ISP rolls out fiber service with a wrinkle – users themselves own every network

A man operates heavy machinery that installs fiber cables underground.Enlarge / Horizontal drilling rig installing fiber in Los Altos Hills, California. Los Altos Hills Community Fiber

Our recent article about Silicon Valley residents who formed a cooperative ISP might have people wondering what it would take to get the same thing in their hometown. The most obvious obstacle is price: in Los Altos Hills, California, residents had to pay between $5,000 and $12,000 upfront for fiber-to-the-home internet.

But the company that built the Los Altos Hills network says its model isn't just for the wealthy. "It's not the 1% solution, as people derisively call it," Next Level Networks CEO David Barron told Ars in a phone interview a few weeks ago. "Los Altos Hills was unique."

Residents of Los Altos Hills were the first to sign a contract with Next Level Networks, and Barron said the company has "a fairly aggressive expansion plan to enter a number of markets across the United States- United over the next five years".

When Next Level builds a LAN, residents own the infrastructure and share the initial costs. The residents themselves take care of finding potential customers, and the installation begins once enough people have registered.

“Our first clients were wealthy because they were motivated and willing to take risks,” Barron said. But per capita costs will be "much cheaper" elsewhere, especially for multi-unit buildings or homeowners associations where homes are close together, he said.

Six projects so far

Next Level designs each network, installs fiber, organizes backhaul and provides Internet service. The networks are free to access, so other entities could offer broadband over the same cables.

In addition to Los Altos Hills, Next Level has five other clients in various stages of development, all in California. Barron said these include co-ops in Woodside, Palo Alto and an unincorporated area of ​​Los Gatos that is technically outside the city limits. He added that the company is also setting up networks for two homeowner associations in Santa Rosa.

Building Woodside in the Santa Cruz Mountains was particularly difficult, Barron said. It was in an area with large lots and an "awful, windy road that has steep drop-offs on one side and steep hills on the other," he said.

But the Woodside network is fully built and has 53 subscribers, Barron said. The Los Gatos array — another rough construction in the Santa Cruz Mountains region — has about 100 homes and is nearing completion, he said. One of the HOA networks in Santa Rosa is fully constructed and the other is nearing completion, he said.

Next Level has yet to begin construction in Palo Alto. The city of Palo Alto is separately planning its own fiber network, and the cooperative is securing a backhaul circuit from the city and "working closely" with the city government, Barron said.

Barron said the Los Altos Hills wiring was relatively expensive because it's "a very rural suburb" with lots over an acre. Fiber builds are cheaper with smaller lots and even cheaper with apartment buildings and condos, he noted.

But even in Los Altos Hills, Next Level was by far the cheapest option for resident Sasha Zbrozek. As we previously wrote, Comcast told Zbrozek he would have to pay $210,000 in exchange for Comcast installing 700 feet of cable to his home.

Zbrozek declined Comcast's offer and settled for paying $12,000 instead to get the gigabit downloads and uploads offered by Next Level Fiber. And unlike Comcast, Zbrozek and its neighbors own their local network infrastructure.

Next Level is looking for investors for its expansion

Many startups that wanted to disrupt the U.S. broadband industry have failed, and consumers in much of the U.S. still often have only one or two choices, if any, to choose from. high speed internet access.

While Next Level is already helping some small communities get online, it's not yet clear if it will have a large-scale impact. For now, the company is moving forward with its first projects and is looking for investments to finance...

ISP rolls out fiber service with a wrinkle – users themselves own every network
A man operates heavy machinery that installs fiber cables underground.Enlarge / Horizontal drilling rig installing fiber in Los Altos Hills, California. Los Altos Hills Community Fiber

Our recent article about Silicon Valley residents who formed a cooperative ISP might have people wondering what it would take to get the same thing in their hometown. The most obvious obstacle is price: in Los Altos Hills, California, residents had to pay between $5,000 and $12,000 upfront for fiber-to-the-home internet.

But the company that built the Los Altos Hills network says its model isn't just for the wealthy. "It's not the 1% solution, as people derisively call it," Next Level Networks CEO David Barron told Ars in a phone interview a few weeks ago. "Los Altos Hills was unique."

Residents of Los Altos Hills were the first to sign a contract with Next Level Networks, and Barron said the company has "a fairly aggressive expansion plan to enter a number of markets across the United States- United over the next five years".

When Next Level builds a LAN, residents own the infrastructure and share the initial costs. The residents themselves take care of finding potential customers, and the installation begins once enough people have registered.

“Our first clients were wealthy because they were motivated and willing to take risks,” Barron said. But per capita costs will be "much cheaper" elsewhere, especially for multi-unit buildings or homeowners associations where homes are close together, he said.

Six projects so far

Next Level designs each network, installs fiber, organizes backhaul and provides Internet service. The networks are free to access, so other entities could offer broadband over the same cables.

In addition to Los Altos Hills, Next Level has five other clients in various stages of development, all in California. Barron said these include co-ops in Woodside, Palo Alto and an unincorporated area of ​​Los Gatos that is technically outside the city limits. He added that the company is also setting up networks for two homeowner associations in Santa Rosa.

Building Woodside in the Santa Cruz Mountains was particularly difficult, Barron said. It was in an area with large lots and an "awful, windy road that has steep drop-offs on one side and steep hills on the other," he said.

But the Woodside network is fully built and has 53 subscribers, Barron said. The Los Gatos array — another rough construction in the Santa Cruz Mountains region — has about 100 homes and is nearing completion, he said. One of the HOA networks in Santa Rosa is fully constructed and the other is nearing completion, he said.

Next Level has yet to begin construction in Palo Alto. The city of Palo Alto is separately planning its own fiber network, and the cooperative is securing a backhaul circuit from the city and "working closely" with the city government, Barron said.

Barron said the Los Altos Hills wiring was relatively expensive because it's "a very rural suburb" with lots over an acre. Fiber builds are cheaper with smaller lots and even cheaper with apartment buildings and condos, he noted.

But even in Los Altos Hills, Next Level was by far the cheapest option for resident Sasha Zbrozek. As we previously wrote, Comcast told Zbrozek he would have to pay $210,000 in exchange for Comcast installing 700 feet of cable to his home.

Zbrozek declined Comcast's offer and settled for paying $12,000 instead to get the gigabit downloads and uploads offered by Next Level Fiber. And unlike Comcast, Zbrozek and its neighbors own their local network infrastructure.

Next Level is looking for investors for its expansion

Many startups that wanted to disrupt the U.S. broadband industry have failed, and consumers in much of the U.S. still often have only one or two choices, if any, to choose from. high speed internet access.

While Next Level is already helping some small communities get online, it's not yet clear if it will have a large-scale impact. For now, the company is moving forward with its first projects and is looking for investments to finance...

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