Press Alt + R to read the document text or Alt + P to download or print.
This document contains no pages.
HomeMy WebLinkAboutItem 10a -Downtown Arcadia Broadband Strategic Plan
DATE: November 7, 2023
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
SUBJECT: DOWNTOWN ARCADIA BROADBAND STRATEGIC PLAN
CEQA: Not a Project
Recommendation: Receive and File
SUMMARY
On October 18, 2022, the City Council approved the allocation of American Rescue Plan
Act (“ARPA”) funds for several economic development initiatives, including the
development of a Broadband Strategic Plan for Downtown Arcadia. The Plan has been
completed and has been submitted to the City as a final document. It is recommended
that the City Council receive and file the Strategic Plan and direct staff to work on
implementation of the Plan’s recommendations over time.
BACKGROUND
Since the end of the COVID-19 pandemic, ARPA funding has been available for various
purposes, including economic development and financial assistance for businesses. To
date, the City Council has allocated funds for several important and well-received
economic development programs, including the Small Business Grant Program, the Small
Business Permit Assistance Program (reimbursing City permit fees), the Chamber of
Commerce Membership Program, the Merry and Bright Holiday Shopping Program, and
the development of a Broadband Strategic Plan for Downtown Arcadia.
The original request for a broadband study came from the Downtown Arcadia
Improvement Association (“DAIA”). It was articulated by the DAIA that Internet speeds
were poor in the Downtown and options for improvements were costly and challenging. It
was anticipated that a study could determine some options for improved service and
support for the downtown business community. The City Council agreed that this was an
important project that could be funded with ARPA monies. In fact, the original guidelines
of the ARPA program identified funding for broadband improvements as one of the
primary pillars of the program.
A Request for Proposals (“RFP”) for the broadband study was issued in July 2022. The
low bidder, Design Nine, Inc., was selected as the preferred consultant with a contract
Downtown Arcadia Broadband Strategic Plan
November 7, 2023
Page 2 of 5
amount of $48,750. Following selection of Design Nine Inc., the City was approached by
a privately-funded broadband infrastructure company regarding a potential public-private
partnership with the City to install a citywide fiberoptic network in the public right-of-way.
Based on the City Council’s discussion and direction at the October 18, 2022, Study
Session on this topic, additional funding in the amount of $16,250 was added to the
project to assist the City with the review and evaluation of this proposal, resulting in a total
project cost of $65,000. Design Nine started work on the Strategic Plan in the late Fall of
2022.
DISCUSSION
Design Nine researched the City’s existing broadband infrastructure, the Internet Service
Providers that service the City, the state of broadband in both the Downtown area and
Citywide, and interviewed staff and stakeholders. Part of their outreach efforts included
meetings with the Downtown Arcadia Improvement Association and the City’s Utility
Coordination Committee, which includes members from various City Departments as well
as regional utility providers.
Not surprisingly, the study found that Downtown Arcadia has limited availability of Fiber
Internet Service, and that fiber is more readily available in the City’s residential areas.
The City currently has four primary Internet Service Providers (“ISPs”): Spectrum, AT&T,
Frontier Communications, and Giggle Fiber. None of these ISPs have done extensive
projects in the City’s commercial areas as they have focused on residential
neighborhoods instead. Gaps in the infrastructure due to high costs of providing service
in urban areas, lack of concentrated and consistent demand, and the absence of newly
built buildings and infrastructure are some of the reasons for this. Additionally, businesses
have a wide range of data needs and demands, which do not support a single technology
or approach to receiving Internet service. To date, the City has not completed any major
projects to provide fiber for commercial use. The City has installed a significant amount
of conduit and fiber to connect traffic signals and other City facilities together, but this has
not been extended to private uses.
To gain a better perspective of business needs and current challenges, Design Nine
conducted interviews and distributed a survey to business owners through the DAIA and
the Chamber of Commerce. While participation was limited, there was anecdotal
information received that supported the regional and national data provided. Additionally,
an analysis of each of the ISPs, including their costs and rate structures was also
conducted to provide a clear picture of some of the challenges facing major installations
in the Downtown area.
To establish an understanding of the current situation not only in the Downtown but
throughout the City, the Strategic Plan includes the following sections and analyses:
• Broadband as essential infrastructure
Downtown Arcadia Broadband Strategic Plan
November 7, 2023
Page 3 of 5
• Asset Analysis – how is the City set up to receive infrastructure changes
• Fiber Optic Availability
• Survey Results
• Gap Analysis
• ISP Engagement Strategy
• Recommendations
• Infrastructure Funding and Grant Opportunities
Based on the background information provided, the primary focus of the report is the
development of a series of recommendations, including detailed recommendations for
improving connectivity in the Downtown over time. The recommendations range from
simple communication enhancements to practical economic development policies to
providing conduit and potentially “dark fiber” throughout the Downtown. Dark fiber is fiber
that would be placed by the City and then leased to ISPs for their use. Several of these
recommendations are already part of the City’s approach, and each of the
recommendations is briefly described below:
• The City should not become an Internet provider. The City should focus on
developing public/private partnerships by making targeted investments in passive
broadband infrastructure like towers and dark fiber.
• Develop partnerships with ISPs. Foster public-private partnerships to leverage
the expertise and resources of private broadband providers.
• Streamline Permitting Processes. Simplify and expedite the permitting
processes for broadband infrastructure deployment.
• Adopt a "Dig Once" Policy. Implement a policy that requires the installation of
conduit or fiber-optic infrastructure during planned excavation or construction
projects.
• Identify Revenue Generation Opportunities. Explore potential revenue
generation opportunities related to broadband deployment such as leasing access
to City assets or rights-of-way, offering expedited permitting for a fee, or exploring
partnerships with service providers that provide revenue-sharing arrangements.
• Develop Community Development and Planning Guidelines. Integrate
broadband infrastructure requirements into community development and planning
guidelines.
• Broadband Connectivity Project. A conduit and dark fiber network in the
downtown area of Arcadia to bring improved broadband Internet speeds and a
Downtown Arcadia Broadband Strategic Plan
November 7, 2023
Page 4 of 5
wider choice of Internet providers. This is the primary recommendation of the
Strategic Plan.
The Study provides analysis on how the connectivity project could occur, provides
estimated costs, and even extensive maps for how conduit could be added in the various
portions of the Downtown. Fiber could be installed as part of large infrastructure projects,
added through public street or alley improvement projects, or could be required as part of
private development projects. Making conduit available for ISPs may also increase the
competition for business customers, which could help lower the cost of Business Class
Internet for downtown retail, professional, and enterprise businesses. Improved access
and lower costs for Internet would also help retain existing businesses in the downtown
area and help attract new businesses and jobs.
Currently, the City has scheduled a project to make improvements to the downtown
alleys. This work was funded through a major grant from Metro and is anticipated to begin
construction in November 2023. As part of this work, the City will be installing conduit and
pull boxes (boxes that provide access to fiber cable and splice closures) for fiber, and
making the ISPs aware of this work. This project’s timing in combination with the Strategic
Plan is advantageous, helping provide enhanced access to businesses in various areas
of the Downtown. It is anticipated that conduit and potentially dark fiber will be added to
projects over time to “build out” the infrastructure recommended as part of the Study. In
addition, the City will be cognizant of grant opportunities and regional efforts to provide
funding or resources for fiber installation, or to further the goals of the Study. Current
efforts include a major effort by the San Gabriel Valley Council of Governments and an
initiative spearheaded by the County of Los Angeles to address the “digital divide”.
A separate, but related part of the scope of work for Design Nine, was to review a Citywide
broadband infrastructure project that had been proposed by a firm named “SiFi”. This
proposal offered no upfront costs to the City to allow infrastructure to be placed throughout
the City’s right-of-way and then privately leased to ISPs. Through a multi-year
construction effort, infrastructure is placed to the property line of each home in the City
through a process called “microtrenching”. A number of cities in the region have pursued
this approach as a way to provide access to a large number of residents. Design Nine
reviewed and analyzed the proposal, which is attached as Exhibit “C” to the Strategic
Plan. At this time, it is not recommended to pursue a Citywide project of this nature.
Construction time horizons appear much longer than advertised, the current ISPs in
Arcadia already provide solid infrastructure, and the need for such services in the City’s
residential areas does not appear acute. The progress and state-of-the-art of this Citywide
concept will be monitored, and if any changes occur, the project will be returned to the
City Council for review.
It is recommended that the City Council receive and file the Downtown Arcadia
Broadband Strategic Plan, and direct Staff to work on implementation of the plan
recommendations over time. Examples of implementation actions include provision of
Downtown Arcadia Broadband Strategic Plan
November 7, 2023
Page 5 of 5
conduit and fiber access in all City street projects, seeking grants for funding of larger
infrastructure projects, communication with ISPs on availability of conduit or fiber, and
working with the business community as options become available. Any aspect of
implementation that requires funding will be brought back to the City Council for
consideration prior to any additional expenditures.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The City was originally allocated a total of $8,865,000 in ARPA funding to use for various
purposes, including economic assistance. As of the date of this Staff Report,
approximately $1.4 million in ARPA funds remain to be specifically allocated. A total of
$65,000 was allocated toward the Broadband Strategic Plan and review of the citywide
fiberoptic proposal. Use of ARPA monies for this project are an appropriate use funding,
consistent with the objective to provide economic assistance to residents and businesses
impacted by the COVID-19 pandemic. Any additional expenditures to implement the
recommendations of the Broadband Study will be brought back to the City Council for
consideration and action.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is, therefore, exempt under, the California Environmental Quality Act
(“CEQA”); and receive and file the Downtown Arcadia Broadband Strategic Plan, and
direct Staff to implement Plan recommendations over time.
Attachment: Downtown Arcadia Broadband Strategic Plan
CITY OF ARCADIA
Downtown Broadband Strategic Plan
broadband planners
DESIGN NINE
September 2023
TABLE OF CONTENTS
1 Summary and Recommendations __________________________________1
Recommendations __________________________________________________________2
2 Broadband as Essential Infrastructure _______________________________3
2.1 What is Government’s Role? ______________________________________________5
2.2 The Shared Infrastructure Business Model __________________________________6
2.3 Service Providers and Shared Infrastructure _________________________________8
3 Asset Analysis ____________________________________________________9
3.1 Potential Anchor Customers ______________________________________________10
3.2 Population and Density Distribution _______________________________________12
3.3 LMI and HUD Eligible Areas _______________________________________________13
4 Fiber Optic Availability ___________________________________________15
4.1 Downtown Fiber Availability ______________________________________________16
4.2 Number of Fiber Providers ________________________________________________17
4.3 Technology Type Availability ______________________________________________18
4.4 Broadband Service Levels ________________________________________________19
4.5 Upload and Download Speeds ____________________________________________20
5 Business Broadband Survey Results ________________________________22
Distribution of Business Survey Responses _____________________________________23
Business Survey Summary Data _______________________________________________24
6 Gap Analysis ____________________________________________________34
6.1 Gaps in the Infrastructure _________________________________________________34
6.2 How much Broadband is Enough? _________________________________________35
6.3 Job and Workforce Challenges ____________________________________________36
6.4 Business Bandwidth Needs _______________________________________________37
7 ISP Engagement Strategy _________________________________________39
7.1 Engaging with Broadband Providers _______________________________________39
7.2 Shared Infrastructure _____________________________________________________41
8 Recommendations _______________________________________________42
8.1 The Downtown Connectivity Project _______________________________________43
8.2 Dark Fiber and Lit Fiber __________________________________________________44
8.3 The Meet-Me Shelter Concept ____________________________________________44
8.4 Overview of the Conduit/Fiber System _____________________________________45
8.5 Service Offerings ________________________________________________________46
8.6 Equipment ______________________________________________________________46
8.7 Conduit and Dark Fiber Design ___________________________________________47
8.8 Conduit and Dark Fiber Cost Estimate _____________________________________50
8.9 Cost Estimate Assumptions _______________________________________________55
8.10 Dark Fiber Lease Considerations _________________________________________55
9 Infrastructure Funding and Grant Opportunities _____________________56
9.1 California Funding Opportunities _________________________________________57
9.2 BEAD Funding __________________________________________________________60
9.3 Digital Equity Act of 2021 _________________________________________________61
9.4 Middle Mile Broadband Infrastructure Program _____________________________61
9.5 HUD Community Development Block Grants _______________________________62
9.6 Opportunity Zones ______________________________________________________62
9.7 Bonding ________________________________________________________________62
9.8 Lease Fees ______________________________________________________________63
9.9 Community Reinvestment Act _____________________________________________63
9.10 Connection Fees _______________________________________________________63
9.11 New Markets Tax Credit _________________________________________________64
9.12 Special Assessment/Service District/TIF ___________________________________65
9.13 Grant Application Activities _____________________________________________66
10 Obstacles to Broadband Deployment _____________________________68
Appendix A: Broadband Provider Analysis ____________________________69
Appendix B: Conduit Design Detail __________________________________91
Appendix C: SiFi Analysis __________________________________________116
Appendix D: Glossary ____________________________________________124
Disclaimer
The telecommunications business is continually evolving. We have made our best effort to apply our
experience and knowledge to the business and technical information contained herein. We believe the data we
have presented at this point in time to be accurate and to be representative of the current state of the
telecommunications industry.
Design Nine, Inc. presents this information solely for planning purposes. This document is not intended to be a
replacement for formal engineering studies that are normally required to implement a telecommunications
infrastructure. No warranty as to the fitness of this information for any particular building, network, or system
is expressed or implied. Design Nine, Inc. will not be responsible for the misuse or misapplication of this
information.
For more information: www.designnine.com
1 SUMMARY AND
RECOMMENDATIONS
A broadband study of broadband in downtown Arcadia began in late fall of 2022 and was completed
in the summer of 2023. The study was developed in response to requests from the business
community to the City leaders to assist with improved availability of business class broadband in the
downtown area of Arcadia and to assist with more affordable broadband and Internet services. In the
downtown area, businesses have limited choice of providers, Internet packages, and pricing options.
Some businesses have reported very expensive one time construction costs to get improved service.
While many residential areas of Arcadia already have very affordable fiber Internet services, downtown
businesses have very limited access to fiber Internet. Downtown businesses are typically paying more
for less capable Internet service than many residents with superior fiber Internet service.
Downtown businesses played an important role in the study by participating in group meetings, one
on one meetings and calls, and contributing to a broadband survey used to collect information about
business broadband speeds, costs, and needs.
Downtown Arcadia businesses have restricted options for Internet service. Many of those businesses
still must use the older, copper-based asymmetric (unequal upload and download speeds) cable
Internet service. The asymmetric service has much slower upload speeds than download speeds,
which can affect a business’ ability to efficiently upload and share large files, make best use of
increasingly common cloud-based services, and use videoconferencing services like Teams and Zoom
with excellent quality audio and video.
A primary obstacle to better Internet service in downtown Arcadia is the high cost of installing new
underground fiber cable. It is not economical for an
Internet Service Provider (ISP) to construct hundreds or
thousands of feet of new underground conduit and fiber
cable just to reach one or two customers. By creating a
Downtown Connectivity Project, the City can play an
important role in reducing ISP capital costs. The
development of an open access conduit and dark fiber
cable system that passes most buildings in downtown
Arcadia would help retain existing businesses and help
attract new businesses and jobs.
The open access system would offer dark fiber strands to
any interested ISP. The City would not be an Internet
provider, and would have very limited operations and
maintenance expense for the system. Each ISP would
install their own equipment and be responsible for sales and marketing of their services.
The advantages of this approach include reduced construction costs of ISPs, and the ability to have
multiple ISPs using the comprehensive City-owned conduit fiber system would mean increased
competition, a wider variety of high performance Internet packages, and reduced prices for those
services. Better Internet service and attractive pricing would increase the value of downtown office
space and help attract new businesses and workers to Arcadia.
Arcadia Broadband Strategic Plan Page of 1 125
RECOMMENDATIONS
Broadband Connectivity Project
A conduit and dark fiber network in the downtown area of Arcadia would bring improved broadband
Internet speeds and a wider choice of Internet providers. The increased competition for business
customers would also help lower the cost of business class Internet for downtown retail, professional,
and enterprise businesses. The improved access and lower costs for Internet would also help retain
existing businesses in the downtown area and help attract new businesses and jobs.
The City government should not become an Internet provider
Instead, it could focus on developing public/private partnerships by making targeted investments in
passive broadband infrastructure like towers and dark fiber. These assets have long life spans of forty
years or more and can be leased out to private sector ISPs (passive infrastructure leasing is not a
telecommunications service). While the revenue from the lease agreements will be modest, the funds
generated can be used to support maintenance of this infrastructure.
Develop partnerships with ISPs
Foster public-private partnerships to leverage the expertise and resources of private broadband
providers. This can include joint investment initiatives, shared infrastructure deployments, or
collaboration on community broadband projects.
Streamline Permitting Processes
Simplify and expedite the permitting processes for broadband infrastructure deployment. This can
include creating a dedicated broadband team within the City's permitting department, establishing
clear guidelines and timelines for approvals, and implementing online application systems. Cost:
Moderate to high, depending on administrative changes and system upgrades required.
Adopt a "Dig Once" Policy
Implement a "dig once" policy that requires the installation of conduit or fiber-optic infrastructure
during planned excavation or construction projects. This approach reduces future costs by minimizing
the need for disruptive and expensive excavation work. Cost: Low to moderate, depending on
coordination efforts with construction projects and potential infrastructure investments.
Identify Revenue Generation Opportunities
Explore potential revenue generation opportunities related to broadband deployment, such as leasing
access to City assets or rights-of-way, offering expedited permitting for a fee, or exploring partnerships
with service providers that provide revenue-sharing arrangements. Cost: Low to moderate, depending
on the administrative and legal work involved in identifying and implementing revenue opportunities.
Develop Community Development and Planning Guidelines
Integrate broadband infrastructure requirements into community development and planning
guidelines. This ensures that new developments include provisions for broadband infrastructure,
supporting future connectivity needs. Cost: Low to moderate, primarily involving updates to planning
guidelines and coordination with developers.
Arcadia Broadband Strategic Plan Page of 2 125
2 BROADBAND AS ESSENTIAL
INFRASTRUCTURE
Governments build and manage roads, but don’t own or manage the businesses that use those roads
to deliver goods and services. There is true competitive pricing between competing service providers,
and little or no government regulation is required.
The tremendous versatility of the Internet and the underlying technology bases
now allows services that used to require their own, separate (analog) road system
(voice telephony and TV services) to be delivered alongside other services like
Internet access on a single, integrated digital road system.
If we managed overnight package delivery the way we manage telecom, UPS
and Fedex would only deliver packages to residences and businesses where
each delivery firm had built a private road for their exclusive use. We recognize
immediately the limitations of such a business model–few of us would have
overnight package delivery to our homes because the small number of packages
delivered would not justify the expense of building a private paved road.
Before the rise of the automobile, most roads were built largely by the
private sector. After cars became important to commerce and
economic development, communities began building and maintaining
roads because it became an economic development imperative to have
a modern transportation system in communities.
Before the rise of the Internet, digital networks were built largely by the
private sector. As broadband has become critical to commerce and
economic development, communities with digital roads are more competitive globally.
The time has come to recognize that it is inefficient and wasteful to build full duplicated digital road
systems, which only raise the cost of telecom services to all public and private users. Networks that
share capacity among a wide variety of public and private users have a lower cost of construction and a
lower cost of operation—benefiting all users.
Arcadia Broadband Strategic Plan Page of 3 125
A UTILITY COMPARISON
SHARED ROADS SHARED AIRPORTS SHARED TELECOM
Historically, roads have been
built and maintained by the
community for the use of all,
especially private firms that want
to use them to deliver goods
and services.
Airports are built and
maintained by a community or
region as an economic and
community development asset.
Both public and private users
benefit from the shared use of a
single, well-designed airport
Duct and fiber may be installed
and maintained by the
community and/or a neutral
owner/operator for the use of
all, including private firms that
want to use them to deliver
goods and services.
Access to the community road
system is provided by parking
lots and driveways, built by
property owners, developers
and builders.
Airport assets like departure
gates, ticket areas, and runways
provide access to the airline
services.
In the digital road system, access
across private property to the
community–wide network in the
public right of way is provided
by duct and fiber built by
property owners and/or
developers and builders.
The local government uses
roads only to deliver
government services. Local
government does not offer
services like overnight package
delivery.
While the local government or a
consortium of local
governments typically own the
airport facility, the local
governments do not offer flight
services.
Local government uses the
digital transport system only to
deliver government services.
Government does not offer
services like Internet access or
Voice over IP.
Private sector businesses use
roads so that their own cars and
trucks can deliver goods and
services to customers. Because
businesses do not have to build
and maintain roads, all
businesses benefit directly by
being able to reach more
customers at less expense.
Private sector airlines are able to
offer competitively priced
airfares because of the shared
cost of the airport terminal
facilities. Each airline does not
build its own airport (which
would sharply increase the cost
of airfare).
Private sector businesses use the
digital transport system to
deliver goods and services to
customers. Because businesses
do not have to build and
maintain a digital road system, all
service providers benefit directly
by being able to reach more
customers at less expense.
There are no road connection
fees, and anyone may connect to
the road system for free.
Governments pay for the cost
of maintaining roads largely from
those that use the roads . Fees
are proportional to use, from
taxes on tires and gasoline.
Businesses and citizens do not
pay a fee to access the airport
facility. The cost of maintaining
the airport facility is paid by the
airlines, which bundle that cost
into the price of airfare. Fees
are proportional to actual use
by flying customers. Airlines
benefit because they do not
have to build, own, and operate
the airport directly. Those costs
are shared across all users.
Any qualified service provider
may connect to the digital road
system for a nominal fee and
begin to offer services, without
any significant capital expense.
Network capital and operating
costs are recovered by charging
service providers a small fee
that is based on a percentage of
their income from services
offered over the system.
Arcadia Broadband Strategic Plan Page of 4 125
2.1 WHAT IS GOVERNMENT’S ROLE?
Successful improvements in broadband access, affordability, and reliability for Arcadia involves several
decision points, as outlined in the illustration below. Government has several “first choice” options.
Do nothing is to accept that businesses and residents in the City will have to continue to use whatever
is available, despite the cost and bandwidth limitations that limit what many are able to do online.
Government can remove barriers to private sector investment. This can be an effective and low cost
strategy. Possibilities include reducing permit fees for fiber construction and tower installation,
incentives to developers to install conduit and meet-me boxes in new residential and commercial
construction, simplified permit requirements for utility pole installation on private property, and
identifying areas of residential and business demand and sharing that information with providers.
The City can choose to make investments in basic infrastructure (e.g. a fiber network) and make that
infrastructure available to the private sector via revenue-generating lease agreements.
The City can pursue public/private partnerships with technically qualified and financially stable ISPs
and WISPs. Where appropriate, the City can channel grant funds to providers while using the funds to
build and manage new broadband infrastructure. Selected providers should be able to show technical
competency and have a demonstrable track record of managing substantial fiber and/or wireless
builds on time and within budget.
When communities have chosen the option to compete directly with the private sector by offering
retail Internet, phone, and TV services lawsuits from incumbents often create difficulty moving forward
as well as expensive legal fees.
Arcadia Broadband Strategic Plan Page of 5 125
What is the role of government?
Do nothing
(accept status
quo)
Remove
barriers
Invest in
infrastructure
Compete
directly with
private sector
Reduce red tape,
provide incentives for
investment
Lease basic
infrastructure to the
private sector
Public/Private
Partnerships
Evaluate qualified ISPs
and WISPS, support
funding proposals
2.2 THE SHARED INFRASTRUCTURE BUSINESS MODEL
Traditionally, the telecom services market has been vertically integrated, with telephone and cable
companies owning the cable infrastructure (i.e. twisted pair copper cable for telephone, and coaxial
copper cable for TV). These companies bundled analog services with their own infrastructure, which
made sense when only one service could be delivered over the cable.
American residents and businesses
needed two networks: one for voice
telephone service, and one for
television. The rise of the Internet and
associated changes in technology led
to digital services (voice, video,
Internet) that could be delivered
simultaneously over a single cable or
wireless connection.
By the early 2000s, it was becoming
apparent that it was inefficient and
costly to have two competing “retail”
cable systems (e.g. telephone, cable)
delivering the same content and
services—it was only creating higher
costs for residents and businesses.
A new business model became possible: wholesale leasing of the cable/wireless infrastructure to
private sector service providers, which unbundles the infrastructure from the services. A side effect of
this unbundling is that it becomes much easier to determine what a customer is actually paying for a
given service. In the vertically integrated 20th century model, with the cost of infrastructure
maintenance bundled together with the services, it is much more difficult to determine what a service
actually costs.
While a few communities have pursued the retail business model (typically building fiber to the home
and business and selling retail Internet and other services directly to customers), most of these retail
efforts have been by local governments that are also providing electric service—owning the utility poles
is a significant cost advantage not available in most communities.
Within the wholesale business model, there are several different ways to generate revenue.
Passive Infrastructure Leasing — In this approach, the City makes investments in a few targeted
passive infrastructure types, typically broadband towers, and optionally conduit and dark fiber. This
kind of basic infrastructure has virtually no day to day maintenance and management responsibilities,
and can be leased out to private sector Internet providers so that those companies can expand their
service area and service quality more rapidly.
Lit Circuit Wholesale — In this approach, the network provides lit fiber circuits to providers, with one
circuit allocated to each customer. Service providers are charged for the cost of each circuit. Service
providers are responsible for their own customers and their own customer billing. Revenue is based on
the number of customers who actually buy service (the take rate). Revenue is dependent on the
marketing success of the service providers.
Arcadia Broadband Strategic Plan Page of 6 125
What business model?
Public
Sector Retail
Wholesale
Infrastructure
Direct competition with the
private sector. Increased
staffing and operational
costs, somewhat higher
revenue.
Partnership with
private sector ISPs,
reduced
operational costs
and responsibilities
Utility Fee Wholesale — In this approach, every household and business in the community pays a
monthly small utility fee. Service providers pay only a small fee for use of the network that is based on
the total number of potential customers. In this model, the effective take rate from a revenue
perspective is 100%. With this high take rate, the individual utility fee can be very modest because
everyone pays something, rather than just those buying a service.
In the wholesale infrastructure business model, local government investments are limited to basic
transport infrastructure, including conduit, fiber, and network equipment. Services for businesses and
residents are offered by private sector providers offering Internet, TV, telephone and other data
services.
Features Municipal
Retail Wholesale Infrastructure
Basic
Concept
Generally more difficult to
because of possible legal
challenges from incumbent
providers. Generally not an
option in Arcadia.
One or more private sector ISPs would use the
infrastructure to sell their own services directly
to residents and businesses. Can be a dark fiber
approach, lit fiber approach, and/or wireless
towers.
Government
Involvement
Local government competes
directly with the private sector
for Internet service.
City involvement is limited to providing basic
infrastructure to ISPs.
Management
Local government is
responsible for management
and operations. Most functions
could be outsourced to a
qualified third party entity.
ISPs responsible for virtually all day to day
customer services and support. City only
responsible for conduit/dark fiber maintenance
and repairs.
Competition
The incumbent telephone and
cable providers would
compete vigorously against
local government service
offerings.
Private sector ISPs would provide competition to
the existing incumbent providers.
Service
Options
Local government would sell
only Internet. Businesses and
residents could get TV and
voice using their Internet
connections.
ISPs would focus on high speed Internet, with
some other service offerings like voice and
business services.
Risks
The primary risk would be
lawsuits from incumbent
providers.
Limited risk if financing can be identified. A
limited but consistent awareness/marketing
campaign is required to meet financial targets
for leasing conduit/fiber strands to ISPs.
Arcadia Broadband Strategic Plan Page of 7 125
2.3 SERVICE PROVIDERS AND SHARED INFRASTRUCTURE
The wholesale infrastructure model, where the local government is NOT selling retail
telecommunications services, has been resistant to legal challenges, with at least one hundred
communities in the U.S. that lease infrastructure to private sector service providers.
The service providers that are usually most eager to become providers on a community-owned
network are smaller local and regional providers.
Once a community-owned network is under construction, it is typical that the incumbents, particularly
the cable companies, begin lowering rates and offering special deals to customers to try to lock them
in to multi-year contracts. There are two ways to approach this:
•If the announcement of construction of community-owned infrastructure lowers prices and
improves service from the incumbents, that is an economic benefit to the businesses of the
city. The new system, bringing new providers and a wider range of packages and pricing to
citizens and businesses, creates the needed competition that motivates the incumbents to
provide better prices and service.
•If the City does move forward, a modest but well thought out information and education
campaign about the benefits and advantages will be important to counter mis-leading
information from the incumbents. Part of the effort must be to let businesses know not to sign
long term contracts with the existing incumbent providers.
Arcadia Broadband Strategic Plan Page of 8 125
3 ASSET ANALYSIS
There are a variety of existing assets, resources and infrastructure that could be used to facilitate further
deployment of broadband services in the downtown business district. There may be an opportunity for
the City to expand its smart city infrastructure by deploying conduit and dark fiber and leasing some of
those assets (e.g. fiber strands) to private sector ISPs. The lease fees would offset the cost of installing
the shared infrastructure.
Utility Infrastructure
The city's utility infrastructure, such as electric or water utility poles, conduits, or ducts, can be utilized
for the deployment of broadband infrastructure. By leveraging these existing assets, the cost and time
associated with deploying new infrastructure can be reduced for private sector Internet providers.
Municipal Buildings and Facilities
Municipal buildings and facilities, including city halls, libraries, schools, and community centers, can
serve as potential locations for the installation of wireless access points or small cell sites. These assets
can help improve connectivity in surrounding areas and provide public Wi-Fi hotspots.
Streetlights and Traffic Controls
Streetlights and the City traffic control network can serve a dual purpose as infrastructure for deploying
wired broadband services, cellular 5G small cells, or WiFi wireless equipment. This can enhance
coverage and capacity for wireless broadband services in downtown Arcadia. “Smart” streetlights that
can be dimmed or turned off during low traffic periods (e.g. late night, early morning) can be
controlled with fiber-connected management systems. Energy savings from such initiatives can be
used to help fund deployment of conduit and fiber in the downtown areas of the City.
Public Rights-of-Way
Public rights-of-way, such as roads, sidewalks, and medians, can be used to lay fiber optic cables or
deploy wireless infrastructure. Streamlining access to public rights-of-way and establishing clear
guidelines for deployment can facilitate broadband expansion. City permitting staff should ensure that
telecom infrastructure as-built data is added to the City GIS system.
Digital Infrastructure Plans
Existing City plans and initiatives related to smart city development (e.g. “smart” water meters) or
digital infrastructure can be aligned with broadband deployment strategies. Coordination between
different departments and leveraging these plans can provide a cohesive framework for broadband
expansion. The City Planning department should work closely with City engineering and permitting
staff to track private sector telecom infrastructure that is placed in public right of way.
Partnerships with Private Sector
Collaborating with private sector entities, including ISPs, telecommunications companies, or
infrastructure providers, can leverage their resources and expertise to facilitate broadband
deployment. Public-private partnerships can help access additional funding, technical knowledge, and
accelerate the expansion of services.
A wide variety of assets in City of Arcadia are identified in the following pages.
The included maps provide detail on the following:
Arcadia Broadband Strategic Plan Page of 9 125
Potential Anchor Customers— This information is used to identify key users of Internet services that
could benefit from improved broadband infrastructure in the city. K12 schools, public safety facilities,
fire and rescue locations, health facilities, and city facilities are included.
LMI/HUD Areas — Low and Moderate Income (LMI) and HUD-eligible areas often qualify for certain
kinds of grants not available to other areas.
3.1 POTENTIAL ANCHOR CUSTOMERS
Identifying potential anchor customers and leveraging existing anchors can play a crucial role in
justifying private-sector investment in broadband infrastructure. Here are some potential anchor
customers and strategies to leverage them in support of the City's broadband objectives for
downtown Arcadia.
Educational Institutions
Schools, colleges, and universities are ideal anchor customers due to their significant demand for high-
speed internet access. Partnering with educational institutions in downtown Arcadia can attract private-
sector investment. Strategies could include collaborating with educational institutions to share
infrastructure, establishing public-private partnerships for connectivity solutions, or providing
incentives for broadband providers to serve these institutions.
Healthcare Facilities
Hospitals, clinics, and healthcare facilities require reliable and high-speed connectivity for
telemedicine, electronic health records, and medical imaging. Leveraging healthcare facilities as
anchor customers can attract private investment. Encouraging partnerships between healthcare
providers and broadband providers can lead to tailored solutions for their connectivity needs.
Office Buildings and Industrial Zones
Office buildings and industrial areas of downtown Arcadia will have a high concentration of businesses
that rely on fast and reliable internet connectivity. Collaborating with building owners or industrial
businesses can help attract private investment. This can involve providing incentives for broadband
providers to serve these areas or facilitating the installation of shared infrastructure to lower costs.
Government Offices and Municipal Services
City offices require robust broadband connectivity for their operations. Leveraging the City’s facilities
as anchor customers can help incentivize private investment. Strategies may include working with
providers to provide connectivity services to City offices, exploring partnerships for network sharing, or
establishing public-private collaborations to improve connectivity in government facilities.
Community Centers and Libraries
Community centers and libraries serve as important gathering spaces for residents and often provide
public access to computers and internet services. Partnering with these institutions can help attract
private investment. Strategies could include offering incentives for broadband providers to improve
connectivity in these facilities or exploring innovative models such as Wi-Fi hotspots in community
centers or mobile library services.
Entertainment and Arts Venues
Entertainment venues, theaters, and arts centers in the downtown area require internet connectivity for
digital performances, streaming, and online ticketing. These venues as anchor customers can help
Arcadia Broadband Strategic Plan Page of 10 125
attract private investment. Strategies may include facilitating partnerships between broadband
providers and entertainment venues or providing incentives for connectivity enhancements.
Sports Facilities and Arenas
Sports facilities and arenas in Arcadia also require robust broadband connectivity for ticketing systems,
live streaming, and fan engagement. Leveraging these venues as anchor customers can justify private
investment. Exploring partnerships with broadband providers or offering incentives to enhance
connectivity in these venues can be effective strategies.
Arcadia Broadband Strategic Plan Page of 11 125
Points of Interest
Community Center
Fire Station
Police Station
Townhall
Library
Hospital
Schools
Arcadia, California
Created by Design Nine, Inc. 5/23/23023
County of Los Angeles, California State Parks, Esri,
HERE, Garmin, SafeGraph, GeoTechnologies, Inc,
METI/NASA, USGS, Bureau of Land Management,
EPA, NPS, USDA, Esri, NASA, NGA, USGS, FEMA±0 10.5 Miles
Scale: 1:42,100
3.2 POPULATION AND DENSITY DISTRIBUTION
This map shows the population and density distribution in the city, by census block. This information
can be helpful when working with service providers and when trying to identify what technologies are
most appropriate for various areas of the city.
Arcadia Broadband Strategic Plan Page of 12 125
Population Density by Census Block
Groups (2021 ACS Estimates)
Population / Square Mile
611 - 4,000
4,000 - 10,000
10,000 - 15,000
15,000 - 32,264
Arcadia, California
Created by Design Nine, Inc. 5/23/23023
County of Los Angeles, California State Parks, Esri,
HERE, Garmin, SafeGraph, GeoTechnologies, Inc,
METI/NASA, USGS, Bureau of Land Management,
EPA, NPS, USDA, Esri, NASA, NGA, USGS, FEMA±0 10.5 Miles
Scale: 1:42,100
3.3 LMI AND HUD ELIGIBLE AREAS
HUD-eligible areas are determined by Low and Moderate Income (LMI) statistics—but can be different
from census blocks in the city that meet LMI thresholds.
HUD-eligible census blocks can qualify for CDBG funding for telecom infrastructure projects.
Arcadia does have some HUD grant eligible areas.
Arcadia Broadband Strategic Plan Page of 13 125
Percent of Population with Low to
Moderate Income (LMI) by Census
Block Groyps (2019 ACS)
Percent
4% - 20%
21% - 36%
37% - 50%
51% - 69%
Arcadia, California
Created by Design Nine, Inc. 5/23/23023
County of Los Angeles, California State Parks, Esri,
HERE, Garmin, SafeGraph, GeoTechnologies, Inc,
METI/NASA, USGS, Bureau of Land Management,
EPA, NPS, USDA, Esri, NASA, NGA, USGS, FEMA±0 10.5 Miles
Scale: 1:42,100
Arcadia Broadband Strategic Plan Page of 14 125
HUD Grant Eligible Census Block
Groups (2019 ACS Estimates)
Eligibility Status
Not HUD Grant Eligible
Could be HUD Grant Eligible
HUD Grant Eligible
Arcadia, California
Created by Design Nine, Inc. 5/23/23023
County of Los Angeles, California State Parks, Esri,
HERE, Garmin, SafeGraph, GeoTechnologies, Inc,
METI/NASA, USGS, Bureau of Land Management,
EPA, NPS, USDA, Esri, NASA, NGA, USGS, FEMA±0 10.5 Miles
Scale: 1:42,100
4 FIBER OPTIC AVAILABILITY
Fiber availability data is compiled from publicly available sources. The FCC (Federal Communications
Commission) provides a wide variety of broadband and telecom data as reported to the FCC by the
providers. Some telecom providers do not share their route data.
In residential areas of the city, AT&T, Earthlink, Frontier, and Giggle Fiber all offer fiber service, but not
to every residence. AT&T and Frontier are the predominate fiber providers.
In the downtown area of the city, fiber availability is much more limited. Downtown Arcadia, with
respect to telecom infrastructure, is an “urban” environment with much higher construction costs than
in residential neighborhoods. The high cost of installing fiber under urban streets and sidewalks is a
deterrent to widespread fiber availability.
Arcadia Broadband Strategic Plan Page of 15 125
4.1 DOWNTOWN FIBER AVAILABILITY
Data provided by the National Broadband Map shows very limited or no business class fiber coverage
in downtown Arcadia. Some downtown businesses reported in the broadband survey results that they
did have a fiber connection, and it appears that Giggle fiber may have some limited availability in the
downtown area.
Arcadia Broadband Strategic Plan Page of 16 125
4.2 NUMBER OF FIBER PROVIDERS
This map shows the availability of ISPs offering business class fiber services in Arcadia. In the
downtown area (the expanded rectangle), there are none or only one provider. The large green block
(claiming six providers) would seem to be a data anomaly. Other data indicates that are at most three
fiber providers in a few residential areas of the city.
Arcadia Broadband Strategic Plan Page of 17 125
4.3 TECHNOLOGY TYPE AVAILABILITY
There are only a few areas of the city where fiber (the blue blocks) show availability. It is more widely
available in residential neighborhoods.
Arcadia Broadband Strategic Plan Page of 18 125
4.4 BROADBAND SERVICE LEVELS
The FCC data indicates that the city is “fully served” with the exception of a several very small areas.
This map uses the newer FCC definition of fully served, which is 100 Mbps download and 20 Mbps
upload speeds. There are two problems with the 477 data:
•The data is self-reported by the providers, who typically report their most optimistic Internet
speeds. In practice, customers may not always get the reported speeds.
•A single customer receiving service in a census block means that the provider can indicate that
the entire census block is counted. So if one household receives 100/20 Mbps service, all
households in that census block are counted as receiving that level of service.
Arcadia Broadband Strategic Plan Page of 19 125
4.5 UPLOAD AND DOWNLOAD SPEEDS
The next two maps illustrate upload and download speeds, also using recent FCC data given by the
Internet Service Providers. Consistent with previous data in this section, the downtown area has some
of the slowest broadband speeds in the city. The green shades indicate higher speed service
availability. Download speeds exceed the 100 Mbps minimum everywhere in the city.
Arcadia Broadband Strategic Plan Page of 20 125
Throughout the city, upload speeds are much lower than download speeds. The asymmetric speeds
(upload much lower than download) reflects a continued reliance on cable Internet, which is an older,
copper-based technology that has difficulty providing business class service (i.e. symmetric service, or
equal upload and download speeds).
Arcadia Broadband Strategic Plan Page of 21 125
5 BUSINESS BROADBAND SURVEY
RESULTS
During the summer of 2023, a broadband survey was conducted in Arcadia, California as part of a
study in broadband needs. The online (Web) version of the survey was publicized on social media. A
total of 10 responses were were collected from businesses in the City of Arcadia. Not all responders
answered every question. Some key findings from the results are listed below.
Arcadia Broadband Strategic Plan Page of 22 125
70% of respondents said
that they believe the local
government should help
facilitate better broadband
40% of business
respondents want better
Internet access
100% indicated that the
Internet is important to the
success of their business
over the next five years
50% of businesses are
“satisfied” or “very satisfied”
with the speed of their
current Internet service
Several businesses
reported they have a fiber
Internet connection
80% of businesses that
responded need
employees to be able to
work from home
DISTRIBUTION OF BUSINESS SURVEY RESPONSES
The map below shows the geographic distribution of responses to the business survey.
Arcadia Broadband Strategic Plan Page of 23 125
Business Survey Results
Survey Responses
Downtown Arcadia, California
Created by Design Nine, Inc. 8/24/23023
Esri Community Maps Contributors, County of Los
Angeles, California State Parks, © OpenStreetMap,
Microsoft, Esri, HERE, Garmin, SafeGraph,
GeoTechnologies, Inc, METI/NASA, USGS, Bureau of
Land Management, EPA, NPS, US Census Bureau,±0 0.20.1 Miles
Scale: 1:7,000
BUSINESS SURVEY SUMMARY DATA
1.What kind of Internet service are you using to complete this survey?
2.Select the items you agree with below
Arcadia Broadband Strategic Plan Page of 24 125
Wired Internet (e.g. DSL, cable)
Wireless ISP
Cellular Internet on a smartphone
I don't know
30%60%
10%
10%
20%
60%
My business needs better Internet/data service.
My business needs better landline telephone service
I need better VoIP (Voice over IP) telephone service
My business needs better cellular telephone service.
We are satisfied with all of our services.
30%60%
50%
10%
10%
10%
40%
Agree
3. How important do you think Internet technology will be for the success of your
business over the next five years?
4a. Total number of employees
4b. Total number of Internet users
1 to 10 70%
11 to 40 30%
41 to 80 0%
81 to 150 0%
Over 150 0%
1 to10 60%
11 to 40 20%
41 to 80 0%
81 to 150 10%
Over 150 10%
Arcadia Broadband Strategic Plan Page of 25 125
Very Important
Somewhat Important
Neutral
Unimportant
0%25%50%75%100%
0%
0%
20%
80%
5. If you are a business, what type? (select all that apply)
Other types of businesses
•Escrow services company
6. Is this a home-based business?
7. How much do you pay now for Internet access each month?
Professional / Office 4 40%
Retail / Wholesale 3 30%
Medical 1 10%
Restaurant / Food Services 1 10%
Educational 1 10%
Other (Please Specify Below)1 10%
Yes No
0 10
0%100%
$0 to $100 $101 to
$150
$151 to
$500
$501 to
$1,000
$1,001 to
$5,000 $5,000 or more I don’t
know
4 3 2 0 1 0 0
40%30%20%0%10%0%0%
Arcadia Broadband Strategic Plan Page of 26 125
8. Are you satisfied with what you pay for Internet service?
9. What type of Internet do you have?
Other types of Internet
•SD WAN service, cable modem, cellular wireless failover
10. Who is your Internet service provider?
Cable Modem 1 10%
Fiber 4 40%
Wireless ISP 2 20%
DSL Line 1 10%
Other (Please Specify Below)1 10%
I don’t know 1 10%
Spectrum 6 60%
Giggle 2 20%
AT&T 1 10%
Verizon 1 10%
Arcadia Broadband Strategic Plan Page of 27 125
40%
60%
Yes No
11. Based on the type of Internet you selected above, why do you still have it?
Respondents could choose more than one option.
12. What is the download speed of your Internet connection? (A Gigabit is 1000
Megabits (Mbps)
1-10 Mbps 10 - 50 Mbps 50-100 Mbps 100 - 1,000 Mbps 1,000+ Mbps
(Gigabit)
I don’t Know
0 2 1 2 1 4
0%20%10%20%10%40%
Arcadia Broadband Strategic Plan Page of 28 125
Most reliable service available
Best price available
Too expensive to change
No other options
Limited other options
Not interested in changing
25%50%
10%
10%
20%
20%
30%
40%
13. What is the upload speed of your Internet connection? (A Gigabit is 1000 Megabits
(Mbps)
14. How satisfied are you with the speed of your Internet service?
15. How satisfied are you with the reliability of your Internet service?
Less than 1 Mbps 1 - 3 Mbps 3 - 100 Mbps 100+ Mbps I don’t Know
0 0 4 2 4
0%0%40%20%40%
30%
60%
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied
0%0%
50%
30%
20%
30%
60%
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied
0%
10%
40%
30%
20%
Arcadia Broadband Strategic Plan Page of 29 125
16. How important is a redundant or second Internet connection to your business?
17. Please select all that apply to your current Internet provider
18. Select all the items you use the Internet for now (Select all that apply)
Monitor / control security, alarms, health, processes, etc.8 80%
Videoconferences (Zoom, Webex, Teams, GoToMeeting)7 70%
Online Backup (files, photos, music, company data) 7 70%
Processing credit card / debit card transactions 6 60%
Social Media (Facebook, LinkedIn, Twitter, Instagram)6 60%
VoIP Internet phone(Vonage/Skype, etc.)6 60%
Ordering / managing inventory 5 50%
Receiving and processing online orders 5 50%
Arcadia Broadband Strategic Plan Page of 30 125
Very Important
Somewhat Important
Neutral
Not Important
30%60%
10%
30%
10%
50%
I am satisfied with my Internet provider
Cannot rely on the service
Price is unreasonable for the service I receive
Slow or poor technical support
The speed I want is not available at my business location
Poor customer service
30%60%
10%
20%
20%
20%
30%
50%
Other uses for the Internet
•Website design and editing videos
19. What kind of telephone service do you have?
20. Do you or your employees use a VPN (Virtual Private Network) to obtain remote
access for your work or to a company network?
Offer customers free WiFi service while shopping 5 50%
Cloud-based business, accounting or other services 4 40%
Other 1 10%
Yes No I Don’t Know
2 7 1
20%70%10%
Arcadia Broadband Strategic Plan Page of 31 125
VoIP
Landline and cellphone service
Landline only, no cellphone service
Cellphone service only
30%60%
10%
10%
30%
50%
21. How important is it for your employees to be able to work from home?
22. Does limited Internet access at employees’ residences impact your business?
23. Does the availability or pricing of existing Internet options impact your business’s
decision to relocate or stay in the city?
Arcadia Broadband Strategic Plan Page of 32 125
Very important on a consistent basis
Very important occasionally
Occasionally
It would be nice, but it’s not important
No
0%35%70%
20%
60%
20%
50%50%
Yes
No
60%
40%
Yes
No
If yes, briefly state why:
•Being a website designer and video producer, internet and the quality and speed of internet service
is vital ... imperative ... highly important to the success of my business .... and mental well-being
•I moved my business to Downtown Arcadia in December. But internet availability dictated where I
could move. The original space I was interested in was in the next block and internet was not good
there, so I couldn’t take that space
•Spectrum Internet is not reliable. I have to pay for a SD WAN service and cellular service as a backup
to maintain reliable internet connectivity.
•That’s the least of the problems with Arcadia!!
•We could not move to another city that does not have fiber internet
24. Are you interested in Gigabit (high speed) fiber Internet Service?
25. Should the county government have a role in facilitating better and more affordable
broadband services?
26. Any Other Comments
•The government should be involved only if helps the business and the city together. Thank you for
this survey and thank you for your concern.
Yes No
7 3
70%30%
Arcadia Broadband Strategic Plan Page of 33 125
50%
20%
30%
Yes
No
Maybe, but I need to know more about fiber Internet first
6 GAP ANALYSIS
A broadband study kick-off meeting was held with Arcadia management personnel on 12/6/22.
Present at the meeting were Tim Schwehr (former Arcadia ECD Director), Jason Kruckeberg (Arcadia
Asst. City Manager.), Alana Bautista (Arcadia Management Analyst), Andrew Cohill (Design Nine CEO),
Dave Sobotta (Design Nine Marketing Director) and Jack Maytum (Design Nine Senior Broadband
Analyst).
This study was initiated by the Arcadia Downtown Business Improvement District. Arcadia
management wanted to evaluate high-level options regarding improvements to broadband services in
the city. Should the city build out its own system? An impetus for the broadband study was a proposal
to the city by SiFi, a British company, offering to construct an open-access, fiber-optic network in
downtown Arcadia at no cost to the city. An evaluation of the SiFi proposal is included in this report.
Initial stakeholder meetings were held on 12/15/22. A briefing with Tim Schwehr and Jack Maytum was
followed by meetings with members of the Downtown Arcadia Improvement Association and later by a
meeting with Karen MacNair, CEO of the Arcadia Chamber of Commerce.
On 2/9/23 jack Maytum met with the board of directors from the Downtown Arcadia Improvement
Association to explain the goals of the broadband study and to discuss the board members’
broadband issues. In all cases, the primary complaints concerning Arcadia’s broadband services for
local small businesses centered on the lack of high-speed fiber-optic based systems and little
competition among providers which leads to high Internet costs for businesses in downtown Arcadia.
On 3/16/23 Jack Maytum attended the online meeting for those companies providing utility services to
Arcadia. This meeting was one of the regularly scheduled quarterly meetings hosted by the Arcadia
Engineering Department. Kevin Merrill, City Engineer, introduced the participants and lead a
discussion of the city’s plans for economic development and infrastructure improvement. The intention
was to provide a forum for a discussion of broadband expansion with the incumbent broadband
providers but none of them were present at the meeting. Nevertheless, the meeting provided a useful
overview of the many plans and projects for municipal improvement already underway in Arcadia.
6.1 GAPS IN THE INFRASTRUCTURE
Gaps in the existing broadband infrastructure within Downtown Arcadia, particularly for small
businesses, can be described as follows.
Limited Coverage
Certain areas of Downtown Arcadia may have limited or no access to broadband services. This could
be due to the absence of internet service providers (ISPs) in those areas or insufficient infrastructure to
provide reliable and high-speed connections.
Slow Internet Speeds
Even if broadband services are available, there might be issues with slow internet speeds. This could
be a result of outdated infrastructure or network congestion due to a high number of users in the area.
Arcadia Broadband Strategic Plan Page of 34 125
Lack of Fiber-Optic Connectivity
Fiber-optic cables offer high-speed and reliable internet connections. However, some areas in
Downtown Arcadia do not have a proper fiber-optic network, limiting the availability of high-speed
broadband services.
Limited Competition
Although there are a relatively large number of ISPs servicing the broadband market in Downtown
Arcadia there is limited competition among ISPs in each specific neighborhood. This is a common
circumstance by design; ISPs seldom overbuild a neighborhood containing an existing service
provider. This lack of competition can result in higher prices and fewer incentives for ISPs to invest in
infrastructure improvements.
Unequal Access
There might be disparities in broadband access across different demographics or socioeconomic
groups within Downtown Arcadia. This digital divide can result in certain communities or individuals
having limited access to broadband services and the opportunities they provide.
6.2 HOW MUCH BROADBAND IS ENOUGH?
Bandwidth needs for the past several years have been growing by an estimated 30% per year and
show no sign of slowing.
This means residential and business bandwidth needs are doubling every three years.
As computers and associated hardware (e.g. video cameras, audio equipment, and VoIP phones)
become more powerful and less expensive, new applications and services are continually emerging
that drive demand for more bandwidth.
“Next-generation” is the term used to describe future planning for network connectivity and
infrastructure. Next-generation broadband reaps substantial benefits. There are several key benefits
of Next-generation broadband:
•Dramatically faster file transfer speeds for both uploads and downloads.
•The ability to transmit streaming video, transforming the Internet into a more visual medium.
•The means to engage in true-real time collaboration.
•The ability to use many applications simultaneously.
•The ability to maintain flexible work schedules by being able to work from home on a part-
time or full-time basis.
•The ability to obtain health-related services for an occasional illness and/or long term
medical services for chronic illnesses.
Clearly, consumers have a strong interest in a visual medium from when and wherever they are.
YouTube is the second most popular search engine after Google, which demonstrates the need to
support the infrastructure to transmit streaming video. In addition to video streaming, true real-time
collaboration also provides an effective way for people to interact from wherever they are. People can
engage in a two-way real-time collaboration so that fruitful, visual conversations can be held between
friends, family, business associates from the state, country, or internationally.
Arcadia Broadband Strategic Plan Page of 35 125
Because of fiber networks, employees have the capability of working from home. Findings suggest that
if all Americans had fiber to the home, this would lead to a 5% reduction in gasoline use, a 4%
reduction in carbon dioxide emissions, $5B in lower road expenditures, and $1.5B commute hours
recaptured.
In Arcadia today, many residents and businesses are still relying on copper-based services. The
bandwidth tables on the following pages show what is likely to be needed over the the next several
years in terms of bandwidth. The existing copper infrastructure is going to become a limiting factor in
economic development.
6.3 JOB AND WORKFORCE CHALLENGES
Arcadia can be attractive to an emerging new group of businesspeople and entrepreneurs that
typically are well-educated, own their own businesses or work for large global corporations, and are
making choices about where they lived based on family needs and interests rather than business
interests.
This new breed of entrepreneurs and workers places a high value on the kinds of amenities that
contribute to a good quality of life, such as traditional neighborhoods, vibrant downtown areas, a wide
range of cultural and recreation opportunities, good schools, and a sense of place.
These businesspeople and their families make relocation decisions based on quality of life only where
there is abundant and affordable broadband, because broadband enables this new approach to
personal and work life.
However, what has become painfully clear during the Covid pandemic is that this definition of “fully
served” is not adequate to support many kinds of work and business activities.
If the goal is to enhance business access to broadband, there can be no upper limit on the definition of
broadband. Saying that broadband (as an example) is 5 Megabits/second of bandwidth or 10
Megabits/second is to tell the residents and businesses in Arcadia that there will be limits on their work
and job opportunities.
Broadband is a community and economic development issue, not a technology issue. The essential
question is not, “What system should we buy?” or “Is 5G wireless better or cheaper than fiber?”
Instead, the question is:
“What do businesses of Arcadia need to be able to compete globally over the next thirty years?”
In short, Arcadia’s downtown area today has “little broadband” in the form of DSL and cable modem
service, along with a very limited amount of “big broadband” in the form of fiber to some businesses.
Two key concepts that should drive City investments in telecom are:
“Broadband” is not the Internet
Bandwidth is not a fixed number
Broadband and “the Internet” are often used interchangeably, but this has led to much confusion.
Broadband refers to a delivery system, while “the Internet” is just one of many services that can be
carried on a broadband network. The challenge for the City is to ensure that businesses have
affordable access to a choice of broadband providers and services with sufficient bandwidth to
deliver all the services that will be needed and expected within the next three to four years, including
but not limited to “the Internet.”
Arcadia Broadband Strategic Plan Page of 36 125
The economic impact can include the following effects:
•Difficulty retaining some existing businesses. As business bandwidth needs continue to
increase over the next several years, some businesses may need to move out of the area to
ensure that they have the right bandwidth to support their business operations.
•Difficulty attracting new businesses. New businesses interested in some of the advantages of
the city, like low cost of living, good recreational opportunities, and good workforce ethic,
may be deterred by the cost and limited bandwidth available, and therefore choose other
areas to locate.
•Difficulty keeping younger workers and families in the city. Younger workers and families
tend to be heavy users of Internet services, and real-estate agents are reporting that younger
house buyers are reluctant to live in areas with poor Internet service.
•Reductions in real estate value. Commercial office buildings and retail business spaces with
poor Internet service are more difficult to rent, leading to lower prices and negatively
impacting City income from property taxes.
6.4 BUSINESS BANDWIDTH NEEDS
The table below shows bandwidth consumption for several types of businesses and a projection of the
bandwidth needed 5 and 10 years out. The Covid pandemic has had the effect of dramatically
increasing the number of home-based works and has also affected business travel decisions. More and
more businesses will invest in high definition (HD) quality business videoconference systems to reduce
the need for travel and to maintain high quality communications with a dispersed workforce. These HD
systems require substantial bandwidth; a two-way HD video conference requires 20-25 Mbps during
the conference, and a three-way conference requires 30-35 Mbps during the conference.
Business Bandwidth Needs
LARGE BUSINESS SMALL BUSINESS HOME BASED
WORKER
DESCRIPTION A larger business with
about 50 workstations
A small business with
10 to 15 employees,
and 7-10 workstations
One or two people
working from home
Concurrent Use Mbps Concurrent Use Mbps Concurrent
Use Mbps
Telephone 20 5 5 1.5 2 0.5
Credit Card Validation 4 4 1 1 0
Security System 1 5 1 2 2 2
Internet 50 500 7 10.5 2 20
VPN Connection 20 100 5 50 2 5
Data Backup 5 7.5 1 10 2 10
Web Hosting 1 2 0 0
Workforce Training
(online classes)5 20 1 10 2 10
Arcadia Broadband Strategic Plan Page of 37 125
As more workers are moved to home-based offices, the business location must provide network access
(Virtual Private Network (VPN)) to employees working from home. These home-based workers will
make extensive use of videoconferencing to attend routine office meetings remotely and to enhance
communications with co-workers, including videoconferences with other home-based workers in the
company. A VPN network providing remote access to just two or three home-based employees could
require 50 Mbps of bandwidth during normal work hours.
HD Video-
conferencing 20 125 2 20 2 10
Totals 768.5 105.0 57.5
5 YEARS FROM NOW 3-10 Gbps 250-500 Mbps 100-200 Mbps
10 YEARS FROM NOW 10 + Gbps 2-4 Gbps 500-750 Mbps
LARGE BUSINESS SMALL BUSINESS HOME BASED
WORKER
Arcadia Broadband Strategic Plan Page of 38 125
7 ISP ENGAGEMENT STRATEGY
The following ISPs operate in Arcadia:
Spectrum
Spectrum is a prominent ISP in Arcadia, offering cable-based Internet services to both residential and
business customers. They provide a range of plans with varying speeds to cater to different user
requirements.
AT&T
AT&T delivers connectivity in Arcadia through its fiber-optic network. Their fiber plans offer ultra-fast
speeds and reliable connections, primarily targeting businesses and tech-savvy users.
Frontier Communications
Frontier Communications provides DSL-based Internet services to Arcadia residents and businesses.
While DSL speeds may not match those of cable or fiber, Frontier offers cost-effective options for users
seeking more affordable Internet plans. The current president of Frontier Communications recently
stated that a fiber-optic network replacement for the current DSL system will take at least five years to
implement.
Giggle Fiber
Giggle Fiber claims to cover 75% of Arcadia with its “giggle Gig” fiber-optic service with up to 5Gb/sec
speeds.
Satellite Providers
Satellite Internet providers, such as HughesNet and Viasat, offer connectivity options to areas where
wired connections may be limited. These services are more suitable for rural or remote areas.
There are additional ISPs offering certain services in Arcadia, and more detail on their service offerings
are provided in Appendix A of this report.
7.1 ENGAGING WITH BROADBAND PROVIDERS
A variety of strategies are available to improve interaction and engagement with local service
providers.
Learn More About Local ISPs
Use the data in the report to understand more about the local internet service providers (ISPs) that
operate in Arcadia, especially the downtown area. Meet with the providers to ask their opinion on how
the City could support expanded fiber access in the downtown portions of the City.
Publicly Available Broadband Maps
Some local governments maintain or provide convenient access to publicly available broadband maps
or databases (e.g. the National Broadband Map) that provide information about broadband service
providers and their coverage areas. The City of Arcadia economic development information on the City
Web site should make it easy to find information about broadband availability in various parts of the
City. Note that fiber to the home availability can be very attractive to relocating workers and families,
especially the Millennial generation.
Arcadia Broadband Strategic Plan Page of 39 125
Engage with Community Forums and Groups
Promote the results of this broadband study in online forums, social media groups, or neighborhood
associations focused on Downtown Arcadia. Local residents or businesses might have insights or
recommendations regarding broadband service providers and infrastructure.
Coverage Maps
Obtain or create coverage maps that display the areas where broadband services are available. Ask
ISPs offering services in the city to provide this data. Note that they may claim the information is
“proprietary,” but data on any fiber cable that uses public right of way should be available to the City.
The ISPs do not have to indicate what customers are connected to the fiber, but they are obligated to
provide route maps of their fiber cables that are in the right of way.
Comparative Analysis
Compare gathered information to identify locations in the downtown area that are well-served,
underserved, and unserved, noting that based on the FCC data in this report, most downtown areas
are not well-served.
Understand Provider Objectives
During the engagement process, seek to understand the objectives and priorities of the broadband
providers. Identify their expansion plans, areas of interest, and any potential challenges they may face
in deploying infrastructure in Downtown Arcadia.
Highlight City's Broadband Objectives
Clearly communicate the City's broadband objectives, including the desired level of coverage, speed,
and service quality. Emphasize the benefits of improved broadband infrastructure, such as economic
development, enhanced education, healthcare, and public safety.
Identify Mutual Benefits
Identify areas of mutual benefit between the City and broadband providers. Highlight how improved
broadband infrastructure can support the providers' business growth, customer base expansion, or
revenue generation. Emphasize the potential for public-private partnerships and collaboration to
achieve shared goals.
Collaborative Planning
Engage in collaborative planning with the broadband providers to identify opportunities for
infrastructure deployment, including leveraging existing assets, such as conduit, rights-of-way, or
public facilities. Explore possibilities for joint investment, resource sharing, or access to existing
networks.
Streamlined Permitting and Regulatory Processes
Work with the broadband providers to streamline permitting and regulatory processes for
infrastructure deployment. Simplify procedures, expedite approvals, and create clear guidelines to
facilitate efficient deployment while maintaining necessary oversight.
Arcadia Broadband Strategic Plan Page of 40 125
Incentives and Support
Assess the feasibility of providing incentives or support to broadband providers to encourage
additional deployment. This could include expedited access to city assets, fee reductions, tax
incentives, or assistance in navigating local regulations. Tailor incentives based on the specific needs
and priorities of the providers.
Regular Communication and Relationship Building
Maintain regular communication and foster ongoing relationship-building efforts with broadband
providers. Establish a dedicated point of contact within the City to address their concerns, provide
updates on the progress of broadband initiatives, and seek input on potential improvements.
Collaboration in Community Engagement
Encourage broadband providers to actively engage with the community. Encourage their participation
in public meetings, workshops, or outreach programs to address concerns, educate residents about
available services, and gather feedback on service quality and coverage.
7.2 SHARED INFRASTRUCTURE
The high cost of adding broadband conduit, handholes, and dark fiber in the downtown areas of
Arcadia are very likely the key reason that downtown businesses are either underserved with fiber
Internet or pay excessively expensive fees for fiber Internet services.
The most straightforward approach to solving this problem would be for the City to invest in a shared
broadband infrastructure system in most of the downtown area. The City, by defraying the cost of the
infrastructure for ALL providers, would make it inexpensive and simple for multiple providers to offer a
wide variety of affordable, high speed Internet and IP-based services.
The City would not be an Internet provider. Rather, it would lease dark fiber and/or conduit to
providers that want to offer fiber services to business customers. By passing most business and
commercial buildings with conduit, fiber, and handholes, ISPs could install inexpensive fiber drops
from the nearest handhole to a commercial building, and provide fiber services to tenants within that
building.
Conduit, handholes, and dark fiber are passive infrastructure, meaning there are no network
electronics. The City would be responsible for the cost of locates (a minor expense and could be done
by City employees) and for routine and emergency break-fix, which is relatively rare for underground
infrastructure.
ISPs would be responsible for selling services, all interior cabling in office buildings, and for all network
electronics. A single modest pre-fab shelter would provide all of the rack space needed for multiple
ISPs.
A detailed pre-engineering design and cost estimate for a downtown shared broadband infrastructure
is described in Section 8.
Arcadia Broadband Strategic Plan Page of 41 125
8 RECOMMENDATIONS
Arcadia can pursue several strategies to improve broadband accessibility and affordability in the
downtown area of the city. These strategies are described below, and the Broadband Connectivity
Project, described in more detail in the rest of this chapter, has the most potential to get businesses in
the downtown area better pricing and improved service levels.
Broadband Connectivity Project
A conduit and dark fiber network in the downtown area of Arcadia would bring improved broadband
Internet speeds and a wider choice of Internet providers. The increased competition for business
customers would also help lower the cost of business class Internet for downtown retail, professional,
and enterprise businesses. The improved access and lower costs for Internet would also help retain
existing businesses in the downtown area and help attract new businesses and jobs. The conduit and
dark fiber would be leased to interested Internet Service Providers who want to expand their service
area in downtown. The project would remove the most significant barrier to better Internet downtown,
which is the high capital cost of broadband infrastructure in the urban downtown environment. A
single conduit and fiber network, open to multiple providers, can bring more providers downtown at
less cost to each provider—creating competition, lower prices, and better service.
The City government should not become an Internet provider
Instead, it could focus on developing public/private partnerships by making targeted investments in
passive broadband infrastructure like towers and dark fiber. These assets have long life spans of forty
years or more and can be leased out to private sector ISPs (passive infrastructure leasing is not a
telecommunications service). While the revenue from the lease agreements will be modest, the funds
generated can be used to support maintenance of this infrastructure.
Develop partnerships with ISPs
Foster public-private partnerships to leverage the expertise and resources of private broadband
providers. This can include joint investment initiatives, shared infrastructure deployments, or
collaboration on community broadband projects.
Streamline Permitting Processes
Simplify and expedite the permitting processes for broadband infrastructure deployment. This can
include creating a dedicated broadband team within the City's permitting department, establishing
clear guidelines and timelines for approvals, and implementing online application systems. Cost:
Moderate to high, depending on administrative changes and system upgrades required.
Adopt a "Dig Once" Policy
Implement a "dig once" policy that requires the installation of conduit or fiber-optic infrastructure
during planned excavation or construction projects. This approach reduces future costs by minimizing
the need for disruptive and expensive excavation work. Cost: Low to moderate, depending on
coordination efforts with construction projects and potential infrastructure investments.
Identify Revenue Generation Opportunities
Explore potential revenue generation opportunities related to broadband deployment, such as leasing
access to City assets or rights-of-way, offering expedited permitting for a fee, or exploring partnerships
Arcadia Broadband Strategic Plan Page of 42 125
with service providers that provide revenue-sharing arrangements. Cost: Low to moderate, depending
on the administrative and legal work involved in identifying and implementing revenue opportunities.
Develop Community Development and Planning Guidelines
Integrate broadband infrastructure requirements into community development and planning
guidelines. This ensures that new developments include provisions for broadband infrastructure,
supporting future connectivity needs. Cost: Low to moderate, primarily involving updates to planning
guidelines and coordination with developers.
8.1 THE DOWNTOWN CONNECTIVITY PROJECT
The City of Arcadia dark downtown fiber and conduit network would be operated as city-owned
project. The network would bring the downtown area several benefits:
•It would address the shortcomings of Internet availability in downtown Arcadia (high prices,
limited availability of high performance fiber-delivered Internet.
•A single, shared network infrastructure available for use by multiple providers would eliminate
the capital costs that each provider currently faces if they want to expand service downtown. It is
inefficient and costly to expect multiple providers to each build duplicated infrastructure to each
downtown building.
•Because capital costs are sharply reduced for each provider, smaller providers could compete
effectively with larger providers. The City-owned infrastructure will introduce true competition in
the downtown area, which should lower prices, bring higher speeds, and higher quality customer
service.
•As a city-owned project, the network would be vested in the community and can be operated on
behalf of the business community and economic development needs of the businesses of
Arcadia.
•It would generate a modest revenue stream for the City, which would be used to maintain the
infrastructure.
The network will be operated as a dark (unlit) fiber optic and telecom conduit network available to any
and all service providers, including incumbent providers who want access to the significant market
opportunity represented by the residents and businesses of the City.
The City would have a limited number of essential roles:
•Contract Management - The City will hold contracts for outsourced network repairs and
maintenance and outsourced construction of network extensions. The City will also manage
service provider contracts for the fiber and/or conduit leases offered on the network. The limited
scope of the network should minimize internal staff requirements.
•Financial Management - The City will provide the financial oversight of the network. Most routine
bookkeeping and accounting would not require full time staff and can be handled easily with
existing City accounting resources.
•Public Awareness - The City will need to maintain a modest, ongoing public awareness campaign
to ensure that local businesses are aware of the opportunity to obtain higher performance,
broadband services from local providers using the City infrastructure. While service providers
Arcadia Broadband Strategic Plan Page of 43 125
would be responsible for their own sales, billing and customer management, the City would
focus on availability awareness in the community.
•Project Development/Management - As funding sources are developed for portions of the
conduit/dark fiber system, the City will provide financial and project oversight of these projects
during the implementation and construction phase.
8.2 DARK FIBER AND LIT FIBER
About Dark Fiber
Dark fiber is installed in conduit underground and/or hung on utility poles. It is called “dark” because
no network electronics are installed to “light” the fiber (using small lasers in a fiber switch). For small
municipal/local government fiber installations, dark fiber has a significant advantage in terms of
management—very little ongoing operational responsibility is required.
Dark fiber is leased out to service providers, who install their own network electronics in cabinets or
shelters attached to the fiber cables. The providers typically lease fiber pairs between the cabinet and
their customers, and are responsible for all equipment-related management and maintenance. Dark
fiber networks can be used by service providers to provision either Active Ethernet or GPON services
to their customers.
Dark fiber networks do not generate large amounts of revenue, but this is offset by very low
maintenance costs—primarily an emergency break-fix arrangement with a local or regional firm
qualified to splice fiber. Emergency break-fix contracts are usually based on a time and materials basis,
so there is little or no expense if there are no fiber breaks.
Other costs include “locates,” which are called in to California 811 service (Miss Utility Hotline) and are
performed by either the local Public Works department or a private sector contractor. For small fiber
networks, locate costs are generally modest.
About Lit Fiber
A “lit” fiber network includes the network electronics needed to transmit data over the fiber (using the
small lasers in a fiber switch, hence there is light traveling over the fiber cable). In a lit network, “lit
circuits” are leased out to service providers rather than fiber pairs. The muni/local government/
community network provides the network electronics, which reduces costs for the service provider—
meaning they are able to pay higher lease fees for the circuits they use to deliver services (like Internet)
to their customers. Lit networks generate more revenue, but also have higher expenses because the
network electronics have to be monitored and managed on a 24/7/365 basis (this task can usually be
outsourced at reasonable cost). However, very small fiber deployments often do not pass enough
homes or businesses to generate sufficient revenue to cover the higher costs.
Like dark fiber, a lit network incurs break-fix and locate costs as well.
8.3 THE MEET-ME SHELTER CONCEPT
In downtown Arcadia, a single “meet me” shelter could be installed, and while it could be a
freestanding cabinet, a small pre-fab shelter might be a better choice. A meet me shelter is a telecom
cabinet or shelter with fiber cables installed between the cabinet and nearby office buildings,
commercial buildings, and retail spaces. Providers only have to reach the meet-me shelter location,
Arcadia Broadband Strategic Plan Page of 44 125
lowering their costs. The City
would provide a conduit and
dark fiber system between the
meet me shelter and downtown
business and office spaces.
This approach dramatically
reduces the upfront costs that
providers must spend to reach
business customers. It allows
smaller providers to affordably
enter the downtown Arcadia
marketplace and compete with
the larger, more expensive
incumbents.
The dark fi ber approach
minimizes operational costs.
Service providers would install
their own equipment in the
shelter and would pay a modest
monthly lease fee for the fiber strands they use to connect customers to their services.
8.4 OVERVIEW OF THE CONDUIT/FIBER SYSTEM
The conceptual design of a telecom and broadband infrastructure is typically completed during the
planning process. A conceptual design provides a high level road map used to further develop a
specific implementation project. A conceptual design usually includes:
•Network architecture at a high level, including the amount of fiber and wireless connectivity
and how it can be deployed.
•Early areas of deployment (e.g business parks, downtowns, residential, schools, and/or other
areas) tied to broader community and economic development plans).
•Pre-design estimates of the cost of construction of the initial network investments, usually
using cost studies developed in the initial deployment areas. These estimates include
identification of major network costs and components.
The architecture for the Sandpoint Network is based upon a dark fiber and passive infrastructure
architecture.
Network Core
In Arcadia the system will be comprised of the initial conduit/fiber network and any future expansion.
Service Provider equipment will be located at the provider cabinet. The City will provide and manage
a centrally located patch panel for allocating and managing the leased fiber strands.
Distribution and Access Networks
Arcadia would invest in passive network elements which will consist of conduit, dark fiber, splice
closures, and handholes. A single pre-fab shelter will be the termination point for the downtown fiber
Arcadia Broadband Strategic Plan Page of 45 125
and conduit. The last mile fiber infrastructure (fiber drops to buildings and network electronics) would
be provided by service providers.
Service Provider Attachment
Service Providers will be able to connect to Arcadia fiber at any handhole or splice closure on the
network. Access to splice closures is managed by the City. Any IRU/lease holder who needs a splice in
an existing handhole or splice closure must place an order with the City and will be charged for the
actual cost, plus 20%.
Service Delivery & Provisioning
Service providers will be responsible for installing their own equipment and configuring and managing
their own services over the fiber.
8.5 SERVICE OFFERINGS
Service offerings are created by the providers who lease the infrastructure. With the right equipment
installed the dark fiber can deliver Voice, Video, Internet, and almost any other broadband service
known today.
A variety of services are likely to be offered, including:
•Business triple play (voice, TV, Internet).
•Internet Protocol services (e.g. Internet access)
•VoIP
•Layer 3 IP VPNs
•Layer 2 VPNs
•Data back up services
•Video on demand
8.6 EQUIPMENT
A downtown dark fiber network would benefit both existing ISPs and new ISPs by providing affordable
high performance transport in downtown Arcadia.
This network would not offer any telecommunications services. It would provide only dark fiber leases
and Indefeasible Right of Use (IRU) agreements to qualified telecommunications companies.
The City would not be selling any telecommunications services. That would continue to be the domain
of the private sector providers. The network could also improve access to City facilities in the
downtown area.
Arcadia Broadband Strategic Plan Page of 46 125
8.7 CONDUIT AND DARK FIBER DESIGN
The Arcadia network would include only passive network items, including conduit, dark fiber, a single
shelter, and patch panels. The City would not own or have any responsibility for network electronics
(e.g. fiber switches, routers, power supplies, etc.). In the downtown core, the City will be deploying
multi-path conduit for use by providers.
Multi-path conduit - For all
current and future conduit
expansions in the downtown
core, the City should
standardize on 22/16 7-way
Dura-Line FuturePath or
equivalent. In most cases
there will be 2x 7-way
conduits in all distribution
locations and a single 7-way
conduit in most handholes.
Oversized Vaults - In the
downtown core the City
should standardize on 36” x
48” x 36” double lidded
maintenance holes. These
oversized vault will allow
multiple providers to store
slack and place splice
enclosures in the vaults.
Conduit and handhole
installation and construction
times can be dependent on
w e a t h e r a n d o n
procurement. Most grant-
funded projects require
careful attention to a public
procurement process, which
can add 90 to 180 days to
the timeline.
Broadband Construction Timetable
Project Type Project Execution
Planning
Project
Procurement
Project
Engineering and
Construction
Total Estimated
Timeline
Fiber to the
business projects
4-6 months 4-6 months 6-12 months 14-24 months
Arcadia Broadband Strategic Plan Page of 47 125
Arcadia Broadband Strategic Plan Page of 48 125
This map illustrates individual section maps contained in Appendix B.
Arcadia Broadband Strategic Plan Page of 49 125
8.8 CONDUIT AND DARK FIBER COST ESTIMATE
The tables in this section provide a projected estimate of the cost to build out the entire conduit,
handhole, and dark fiber system as proposed in the previous section. It is not necessary to build out
the entire system at one time, and the distribution scheme as designed in the first map in Section 8.6
illustrates one possible deployment scheme in four parts. Other build out schedules are also possible.
The full build is approximately six miles of conduit. In the urban conditions in downtown Arcadia, all of
the work could easily be completed in less than one year.
Fiber construction times can be dependent on weather (more weather related delays are likely in late
fall through early spring) and on procurement. The time of year that requests for proposals are issued
can affect the cost of a project. If possible, fiber construction bids are likely to be most favorable when
bid out in the fall.
Most grant-funded projects require careful attention to a public procurement process, which can add
90 to 180 days to a typical construction timeline. Costs for the project have been estimated based on
current market prices observed on similar projects. Supply chain delays that were common eighteen
to twenty-four months ago have eased, but some materials may still have long lead times (several
months). The costs provided here should remain reliable for three to six months. Actual construction
costs cannot be fully ensured until formal quotes have been received from fiber contractors.
Arcadia Fiber Route Overview
0 ITEM/PROJECT VALUE
1 Miles of Fiber / Conduit Installed 5.99
2 Number of Handholes Installed 223
3 Splice Closures Installed 150
4 Cabinets Installed 0
5 Number of Buildings Connected 235
6 Take Rate - Percentage of the Buildings Passed who are connected 50%
7 Aerial - Percentage of construction expected to be installed on utility poles.0%
8 Trenching - Percentage of construction installed by trenching 0%
9 Boring - Percentage of construction installed by horizontal drilling.96.25%
10 Slot Cutting - Conduit installed in street by special methods.5%
11 Rock Saw - Required where rock prevents the use of other methods.5%
12 Direct Bury - Conduit installed by direct bury methods (plow, vibratory plow)0%
13 Aerial Info 0% Aerial is estimated to account for water body crossings and
other obstacles to construction.
14 Other Notes Estimated labor rates are based upon common rates seen for
recent medium sized rural projects.
Arcadia Broadband Strategic Plan Page of 50 125
Arcadia Fiber Cost Summary
0 ITEM/PROJECT ESTIMATED
1 Construction Materials $418,643
2 Distribution Labor $1,329,569
3 Structures, Cabinets, and Equipment $195,306
4 Drop Construction $922,375
5 Network Construction Subtotal $2,865,892
6 Project Mgmt, Network Engineering, Integration, and Testing $358,237
7 Misc Fees, Advertising, Technical Services $4,299
8 Bookkeeping and Administration $7,500
9 Engineering, Permitting $214,942
10 Legal Costs $4,299
11 Other Costs Subtotal $589,276
12 Project Total $3,455,169
13 Contingency at 5%$172,758
14 Project Total (with contingency)$3,627,927
Arcadia Broadband Strategic Plan Page of 51 125
1 ITEM/PROJECT UNITS UNIT
COST
LOW
UNIT
COST
HIGH
TOTAL
(AVERAGE)
2 Aerial Construction 0 $4 $6 $0
3 Trenching 0 $17 $24 $0
4 Boring 24,107 $26 $35 $735,257
5 Slot Cutting 1,252 $10 $14 $15,028
6 Rock Saw 1,252 $22 $43 $40,700
7 Direct Bury / Vibratory Plow 0 $12 $12 $0
8 Make Ready Heavy 0 $800 $1,200 $0
9 Make Ready Light 0 $350 $500 $0
10 Pole Replacement 0 $3,000 $6,000 $0
11 Handhole Installation - Soft Surfaces 34 $625 $840 $24,905
12 Handhole Installation - Hard Surfaces 189 $1,600 $2,350 $373,275
13 FOSC Assembly and Installation 150 $450 $600 $78,750
14 Splicing (per splice estimate)2,090 $24 $35 $61,655
15 Total:$1,329,568.99
16
17 Construction labor based on past project experience. Bidding environment can have a
significant affect on labor pricing, especially for small projects.
Arcadia Broadband Strategic Plan Page of 52 125
1 ITEM/PROJECT UNITS
UNIT
COST
LOW
UNIT
COST
HIGH
TOTAL
(AVERAGE)
2 Duraline 1.5” HDPE - 2 way divided reel 7273 $0.86 $0.96 $6,618
3 Duraline 7-Way with Pinpoint Trace Wire 17773 $2.50 $2.80 $47,098
4 Buried Fiber Marker Posts/Medallions 140 $20.00 $25.00 $3,150
5 288 Strand Fiber Optic Cable (avg
strand count)17773 $1.75 $2.80 $40,434
6 Slack Fiber (50’ per hand hole)11200 $1.75 $2.80 $25,480
7 Large Handhole - 24x36x36 Concrete
Polymer (incl. Lid)235 $850.00 $1,000.00 $217,375
8 Handhole Installation Materials (Gravel,
Straw, etc.)223 $15.00 $30.00 $5,018
9 Fiber Splice Closure (Type D) with Trays/
Basket 158 $445.00 $485.00 $73,470
10 RR Crossings - Added Permitting &
Engineering Costs 0$10,000.00$25,000.00 $0
11 Total:$418,643
12
13
Construction materials estimated with 5% overage for waste & slack. Contractor
responsible for furnishing OSP materials. Recent lead times on fiber optic cable have
been 90 days or more. Conduit, mule tape, tracer, and other linear foot items are often
ordered as a single product on a single reel. Coordinate material ordering with
contractors to match contractors’ installation preferences.
Arcadia Broadband Strategic Plan Page of 53 125
Equipment / Drops
1 ITEM/PROJECT UNITS UNIT COST
LOW
UNIT COST
HIGH
TOTAL
(AVERAGE)
2 12x20 Pre-fabricated Telecom Shelter 1 $97,767 $115,000 $106,384
3 Shelter Shipping 1 $9,844 $12,500 $11,172
4 Site Prep and Shelter Installation 1 $19,500 $25,000 $22,250
5 Generator 1 $12,500 $17,500 $15,000
6 Electrical Fit-up, Generator, and service
Install
1 $10,000 $12,500 $11,250
7 Building Fit-up (Racks, Cable Management,
etc.,)1 $6,500 $10,000 $8,250
8 FieldSmart 288F Patch Panel 4 $5,000 $5,500 $21,000
9 Total: $195,306
10
1 ITEM/PROJECT UNITS UNIT COST
LOW
UNIT COST
HIGH
TOTAL
(AVERAGE)
2
Drop Construction - Service Location
Handholes are being placed close to the
buildings in most situations. This work will
vary widely and will include some concrete/
pavement cutting, surface mount conduit on
buildings, and could include inside work
into telecom closets etc.,
235 $2500 $5000 $881,250
3 Patch Cables, NID, Mounting Hardware, and
Materials 235 $150 $200 $41,125
4 Total:$922,375
5
Arcadia Broadband Strategic Plan Page of 54 125
8.9 COST ESTIMATE ASSUMPTIONS
The cost estimate for the conduit and dark fiber networks are based on current prices for materials and
labor. Material prices have been somewhat volatile for the past eighteen to twenty-four months, but
supply chain issues that were creating substantial price increases in 2021 and 2022 have moderated,
but the pace of fiber deployment continues to increase, which can affect materials pricing.
Labor costs have also been increasing over the past two years, again because of the increased pace of
fiber to the premises deployments. Weather and the time of year that the bid is released can have a
significant effect on the cost fiber construction. Construction bids released in early to mid fall will
typically attract better pricing that bids released in the winter and spring.
The costs projected in this estimate can be affected by several factors. The costs have been
conservatively estimated, but it should be assumed that this estimate only reflects market pricing for
ninety days from the date of this report (late spring 2023). The true cost of fiber construction project
has to be determined by bidding the labor and materials and getting binding quotes.
Once dark fiber cable and/ existing or new towers have space available to lease to WISPs, there are
policy and contract decisions that must be evaluated.
8.10 DARK FIBER LEASE CONSIDERATIONS
Passive fiber infrastructure (i.e. no electronics) can include conduit, fiber cable, splice closures, and
cabinets. Because all powered network equipment would be provided by the lessee (i.e. the ISP),
there is no day to day management responsibilities and only occasional routine maintenance.
Emergency break-fix for situations like a cable broken by a construction firm working in the right of way
can be outsourced to a qualified private sector provider. Local governments routinely manage much
more complex water and sewer systems. Some guidelines for leasing dark fiber include:
•There should be a single public price list for the cost of leasing fiber strands.
•A standard master agreement should be used for leases. This agreement will typically require an
SLA (Service Level Agreement) that specifies repair times for emergency break-fix (i.e. the fiber
cable has been damaged and a qualified break-fix repair firm must be on call to make repairs).
•It will also be important to have Indefeasible Right of Use (IRU) pricing. Fiber strand leases are
typically for periods of 10 years or less. IRUs are long term leases and are typically 20 to 30 years
in length. IRU fees have two parts: a single upfront payment that usually reflects some portion of
the construction cost for the fiber route. As an example, if a lease will include 12 strands of fiber
on a 10 mile route of 144 strand fiber that cost $100,000 to construct, the one time fee might be
12/144 * $100,000 = $8,333. Most IRUs also have a modest annual maintenance fee that reflects
the cost of maintenance and repairs; this would also be pro-rated to reflect the number of fibers
assigned to the IRU agreement.
•Splice points and who is allowed to open handholes to perform splicing must be identified in the
master agreement.
Arcadia Broadband Strategic Plan Page of 55 125
9 INFRASTRUCTURE FUNDING AND
GRANT OPPORTUNITIES
There are a wide variety of state and Federal grant programs, and one outcome of the COVID crisis is a
widespread recognition that access to affordable, high performance broadband for homes and
businesses is both an economic and community development issue.
Funding opportunities vary from state to state. The American Rescue Plan Act of 2021 (ARPA) allowed
states and local governments to use some ARPA funds for broadband infrastructure improvements.
Many localities chose to simply pass their ARPA funds directly to local and regional ISPs, with varying
results. Some ISPs that received funds had little or no experience building fiber to the home networks,
and their construction efforts have been slow and/or more costly than projected. Some areas have
received excellent fiber to the home and fiber to the business services.
It is important to note that any investment by the City in broadband infrastructure should be focused
on passive infrastructure. Passive infrastructure can be leased to private sector service providers,
generating long term revenue for maintenance and expansion. Leasing passive infrastructure like
towers and dark fiber is not a telecommunications service.
These assets will have a conservative life span of 30 years or more (e.g. wireless towers, conduit, fiber
cable). These types of infrastructure investments create hard assets that have tangible value and can
then be leveraged for additional borrowing. The demand for services and the associated fees paid for
those services will provide the revenue that will pay back loans over time. There is ample time to
recoup not only the initial capital investment, but also to receive regular income from the infrastructure.
Arcadia Broadband Strategic Plan Page of 56 125
Funding Options
Bonding General
Fund/CIP
Lease
Fees
Self
Funding
G.O. bonds
Private sector
providers pay
appropriate
fees to use
the
infrastructure
Allocations
from the
General Fund
or the Capital
Improvement
Fund
Businesses
and/or
residents
provide some
or all of the
capital
expenses
Grants
Seek grants
where
available,
including
DHCD, USDA,
FCC funds,
other sources
The financing of local government and/or community-owned telecommunications infrastructure faces
several challenges with respect to funding.
•Not all local governments are willing to commit to making loan guarantees from other
funding sources like property taxes, because the idea of community-owned telecom
infrastructure has a limited track record and therefore a higher perceived risk.
•Similarly, citizens are not always willing to commit to the possibility of broadband fees or
higher taxes that may be needed to support a telecom infrastructure initiative, for many of
the same reasons that local governments are still reluctant to make such commitments:
perceived risk and a lack of history for such projects.
•Finally, banks and investors are also more skeptical of community telecom projects because
of the relative newness of the phenomenon. By comparison, there are decades of data on
the financial performance of water and sewer systems, so the perceived risk is lower.
Somewhat paradoxically, the cost of such a community digital road system is lower when there is a day
one commitment to build to any residence or business that requests service. This maximizes the
potential marketplace of buyers and attracts more sellers to offer services because of the larger
potential market. This is so because:
•Service providers are reluctant to make a commitment to offer services on a network without
knowing the total size of the market. A larger market, even if it takes several years to
develop, is more attractive.
•Funding agencies and investors that may provide loans and grants to a community network
project want to know how the funds will be repaid and/or that grants will contribute to a
financially sustainable project. Knowing that the size of the customer base is the maximum
possible for a service area helps reduce the perceived risk for providing loans and grants.
9.1 CALIFORNIA FUNDING OPPORTUNITIES
The California Advanced Services Fund has played a crucial role in supporting broadband
infrastructure development and promoting equitable access to high-speed internet services in
California. By addressing the needs of unserved and underserved communities, the CASF aims to
bridge the digital divide and foster economic growth, education, healthcare, and improved quality of
life for all Californians.
Broadband Infrastructure Grant Program (BIGP)
The California Department of Housing and Community Development (HCD) administers the
Broadband Infrastructure Grant Program. It offers grants to local governments, tribal entities, and
nonprofit organizations for broadband infrastructure projects in unserved and underserved areas of
California. The funding for the program can vary depending on the budget allocated by the California
Department of Housing and Community Development (HCD) and other factors. The program aims to
expand broadband access, bridge the digital divide, and promote equitable connectivity across the
state. Here are some key details about the Broadband Infrastructure Grant Program (BIGP):
Funding: The BIGP provides funding through grants to support broadband infrastructure projects. The
specific amount of funding available can vary depending on the program budget allocated by the
California Department of Housing and Community Development. Funding may come from various
sources, including federal grants, state funds, and other funding streams.
Arcadia Broadband Strategic Plan Page of 57 125
Eligibility: Eligible applicants for the BIGP grants include local governments, tribal entities, and
nonprofit organizations. These entities can apply for funding to implement broadband infrastructure
projects in unserved and underserved areas of California. The program prioritizes projects that
demonstrate a clear need for broadband access and propose sustainable and scalable solutions.
Project Types: The BIGP supports a wide range of broadband infrastructure projects, including the
deployment of broadband networks, upgrading existing infrastructure, and other related initiatives.
Projects can involve different technologies such as fiber optics, fixed wireless, satellite, or other suitable
broadband technologies that meet the program's goals.
Unserved and Underserved Areas: The BIGP focuses on addressing the needs of unserved and
underserved areas in California. Unserved areas are defined as those lacking access to broadband
speeds of at least 6 Mbps (download) and 1 Mbps (upload). Underserved areas are those with access
to speeds below 25 Mbps (download) and 3 Mbps (upload). The program targets these areas to
expand broadband connectivity and bridge the digital divide.
Application Process: Interested entities must submit a grant application to the California Department
of Housing and Community Development during designated application periods. The application
typically requires detailed information about the proposed project, including project plans, budget,
timeline, community impact, and other relevant details. The HCD evaluates the applications based on
program criteria and priorities to determine funding recipients.
Matching Funds: The BIGP may require applicants to provide matching funds or demonstrate
additional sources of funding to supplement the grant. The matching requirements may vary
depending on the project and its scope. The purpose of matching funds is to ensure a shared
investment in expanding broadband access and encourage collaboration among stakeholders.
Reporting and Oversight: Recipients of BIGP grants are typically required to submit periodic reports
to the California Department of Housing and Community Development, detailing the progress of the
project, expenses, outcomes, and other relevant information. The HCD monitors the projects to ensure
compliance, proper use of funds, and the achievement of program objectives.
The Broadband Infrastructure Grant Program (BIGP) plays a vital role in supporting broadband
infrastructure development in unserved and underserved areas of California. By providing financial
assistance through grants, the program aims to improve broadband access, foster digital inclusion, and
promote economic growth and community development. For the most up-to-date information about
the program, it is advisable to visit the official website of the California Department of Housing and
Community Development.
California Teleconnect Fund (CTF)
The California Teleconnect Fund is administered by the California Public Utilities Commission (CPUC)
and provides discounted broadband and telephone services to eligible schools, libraries, hospitals,
community-based organizations, and nonprofits. It aims to enhance digital access for these entities and
improve connectivity in their respective communities. The program provides financial assistance
through discounts rather than direct funding allocations. The CTF discounts are typically 50% off the
cost of eligible services, and in some cases, the discount can be as high as 70% for qualifying entities.
The specific funding available through the CTF program is not a fixed amount but rather depends on
the total cost of eligible telecommunications services utilized by the participating entities. To obtain the
most up-to-date information on the funding availability and discounts offered by the California
Arcadia Broadband Strategic Plan Page of 58 125
Teleconnect Fund (CTF), it is recommended to visit the official website of the California Public Utilities
Commission (CPUC), which administers the CTF program. Here are some key details about the
California Teleconnect Fund (CTF):
Eligibility: The CTF is available to eligible entities in California, including K-12 schools, libraries,
community colleges, universities, hospitals, healthcare clinics, rural health care providers, community-
based organizations, and nonprofits. Eligibility criteria may vary for different types of entities, and
specific guidelines are provided by the CPUC.
Discounts: The CTF offers discounts on eligible telecommunications services. The standard discount is
50% off the cost of eligible services. However, for qualifying entities serving specific populations, such
as schools with a high percentage of students eligible for the National School Lunch Program or rural
health care providers, the discount can be as high as 70%.
Eligible Services: The CTF discounts apply to a wide range of eligible telecommunications services,
including broadband internet access, voice services, and data transmission. These services can be
obtained from participating telecommunications service providers who have entered into an
agreement with the CPUC.
Application Process: Eligible entities interested in participating in the CTF program need to submit an
application to the CPUC. The application process typically involves providing information about the
entity, its needs, and the services it intends to utilize. The CPUC reviews the applications and
determines eligibility based on the program guidelines.
Funding Source: The CTF is funded through a surcharge on intrastate telecommunications services in
California. The surcharge is collected from telecommunications service providers and is used to
provide the discounts to eligible entities. The exact surcharge rate and funding availability may vary
over time based on CPUC decisions and program requirements.
Program Oversight: The CPUC oversees the CTF program and is responsible for establishing and
implementing program guidelines, eligibility criteria, discount rates, and other program details. The
CPUC also reviews and approves telecommunications service provider agreements to ensure
compliance and participation in the program.
California Advanced Services Fund Broadband Adoption Account (CASF BAA)
Within the broader California Advanced Services Fund, the CASF Broadband Adoption Account
focuses on promoting broadband adoption and digital literacy. The CASF is administered by the
CPUC. It supports projects that address barriers to broadband access and help underserved
communities take advantage of available broadband services. The CASF has a broader focus on
broadband deployment and adoption. The CASF aims to expand broadband infrastructure and
increase broadband adoption in unserved and underserved areas of California. While the CASF
primarily focuses on infrastructure deployment, it also supports projects and initiatives that address
barriers to broadband adoption and promote digital literacy.
These efforts to promote broadband adoption may involve partnerships with community-based
organizations, educational institutions, and other entities working to improve digital inclusion. By
addressing the challenges related to adoption and digital literacy, the CASF aims to ensure that
communities have the necessary resources and skills to fully utilize broadband connectivity.
Arcadia Broadband Strategic Plan Page of 59 125
Governor's Broadband Initiative
The Governor's Broadband Initiative is an ongoing effort by the state government to bridge the digital
divide in California. It encompasses various funding programs, policy initiatives, and partnerships
aimed at expanding broadband infrastructure, improving access, and promoting digital equity across
the state. This legislation, signed on July 15, 2021 in partnership with legislative leaders, advances the
statewide broadband plan with expanded infrastructure prioritizing unserved and underserved areas.
The California legislation includes:
•$3.25 billion to build, operate and maintain an open access, state-owned middle mile network
– high-capacity fiber lines that carry large amounts of data at higher speeds over longer
distances between local networks.
•$2 billion to set up last-mile broadband connections that will connect homes and businesses
with local networks. The legislation expedites project deployment and enables Tribes and local
governments to access this funding.
•$750 million for a loan loss reserve fund to bolster the ability of local governments and
nonprofits to secure financing for broadband infrastructure.
Creation of a broadband czar position at the California Department of Technology, and a broadband
advisory committee with representatives from across state government and members appointed by
the Legislature.
9.2 BEAD FUNDING
The BEAD (Broadband Equity, Access, and Deployment) Program has been allocated $42.5 billion to
expand Internet access. The funds will be distributed to individual states, based on the number of
unserved households in each state. The BEAD program is part of the Infrastructure Investment and
Jobs Act (IIJA) passed by Congress in 2021, with a total of $46.2 billion in funds for broadband.
Funding will be distributed state by state based on the number of locations that fall below the 25/3
threshold. The program will allow some overbuilding (i.e. fiber deployment in areas that exceed the
25/3 threshold) but cannot be more than 20% of the total locations to be served. Areas that already
have federal, state, or local funding allocated are not eligible; RDOF areas need to be examined as
part of the application process, as they would not qualify.
Funds can be spend for:
•Broadband mapping, planning, and data collection.
•New or upgraded broadband infrastructure (i.e. materials and equipment).
•Cost of installation, labor, engineering, and related expenses.
•Workforce training and development.
An interesting requirement of acceptance of grant funds is that no data caps will be allowed. This is an
excellent requirement that protects customers from a common type of “hidden” price increase in the
future after the initial build is completed.
One billion of the $42.5 billion has been allocated specifically for middle mile projects that will be
operated as open access (non-discriminatory use by any and all providers and users). Partnerships are
encouraged.
Arcadia Broadband Strategic Plan Page of 60 125
9.3 DIGITAL EQUITY ACT OF 2021
The Digital Equity Act of 2021 provides $2.75 billion to establish three grant programs that promote
digital equity and inclusion. These programs will fund projects that help ensure U.S. communities have
the information technology capacity needed for full participation in society, democracy, and economy
by promoting a diverse array of digital advancement projects.
These projects may range from providing digital literacy and digital skills education to low-income
populations, improving the online accessibility of social services for individuals with disabilities, or
more accurately measuring broadband access and adoption in rural communities.
Awards to the states were made in 2022. Local governments should check with the state agency
administering these funds to determine if funds are still available.
The three programs are:
•The State Digital Equity Planning Grant Program is $60M formula grant program for states,
territories and tribal governments to develop digital equity plans. This program is administered
by allocating funds to each state, and the governor of each state will appoint an administering
agency responsible for distributing the funds. No cost sharing or matching funds are required to
apply for this program.
•The Digital Equity Capacity Building Grant Program is a $1.44 billion formula grant program for
states, territories, and tribal governments. As of late spring, 2023, this Federal program has not
released a NOFA (Notice of Funds Availability).
•The Digital Equity Competitive Grant Program is a $1.25 billion grant program. It will fund annual
grant programs for five years to implement digital equity projects. As of late spring, 2023, this
Federal program has not released a NOFA (Notice of Funds Availability).
9.4 MIDDLE MILE BROADBAND INFRASTRUCTURE PROGRAM
The Federal Middle Mile (MM) program allocated $1 billion for high speed Internet access. The goal of
the program is to expand middle mile infrastructure in unserved and underserved areas. “Middle mile”
is defined as the mi-section of Internet infrastructure that transports high volume data at high speed
over long distances. Middle mile investments can also assist with the development of redundant fiber
routes, which are important for economic development, public safety, education, and health care.
Both states and local governments were eligible to apply, and collaborations were also eligible (e.g.
city government and one or more ISP partners). For the final round of funding, grant applications were
due in the fall of 2022. Over 235 applications were submitted, and as of early spring, 2023, awards
have not yet been announced.
Grants can be used for the construction, improvement, or acquisition of middle mile infrastructure,
including:
•Construction, improvement, or acquisition of facilities and equipment
•Engineering design, permitting and work related to project reviews
•Personnel costs, incl. salaries and benefits for staff and consultants
•Other costs necessary to programmatic activities
Arcadia Broadband Strategic Plan Page of 61 125
9.5 HUD COMMUNITY DEVELOPMENT BLOCK GRANTS
The U.S. Housing and Urban Development (HUD) Community Development Block Grant (CDBG ) State
Program allows the California state government to award grants to smaller units of general local
government (e.g. counties, towns) that develop and preserve decent affordable housing, to provide
services to the most vulnerable in a community, and to create and retain jobs. In recent years, CDBG
funds have been successfully used for broadband infrastructure development where the local
government applicant can show the improvements meet the general guidelines of the program—so
grant funds have to spent in low and moderate income areas.
Over a one, two, or three-year period, as selected by the grantee, not less than 70% of CDBG funds
must be used for activities that benefit low- and moderate-income persons. In addition, each activity
must meet one of the following national objectives for the program: benefit low- and moderate-
income persons, prevention or elimination of slums or blight, or address community development
needs having a particular urgency because existing conditions pose a serious and immediate threat to
the health or welfare of the community for which other funding is not available. More information is
available here (https://www.hud.gov/program_offices/comm_planning/communitydevelopment/
programs).
9.6 OPPORTUNITY ZONES
An Opportunity Zone is an economically-distressed community where new investments, under certain
conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they
have been nominated for that designation by the state and has been approved by the Internal
Revenue Service (IRS). Opportunity Zones are designed to create tax incentives for private investors to
make investments that can encourage economic development and job creation in distressed
communities. Opportunity Zones would be of most use for Internet Service Providers (ISPs) who could
use the tax benefits to make a business case to improve Internet access in a qualifying area (zone).
Opportunity Zones are defined by census tract, and the Census Bureau’s Geocoder online tool can
provide census tract ID numbers. A link to the list of currently qualified census tracts can be found on
this page (https://www.cdfifund.gov/opportunity-zones). Arcadia does not appear to have any
designated Opportunity Zones.
9.7 BONDING
Revenue bonds are repaid based on the expectation of receiving revenue from the network, and do
not obligate the local government or taxpayers if financial targets are not met. In that respect, they are
different from general obligation bonds. Many kinds of regional projects (water, sewer, solid waste,
etc.) are routinely financed with revenue bonds. We believe many community projects will eventually
finance a significant portion of the effort with revenue bonds, but at the present time, the limited
financing history of most community-owned broadband networks has limited using revenue bonds.
Selling revenue bonds for a start up municipal network can be more challenging because there is no
financial or management history for the venture. Bond investors typically prefer to see two or three
years of revenue and expenses and a track record of management success. It would be advisable for
the city to have an early conversation with qualified municipal bond counsel to assess the viability of
this approach. However, the Covid crisis and the subsequent increase in demand for better
Arcadia Broadband Strategic Plan Page of 62 125
broadband seems to encouraged the bond market to regard muni broadband financing as less
risky than in past years.
Obtaining funding using revenue bonds requires an excellent municipal credit rating and an
investment quality financial plan for the operation and management of the network. Revenue bonds
must be used carefully, and a well-designed financial model is required to show investors that sufficient
cash flow exists to pay back the loans.
General obligation bonds are routinely used by local governments to finance municipal projects of all
kinds. G.O. bonds are guaranteed by the good faith and credit of the local government, and are not
tied to revenue generated by the project being funded (i.e. revenue bonds). G.O. bonds obligate the
issuing government and the taxpayers directly, and in some cases could lead to increased local taxes
to cover the interest and principal payments.
In discussions with bond underwriters, it has been suggested that it would be easier to obtain bond
funds for telecom if the telecom bonding amount was rolled into a larger water or sewer bond, or
some other type of bond request that are more familiar to the bond market (e.g. adding $1M in
telecom funds to a $10M bond initiative for other improvements).
9.8 LEASE FEES
Initiatives like tower access and access to local government-owned conduit and fiber can create long
term revenue streams from lease fees paid by service providers using that infrastructure. The City of
Danville, Virginia has recovered their entire initial capital investment from lease fees paid by providers
on the Danville fiber network.
9.9 COMMUNITY REINVESTMENT ACT
The Community Reinvestment Act (CRA) was developed forty years ago to encourage banks and
savings institutions to help meet the credit needs of their local communities, with a focus on low and
moderate income areas of those communities. The Federal agencies that oversee private banks assign
a CRA rating to each institution. Banks are often looking for well-planned community efforts that need
loans. Such loans can improve a bank’s CRA rating.
The CRA was revised in 2016 to encourage banks to support community broadband efforts. A
community broadband project may be able to get some loan financing from a local bank that wants to
get credit for their CRA work.
9.10 CONNECTION FEES
Tap fees, pass by fees, and connection fees are already commonly used by local governments for
utilities like water and sewer. The revenue share model can be strengthened from additional sources
of revenue, including one time pass by fees, connection fees and sweat equity contributions. It is
important to note that the Co-op Membership Fee can be treated as a connection fee in whole or in
part.
Pass By Fees – Pass by fees could be assessed once the fiber passes by the property, just as some
communities assess a pass by fee when municipal water or sewer is placed in the road or street–and
the fee is assessed whether or not the premise is connected, on the basis that the value of the property
has been increased when municipal water or sewer service passes by. At least one study has indicated
Arcadia Broadband Strategic Plan Page of 63 125
that properties with fiber connections have a higher value by $5,000 to $7,000 that similar properties
without fiber access.
One Time Connection Fees – A one time connection fee can be assessed to property owners (e.g.
residents and businesses) when the fiber drop from the street to the premise is installed. This is similar
to the kinds of connection fees that are typically charged when a property is connected to a municipal
water or sewer system. The fee is used to offset the cost of the fiber drop and the Customer Premise
Equipment (CPE) needed to provide the operational access to the network. The connection fee can be
modest (e.g. $100) or it can be a larger percentage of the actual cost of the connection. Fiber CPE
may range from $250 to $350 and a fiber drop may cost from $200 for a premise very close to the
distribution fiber passing along the property to $1,000 or more if the premise is hundreds of feet from
the road. One variant would be to charge a minimum connection fee for up to some distance from the
road (e.g. $100 for up to 75’ and $2 for each additional foot).
There is already some data that indicates that residential property values increase by as much as
$5,000 to $7,000 if fiber broadband services are available, so pass by fees can be justified on the basis
of increased property values accruing to the property owner. Given the novelty of this approach, pass
by fees may need more time to become an accepted finance approach, but tap fees (for installing the
fiber cable from the street or pedestal to the side of the home or business) may be easier to use,
especially for businesses that may need improved broadband access. Tap fees have the potential of
reducing the take rate in the early phases of deployment, but as the value of the network becomes
established, it is likely that there will be much less resistance to paying a connection fee.
9.11 NEW MARKETS TAX CREDIT
New markets tax credits are a form of private sector financing supported by tax credits supplied by the
Federal government. The New Markets Tax Credit (NMTC) Program permits taxpayers to receive a
credit against Federal income taxes for making qualified equity investments in designated Community
Development Entities (CDEs). The CDEs apply to the Federal government for an allotment of tax
credits, which can then be used by private investors who supply funds for qualifying community
projects. Substantially all of the qualified equity investment must in turn be used by the CDE to
provide investments in low-income communities.
The credit provided to the investor totals 39% of the cost of the investment and is claimed over a
seven-year credit allowance period. In each of the first three years, the investor receives a credit equal
to 5% of the total amount paid for the stock or capital interest at the time of purchase. For the final four
years, the value of the credit is six % annually. Investors may not redeem their investments in CDEs
prior to the conclusion of the seven-year period.
Throughout the life of the NMTC Program, the Fund is authorized to allocate to CDEs the authority to
issue to their investors up to the aggregate amount of $19.5B in equity as to which NMTCs can be
claimed.
These tax credits can be quite useful, and there may be some areas that qualify. However, it can take
up to a year or more to apply and then finally receive NMTC-related cash. This can be a useful long
term source of funds.
Arcadia Broadband Strategic Plan Page of 64 125
9.12 SPECIAL ASSESSMENT/SERVICE DISTRICT/TIF
Communities like Bozeman, Montana and Leverett, Massachusetts have been funding broadband
infrastructure improvements with special assessments (in Leverett, $600/year for five years), and in
Bozeman, TIF (Tax Increment Funding) is being used in some areas to add telecom conduit, handholes,
and dark fiber. In some localities, it is possible to levy a special assessment in a service district
designated for a particular utility (like broadband) or other kind of public service.
Charlemont, Massachusetts is adding an $11/month assessment to every household to build a town-
owned Gigabit fiber network that will pass every household in the community. A town-wide vote
supported this funding approach. Put in perspective, the average cost of a large, single topping pizza
in the U.S. is currently $9 to $12.
Tax Increment Financing (TIF)
Consider establishing a Tax Increment Financing district or utilizing an existing TIF district to capture
future increases in property tax revenue resulting from broadband infrastructure improvements. The
additional revenue can then be allocated towards funding broadband initiatives.
Special Purpose Local Option Sales Tax (SPLOST)
If applicable, consider using a portion of the revenue generated from a local sales tax dedicated to
specific infrastructure projects, such as broadband deployment. This can provide a reliable funding
source for broadband initiatives within the designated timeframe of the sales tax program.
Utility Fees and Special Assessments
Some local governments have evaluated the potential of a $10-12 utility tax levied on every household
and business to finance a full fiber to the premises build out, including a modest “free” Internet service
that would be adequate for email and light Web use. Most households will probably choose to select
a higher performance Internet package from a private provider on the network. A $10/month special
assessment (the average cost of one large pizza) on every business in the downtown area in Arcadia
could raise as much as $960,000 for broadband over 20 years—enough to pass nearly all downtown
buildings with conduit and dark fiber.
The table below shows the kind of funds that could be generated over several time periods. If $10 per
month were collected from each household for 30 years, it would easily finance the immediate build
out of Gigabit fiber that would pass nearly all homes and businesses in the downtown portions of
Arcadia. A lesser amount (e.g. $2/month over 20 years) would easily finance the immediate build out of
a comprehensive telecom conduit and dark fiber system in the downtown area..
Arcadia Special Assessment Examples
Monthly Assessment Amount Twenty Year Assessment Thirty Year Assessment
Number of Premises/Businesses 400
$1 $96,000 $144,000
$2 $192,000 $288,000
$5 $480,000 $720,000
Arcadia Broadband Strategic Plan Page of 65 125
9.13 GRANT APPLICATION ACTIVITIES
$10 $960,000 $1,440,000
Arcadia Special Assessment Examples
Monthly Assessment Amount Twenty Year Assessment Thirty Year Assessment
Number of Premises/Businesses 400
Activity Description Discussion Tasks
Develop a grant
application
The grant
application
process, from start
to award
announcement,
can be nine to 12
months.
Broadband grant
application
requirements have
become more
stringent over time,
with more grant
agency oversight
and review. Careful
planning is essential
to develop a
successful
application.
•Once a grant opportunity has been
identified, review grant requirements
to determine if the project can
qualify. For example, some grants
require two years of financial history.
•Identify regional agency that will
assist.
•Begin contacting potential ISP
partners.
•If the project qualifies, identify at
least two people to take the lead to
prepare application.
•Prepare a task list of all grant
materials requirements and identify
data needed.
•Develop a timeline for developing
sections of the grant.
•Identify requirements for letters of
support and matching funds and
develop timeline to solicit and
collect commitments.
•Complete all sections of grant
application with assistance from
public and private partners.
•Submit grant application.
Arcadia Broadband Strategic Plan Page of 66 125
Typical Timeline Months
Tasks 1 2 3 4 5 6 7 8 9 10 11 12
Determine grant qualifications
Identify regional council partner
Identify ISP partner if needed
Appoint grant team
Create grant task list
Prepare timeline and assign tasks to
partners
Identify matching fund requirements
and letters of support to solicit and
collect as needed
Complete all sections of the grant
application
Submit grant
Grant agency review
Awards announcement
Arcadia Broadband Strategic Plan Page of 67 125
10 OBSTACLES TO BROADBAND
DEPLOYMENT
When considering obstacles to broadband deployment in downtown Arcadia, several factors may
come into play. Here are some potential obstacles that can hinder broadband deployment:
Physical Infrastructure Challenges
The physical infrastructure of downtown Arcadia can pose obstacles to broadband deployment. This
includes difficulties in accessing utility poles, lack of available conduit or ducts for fiber optic cable
installation, or the need for significant trenching or construction work to lay infrastructure. The cost of
installing underground conduit and fiber in built up urban areas (i.e. downtown Arcadia) can be
significantly higher than in residential neighborhoods—part of the reason many residential areas of the
city already have fiber service when large portions of the downtown area do not.
Rights-of-Way and Permitting
Securing rights-of-way for deploying broadband infrastructure in public spaces can be a complex and
time-consuming process. Obtaining necessary permits, dealing with regulatory requirements, and
navigating through local zoning and land-use regulations may create obstacles to timely deployment.
The City should ensure that the City engineering and permitting processes and construction
requirements are reasonable. A frequent complaint from fiber contractors throughout the U.S. is that
some municipalities are very slow in processing telecom infrastructure permits.
Cost and Financing
The financial burden of deploying broadband infrastructure can be a significant obstacle. The upfront
costs of network deployment, including equipment, materials, labor, and ongoing maintenance
expenses, can be substantial. Limited funding or difficulty in securing financing options may impede
deployment efforts. The City could help offset private sector capital costs by constructing a shared
conduit/fiber system in the downtown area.
Regulatory Barriers
Regulatory frameworks at the local, state, or federal level can pose obstacles to broadband
deployment. These may include outdated or restrictive regulations, permitting delays, or requirements
that increase the cost and complexity of infrastructure deployment.
Limited Competition
Lack of competition among broadband service providers can hinder deployment efforts. In areas
where a single provider dominates, there may be less incentive for investment and innovation.
Encouraging competition can spur infrastructure development and drive improvements in service
quality and affordability. A shared conduit/fiber system would likely bring new providers who are
interested in serving the downtown businesses, and new ISP entrants to an existing market usually
brings lower prices, better service, and higher speeds for businesses.
Stakeholder Engagement and Community Support
Lack of business awareness, engagement, or support for broadband initiatives can be an obstacle. It is
important to educate and engage businesses, the Chamber of Commerce, and any local merchant
associations to build understanding, support, and participation in broadband deployment efforts
Arcadia Broadband Strategic Plan Page of 68 125
APPENDIX A: BROADBAND PROVIDER
ANALYSIS
This report section includes information which shows what Internet services are available to The City of
Arcadia businesses and residents and how much business and residents pay for the services they
chose. Appendix A contains more detail on provider services, prices, and packages.
Pricing information is often difficult to obtain because many providers intentionally do not want the
local government, businesses, or residential customers to be able to do comparison shopping.
The true cost of a package of Internet is often hidden behind promotional pricing and hidden taxes
and fees, making it difficult for a customer to decipher or it requires a phone call to a sales
representative. Business pricing is even more difficult to assess because many ISPs will refuse to
provide any pricing without a site survey.
Our data is assembled from several public sources that provide data on Internet use, including FCC
data, social media data, and commercial Web sites that provide Internet use data. The best information
utilizes zip codes but those boundaries are not aligned with local government jurisdictions, and some
zip code data as we discuss later includes areas have no information. Adjustments are noted.
The information in these charts and tables is current as of late March 2023, and shows the areas where
service providers claim to provide service. Percentages of customers being offered different kinds of
service do change as equipment is upgraded or new neighborhoods are reached. Because of rapid
changes that can take place with pricing and available services, this report should be only viewed as a
snapshot of the information when the report was written. It would be very unusual for service provider
data to remain the same even one or two months later. Changes are happening quickly in Arcadia.
This report also provides estimates of pricing, services and speeds received by households in a
particular zip code. Actual pricing, services, and speeds are more discoverable in survey responses
which document what services customers actually have. We have included business information that is
available without a site survey.
Nationally, Consumer Reports found in their Summer 2021 Broadband Survey, “Fifteen percent of
American households only have access to the internet through their smartphone data plan and one in
20 use DSL or dial-up to access the internet. Three percent of Americans say their household does not
have access to the internet.” These are good metrics to compare coverage in your City. We estimate 1
that about 9% of The City of Arcadia residents use DSL and less than one half a percent use dial-up.
An initial estimate is that 9% of The City of Arcadia residents access the Internet only with their
smartphone and another 5% only have satellite Internet access. These services are more expensive
than fixed wireless (FW) or fiber. Consumer Reports recently stated that 84% of their members in March
2022, agreed that Internet service is “as important as water or electricity.” National surveys mirror those
numbers with the latest number there being an April 2020 survey showing 80% of all surveyed
consumers saying the same thing. 2
Broadband Survey, Consumer Reports, July 20211
Best and Worst Home Internet Providers of 2022, By James K. Willcox, November 7, 2022, page 12
Arcadia Broadband Strategic Plan Page of 69 125
According to a 2019 Consumer Reports study , the national average advertised price for standard 3
triple play services of Internet, television, and telephone across the country is $156.17. Because of fees
and taxes, the actual national average cable bill was $217.42. Nationally, consumers got an average of
24% added to their bill. Our information shows those prices have not gone down. Data caps which
were turned off early in the pandemic are back in many areas. 4
In their 2022 study of 22,000 bills Consumer Reports found companies imposed ”junk fees”—under
names such as “network enhancement fee,” “internet infrastructure fee,” “deregulated administration
fee,” and “technology service fee.” These are not government required fees. They only improve the
company’s profits and sometimes used to raise costs for customers without breaking contracts. 5
Dealing with data caps can also be expensive for consumers, often adding $30 or more per month.
Cord Cutting Continues, Fueled By High Cable Pricing, Consumer Reports' Survey Finds 9/17/20193
Consumer Reports -Get Ready for Cable TV and Internet Price Hikes and Data Caps in the New Year 12/21/204
What Consumer Reports Learned From 22,000 Internet Bills.- Dec. 17, 2022, page 45
Arcadia Broadband Strategic Plan Page of 70 125
This rate card is typical of the complexity of fees that consumers face when they are trying to bundle
services.
Arcadia Broadband Strategic Plan Page of 71 125
“Nearly half (47 percent) of U.S. TV viewers state they do not subscribe to “traditional cable,” and
among those that do, 44 percent are planning to drop cable or cut back services over the next year.“ 6
This chart from Innovative Systems’ study of rural broadband users shows how streaming is becoming 7
an important delivery mechanism even in rural areas. We would expect Arcadia residents to have an
even greater dependence on streaming. Streaming is just one of the factors that increases the demand
for greater bandwidth across the full spectrum of broadband users. Streaming can be problematic
with services that have high latency.
OpenVault recently reported “average per-household consumption was 586.7 GB at the end of 2022,
an increase of nearly 10% over the prior year. The percentage of subscribers on gigabit tiers reached
26% in 4Q22, more than double the 12.2% during the same period in 4Q21. They also reported
average speeds for US household was 415 Mbps down and 25 Mbps up. ” 8
July 20, 2021, The Future of TV Report: Connected TV and Linear TV Move Closer Together6
Rural Video and Broadband Industry Study - 2021, page 4, by Innovative Systems7
OpenVault, Broadband Insights Report (OVBI) 4Q22, page 8,9,17, fall 20228
Arcadia Broadband Strategic Plan Page of 72 125
The Pandemic has also had a major impact on the amount of work done from home even in rural
areas. The recent Census Bureau's Household Pulse Survey showed that 43% of Californians 9 10
reported working from home from one to five days in the past week.
Survey results presented in November 2021, by Kyle Rosner, Deputy Broadband Advisor for the
Commonwealth of Virginia, indicate that the number of people working from home (among those who
can) has jumped from a pre-pandemic level of 20% to 71% who are currently working from home.
Those who would like to work from home after the pandemic now stand at 54%. 11
The City of Arcadia’s residents are seeing increasing access to the Internet through more modern fiber
connections. Our survey will provide more information. Having access to fiber means that working
from home in a job that requires significant Internet access is easier as more fiber connections are
made.
Rural Video and Broadband Industry Study - 2021, page 13, by Innovative Systems9
Week 54 Household Pulse Survey: February 1 - February 13, 2023, Table 7a10
Connect Commonwealth Presentation by Kyle Rosner to NC Broadband Matters, November 15, 2021, slide 1611
Arcadia Broadband Strategic Plan Page of 73 125
It is important to understand how significant broadband bills have been become for all households.
When faced with limited broadband choices driven by lack of competition there are few ways for a
household, especially a small one, to lower broadband costs significantly. The increasing dependence
of households on broadband services makes this even more critical.
Sources: Municipal utility reporting, Consumer Reports 2019 study, energystar.gov
Nationwide, Circle of Blue
Arcadia Broadband Strategic Plan Page of 74 125
$0.00
$75.00
$150.00
$225.00
$300.00
Cable Electricity/Gas Water Garbage
$15.00
$54.90
$135.60
$217.42
Average Monthly Cost Per Utility
Those houses purchasing a traditional cable package at or above average national costs now find that
their cable package costs more than all their other utilities put together.
“One important thing we found in our research was how relatively expensive a cable bill is compared
to other utilities for smaller households. The average cable bill stays relatively similar across household
sizes, whether it’s one person living in a small apartment or a family of ten living in a large house. This is
not true of utilities like electricity or water, with much wider scales for their average bill size depending
on household size.” 12
Our pricing information includes all the service providers that have been discovered with services
offered to 5% or more residents living in zip codes with at least 5% or more of their population in The
City of Arcadia. Two zip codes, 91732 and 91780, were eliminated due to their Arcadia population
being only two tenths of one percent . We also cannot analyze zip codes which are just post office
boxes because there is no way to accurately determine where those people using the post office boxes
receive their Internet services. Two zip codes, 91066 and 91077, were excluded as post office box only
locations.
While our online reports showed substantial availability of fiber in the City, we believe that there may
be more fiber available than online reports indicate. While online reports showed Giggle Fiber as a
cable only provider, we were able to take the signup process to the last step on several Arcadia
locations for a fiber connection from Giggle. From the spread of the locations and conservations with
customer representatives, it appears that Giggle is converting customers to fiber when they request it.
AT&T and Frontier on the other hand appear to building out neighborhoods. While EarthLink is listed
as a fiber provider, we were unable to verify any locations. However, EarthLink does not build their own
fiber so their absence has little to do with the amount of fiber available in Arcadia.
We question the accuracy of the Census reported number of 2,693 households in Arcadia receiving
Internet services by satellite. Based on areas similar to Arcadia we would expect it to be under 1,000
households which is similar to DSL usage. Survey data will help pinpoint this.
We also do not include services in the pricing comparisons when we estimate the service is available to
less than 5% of the City’s population. Satellite prices are also not considered in median cost
comparisons since they are available everywhere and would distort local pricing. We also exclude
Earthlink 5G and T-Mobile 5G home Internet services for the same reason
With those considerations, median price of a 25/3 Internet connection in The City of Arcadia is $60
which is 19% lower than $73.98 median price we have calculated across our last dozen studies.
However, bundled triple-play (Internet-TV-Phone) services for The City of Arcadia citizens are hard to
compare to other places we have studied since the only triple-play provider Arcadia has is Spectrum.
The lowest price of a Spectrum triple-play package with at least 25/3 connectivity is $169.91. The
median triple-play service cost across our last nine counties studied (four in Pennsylvania, four in Texas
and one in Minnesota) was $139.07. If we assumed all of the estimated 11,471 City of Arcadia
households on cable are using Spectrum’s lowest cost triple-play services, they are paying $353,766
month more than those other counties’ residents. Annually that number is $4,245,188.
Some counties in those nine have competing cable service providers with the result that we have seen
cable triple play bundles similar to the Spectrum one priced as low as $110 monthly.
Report: The average cable bill now exceeds all other household utility bills combined, AllConnect 6/22/202012
Arcadia Broadband Strategic Plan Page of 75 125
Competition lowers prices, but some neighborhoods close to each other in Arcadia end up paying
more than their neighbors for Internet service that is far less capable. An example is pictured below.
The same provider is charging more for poor service less than two miles away. We mostly recently saw
something similar in studies that we did in Texas. As you can see from the pricing tables that follow
AT&T charges $70 for their hybrid copper service no matter how slow the speed is.
Arcadia Broadband Strategic Plan Page of 76 125
Summary of Service Provider Data - City of Arcadia, CA
Least Expensive
Internet Only
Service
Least Expensive Internet
Only Service Meeting
25/3
Least Expensive
Triple Pay
Package Meeting
25/3
AT&T IPBB $70 $70 N/A
Frontier DSL $54.99 N/A N/A
Giggle Cable $44.95 $44.95 N/A
Spectrum Cable $99.95 $99.95 $169.91
AT&T Fiber $60 $60 N/A
EarthLink Fiber Unable to verify location
Frontier Fiber $54.99 $54.99 N/A
Giggle Fiber $39.95 $39.95 N/A
Towerstream FWA $75 $150 N/A
T-Mobile Lite Home
Internet $50 $50 N/A
EarthLink 5G $64.95 $64.95 N/A
T-Mobile 5G Internet $50 $50 N/A
HughesNet $64.99 $64.99 N/A
Viasat $69.99 $99.99 N/A
Starlink $120 $120 N/A
Arcadia Broadband Strategic Plan Page of 77 125
The table below illustrates the estimated telecom expenditures, public and private, over the next thirty
years. Over that time period, over $486 Million is put in envelopes and much of it leaves both the City
and the state. Redirecting a fraction of those expenditures could build a complete conduit/dark fiber
system throughout the downtown area of the City.
Telecom Expenditures - City of Arcadia, CA
Households 19,189
Businesses 2,496
Household
Internet
Access Type
Estimates
Cell
Phone /
5G
Fixed
Wireless DSL Satellite Cable
No
Internet
Access
Fiber Dial-up
Household
Percentage 9%1%9%5%60%6%9.64%0.47%
Households 1,772 190 1,734 1,000 11,471 1,063 1,849 90
Average
monthly
telecom
expenditures
Cell Phone
for Voice/
Internet
$160
Satellite
TV: $100
Cell Phone
$127 Fixed
Wireless $50
Satellite TV:
$100
Cell
Phone
$127
Phone:
$15
Satellite
TV: $100,
DSL
Internet :
$55
Internet
Cell Phone
$127
Satellite
TV: $100,
Satellite
Internet:
$100
Cell Phone
$127
Phone $40
TV: $70
Cable
Internet $80
Cell
Phone
$127, no
Internet,
Satellite
TV $100
Cell
Phone
$127,
Fiber
Internet
$65,
Stream-
ing TV
$45
Cell
phone
$127,
Dial-up
Internet
$12.95,
Satellite
TV:$100
Monthly cost of
Services $260 $277 $297 $327 $317 $227 $237 $240
Annual
household cost $3,120 $3,324 $3,564 $3,924 $3,804 $2,724 $2,844 $2,879
Annual cost all
households $5,528,640 $631,560 $6,179,976 $3,924,000 $43,635,684 $2,895,612 $5,258,556 $259,146
30 year
expenditures $165,859,200 $18,946,800 $185,399,280 $117,720,000 $1,309,070,520 $86,868,360 $157,756,680 $7,774,380
Total residential
expenditures $165,859,200
Estimated Hidden
Fees $140,859,292
Total Business
Costs $179,712,000
Total
expenditures $486,430,492
Arcadia Broadband Strategic Plan Page of 78 125
Arcadia Broadband Strategic Plan Page of 79 125
0
5,000
10,000
15,000
20,000
City of Arcadia Internet Users
Hughes Net
Viasat -Satellite 5%
Cellular Companies 9%
AT&T Fiber
Frontier Fiber
Giggle Fiber
10%
Tower Stream FWA 1%
AT&T IPBB
Frontier DSL 9%
Giggle Fiber- Cable
Spectrum Cable 60%
Satellite
Cellular
Fiber
Fixed Wireless
DSL
Cable
No Internet Subscription
6%
Dial-up Usage
0.47%
Satetille Usage
5.22%
Cell Phone
9.24%
Fixed Wireless Usage
0.99%
Fiber Usage
9.65%
Cable Usage
59.84%
DSL Usage
9.05%
Estimated Internet Access by
Type- The City of Arcadia, CA
6% No Internet Subscription
Information from surveys
often does not total 100%
because some
respondents choose more
than one answer even
when requested to pick
only one.
Business Service Provider Data - City of Arcadia, CA
Non-promo Pricing Promo pricing Speed Includes Comments
Spectrum $93 $73 300/10 Internet only $99
Installation
Spectrum $93 $73 600/35 Internet only $99
Installation
Spectrum $142.98 $122.98 1000/35 Internet only $99
Installation
Spectrum $117.97 $77.97 300/10 Internet, One
phone line
Spectrum $97.97 $77.97 600/35 Internet, One
phone line
Spectrum $147.97 $127.97 1000/35 Internet, One
phone line
Spectrum’s wireless, battery-powered LTE modem can keep your business running during a power
outage thanks to its automatic backup connection and unlimited data to support up to four devices for
more than eight hours. No pricing available
Frontier Fiber Could not confirm a business location with Frontier
available
Giggle Fiber Cable $59.95 350/10 Internet only
Giggle Fiber Cable $99.95 500/10 Internet only
Giggle Fiber Cable $159.95 1000/15 Internet only
Giggle Fiber Cable Symmetrical Enterprise Internet is quoted individually and requires a site survey.
Business Phone available at $25/mo
One Ring Network No public information
Crown Castle No public information
GTT Communications No public information
Verizon Business $79 $69 200/200 Internet only
30-day
money back
guarantee
Verizon Business $139 $129 500/500 Internet only
30-day
money back
guarantee
Verizon Business $259 $249 940/880 Internet only
30-day
money back
guarantee
Arcadia Broadband Strategic Plan Page of 80 125
Typical Business Internet Provide Site- Pricing requires a real address and most likely a site survey.
Non-promo Pricing Promo pricing Speed Includes Comments
Verizon Business
All Offers: Offers available to new business customers only, subject to credit review. Not available in all
areas/locations. Depending on speed tier purchased, promotional pricing for Internet and voice
guaranteed for 12 consecutive months ($10 increase starting month 13 with 2 year contract), or 24
consecutive months ($10 increase starting month 25 with 2 year contract), or 36 consecutive months
($10 increase starting month 37 with 2 year contract) or 60 consecutive months ($10 increase starting
month 61 with 2 year contract) (60 month guarantee not available in all areas where Fios is sold) $49
activation fee may apply. Offers may be fulfilled via bill credit(s); other taxes, fees & terms apply. Early
termination fees for a 2 year contract: 35% of base monthly charges for unexpired term. 2 year term
automatically renews at then-current term rates unless canceled within 30 days prior to or 60 days after
the term is renewed. Phone equipment purchase required with VoIP, starting at $85. Equipment must
be returned within 30 days of cancellation. Equipment restocking fee may apply if order is canceled or
service is terminated within 30 days. MBG and/or promotional offers do not apply to service ordered
for temporary, short term or special events. Firm Price Quote is valid for 5 business days and is an
estimate based on current pricing, promotions and taxes that are subject to change.
Spectrotel No public information
CyberNet Asymmetric Services Start at $59.95 monthly Fiber Services Start at $199 monthly
Fusion Connect Asymmetrical Ethernet up to 10.0 M Cable up to 600M
Tower Stream Dedicated Internet Access with speeds from 5Mbps to
10Gbps.
Sonic Unable to locate a verifiable address
Arcadia Broadband Strategic Plan Page of 81 125
If there is no information in the “One-time Fees,” it does not necessarily mean there are no one-time
fees. It just means that information on the one-time fees could not be found on the company’s public
website.NOTE: Many ISPs do not provide upload speeds. This table indicates that no upload speed was
discoverable by the abbreviation ‘NA’ (Not Available)
Wireline Internet service provider comparison for City of Arcadia, CA
Provider Monthly
Cost
Promo Rate
& Contract
Length
Other
Monthly
Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
Incentives
AT&T IPBB $70
$55
includes $5
month
AutoPay
and
paperless
discount,
$10
discount for
12 months
Extended
Wi-Fi
$10
0.768/0.4
1,000
$10
charge
each
additional
50GB (up
to $100/
mo.).
Unlimited
data
allowance
may also
be
purchase
d
separately
for an
additional
$30/mo.
Taxes & Fees:
Up to $99
installation
fee may
apply,
Monthly cost
recovery
surcharges,
not
government-
required,
apply in TX,
OH and NV
Internet Only
AT&T IPBB $70
$55
includes $5
month
AutoPay
and
paperless
discount,
$10
discount for
12 months
Extended
Wi-Fi 3/1
Provider
Arcadia Broadband Strategic Plan Page of 82 125
AT&T IPBB $70
$55
includes $5
month
AutoPay
and
paperless
discount,
$10
discount for
12 months
$10 5 / 1
1,000
$10
charge
each
additional
50GB (up
to $200/
mo.).
Unlimited
data
allowance
may also
be
purchase
d
separately
for an
additional
$30/mo.
Taxes & Fees:
Up to $99
installation
fee may
apply,
Monthly cost
recovery
surcharges,
not
government-
required,
apply in TX,
OH and NV
Internet Only
AT&T IPBB $70
$55
includes $5
month
AutoPay
and
paperless
discount,
$10
discount for
12 months
Extended
Wi-Fi
$10
10/1
1,000
$10
charge
each
additional
50GB (up
to $100/
mo.).
Unlimited
data
allowance
may also
be
purchase
d
separately
for an
additional
$30/mo.
Taxes & Fees:
Up to $99
installation
fee may
apply,
Monthly cost
recovery
surcharges,
not
government-
required,
apply in TX,
OH and NV
Internet Only
Monthly
Cost
Promo Rate
& Contract
Length
Other
Monthly
Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
IncentivesProvider
Arcadia Broadband Strategic Plan Page of 83 125
AT&T IPBB $70
$55
includes $5
month
AutoPay
and
paperless
discount,
$10
discount for
12 months
Extended
Wi-Fi
$10
100/10
1,000 $10
charge
each
additional
50GB (up
to $100/
mo.).
Unlimited
data
allowance
may also
be
purchase
d
separately
for an
additional
$30/mo.
Taxes & Fees:
Up to $99
installation
fee may
apply,
Monthly cost
recovery
surcharges,
not
government-
required,
apply in TX,
OH and NV
Internet Only
Frontier DSL $54.99
$49.99 with
a $5
discount for
autopay
10/1
Internet only, router
included. Free
service activation.
Router Included
Giggle Fiber
(Cable)$44.95
$5 Auto Pay
Discount
Available
No
Contract
WiFi
$9.95 500/25 Unlimited
Order online
free $60
installation
Internet Only
Modem included
Giggle Fiber
(Cable)$54.90
$5 Auto Pay
Discount
Available
No
Contract
WiFi
$9.95 500/25 Unlimited
Order online
free $60
installation
Internet and Phone
Modem included
Giggle Fiber
(Cable)$69.95
$5 Auto Pay
Discount
Available
No
Contract
WiFi
$9.95 940/40 Unlimited
Order online
free $60
installation
Internet Only
Modem included
Giggle Fiber
(Cable)$79.90
$5 Auto Pay
Discount
Available
No
Contract
WiFi
$9.95 940/40 Unlimited
Order online
free $60
installation
Internet and Phone
Modem included
Monthly
Cost
Promo Rate
& Contract
Length
Other
Monthly
Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
IncentivesProvider
Arcadia Broadband Strategic Plan Page of 84 125
Spectrum $99.99
$39.99 ($60
discount)
for two
years.
500/20 Unlimited
Free
installation
Free
Activation
Internet Only
$50 one time credit
Free modem
Spectrum $119.99
$59.99 ($60
discount)
for two
years.
940/35 Unlimited
Free
installation
Free
Activation
Internet Only
Free modem
Spectrum $169.91
$94.92 ($75
discount)
for two
years.
Includes
$22.20
Broadcast
fee
500/20 Unlimited
Free
installation
Free
Activation
Internet, Choose 15
TV Channels, Home
Phone, $50 one time
credit
Free modem
Spectrum $189.91
$114.92
($75
discount)
for two
years.
Includes
$22.20
Broadcast
fee
940/35 Unlimited
Free
installation
Free
Activation
Internet, Choose 15
TV Channels, Home
Phone, $50 one time
credit
Free modem
Spectrum $237.80
$152.80
($85
discount)
for two
years.
Includes
$22.20
Broadcast
fee
$6.00
Sports fee
500/20 Unlimited
Free
installation
Free
Activation
Internet, 125+ TV
Channels, 23+
Sports Channels,
Home Phone, Free
modem
Spectrum $253.17
$168.17
($85
discount)
for two
years.
Includes
$22.20
Broadcast
fee
$6.00
Sports fee
940/35 Unlimited
Free
installation
Free
Activation
Internet, 125+ TV
Channels, 23+
Sports Channels,
Home Phone, Free
modem
AT&T Internet
300 Fiber $60
$55
includes $5
month
AutoPay &
Paperless
discount
Extended
Wi-Fi
$10
300/300 Unlimited
Taxes & Fees:
Credit for
$99 standard
installation
Internet Only-Free
$100 Reward Card,
also additional $50
Reward Card for
Internet sign up.
Will pay ETF from
previous service-see
note
Monthly
Cost
Promo Rate
& Contract
Length
Other
Monthly
Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
IncentivesProvider
Arcadia Broadband Strategic Plan Page of 85 125
````````
AT&T Internet
500 Fiber $70
$65
includes $5
month
AutoPay &
Paperless
discount
Extended
Wi-Fi
$10
500/500 Unlimited
Taxes & Fees:
Credit for
$99 standard
installation
Internet Only-Free
$100 Reward Card,
also additional $50
Reward Card for
Internet sign up.
Will pay ETF from
previous service-see
note
AT&T Internet 1
Gig Fiber $85
$80
includes $5
month
AutoPay &
Paperless
discount
Extended
Wi-Fi
$10
1000/100
0 Unlimited
Taxes & Fees:
Credit for
$99 standard
installation
Internet Only-Free
$100 Reward Card,
also additional $50
Reward Card for
Internet sign up.
Will pay ETF from
previous service-see
note
Frontier Fiber $59.99 $49.99 with
Auto Pay 500/500 Unlimited
Installation
$50 ($35
discount)
Internet Only
Amazon eero 6+
router included,
$10/mo off YouTube
TV for one year
Frontier Fiber $79.99 $69.99 with
Auto Pay
1000/100
0 Unlimited
Installation
$50 ($35
discount)
Internet Only
Amazon eero 6+
router included,
$10/mo off YouTube
TV for one year
Frontier Fiber $109.99 $99.99 with
Auto Pay
2000/200
0 Unlimited
Installation
$50 ($35
discount)
Internet Only
Amazon eero 6+
router included,
$10/mo off YouTube
TV for one year $200
Visa Rewards Card
Frontier Fiber $109.99 $99.99 with
Auto Pay
5000/500
0 Unlimited
Installation
$50 ($35
discount)
Internet Only TP-Link
Archer AXE300 6E
router included,
$10/mo off YouTube
TV for one year
Giggle Fiber $39.95 No promo
rate
Optional
Router
$9.95
500/500 Unlimited Internet Only
Giggle Fiber $64.95 No promo
rate
Optional
Router
$9.95
1000/100
0 Unlimited Internet Only
Monthly
Cost
Promo Rate
& Contract
Length
Other
Monthly
Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
IncentivesProvider
Arcadia Broadband Strategic Plan Page of 86 125
Wireless Internet service provider comparison for City of Arcadia, CA
Provider Monthly
Cost
Promo &
Contract
Length
Other
Monthly
Fees
Download/
Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
Incentives
Towerstream FWA $75
12
Months 10/5 Unlimited
$300
Installation
Fee
Internet Only
Towerstream FWA $100
12
Months 15/5 Unlimited
$300
Installation
Fee
Internet Only
Towerstream FWA $64.99
12
Months 20/5 Unlimited
$300
Installation
Fee
Internet Only
Towerstream FWA $74.99
12
Months 25/10 Unlimited
$300
Installation
Fee
Internet Only
EarthLink $64.95
Unknown
uses either
4G LTE or
5G
depending
on closest
tower
50 GB Activation fee
$79.95 Internet Only
EarthLink $79.95
Unknown
uses either
4G LTE or
5G
depending
on closest
tower
75 GB Activation fee
$79.95 Internet Only
EarthLink $99.95
Unknown
uses either
4G LTE or
5G
depending
on closest
tower
100 GB Activation fee
$79.95 Internet Only
EarthLink $149.95
Unknown
uses either
4G LTE or
5G
depending
on closest
tower
150 GB Activation fee
$79.95 Internet Only
T-Mobile Lite
Home Internet $50 $14.95
router 35/3
Internet Only -
Plan costs will
vary by location
Provider
Arcadia Broadband Strategic Plan Page of 87 125
T-Mobile 5G $50
Auto Pay
Required
- $50
includes
$10
credit for
autopay
None
182/33
(Varies by
location)
None
Internet Only-
$100 back when
you switch to T-
Mobile Home
Internet via virtual
Prepaid
Mastercard® in 8
weeks- will pay to
$500 to terminate
another contract
T- MobileHome Internet General Terms: During congestion, Home Internet customers may notice
speeds lower than other customers due to data prioritization. Not available in all areas. $35 assisted
support or device connection charge due at sale. Plus taxes & fees for accounts currently paying for a T-
Mobile wireless line with additional taxes & fees: Monthly Regulatory Programs (RPF) & Telco Recovery
Fee (TRF) totaling $1.40 per data only line ($0.12 for RPF & $1.28 for TRF) apply; taxes/fees approx.
3-12% of bill. Credit approval required. For use only with T-Mobile Gateway for in-home use at location
provided at activation. If canceling service, return gateway or pay up to $370
Verizon LTE Home $60.00
$50 with
Auto Pay
Two year
price
lock
None 50/4 None None
Internet
only ,WiFi 6
Router included.
30-Day
Satisfaction
Guarantee. Will
cover the cost of
early termination
fees with up to
$500 when you
switch
Monthly
Cost
Promo &
Contract
Length
Other
Monthly
Fees
Download/
Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time
Fees
Services &
IncentivesProvider
Satellite Internet service provider comparison for City of Arcadia, CA
Provider Monthly
Cost
Promo & Contract
Length
Other
Monthly Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time Fees
HughesNet $64.99
24 month
commitment
required. Up to $400
ETF
$14.99
equipment
lease it you
don’t
purchase
25/3
After 15
GB
(speeds
drop to
1-3
Mbps)
Internet Only- Purchase
pricing is $249.99 to
purchase or $99 lease
activation- instant lease
savings of $99- limited
time- Users can add
unlimited phone service
for $22.95 a month
Provider
Arcadia Broadband Strategic Plan Page of 88 125
HughesNet $74.99
$49.99 for first six
months. 24 month
commitment
required. Up to $400
ETF
$15
equipment
lease it you
don’t
purchase
25/3
After 30
GB
(speeds
drop to
1-3
Mbps)
Internet Only - Equipment
ricing is $450 to purchase.
$100 discount for Internet
orders. $15 monthly after
$99 lease activation- free
installation - Users can add
unlimited phone service
for $22.95 a month
HughesNet $99.99
$74.99 for first six
months. 24 month
commitment
required. Up to $400
ETF
$15
equipment
lease it you
don’t
purchase
25/3
After 50
GB
(speeds
drop to
1-3
Mbps)
Internet Only - Equipment
ricing is $450 to purchase.
$100 discount for Internet
orders. $15 monthly after
$99 lease activation- free
installation- Users can add
unlimited phone service
for $22.95 a month
HughesNet $174.99
$149.99 for first six
months. 24 month
commitment
required. Up to $400
ETF
$15
equipment
lease it you
don’t
purchase
25/3
After 100
GB
(speeds
drop to
1-3
Mbps)
Internet Only - Equipment
ricing is $450 to purchase.
$100 discount for Internet
orders. $15 monthly after
$99 lease activation- free
installation -Users can add
unlimited phone service
for $22.95 a month
Viasat $69.99
$49.99 for first three
months
24 month contract
$12.99/
month
(modem)
12/3
60 GB
priority
data
Internet Only - Setup/
Installation could be up to
$75 -equipment purchase
instead of lease $299.99-
Viasat $99.99
$69.99 for first three
months
24 month contract
$12.99/
month
(modem)
25/3
100 GB
priority
data
Internet Only - Setup/
Installation could be up to
$75 -equipment purchase
instead of lease $299.99-
Viasat $149.99
$99.99 for first three
months
24 month contract
$12.99/
month
(modem)
30/3
60 GB
priority
data
Internet Only - Setup/
Installation could be up to
$75 -equipment purchase
instead of lease $299.99-
Viasat $199.99
$149.99 for first three
months 24 month
contract
$12.99/
month
(modem)
30/3
300 GB
priority
data
Internet Only - Setup/
Installation could be up to
$75 -equipment purchase
instead of lease $299.99-
Viasat $299.99
$199.99 for first three
months 24 month
contract
$12.99/
month
(modem)
30/3
500 GB
priority
data
Internet Only - Setup/
Installation could be up to
$75 -equipment purchase
instead of lease $299.99-
$300 prepaid Visa card
Monthly
Cost
Promo & Contract
Length
Other
Monthly Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time FeesProvider
Arcadia Broadband Strategic Plan Page of 89 125
StarLink is available in Arcadia.
*Early reports from beta testers have been generally positive. Latency is much lower than traditional
geostationary satellite services like HughesNet and Viasat, but latency is still much higher than
terrestrial fiber Internet connections.
*If pricing remains similar to what is being charged for early users, Starlink could be a very significant
improvement for some residents and businesses. It is targeted for the The City of Arcadia area in
2023.
Starlink $120 No contracts- 30 Day
trial
$50 shipping
cost and
$53.55
estimated tax
for
equipment
100/40 None
$599 for Hardware,
shipping $50, Tax $66.53
Total due at order time
$715.53
Shipping times 1-2 weeks
Starlink $120 No contracts- 30 Day
trial
$50 shipping
cost and
$53.55
estimated tax
for
equipment
100/40 None
$2,500 for Hardware,
shipping $50, Tax $261.38
Total due at order time
$2,811.38
Shipping times 1-2 weeks
Starlink
Installation
You are responsible for installation of the Starlink Kit in a location that has a clear field of view, per the Install
Guide available in the Starlink Customer Portal. It is your responsibility to ensure compliance with all
applicable building codes, zoning, ordinances, business district or association rules, covenants, conditions,
restrictions, lease obligations and landlord/owner approvals and requirements for the installation of the
Starlink Kit, to pay any associated fees or other charges, and to obtain any permits and other authorizations
necessary for the Services and the installation of the Starlink Kit. Should use of the Services require any
construction or alteration to your property, Starlink is not obliged to reimburse any expenses or restore your
property to the same physical state as prior to delivery of Services. If you require a permanent roof mount
installation, you acknowledge the potential risks associated with this type of installation, including, without
limitation, with respect to any warranty that applies to your roof or penetration of your roof membrane.
Follow the Install Guide. If you cannot safely install the Starlink Kit, do not install it.
Monthly
Cost
Promo & Contract
Length
Other
Monthly Fees
Download
/Upload
Speed
(Mbps)
Data Cap
(GB/
Month)
One-Time FeesProvider
Arcadia Broadband Strategic Plan Page of 90 125
APPENDIX B: CONDUIT DESIGN
DETAIL
Arcadia Broadband Strategic Plan Page of 91 125
Arcadia Broadband Strategic Plan Page of 92 125
Arcadia Broadband Strategic Plan Page of 93 125
Arcadia Broadband Strategic Plan Page of 94 125
Arcadia Broadband Strategic Plan Page of 95 125
Arcadia Broadband Strategic Plan Page of 96 125
Arcadia Broadband Strategic Plan Page of 97 125
Arcadia Broadband Strategic Plan Page of 98 125
Arcadia Broadband Strategic Plan Page of 99 125
Arcadia Broadband Strategic Plan Page of 100 125
Arcadia Broadband Strategic Plan Page of 101 125
Arcadia Broadband Strategic Plan Page of 102 125
Arcadia Broadband Strategic Plan Page of 103 125
Arcadia Broadband Strategic Plan Page of 104 125
Arcadia Broadband Strategic Plan Page of 105 125
Arcadia Broadband Strategic Plan Page of 106 125
Arcadia Broadband Strategic Plan Page of 107 125
Arcadia Broadband Strategic Plan Page of 108 125
Arcadia Broadband Strategic Plan Page of 109 125
Arcadia Broadband Strategic Plan Page of 110 125
Arcadia Broadband Strategic Plan Page of 111 125
Arcadia Broadband Strategic Plan Page of 112 125
Arcadia Broadband Strategic Plan Page of 113 125
Arcadia Broadband Strategic Plan Page of 114 125
Arcadia Broadband Strategic Plan Page of 115 125
APPENDIX C: SIFI ANALYSIS
Design Nine has reviewed nine documents and articles comprising more than 140 pages of material
related to SiFi fiber to the home activities. We have also researched additional materials available on
the Web. The primary documents we have evaluated are:
1.Master License and Encroachment Agreement, City of San Buenaventura
2.Public Works Report on SiFi, City of Placentia
3.Smart City Managed Services Agreement, City of Placentia
4.Development Agreement, City of Placentia
5.Amendment #1, Construction Practices, City of Placentia
6.SiFi Shelter and Cabinet Specifications, SiFi
7.City of Arcadia SiFi Proposal
8.Staff Report on SiFi, City of Ventura
9.City of Salem, Massachusetts SiFi Project
Summary of Findings
The two agreements that we were able to review (Placentia, San Buenaventura) are substantially
different. In our experience, we would expect a firm like SiFi to have a standard municipal agreement
that it would use, and that only minor variations, additions, and changes would occur from one
municipality to another. It is not clear why they are so dissimilar.
No financial commitments are required from the City. SiFi will finance the entire build out.
The Placentia agreement includes the provision that the City would assume ownership of the network
if SiFi abandons the asset. We would note that this seems highly unlikely, and while it may seem
advantageous to the City, if SiFi were to have financial problems that forced them out of business, the
most likely outcome would be the sale of the network to another network operator.
While SiFi promotes their open access business model (network owner/operator rather than ISP), they
do not appear to have a track record of attracting multiple ISPs. In Placentia, where construction
appears to be nearly complete, only a single ISP is offering service, so there is no price competition,
which is a key benefit of open access networks. Placentia is certainly large enough as a market for
Internet to attract multiple providers. That suggests that SiFi does not offer sufficiently attractive
partnerships to ISPs to bring additional providers onto the network, and/or so little of Placentia has
been built out that the market is not large enough to attract a second provider. In our experience of
more than fifteen years of developing municipal open access networks, we have never found it difficult
to attract multiple providers.
Our research indicates that both AT&T and Frontier already offer Gigabit fiber services in some areas of
Arcadia. This level of competition for fiber customers brings into question whether SiFi has really done
adequate market research in Arcadia. As a general rule, it is prohibitively expensive for a second fiber
to the home company to develop a sustainable business case in a market where there is already fiber
services being offered. One possibility is that SiFi only plans to build fiber in neighborhoods where
neither AT&T nor Frontier currently offer service. In any case, we would suggest that the probability of
SiFi passing most homes and businesses in Arcadia is low. If SiFi does enter the Arcadia market, it is
Arcadia Broadband Strategic Plan Page of 116 125
very likely that Frontier and/or AT&T will both increase their efforts to pass more homes with fiber and
will also lower prices in the short term—both strategies would affect SiFi’s ability to meet financial
targets.
SiFi indicates that the company “….builds long term financially sustainable FTTP projects…”. However,
most of the SiFi projects are still in the initial construction phase or have only been in operation for a
year or two. It is not clear that the company’s claim of “financially sustainable” networks has been
proven.
SiFi calls out the use of microtrenching as a primary construction method. As noted in the previous
section of this report, the City should study the advantages and disadvantages of microtrenching prior
to entering into an agreement with SiFi.
As discussed in Section Nine of this memo, the issues that SiFi has had with the City of Salem,
Massachusetts and the SiFi fiber contractor represent a red flag that should be considered carefully.
While it is not clear where to assign blame among the three parties (i.e. SiFi, the city, the fiber
contractor), the cost overruns and confusion about Salem’s permitting, construction, and remediation
requirements suggest, at a minimum, a lack of attention and/or experience in fiber to the home build
outs.
We note that we can count at least ten California cities that SiFi claims it is building fiber to the home.
We wonder if SiFi has the organizational capacity to manage that number of projects simultaneously,
plus what other projects they may have made commitments for in other areas (like Salem,
Massachusetts).
1. Master License and Encroachment Agreement, City of San Buenaventura
This document is an agreement between SiFi and the City of San Buenaventura. It is thirty-seven
single-spaced pages that defines what SiFi is allowed to do in City right of way (ROW). It also includes
numerous other provisions, including the term of the agreement for SiFi to operate in the City (thirty
years with a thirty year extension). The terms and requirements are extensive, and include:
•The right to build in City ROW.
•Definition of “substantial completion” of the network by SiFi, and City rights if 95% completion
is not met in the first five years.
•City requirements imposed on SiFi to identify work areas and work zones.
•Annual maintenance permits.
•Exemptions from City encroachment permitting as it relates to concrete repairs, trenching, and
paving.
•Exemptions from City requirements for sidewalk, curb and gutter, and trench backfill.
•Requirements to notify the City of construction activities in a timely manner.
•Allowable changes to the SiFi network, including removal of graffiti from SiFi facilities.
•Relocation of SiFi network facilities if City infrastructure improvements are impacted.
•Restoration of right of way after construction.
•Construction techniques approved by the City.
•City obligations to facilitate timely cooperation of City departments with the SiFi activities.
Arcadia Broadband Strategic Plan Page of 117 125
•A commitment by SiFi to provide a lower wholesale rate to ISPs to provide affordable access to
qualifying low income households.
•A requirement that SiFi maintain a balance of $30,000 with the City, defined as a Regular
Monthly Replenishment fund. These funds would be used by the City to pay for City staff costs
and other expenses related to supporting the SiFi effort (e.g. a citywide fiber project can
generate a large number of construction permits, which may require additional City staff to
review and approve them, or for increased City inspection of completed construction work).
•A City obligation to provide timely and responsive permit review and approval.
•Typical indemnification and liability requirements.
We would note that many localities in the U.S. have relatively simple franchise agreements that are
used to authorize fiber construction. These franchise agreements often simply reference relevant
existing locality ordinances and specifications, rather than calling them out specifically in a particular
agreement.
2. Public Works Report on SiFi, City of Placentia
This brief four page report by the City of Placentia Public Works Department provides a useful
evaluation of the SiFi proposal to the City in 2019. The report highlights two City benefits:
•As part of the network agreement, SiFi agreed to provide a dedicated municipal fiber system
to connect City-owned facilities. It is noted in the report that employees at various City
locations would have much improved access to shared City systems and data.
•It was also noted that the Police Department’s CCTV security camera system would benefit with
improved fiber connectivity, and that the Fire Department could more efficiently dispatch
equipment.
The dedicated City network is referenced in the Managed Services Agreement as “future demand
points.”
Similar to the San Buenaventura agreement, SiFi promised to pay the City $75,000 per year to support
the single point of contact (SPOC), up to a total of 42 months (i.e. the planned duration of the fiber
construction).
The report also notes that initial term of the agreement is for twenty-five years, with two twenty-five
year extensions.
Part of the agreement, as noted by City staff, is that the City has negotiated a fixed annual fee for
access and use of the City fiber system. While the fee ($20,000/year) seems reasonable now, the
twenty year term seems excessive, as the cost of network access has dropped substantially over the
past twenty years, and is likely to continue to drop for at least the next five to ten years.
3. Smart City Managed Services Agreement, City of Placentia
This document is an agreement between SiFi and the City of Placentia, executed in September, 2019.
Some construction may still be underway, but some areas of the City do appear to have access to the
network. GigabitNow seems to be the only provider, although the network is advertised as open
access (more than one ISP can use the network to deliver Internet service). An open question would be
why SiFi has not been able to attract more than one provider to the network? Microtrenching and
micro duct has been used in Placentia.
Arcadia Broadband Strategic Plan Page of 118 125
The agreement is thirty-five pages, and differs substantially from the San Buenaventura agreement
discussed in the previous section of this memo. Key sections of the report include the following:
•Placentia required SiFi to provide up to 300 “Future Demand Points” as part of the agreement.
Future demand points are designated by the City as locations to receive fiber broadband
service. The City is required to pay for the cost of the drops (the fiber cable from the street to
the side of the building). The City also gets a 25% discount off the commercial rates offered in
the city. The City also cannot use the demand points for any purpose that might compete with
the SiFi network (e.g. offering demand point access to a competing network provider).
•The agreement also has a full page of KPI (Key Performance Indicators) that specify compliance
with specified target service levels—that is, network performance and requirements in the
Service Level Agreement (SLA).
•Unlike the San Buenaventura agreement, the Placentia agreement addresses right of way
access and regulations with a one sentence requirement to abide by all Federal, state, and
local laws and regulations.
•The agreement has typical indemnification and liability language.
•There is a section that addresses how SiFi confidential information is handled by the City.
•There are two sub-sections that address how SiFi and the City each transfer the agreement to a
third party.
•There is a section that calls out what the City will pay SiFi for monthly fiber service to nine City
locations and facilities.
•The City is obligated to provide a single point of contact (SPOC) to SiFi for all matters related
to the construction and management of the network.
•There is an extensive discussion of breach and/or default by either the City or SiFi.
•There is a section on dispute resolution and mediation if there are disagreements between the
City and SiFi.
•There is additional routine contract language addressing severability, governing law, contract
modification, waivers, and related legal considerations.
The KPIs noted above and the SLAs noted above are addressed in more detail in appendices. The
SLAs are entirely typical, but SLAs usually address the relationship between the service provider and
the customer. The appendices provide a useful insight into the general customer service approach of
SiFi, but are not necessarily binding.
4. Development Agreement, City of Placentia
This twenty-three page document includes more technical details about the network that SiFi planned
to build. Some of the language and sub-sections are very similar to what is contained in the Managed
Services Agreement in the previous section of this report, but other sections are entirely different.
Some portions of the document seem to substantially duplicate portions of the Managed Services
Agreement. It is not clear to us why two different documents were needed.
This agreement details SiFi and City permitting obligations (e.g. how quickly the City must review and
approve permits, fees paid to the City by SiFi for a single point of contact (SPOC, $75,000/year),
discussion of various construction methods (e.g. microtrenching, open trenching, directional boring,
Arcadia Broadband Strategic Plan Page of 119 125
fiber placement in the sewer system), Sifi cabinet and Point Of Presence (POP) locations, and fiber drop
cable terminations.
There are additional sections with typical contract language. We would note again that there is some
duplication of sections and language with the Managed Services Agreement.
5. Amendment #1, Construction Practices, City of Placentia
This document is an amendment to the Development Agreement between SiFi and the City of
Placentia (dated May, 2021). The document appears to make several changes to the Development
Agreement, which brings into question why some of the changes were not addressed prior to signing
the initial Development Agreement.
The document consists of ten single-spaced pages of primarily construction and technical
specifications that were written by the City, and were probably developed by the City Engineer, the
Planning Department, and/or the Public Works department.
In particular, several of the changes address various aspects of micro trenching and the use of micro
duct. Note that a subsequent section of this memo (SiFi Shelter and Cabinet Specifications) discusses
the use of micro duct and micro conduit in more detail.
Other portions of the agreement address topics including pavement and surface remediation,
permitting, scheduling and phasing of construction, City obligations to SiFi (during construction), SiFi
obligations to the City (during construction), work hours, approved activities during approved work
hours, punch list management, handling of Stop Orders from the City, handling of non-compliance and
safety issues, emergency repair work, coordination of SiFi construction activities with routine and
emergency Public Works department activities, relocation of utilities, protection of SiFi installed
infrastructure, curb and gutter repairs and/or replacement necessitated by SiFi construction, conflicts
with City Capital projects, certain indemnification and liability requirements, and conflict resolution.
The individual sub-sections of the document that address construction practices can appear to be
reasonable, but take as a whole, some of the City of Placentia requirements (e.g. what types of
construction activities are allowed during a normal work day) are likely to increase the cost of
construction for SiFi.
The City of Arcadia, if it moves forward with SiFi, should review the requirements in this document
carefully. It is also preferable that the items included in this amendment be both discussed prior to
signing the master Development Agreement but also be included in the Master Agreement rather than
the more time-consuming and potentially more difficult process of negotiating these changes after the
primary agreement has been signed.
6. SiFi Shelter and Cabinet Specifications, SiFi
This SiFi document, (Exhibit B) provides engineered drawings of various components of fiber networks
that could be included as part of a SiFi “Fiber City” build out. The drawings include detail on
handholds, cabinets, shelter, street crossings, fiber access boxes (recessed pedestals for drop
connections).
Based on the material included in this document, SiFi appears to try to use micro conduit as part of
their build out design. Five different drawings illustrate how they install micro conduit. Micro conduit
can be installed in a wide variety of ways, and any agreement with SiFi should include a careful review
of their micro conduit specifications.
Arcadia Broadband Strategic Plan Page of 120 125
•Micro conduit has often been a controversial fiber installation strategy. Some of the debate
related to micro-conduit include:
•Micro conduit installation usually involves cutting a very narrow slot in the street or pavement.
The width of the slot can vary between 1/2” and about three inches. The depth of the slot can
also vary widely, from about two inches to twelve inches.
•The primary advantages of slot-cut micro conduit is avoidance of traditional trenching and/or
horizontal directional drilling (HDD). In urban streets, slot cut micro conduit, even at 12” deep,
typically avoids any interaction with other utilities (e.g. water, sewer, electric, telecom). Water
line breaks are much less likely, as one example.
•Shallow slots (e.g. two inches) can create problems if the street is later designated for grinding
and repaving. Deeper slots avoid this problem. SiFi’s drawings specify a 12” slot, which
should be entirely adequate for normal street grinding (typically the top 2-3”).
•The slots do cut the existing pavement. Proper remediation can mitigate the negative effects
of cutting the roadway, but careful patching of the slot is needed. Some Public Works
departments have been categorically opposed to slot cutting because of the potential
negative effects on the roadway.
If Arcadia moves forward with SiFi, the Public Works department should review SiFi’s construction
procedures, and if slot cutting is employed in Arcadia by SiFi, regular inspection of slot remediation to
ensure conformance to specifications is strongly recommended.
Other components included in this document (e.g. pull boxes, shelters, cabinets) are ordinary and
widely used in fiber to the home projects.
7. City of Arcadia SiFi Proposal
The sales document presented to the City of Arcadia by SiFi (Arcadia FiberCity) promises to construct
more than three hundred miles of new fiber in the city, passing most homes and businesses with
symmetrical Gigabit fiber. The proposed expenditure of $70M is reasonable given the estimated
construction mileage. SiFi is not requesting any City financial commitment. The SiFi business model is
to be the network owner and operator, and not the ISP. SiFi will partner with one or more ISPs; the ISPs
will actually provide the Internet service on the network. The promised competition would occur only if
SiFi is able to attract more than one provider to the network. It is worth noting that in Placentia, only
one ISP is offering Internet services.
SiFi and the City would enter into a Development Agreement that would outline the roles and
responsibilities for each of the two parties.
SiFi discusses their FOCUS (tm) construction approach that determines the best construction method
on a “case by case” basis, “…rather than being restricted to one construction technique and type of
technology.” This sounds forward thinking, but we know of no fiber to the home project that uses only
one construction technique. Local conditions vary everywhere, and both the contractors and the
network owner/manager for any given fiber to the home project will vary construction methods as
needed to suit those local conditions and to keep costs as low as possible.
SiFi calls out the use of microtrenching as a primary construction method. As noted in the previous
section of this report, the City should study the advantages and disadvantages of microtrenching prior
to entering into an agreement with SiFi.
Arcadia Broadband Strategic Plan Page of 121 125
SiFi indicates that the company “….builds long term financially sustainable FTTP projects…”. However,
most of the SiFi projects are still in the initial construction phase or have only been in operation for a
year or two. It is not clear that the company’s claim of “financially sustainable” networks has been
proven.
8. Staff Report on SiFi, City of Ventura
The City of Ventura evaluated a SiFi proposal, and the City Manager and the Public Works Director
provided the City Council with a brief report. In 2019 the City issued an RFP to attract a fiber network
provider, and received three proposals. The SiFi proposal was the only one that offered a “complete,
underground, low cost citywide network.” The began negotiations with SiFi in April, 2019. An
agreement was reached with SiFi in February of 2020.
Little information is available on the project. The SiFi “Ventura FiberCity” Web site simply states, “…SiFi
Networks has been granted access to Ventura’s right of ways to build a state-of-the-art community wide,
fiber optic network, known as the Ventura FiberCity®.”
The report provides a concise summary of the proposal made to the City, which includes:
•SiFi provides the funding for the network, and no City financial subsidy is required.
•The City gets a discount on network access.
•SiFi planned to offer a low cost service to low income homes in the city.
•Micro-trenching was planned to be a primary construction method.
•The City Engineer would have final permit approval on the best construction process to use for
each permitted area.
•SiFi would reimburse the City for costs related to permitting, including review, approvals, and
construction inspection.
•SiFi was promising to complete 95% of the construction within five years.
•SiFi wanted an initial thirty year term with an option to extend for thirty additional years.
9. City of Salem, Massachusetts SiFi Project
Beginning with discussions starting in 2017, SiFi began negotiating with the City of Salem,
Massachusetts to make Salem a “FiberCity.” The SiFi Web site for the project (https://sifinetworks.com/
residential/cities/salem-ma/) indicates that while a contract with the City has been signed and that a
service provider has been selected, the network design is not complete, nor have construction permit
approvals been completed—six years later.
A review of City documents and City Council minutes show very little mention of the project after 2021.
In 2022, a contract dispute between SiFi and its fiber contract began to be reported in the local
newspaper. A March, 2022 article in The Salem News provided details of the issue, with the contractor
claiming that SiFi had not adequately advised the contractor on certain paving and permitting
requirements of the City, which created projected cost overruns.
A June, 2022 article in The Salem News reported that SiFi had fired the contractor, and the contractor
had filed a wrongful termination lawsuit against SiFi.
The Salem FiberCity Twitter account has not been updated since October, 2022, and the last tweet
simply apologized for the delays without offering any additional information. Similarly, the Salem
Arcadia Broadband Strategic Plan Page of 122 125
FiberCity Facebook page has also not been updated since October, 2022, with she same apology that
was posted on Twitter, with no other explanation.
As noted above, the City of Salem seems to have gone quiet on the project for at least a year or more.
An examination of the Salem project makes it difficult not to conclude that SiFi has problems meeting
its commitments. We would also note that nearly six years has past since the City of Salem began
talking to SiFi, and as far as we can tell, no residents or businesses in Salem have received fiber to the
home service.
Arcadia Broadband Strategic Plan Page of 123 125
APPENDIX D: GLOSSARY
Active network: Typically a fiber network that has electronics (fiber switches and CPE) installed at
each end of a fiber cable to provide “lit” service to a customer.
Asymmetric connection: The upload and download bandwidth (speed) are not equal. Cable Internet
and satellite Internet services are highly asymmetric, with upload speeds typically 1/10 of download
speeds. Asymmetric services are problematic for home-based businesses and workers, as it is very
difficult to use common business services like two way videoconferencing or to transfer large files to
other locations.
Backhaul: Typically refers to a high capacity Internet path out of a service area or locality that provides
connectivity to the worldwide Internet.
Colo facility: Colo is short for Colocation. Usually refers to a prefab concrete shelter or data center
where network infrastructure converges. A colo or data center can also refer to a location where
several service provider networks meet to exchange data and Internet traffic.
CPE: Customer Premises Equipment, or the box usually found in a home or business that provides the
Internet connection. DSL modems and cable modems are examples of CPE, and in a fiber network,
there is a similarly-sized fiber modem device.
Dark fiber: Dark fiber is fiber cable that does not have any electronics at the ends of the fiber cable,
so no laser light is being transmitted down the cable.
Fiber switch: Network electronic equipment usually found in a cabinet or shelter
Fiber Optic Splice Closure: See FOSC.
FOSC: Fiber Optic Splice Closure. Typically a water and air tight cylindrical container where fiber
cable is split open to allow splicing (connecting together) of fiber strands for a drop to a premises.
FTTH/FTTP/FTTx: Fiber to the Home (FTTH), Fiber to the Premises (FTTP), and Fiber to the X (FTTx) all
refer to Internet and other broadband services delivered over fiber cable to the home or business
rather than the copper cables traditionally used by the telephone and cable companies.
Handhole: Handholes are open bottom boxes with removable lids that are installed in the ground
with the lids at ground level. The handholes provide access to fiber cable and splice closures that are
placed in the handhole. Handholes are also called pull boxes.
IP video: Video in various forms, including traditional packages of TV programming, delivered over
the Internet rather than by cable TV or satellite systems.
Latency: The time required for information to travel across the network from one point to another.
Satellite Internet suffers from very high latency because the signals must travel a round trip to the
satellite in stationary orbit (22,500 miles each way). High latency makes it very difficult to use services
like videoconferencing.
Lit network: A “lit”network (or lit fiber) is the same as an active network. “Lit” refers to the fact that
the fiber equipment at each end use small lasers transmitting very high frequency light to send the two
way data traffic over the fiber.
Arcadia Broadband Strategic Plan Page of 124 125
MST: Multiport Service Terminals are widely used in fiber to the home deployments to connect
individual home drop cables to larger distribution cables on poles or in handholes. Pre-connectorized
drop cables snap into the MST ports and do not require any splicing.
Passive network: Refers to infrastructure that does not have any powered equipment associated with
it. Examples include wireless towers, conduit (plastic duct), handholes, and dark fiber.
Pull boxes: Pull boxes (also called handholes) are used to provide access to fiber cable and splice
closures. They are called pull boxes because they are also used during the fiber cable construction
process to pull the fiber cable through conduit between two pull boxes.
Splice closures: Splice closures come in a variety of sizes and shapes and are used to provide access
to fiber cable that has been cut open to give installers access to individual fiber strands. Splice
closures are designed to be waterproof (to keep moisture out of the fiber cable) and can be mounted
on aerial fiber cable or placed underground in handholes. Also called FOSCs.
Splicing: The process of providing a transparent joint (connection) between two individual fiber
strands so that laser light passes through. A common use of splicing is to connect a small “drop” cable
of one or two fiber strands to a much larger (e.g. 144 fiber strand) cable to provide fiber services to a
single home or business.
SCADA: Supervisory Control and Data Acquisition. Used by the electric utility industry and some other
utilities (e.g. water/sewer) to manage their systems.
Symmetric connection: The upload and download bandwidth (speed) is equal. This is important for
businesses and for work from home/job from home opportunities.
Virtual Private Network: A VPN creates a private, controlled access link between a user’s computer
and a corporate or education network in a different location. VPNs are often encrypted to protect
company and personal data. VPNs usually require a symmetric connection (equal upload and
download speeds) to work properly.
Arcadia Broadband Strategic Plan Page of 125 125