How does $15/month broadband sound?

Submitted by acohill on Thu, 04/27/2006 - 09:27

While at the Digital Cities conference in Reston, Virginia earlier this week, I was able to get some detailed information about Vasteras, Sweden, where they have implemented the kind of open service provider communitywide broadband I advocate for communities in this country. Vasteras is a medium-sized city of about 80,000 people. In past eighteen months, they have run fiber to 7000 homes, 23,000 apartments, and 2000 businesses.

The system is run as a completely open access network--any qualified service provider may offer services over the network, and they have eighty-six (86) service providers. There are several options for Internet access, starting at a full 3 megabit (symmetric--3 meg up and 3 meg down--not offered by any cable or DSL provider in the U.S.) for $15/month. You can get a full, symmetric 100 megabit service for $45/month (about what most of us pay for 1-2 megabit cable or DSL service).

The open access system uses a single community infrastructure that offers freedom of choice for subscribers (pick from 86 different services), increased competition, and much lower costs because service providers can sell services at lower prices because the cost of the infrastructure is shared across the entire community.

Robert Kjellberg, the Managing Director of the effort, said the system has created many new work at home opportunities, helped improve the delivery of local government services, provided new opportunities for distance learning, and that local schools have been able to make much greater use of the Internet for teaching. He said that every K12 student now has their own online portfolio of school projects.

The take rate for the network has been 50% among homeowners and 50% among businesses, and demand has been very strong. They continue to hook up new customers on a weekly basis.

Service providers have been very enthusiastic, and Telia, one of the incumbent providers, sells Internet access over the network for half the price that they charge for DSL in other communities. Kjellberg emphasized that the city does not sell any services and does not compete with the private sector--all services offered over the network come from private sector providers. The service providers pay a small portion of their revenue to the city, which is used to finance debt, expansion, and operations.

Here are some links to the project. Note that as of this day, a Swedish kronor (SEK) is worth about 13 cents USD, so you can take the Swedish service prices and divide by 7.4 to get the equivalent in US dollars.

Vasteras has won numerous awards for its network and has attracted worldwide attention because it has world class broadband at affordable prices. How about your community? Instead of just one or two highly restrictive and expensive broadband offerings, would it not be better to have homes and businesses choosing from 17 plans starting at $16/month?

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