Update: the CPUC unanimously approved the transfer of Bright Fiber Networks, and the $16 million CASF subsidy, to Race Telecommunications this morning.
The California Public Utilities Commission is scheduled to vote today on whether or not Race Telecommunications should be allowed to take over ownership of Bright Fiber Network, which received a $16 million subsidy from the California Advanced Services Fund (CASF) in 2015 to build an FTTH network to serve 1,900 homes near Nevada City in Nevada County.
The project was developed by Spiral Internet, a long established independent Internet service provider in California’s Gold Country. Spiral has been working to raise the necessary matching funds – $10.7 million – for the past four years, but has not been able to attract investors. If approved by the CPUC, ownership of Bright Fiber Network and rights to the CASF grant would be transferred to Race. Spiral would continue to operate its primarily DSL based ISP business.
Race brings two critical elements to the table: it has access to capital and experience building residential fiber networks in rural California. It’s received several CASF grants over the past ten years, and has what appears to be an excellent track record with the CPUC.
The project would be redesigned. Instead of laying fiber underground, as Spiral originally planned, Race would install cables on existing utility pole routes. The cost of the project to taxpayers would be $70,000 less.
Two wireless Internet service providers in the area – Smarter Broadband and ColfaxNet – filed bitter objections to the transfer of control, as they have done in the past. The draft resolution in front of the commission would reject their arguments once again.
As of last night, the resolution was on the commission’s consent agenda. Unless a commissioner asks that it be discussed and voted on separately, it’ll be approved along with several other items that are considered non-controversial in a single motion.
Tellus Venture Associates assisted Bright Fiber with preparation of its CASF grant application. I’m not a disinterested commentator. Take it for what it’s worth.