Utopia customers lining up to pay for fiber to the home

Submitted by acohill on Mon, 11/23/2009 - 09:30

Jeff Daily at App Rising reports that Utopia, the big community-owned fiber project in Utah, is having substantial success getting homeowners to pay for the fiber coming to their homes--to the tune of $3,000 per home. This may sound like a lot of money, but the market value of a residential home with fiber increases by $5,000 to $7,000, according to a Render study.

Homeowners routinely spend $5,000 or $10,000 or more on home renovations like kitchen makeovers and bathroom upgrades, and they rarely see even a 1 for 1 return on the investment. Brigham City, Utah is also building fiber to the home, and they are using a model I have long advocated--a pass by and tap fee. Brigham City has created a special assessment area and is charging property owners a fair portion of the fiber network, just as cities and counties do routinely with water and sewer pass by and tap fees. As citizens and businesses begin to read about the advantages of community-owned fiber (lower prices, more choice), it will become easier for these projects to start with user-based financing from day one.

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