To: All Princeton Residents
From: Broadband Municipal Light Plant
Date: November 17, 2015
We voted Oct. 19 to pursue installing a high-speed Internet
network controlled and managed by the town but built by a
qualified vendor/installer. The vote will allow Princeton to keep
the revenue generated from all subscription fees, while delivering
affordable ultra-fast Internet access with the lowest possible risk.
The plan needs approval by a two-thirds majority vote at a town
meeting and a ballot vote taken at a separate date.
We have heard from a few residents with questions about the
project and have addressed those concerns in this format. For news
and updates regarding Connecting Princeton visit
www.town.princeton.ma.us. Additional questions/suggestions regarding the broadband project can be submitted by
residents directly to the town’s website Question/Comments Section. In the first box provided, please select Town
Administrator as the appropriate recipient.
Q: Where are we with the $1.2 million “make-ready” project?
Projects underway include completing engineering studies and pole assessments. The next
phase will include pole upgrades, installing fiber optic wire hangers and the construction of
telecommunications huts. We are also examining and preparing nearly 2700 poles on public
ways and additional poles on residential properties that are currently co-owned by Verizon
and Princeton Municipal Light Department (PMLD).
Make-ready funding includes construction of telecommunications huts that will be located
on the grounds of PMLD, with smaller huts at Thomas Prince School, Fire Station 2, and
inside the Public Safety building behind Bagg Hall. These locations will house the active
electronics gear required to connect between the resident fiber and the Internet. The tasks
of obtaining the required building permits and finalizing construction plans are well
underway.
Q: Why did we decline a plan proposed by MBI, the state agency?
The proposed partnership with Massachusetts Broadband Institute (MBI) required that the
town bear most of the expense of a network designed and constructed by the state agency
for our ownership and operation. This option would have resulted in a costly and less
robust network with no expense savings opportunity and no control over contractors in
building the network. It also asked us to bear a significant liability for cost overruns and
vendor performance. MBI estimated that this network build would not be operational until
2019-2020.
Q: What happened to the option of pursuing a network with an independent
vendor/installer?
A second option explored was a private partnership with Axia, a Canadian-based fiber
optic cable vendor/installer. Under this option, Princeton would have carried a large
portion of the expense, but Axia would have overseen final design and construction of the
network along with a 20-year agreement to operate, maintain, and provide services over the
network.
While the Axia option meant the town’s initial investment would be less, it required a
number of town meeting votes to modify the existing Broadband Municipal Light Plant
charter and to gain special Massachusetts legislation to allow the new partnership. The deal
offered the town only limited control over operations and the increased financial gains from
subscriber participation would all have gone to Axia.
Q: How does High-Speed Internet over fiber optics work?
Fiber optics are long, thin strands of very pure glass about the diameter of a human hair.
They are arranged in bundles called optical cables and deliver laser-generated pulses of
light. When the data reaches your home, it is converted to electrical pulses that transmit
data signals. Since light can travel so quickly, you can transmit an enormous amount of
data at incredible speeds.
Q: How will Princeton pay for the network installation?
The Board of Selectmen anticipates calling a special town meeting in 2016 to present all the
financial details to interested voters. A two-thirds majority vote as well as a majority vote at
a town election will be required to borrow the funds. Financing the plan requires obtaining
a General Obligation Bond, which means the town and taxpayers are responsible for
making the annual principal and interest payments. An amount of the revenue generated
from billing network subscribers on a monthly basis will be applied to loan payments,
reducing or eliminating any impact on the tax bill.
The normal procedure is that these funds will be borrowed short term with a low interest
loan until the final costs are identified, and then borrowed long term via a municipal bond
offering. It is our intent that network subscribers pay the bond’s interest and principal
payments as a part of their monthly subscription charge so that the network costs do not
affect property tax bills.
Q: How much money will we need to borrow?
The network design is still a work in progress and Invitations for Bids/Request for
Proposals have yet to be finalized. Accordingly, an estimated amount is difficult to calculate
at this time.
Q: Is fiber optics a good investment for the town?
The telecommunication industry has no better technology today than fiber optic cable. The
backbone of the Internet runs on fiber. The preferred backhaul from cell towers is
fiber. The fiber cable itself has virtually unlimited capacity and is the most "future proof"
Internet technology that exists.
Q: What about Internet speeds and pricing?
Connecting Princeton expects to offer subscribers 100Mbps service per household
subscriber at $95 per month. We are currently investigating an even faster 1Gbps service
offering at a higher cost. The 100Mbps service is significant when compared to the 2-5Mbps
speed of current DSL customers and the less than 1Mbps speeds reported by many
subscribers of the wireless network once operated by PMLD and now operated by a private
vendor.
The $95 monthly subscription fee for Connecting Princeton covers in part:
• Debt service for the network build
• Operations and Maintenance contracts
• Internet Service Provider (ISP) charges
• Taxes and optional services from the ISP
• Operating a sustainable network
Q: What about so-called “data caps” or restricting Internet use?
There will be no initial data usage caps for subscribers. A subscriber who exceeds three
times (3X) the average premise data usage for two consecutive months will be reclassified as
a ‘heavy user’ and thereafter subject to a monthly rate increase.
Q: Will there be a telephone option? What about television?
A Voice Over Internet Protocol (VOIP) option will be available for about an estimated $15$20 per month. This service covers all calls made anywhere in the US as well as all
international calls. VOIP does not allow for the use of fax machines and some life
support/medic alert alarm systems that only travel over copper wire.
Connecting Princeton option does not include television packages like those offered by such
vendors as HughesNet (satellite) and Comcast or Charter (cable providers). However, a
high speed Internet connection means fast, reliable and affordable access to such television
outlets as Netflix, Hulu and Apple TV. At 100Mbps, downloading a feature length movie
will take only a few minutes. Internet-based television with its streaming capabilities is a
rapidly expanding industry at very affordable subscription rates.
Q: How will the network get to my house?
The network will consist of fiber optic cable installed along all of Princeton’s public roads
serviced by the town’s light department (PMLD). The installation will include a locationspecific fiber connection for every house, business and approved building lot along those
public roads. These fibers will run to one of several designated locations situated around
town that will provide direct connections to the Internet and its vast network.
In areas where PMLD electrical utilities have been buried on public roads, the fiber cable
will be installed in new or existing conduit. Private roads with buried utilities present legal
issues that still need to be resolved once we have a completed design from the chosen
vendor/installer.
Q: How will the network be installed from the road to my house?
The fiber that runs from the nearest pole to the house is referred to as a “lateral.” As part
of the network construction, these laterals will be installed to any residence that has signed
an agreement prior to construction and material acquisition. A standard problem-free
installation will be performed at no cost to the homeowner.
Laterals that encounter direct burial utilities or no available conduit will be installed at
distances up to 500 feet through newly installed underground conduit at no cost to the
homeowner. However, if the installer encounters obstacles such as ledge or wetlands,
homeowners will be responsible for additional costs involved to complete the connection.
Q: What equipment do I need inside my house?
Connecting Princeton will supply, install and service the in-premise Optical Network
Terminal (ONT) to provide high speed Internet and optional phone services to subscribers.
ONT’s are typically warrantied against electronic failure for three years by the
manufacturer, and will be ‘refreshed’ or replaced every seven years or so with newer
models. ONT’s that fail after warranty expiration, or fail under other circumstances not
covered under the warranty, are to be replaced at the subscriber’s expense.
Our consulting engineers have determined that interior ONT’s are the best choice for
serving Princeton. Benefits for interior wireless ONTs are numerous, including enhanced
access to diagnose and troubleshoot problems quickly and in all weather conditions.
Subscribers are responsible for providing accessible internal electrical power to the ONT
within seven feet of the fiber cable entry point.
Because internal ONT’s have limited (1-2 hour) internal battery backup capability, it is
highly recommended that subscribers who lack home backup generators purchase and
install an Uninterrupted Power Supply (UPS) device to provide additional network
operation capability. UPS devices range from $50 to $150, depending upon battery size.
Q: What about homes that are situated far back from the road?
Connecting Princeton expects to provide free installation to homes up to 500 feet from the
road. Subscribers with longer driveways will almost certainly incur some additional
installation costs. The vendor we hire will still do the installation in these instances, but
residents may also choose to hire their own contractor to complete this work. Our generous
500’ free installation designation is twice the 250’ standard offered by Verizon, Comcast
and Charter.
Q: When will the network go live?
If the borrowing is approved and vendor selection moves forward in a timely fashion, we
can anticipate a completion/go live date of 2017. The network area serviced near the PMLD
telecommunications hut will be the first section built and will act as the network’s testing
site. These “beta” subscribers will be charged a lowered subscription rate until any
operating problems are solved.
Q: How does Connecting Princeton measure up to other options available to residents?
Subscribers will join 59 percent of a US population that can purchase at least 100Mbps of
Internet access. Only three percent of the population has 1Gbps connectivity. The
affordable pricing for our network makes it the best deal available, surpassing DSL,
wireless and satellite networks in speeds and value. Also, subscribers will benefit from
greatly reduced risks for system failure or downtimes due to weather conditions, user
related overloading and inconsistent access to customer service/troubleshooting.
Wireless Internet is significantly slower than fiber optic networks. Inclement weather can
disrupt wireless Internet service and when more users are online, wireless Internet speeds
in town have dropped to as low as 0.5 to 0.7Mbps.
Verizon and ATT “hot spot” Internet speeds averaging between 10-12Mbps are slower than
Internet access over fiber and speeds vary dramatically depending on the number of active
users. Hot spot networks may seem like a good value at $80 per month but a 10 GB monthly
user cap is restrictive for many users, particularly large families.
Nearly everything you do online, from sending emails to social media participation,
consumes bandwidth. If you stream only five hours of high-definition video from Netflix, for
example, you will consume almost all the 10 GB allowance.
Connecting Princeton, at 100Mbps with unlimited access, will allow each family member to
download his or her own movie choices at the same time with no noticeable loss of speed.
Quite simply, Connecting Princeton is the best option for affordable, high-speed Internet
access.
Q: Sign Me Up! How do I hold my place?
We anticipate an easy and convenient way for residents to subscribe to Connecting
Princeton by mail and via online access, starting within the next few weeks. Registrants will
be asked to participate in a non-binding agreement to become a subscriber when the
network goes live in 2017, and subscribers will be asked to pay a $25 deposit at the time of
registration. Plans are to offer PayPal or some other trusted electronic method to handle
financial transactions online.
Just prior to installation, subscribers will be billed $200 (less the $25 deposit) to cover costs
associated with the ONT and other electronic gear and its installations. Subscribers must
agree to a two-year contract and its provisions for early cancellation (TBD). Renters are
required to secure landlord permission to install a lateral and subscribe. Those who opt to
subscribe after the initial sign-up period must pay for the lateral installation at cost, which
is expected to cost at least $1500.
Sustaining our own network requires building a large subscriber base to help amortize the
anticipated loan without burdening the taxpayer or those who simply do not want any
Internet service. Our goal before we go to a special town meeting in late 2016 is 500 presubscribers, which is approximately 40 percent of residents. We anticipate a “take rate” of
70-80 percent of residents by the end of the first year of operation.
PBMLP Members:
Stan Moss, chair; Jon Fudeman, Edith Morgan
PBMLP Manager:
Nina Nazarian
For news and updates regarding Connecting Princeton visit www.town.princeton.ma.us.