FiberNet Answers
Bethel Questions

We, the undersigned, constitute the Steering Committee of the East Central Vermont Community Fiber Network project (nickname, "ECFiberNet", website at www.ECFiber.Net). Over 30 citizens from our area are actively involved. We would like to clear up some misunderstandings that appeared in your recent story on our project and the Bethel SelectBoard’s discussion of it.

• The project is based on the successful precedent of Burlington’s telecom project (BT). Burlington has built and operates a "state-of-the-art" Optical Fiber network which is: 1) universal; 2) open-access; i.e. just like the public roads, anyone can use it on a non-discriminatory basis to deliver services to customers; 3) financially self-supporting: i.e no taxpayer money has been involved—nor will be.

• BT obtained its financing at the end of 2004, broke ground in the spring of 2005 and connected its first customers in February 2006. In September, 2007 it became "operationally cash-flow positive" (i.e. revenues pay for all operating cost). It is connecting an average of 50 new customers per week (an addition of approximately $60,000 in annual revenues) and will be profitable approximately one year from today.

In the meantime it is already paying over $400,000 per year in PILOT (payments in lieu of taxes) to the City—an entirely new revenue stream—and accounted for more than half of the entire increase in the Grand List in Fiscal Year 2006.

BT is providing superior services for prices well below those charges by other carriers for lesser services. At the same time it is on track to be a major source of future revenue for the city and, therefore, an important source of relief for property tax payers.

ECFiberNet plans to emulate that success in our towns. In particular:

• The legality of the project is rock solid. Act 79, also known as The Telecommunications Authority Bill, introduced last year by Governor Douglas and embraced by the legislature, became law in June. It unequivocally authorizes municipalities—either singly or acting together—to purchase, build and operate communications networks and to provide communications services. (Sec. 4, 24 V.S.A, para. 1912 as amended.)

• We are not inventing something new out of the blue: the technology, services, billing, financing etc, have already been thoroughly tested in Burlington. The economics are somewhat "worse" in our more rural towns, but not by very much. The project is still a very good investment and will be a major source of future economic development.

• The network certainly WILL pay "taxes". Indeed, it is required to do so by law.

• NO taxpayer money will be needed or requested. On the contrary, after an estimated five to six years, the project will become cash-flow positive and will start contributing additional funds to the participating towns (over and above PILOT), thereby relieving pressure on property taxes.

• Finally, the governor’s E-State initiative, as enshrined in Act 79, has established the spread of universal broadband communications as a major policy goal of the state. In so doing, the Act explicitly endorses and encourages local initiatives such as ECFiberNet as one means of advancing that goal.

Jim Masland, Thetford

Bob Merrill, Pomfret

Loredo Sola, Pomfret

Stan Williams, Norwich