Broadband authority OK's rates, to sign up first customers soon

Broadband authority OK's rates, to sign up first customers soon The Roanoke area's public broadband utility expects to sign up its first customers in April now that it has set the rates for a 47-mile fiber network. The Roanoke Valley Broadband Authority's board unanimously approved several sets of rates Friday for an anticipated fiber network that will mostly run through Roanoke and Salem. Several entities operating in business, education and government have agreed to become users of the network, but contract negotiations couldn't begin until the rates got approved, said authority Executive Director Frank Smith, who declined to disclose the tentative customers. Among the packages are a "transport" and Internet service plan with monthly rates ranging from $550 for 10 megabits per second to $5,687 for 1 gigabit per second. The utility's pricing differs considerably from the more familiar Internet plans to the home because the broadband authority's customers are buying bandwidth they won't have to share with other paying parties. This exclusive access to bandwidth - ideal for institutions moving large loads of data - allows for much faster transfer of data. Another package will allow customers to lease what is called dark fiber for rates ranging from $21 to $100 a month. Under this plan, customers would be responsible for installing the electronics needed to turn on and make their piece of the fiber usable. The exact dark fiber rates depend on whether the customer is a commercial carrier or nonprofit, how long they plan to lease the fiber and how much of the nearly 50-mile network they want access to. Smith said 25 percent of the network is dark fiber to be leased. While the broadband authority has maintained that it's not directly selling service to the home, Smith said the utility's tentative customers do include telecom companies that could turn around and provide Internet to the end user. A non-Internet package that offers bandwidth just for transporting data also exists, with monthly rates ranging from $350 for 10 megabits per second to $4,510 for 1 gigabit per second. This transport service is similar to the dark fiber plan, but tasks the broadband authority to handle the electronics. Salem City Manager Kevin Boggess, the broadband authority's board chairman, said he's pleased with the pricing. "It's another step forward," he said. With construction starting last summer, the broadband authority plans to turn the network on before May, Smith said. The entire 47-mile network is being financed with a $6.2 million bond that the cities of Roanoke and Salem have each agreed to start repaying until the project starts generating enough business. Proponents of the project expect the network to help improve economic activities in the Roanoke area and allow the valley to better compete with other metro areas in the Southeast when trying to attract employers. The project is also among the efforts to improve connectivity in the Roanoke area, which has a poor state and national standing based on several industry studies.