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September 1, 2005
Salisaw Residents Get Broadband Triple Play, Public Power Magazine, Sep-Oct 2005
| For More Information |
Tim Blodgett
Hometown Connections
303-526-4515
tblodgett@hometownconnections.com
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Internet, Video, Telephone Via Fiber to the Premises
It began in early 2003 as a meeting with a telecommunications firm regarding pole attachments along Interstate 40. By the time everyone left the conference room, officials of the Sallisaw, Okla., Municipal Authority had decided to look into delivering broadband services via fiber optics on their own. After an intense and fast-paced effort, including a feasibility study and implementation support by Uptown Services, the Sallisaw Municipal Authority has completed construction of a citywide fiber to the premises (FTTP) network and is now offering Internet, video and telephone services to the community. Operating under the banner, “DiamondNet,” this is the first communications system in the region to provide 100 percent fiber optic connections directly to every home and business.
Unlike traditional cable or telephone systems that use copper wire or a mixture of coaxial cable and fiber optics, the FTTP system is more reliable, provides virtually unlimited bandwidth and requires less maintenance once it’s constructed.
The city of Sallisaw is a rural community of 3,600 homes and 600 businesses in eastern Oklahoma, with a median household income of $24,821. City leaders, including Mayor Shannon Vann, were eager to ensure the robust availability of advanced entertainment and data communications services, to diversify utility revenues beyond electricity and water, and believed a broadband system would contribute to the economic development of the community. By making the investment in a fiber optic system, the Sallisaw Municipal Authority is ensuring that leading-edge communications and entertainment services are available to all residents and businesses at a reasonable cost.
The fiber optic system will also keep communications and entertainment revenues in Sallisaw. After expenses for debt service and operations are paid, any excess revenue will go back into the city and be used for public safety, parks, streets and various capital improvements.
The DiamondNet broadband services include video-on-demand, high definition television, digital music, and Internet packages with up to 10 Mbps. Sallisaw Municipal Authority has an operating agreement with Newroads Telecom, a competitive local exchange carrier, to provide a full range of digital telephone services, including calling features and long distance.
Uptown Services offers broadband consulting and support services to public power utilities in affiliation with Hometown Connections. “We selected Uptown because we were impressed by the depth of Uptown’s experience and expertise, and we placed great stock in Uptown’s affiliation with APPA’s Hometown Connections,” said Assistant City Manager Keith Skelton. “The firm has done an excellent job for us. Throughout the study process and project launch, Uptown’s Neil Shaw and Dave Stockton have guided us through all technology, marketing, and financial issues. They’ve worked far above and beyond the call of duty.”
“A remarkable feature of the Sallisaw project has been its speed,” Stockton said. “It only took 14 months from the city issuing the bonds to having the first customer connected and using the new services.”
To help get the job done this quickly, the Sallisaw Municipal Authority hired a network operations manager to serve as the project coordinator, as well as a network technician. Adding in four field technicians and two customer service representatives, DiamondNet is now run by eight utility employees.
An Uptown survey of the 95 customers who participated in the pilot project showed customers are thrilled with the DiamondNet offerings. Among current users comparing DiamondNet to their previous service:
--for video, 76 percent rate it superior to their previous service;
--for Internet, 81 percent rate it superior; and
--for telephone, 52 percent rate it superior
--Between May and July 2005, based on word-of-mouth only, the waiting list for DiamondNet installations grew to 200 households.
“I found it exciting to be a part of bringing the fiber optic system to the city of Sallisaw,” said DiamondNet customer John Ballengee Sr. “I thoroughly enjoyed every aspect of getting this thing up and running. All the people working on the project were excellent to have working in my home.”
In his survey response, Dr. Rick Robbins said, “Great services with high definition local channels…technology has finally caught up with Sallisaw. This should be a great marketing tool for our area.”
DiamondNet sales are exceeding the plan objectives. The service is on track to achieve a 26 percent market penetration by the end of 2005. Revenues are also exceeding plan objectives. The average revenue per user was budgeted at $74 but the actual average is $104, driven by the success of the triple play bundle, through which customers purchase a package of video, voice and data services. Fifty-eight percent of customers are ordering the triple play bundle. DiamondNet is on track to realize gross revenues of $304,000 in 2005 and $1.2 million in 2006.
“The launch of DiamondNet has taken a lot of hard work, perhaps more work than we expected,” said Assistant City Manager Skelton. “But the project has been very well worth the effort. Neighboring communities are eager to learn more about what we’re doing. We’ve made our city more attractive to commercial investment. And we’re meeting a pent-up demand for advanced entertainment and information services.”
See these Web sites for more information
• Uptown Services
• www.hometownconnections.com
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