BACKGROUND:
Over the last decade, the increased use of technology in the modern world has sparked debate globally as to whether fiber optic internet service should be classified as an essential utility for modern living. A debate that has been reignited by the current pandemic, with the statistics becoming even more predominant in the way people work and live around the world. More than any other recent event in this century, the COVID- 19 pandemic has forced many at-risk/high-risk groups to survive from home, with internet access being vital to preserve their livelihoods, maintain prescriptions, educate their children, and even order vital food and supplies. As the debate over net neutrality continues, the fact remains that the global pandemic has intensified the disparity between those with and those without internet access; the latter being significantly disadvantaged to the former.
If we accept the internet as an essential service, governments should be discussing how they can assist their communities with obtaining greater access to these services by partnering with private companies to promote citywide internet access/coverage, consumer choice, and speeds that support tomorrow’s demands. Unfortunately, in rural and disadvantaged communities where Internet Service Providers (ISPs) feel subscriber numbers do not warrant the capital investment required to update or extend their infrastructure (or where ISPs hold a monopoly position), most ISPs are not improving internet access. This continues to increase the disparity among communities, with rural and disadvantaged census tracts disproportionately burdened with substandard internet infrastructure.
Fortunately, governments have started to pay attention and are actively helping to maximize funding and promote access to their public rights-of-way in order to attract new ISPs and infrastructure investors who will address the current and future citywide internet access needs of their communities.
So why are cities, infrastructure investors, and certain ISPs focusing on fiber? Fiber optic internet service has become the gold standard of wired internet, with one of the biggest benefits being unlimited data capacity (faster speeds over longer distances) compared to copper-based technologies such as digital subscriber line (DSL) internet or cable internet. Internet service provided through fiber connectivity can easily be 10-20 times faster than the standard cable connection. Fiber networks have grown largely through private ISP investment, whether it be fiber to the home, business, cell tower, or intra-state connections, as ISPs recognize the installation of such future-proofed infrastructure retains their monopoly position within a community. The fiber industry has reacted to this tactic with one long-term infrastructure developer, SiFi Networks, leading the industry to deploy citywide Open Access fiber networks that foster multi-ISP competition, removes the digital divide, drives equality, and supports Smart City initiatives, all while removing ISP monopolistic structures.
Currently, in Cathedral City, there are only two (2) major players in the fiber market, Spectrum and Frontier.
DISCUSSION:
Over the last several months, the City has been exploring various options to accomplish the City Council’s goal of bridging the digital divide through citywide broadband infrastructure. The City has preliminarily engaged SiFi Networks (SiFi) to further understand a citywide Open Access Model, which would be deployed under SiFi’s FiberCity brand, due to the fact that SiFi is not an ISP selling content to the public or competing against ISPs on the FiberCity network.
SiFi is an international fiber optic network developer who privately funds, builds and operates state-of-the-art citywide Open Access networks that enable any number of ISPs to compete against each other to provide every resident, business and public facility with any internet-based service, such as but not limited to, symmetrical Gigabit internet. SiFi has established agreements with multiple municipalities throughout the country to implement networks. Participating agencies within California, where SiFi’s FiberCity networks are being constructed and will serve over 1.2 million people, include Rancho Cordova, Lancaster, Palmdale, Fullerton, Placentia, Yuba City, Pico Rivera, Lynwood, Pittsburg, Downey, Corona, and Simi Valley.
Today’s study session presentation is designed to help educate the City Council and the community on SiFi’s FiberCity model as a comparison to other internet technologies available in the City today. This includes why their multimillion dollar private investment to construct, maintain, and operate a 350 mile Open Access network throughout the City does not require any municipal investment or taxpayer subsidy, how they address the digital divide, why they are able to attract multiple ISPs to compete against each other on a network the ISPs have no control over, and the processes they implement to keep residents and business fully aware of the networks ongoing construction and availability.
Additionally, the City is exploring alternative technologies with telecommunications providers (TelCo) to develop fiber broadband networks that offer bundled voice, internet, and video services that go beyond typical ISP fiber service. The City is currently working with Race Communications, one of California’s leading telecommunications and fiber technology companies, to provide the full range of communications services in Cathedral City. The results of these conversations will be presented to City Council at a later date.
FISCAL IMPACT:
There is no fiscal impact at this time. This information is presented for City Council review, discussion, and direction only.