How Does Google's Fiber Deployment Pause Impact SFCN
You may have seen articles about the recent announcement from Google (Alphabet) that they were stopping the rollout of their fiber gigabit networks. Google appears to have determined they need to pause their deployments until they can refine their procedures.
Although the announcement is sending shockwaves through the media, the fiber network industry isn't terribly surprised by the news. Deploying fiber networks in areas not designed and ready for fiber is a very costly endeavor that requires large investments and years before you show any return. Google's aggressive deployment schedule would have produced growing pains that even a company the size of Google would have found painful.
The Spanish Fork Community Network was built with the plan of converting to a fiber network when it became economically feasible. We are installing fiber in the same network of conduit that we originally installed for our hybrid fiber coax system. The fiber optic cable is alongside the existing coaxial cable which makes the cost of installation a small fraction of what it would cost a company like Google to install a fiber network.
A lot of the advantages Google Fiber brings to a community has been provided by SFCN for over sixteen years. SFCN brought high speed internet to Spanish Fork and vaulted the City into a leadership role for Internet access. With over 80% of the town utilizing the SFCN system, Spanish Fork can compete with any city in America for the number of residents with access to high speed internet. Additionally, SFCN has been providing fiber to all of the schools in Spanish Fork for over a decade. We knew from the very onset that fiber was needed to support the schools and their students here in Spanish Fork. We designed and built our system to deliver dark fiber to each school and Nebo School District has been a great partner with the Spanish Fork Community Network.
The timing is perfect for deployment of the SFCN Fiber Network. The SFCN system has paid off the original bonds and no longer carries a loan payment. The current fiber network upgrade is being done without adding additional debt to SFCN and the deployment schedule is aggressive yet practical which will allow SFCN to avoid the pitfalls that have afflicted the Google networks. You can upgrade to the fiber network without any installation fee and without a rate increase, you just get the most reliable, fastest network possible at the same amazingly great price! And as always, SFCN does not use taxpayer dollars and in fact, gives back to the general fund of Spanish Fork City to help keep residents' taxes lower.
SFCN will continue to build the fiber network. The fiber network currently deployed and serving customers in several nodes is necessary to stay ahead of internet bandwidth requirements. We have seen over the predicted 50% per year growth of necessary bandwidth in Spanish Fork and our customers will need bandwidth that will outstrip the capabilities of the cable modem system. We are completing the final reasonable upgrade of the cable modem system over the next couple of months and after they are in place, speed upgrades will need a fiber solution to meet demand.
SFCN's fiber deployment plan achieves a performance and price point that even Google would be envious of. Because SFCN is not adding debt to install the network, prices of the internet tiers can remain the same. You just get higher reliability and faster speeds for the same great price! And because we are using the existing conduit network, the installation is still free. Achieving all three: no new debt, no rate increase and free installation on a fiber network, is virtually unheard of in the industry. "We few, we happy few, we band of brothers" are the customers and owners of the Spanish Fork Community Network.
Your City leaders and professional staff have positioned Spanish Fork to continue to lead the way for the country on how to provide internet services to your residents in a cost effective and profitable network. SFCN will continue full steam ahead into the future to ensure the pride and progress of Spanish Fork.
Thank you for your continued support!