Fatbeam looks to drive economic development
PONDERAY — Ponderay City Council members were swayed Monday toward selling one of three underground conduits containing fiber-optic infrastructure.
Fatbeam, a fiber installation company, was contracted to build a $2.8 million, 49-mile infrastructure for the Lake Pend Oreille School District's Fiber Wide Area Network throughout the district's 13 locations. With the district offices located in the midst of Ponderay's infrastructure along Triangle Drive and Bonner Mall Way, the company is naturally interested in purchasing the conduit already installed by the city.
Fatbeam's president, Greg Green, and Chris Jasper, vice president of fiber networks, attended Monday’s City Council meeting to present council members with their plan and explain why they would prefer not to rent or lease the infrastructure. Green said part of the reason is because the school district is funded through an E-Rate program through the Federal Communications Commission.
"If they lease through an E-Rate program, they need to know exactly what the fixed costs are of the infrastructure year after year," Green said. "When we own the infrastructure, which is what we typically do, they know what that fixed cost is."
Green said Fatbeam could build infrastructure cheaper than they could buy it, but the interest not only lies with the district's main offices, but also the potential for economic development in the area.
"That's why we are willing to spend a little more money to buy conduit all the way down there than just go to the school, which would be the most cost efficient," Green said.
Jasper said Fatbeam has plans to interconnect the school district's infrastructure to long haul carriers because fiber optic networks have been installed along many railways. He said the company also plans to connect it, eventually, to the 70 miles of fiber installed by Fatbeam in the Coeur d'Alene area.
Concerns raised by Councilwoman Karen Engel at a previous City Council meeting resurfaced Monday. Her concern revolved around the continued ownership of the infrastructure and what would happen to it if, for some reason, Fatbeam did not retain ownership in the future, such as if they lost the contract with the school district. She wondered if the city would have to buy it back or let it sit unused.
"If that pipe is abandoned in your right-of-way, you would own it," Jasper said.
In the end, Engel said as long as the city is reimbursed its cost, she is "game" for the possibility of economic development.
"It sounds like we would be willing to entertain selling it," said Mayor Steve Geiger. "I don't see an issue with it — it's bringing a great service to our community."
The issue will be brought back at a future City Council meeting after cost and contract details are discussed.