Long-range investment needs details - Gate House

Ashland Daily Tidings (Ashland, OR — Wayback)

2015-08-07

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By Thomas Moriarty Ashland Daily Tidings January 07. 2015 8:06PM Long-range investment needs details The Ashland City Council wants more operational details before it approves a new strategic business plan for the Ashland Fiber Network, councilors told IT Director Mark Holden Tuesday night in their first regular meeting of the year. The city-run network, which provides Internet services to about 4,000 households throughout Ashland, has struggled to maintain net revenues since the network became operational in 1997. The strategic plan, presented to the council in the fall, proposes two options for trying to reclaim lost ground against competing ISPs. One option, which the council has already authorized $100,000 towards, would increase the network's broadband internet capacity, allowing it to lower prices and remain competitive in the short term. "We expect to have systems up delivering Internet to commercial customers by May or June," he said. The other option, which Holden has advocated as the preferred solution, would see the city invest in new passive optical network technology — or PON, which uses optical prisms to split a fiber-optic line to multiple users without electronic switches. That phase of the plan wouldn't be viable until fiscal year 2017, but Holden said it would still keep AFN would competitive with other major ISPs. "That's a product we don't intend to see from Comcast within that horizon," he said.  Councilor Pam Marsh said that she wasn't comfortable approving the plan with inclusion of the PONs project, which she felt gave approval to a project that was too far out. Holden said that approval of the strategic plan was necessary to give him regular operational authority that was beyond the scope of his managerial role, and that funding for the PONs project would still ultimately come back to the council for approval through normal channels. Among the goals outlined in the plan is what Holden described as a shift to a market-solutions-oriented model.  "Historically, we've approached this as an 'Internet company,'" he said. "This isn't a company of a product — it's a company of services provided by a product to the marketplace." Marsh responded that she'd like to see specifics about what AFN needs to meet those goals before she could approve the plan. Councilor Rich Rosenthal agreed. "The business part — when you're talking about a strategic business plan — isn't there yet," Rosenthal said. "By voting 'yes,' on this, puts my signature on this document. I just don't think I can get there tonight." Holden said that he hadn't included many operational details because he viewed that as a tactical, rather than a strategic plan, but said he could return with a more detailed business plan at the next meeting. The agenda item passed without action. "We don't need a motion — what we've given is council direction," said Mayor John Stromberg. A more detailed plan is expected at the next council meeting. Reach reporter Thomas Moriarty at 541-776-4471, or by email at [email protected]. Follow him at @ThomasDMoriarty.  http://www.dailytidings.com/article/20150107/NEWS/150109876 © 2015 Copyright © 1995-2011 Crain Communications Inc. All Rights Reserved. Terms of Use Privacy Statement -->