85% take rate for multi-service open network

Submitted by acohill on Mon, 12/10/2007 - 09:05

The community of Nuenen, Holland has great news for those interested in multi--service open networks. The community broadband project, which had hoped for a 35% take rate, has seen much, much better results:

"The 'pitch' in Nuenen is not about 'bandwidth' 'fibre' or anything techie. Nuenen has an elderly community, consequently Ons Net aimed to appeal to a 75 year old woman who does not own a computer nor used the internet," he explained.

It is local services supporting security, home care, events on the local TV channel and improving the community that are attracting people.

In order to secure the necessary funds Ons Net was looking for an initial 35% sign-up rate. In fact it got closer to 85% and posted a £1m profit in its first year.

In Nuenen, residents get connected to a 100 megabit capacity fiber network, and buy individual services like Internet access, telephone service, and TV service. This is a fundamentally different business model that creates real competition among service providers and tends to lower service costs. Communities in the U.S. pursuing this approach include Palo Alto, California; Seattle, Washington; Gainesville, Florida; the 15 community MegaPOP project in Mississippi; Danville, Virginia; and The Wired Road project in southwestern Virginia. The last two communities are being assisted by Design Nine.

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