Cost slows push for broadband Internet utility
LAS CRUCES -- The forward-thinking notion of a
broadband Internet utility providing service to
Las Cruces residents and businesses was something
the Las Cruces City Council liked Monday.
But they didn't like the price tag.
Upon hearing that it could cost about $95 million
to create such a utility, there was consensus from
the council that there are other priorities they
need to focus on.
"This is not something I'd like to put on
the very back burners, but a $95 million cost is
something we, as a city, cannot afford right now,"
Mayor Bill Mattiace said. "There are other
pressing needs the city is facing right now."
Results of a feasibility study that has determined
infrastructure costs of developing a broadband Internet
utility were presented to the council Monday at
a work session at City Hall.
Representatives of DynamicCity Inc., a Lindon,
Utah, company that helps communities finance and
build ethernet systems capable of providing broadband
Internet, spoke to the council by telephone Monday.
They were going to be at the work session to present
their results personally, but poor weather forced
them to conduct a conference call.
"If we had the fiber (optic cable) we would've
been able to see you face to face," said Joel
Sybrowsky, DynamicCity executive vice president.
"With broadband Internet we could have conducted
a video conference." Nate Taylor, product development
director for DynamicCity, detailed the advantages
a broadband Internet utility could have in Las Cruces.
He said 2.6 million feet of fiber-optic cable would
be needed to provide the service to approximately
42,000 homes and businesses in Las Cruces.
"We are capable of providing a service that
is 15 times faster than DSL (Digital Subscriber
Line) service," Taylor said. "We believe
there is opportunity to improve the business community."
But the cost to install fiber-optic cable for broadband
service would be $62 million.
Sybrowsky said DynamicCity is willing to work with
city officials to determine methods of financing
for what obviously would be long-term debt.
City Manager Terrence Moore reiterated the city
will need financial partners. But he added the city
should continue informal discussions with DynamicCity.
"We should continue a dialogue, but given
where we are (financially) at this point, there
is a prohibition," Moore said.
Councilor Gil Jones agreed that even though the
project costs are high, the city should not completely
dismiss the possibilities of starting an Internet
utility in the future.
"I encourage you to work forward," Jones
said to Sybrowsky. "The cost is intimidating
but given the importance of the Internet and technology,
we should look forward to a way of implementing
it some day." Gina Gallegos, a New Mexico State
University student who works as a part-time waitress,
said broadband Internet service would greatly help
her studies.
"Definitely," said Gallegos, who hopes
to be nurse. "Broadband is something that only
the rich can afford. Just about every college student
I know can't afford it. Dial-up Internet service
really doesn't cut it if you're working on a research
paper and you're using the Internet to do a lot
of your research. It takes too long with dial-up,
and some information on the Internet isn't accessible
unless you have broadband.
"I guess like most people, we're just going
to have to wait until there's newer technology that
makes broadband affordable to the majority."
