Source: Lit San Leandro
Source: Lit San Leandro
A user-financed, municipal fiber-to-the-premises broadband system would be a financial nightmare if launched into a market with mainstream competition, even if it’s subsidized and supported by a profitable city-owned utility.
That’s the finding of a study presented to the City of Palo Alto’s Utility Advisory Commission last night by Tellus Venture Associates. The report assessed the financial potential of user-financed municipal FTTP options, including upfront payments ranging from $1,000 to $5,000, substantial capital contributions by the City and ongoing subsidies of up to $2,000,000 per year.… More
The purpose of the California Advanced Services Fund (CASF) is providing Internet service to homes and businesses. Key measures used to evaluate grant and loan applications include the number of households served and the number of new subscribers expected. As a result, funding middle mile projects through CASF is a challenge. In its recent decision revising the CASF program, the California Public Utilities Commission was adamant: it would not support “middle mile to nowhere” projects.
You can download a summary of the current CASF grant program requirements here, and more information, including the CPUC’s latest map of under and unserved areas, is here.More
Capital expense, operating expense and revenue are the basic parameters of a business plan. With broadband-specific incentives that improve those metrics – even marginally – local governments and economic development agencies can attract private broadband investment into underserved areas.
Public policies can be tailored to significantly reduce construction costs. Uniform, broadband-friendly right of way and permit procedures eliminate a huge source of uncertainty for business planners. The more certain they are of their estimates, the more likely they are to invest.… More
The federal stimulus program overshadowed private sector funding for new broadband infrastructure for more than a year. The National Telecommunications and Information Administration and, to a somewhat lesser extent, the Rural Utilities Service (RUS) threatened to wash out broadband venture opportunities with billions of dollars of grants and loans. Some projects will absorb federal money instead of private risk capital. Most won’t and the surviving opportunities will become evident over the next few months.
Price points, service benchmarks and likelihood
to buy are key data for revenue projectionsLocal agencies and economic development organizations still have the job of attracting that investment.… More
Start up companies looking for traditional “A” round financing in the $4 to $8 million dollar range will be left to die over the next 18 months. In fact, the financial killing ground will stretch from the $1 million level up to, and perhaps past, the $10 million range.
That was my take away from yesterday’s small business symposium sponsored by Cisco and the Telecommunications Industry Association. One of the highlights (from an information perspective, anyway) was a panel discussion with three venture capitalists (Ajay Chopra, Trinity Ventures, Michel Wendell, Nexit Ventures, Eric Zimits, Granite Ventures), and moderated by Dean Takahashi of VentureBeat.… More
The mood was grim, taken at face value, at the Wireless Communication Alliance’s annual Venture Capital panel, held in conjunction with the Wireless Communication Association’s symposium, in San Jose on Wednesday, 5 November 2008. VCs were saying things like “nuclear winter” and “survival is the new growth”. It sounded like they were concentrating on keeping their existing portfolio companies alive, rather than investing in new ventures. The two exit routes they rely on — acquisitions and IPOs— are largely blocked right now, so they’re marking time.… More