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

[peter baston]

Hi John

Sad to hear it -----   but not unexpected

We are moving our entire business to Boulder CO, were they really understand
the pursuit of excellence

If you ever want to do business up there let me know

Good luck in La La Manana Land

( : ( : pete

On Fri, May 7, 2010 at 5:12 PM, John Brown <john at citylinkfiber.com> wrote:

> 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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