to
$2500, plus the cost of posting notices, mailing letters, holding
meetings and other requirements as may be set by the City. 

"These City mandated additional costs more than TRIPLE the estimated
cost to connect a HOME to High Speed Gigabit fiber optic services", said
company President John Brown. "When you look at the typical residential
gross revenue potential of $140 a month (internet, voice, video),
subtract the direct costs of goods, and use the remaining to pay off the
construction cost, we go from an average return on investment of 3.3
years out to 10.62 years.  This is unacceptable."

CityLink had proposed to deploy, at its own cost and not using any
public money, a Open Access, Neutral Fiber Optic network.  As part of
its proposal the company generally offered the following, AT NOT COST TO
THE CITY and its Citizens:

* All City / Muni buildings would be connected.
* City would receive 12 strands of dark fiber on all routes.
* All K-12 schools, regardless of public or private, would be connected
to dark fiber.
* All Senior Centers and Community Centers would be connected.
* All Libraries would be connected.
* Up to 20 higher education (college, vocational schools, universities)
facilities.

"This is a sad day for the citizens, business, our children and
students, and senior citizens of Santa Fe, said Brown. In today's market
where small businesses need to maximize every penny they have, it is
disappointing to see the City create so many high costs for new advanced
technologies.  Our fiber optic technologies would have brought several
new national carriers to the market, opened up faster and more reliable
services for business and residential users alike.  Instead The City
Different continues to be the City Disconnected."

The company will always be willing to meet with the City Administration
to work on a Master Ordinance that makes sense for all parties.  We look
forward to that potential meeting.


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