Hearing set for dark fiber fees
(Courtesy/file photo) This photo shows some of the fiber infrastructure in Sandpoint. Two of the conduites each contain 144 strands of fiber. A public hearing on fee structure for leasing the fiber to bring it to businesses and residents in the area is scheduled for Feb. 15.
This screenshot of a Sandpoint map shows the area where fiber infrastructure is and will be installed. The red line stretching from City Hall, through the downtown area, and to the water treatment plant is where the cable is currently running. A public hearing on fee structure for leasing the fiber to bring it to businesses and residents in the area is scheduled for Feb. 15.
SANDPOINT — Some local businesses and residents will soon be lit up with access to what is know as the “crazy fast” fiber Internet service.
Some city administrative buildings and public Wi-Fi at Jeff Jones Town Square are already lit with fiber. During last week's council meeting, city administrator Jennifer Stapleton said the fiber will be extended to businesses and residents in the service area by the end of the year, if not sooner.
"I know we have providers that are shooting for that to be as early as July," Stapleton said.
During the meeting, Stapleton presented council with a "dark fiber" fee structure proposal, which was approved through a vote and a public hearing is scheduled for Feb. 15 for adoption of the fees.
In clarification, Stapleton said when the fiber-optic infrastructure is lit, waves of light actually pulse through it. Therefore, when referring to "dark fiber," it is the unused infrastructure as no light is carried through it.
For several years, city workers have been installing conduit underground during street projects in preparation for fiber. Two conduits were installed and each holds 144 strands of fiber. The current infrastructure has about three-miles of fiber installed from the City Hall area, through downtown and to the city's water treatment facility. One conduit line is dedicated to administrative use by the city, but the second line is an open-access network that can be leased out to public and private companies.
City officials worked with consultants from Design Nine to develop the proposed fee structure. "Dark fiber," according to the proposed structure, will cost providers $150 a month per strand, with a required five-year minimum contract and $250 application fee.
"What we would expect to see use this type of pricing structure may be healthcare providers in town connecting in with infrastructure through the hospital and then running down to Kootenai Health," Stapleton said.
She said service providers like Ting, a company that has been interested in bringing fiber to local businesses and residents for several months, would likely use the "indefeasible right of use" pricing also listed in the proposal.
IRU prices refer to a lump sum, one-time fee, which Stapleton said essentially gives the lessee ownership of the strands.
"It is the most common structure in terms of ownership or, I guess, perpetual leasing of fiber," Stapleton said. "In these models it has the benefit to the city that it assures us the maintenance operations revenue stream in perpetuity as well. There is not a lot of cost once the fiber is in the ground and there really isn't, at this point, a set time that (the fiber) expires and is no good any longer."
IRU pricing is proposed at $3,550 per strand with a six-strand minimum. For 13 to 24 strands, the price per strand is $2,367 — a 33-percent discount — and 25 or more strands at $1,183 per strand.
According to the proposed structure, providers will be charged an annual maintenance fee of $333 for up to 24 strands, and $167 per year for 25 or more strands. The maintenance fee includes a stipulation that it can be increased or decreased every other year based on changes in actual maintenance costs.