PUD weighs whether to partner on broadband service

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The Jefferson County Public Utility District is waiting for cost estimates before choosing between two proposed ways to provide broadband access to customers in East Jefferson County. Randy Trost, senior broadband consultant with Magellan Advisors, presented the PUD Board of Commissioners on Sept. 30 with two options: 1. An industry partnership between the PUD and a commercial internet service provider (ISP). Trost says his firm is waiting for T-Mobile’s response to a request for information. 2. A Local Utility District (LUD), following the business models of the Kitsap County PUD and Mason County PUD 3, which provide service on fiber optic networks they own and maintain. Both models would rely on fiber and fixed wireless, although Trost noted the industry partnership could include 5G cellular as well. Both models would be centered around “fiberhoods,” which could range between 10 to 500 homes each, and would require somewhere between 70% to 80% of its customers to opt in in order to secure service. The industry partnership would entail a sharing of resources, expenses and profits between the PUD and its ISP partner, while a LUD would see the PUD contracting out for services. While Trost reported T-Mobile was still three weeks away from being able to provide its financial data, he anticipated members of the LUD fiberhoods would be paying between $85 to $95 per month for their coverage. With a $1.3 million initial investment from the PUD, Trost posited that if the PUD were able to provide access to 2,000 subscribers over the course of eight years, the investment would be revenue-neutral within five years, and it would actually yield excess monies after eight years, following the initial investment being paid off. Trost does not expect inflation to raise the fiberhood membership fee over time, comparing it to laptops, prices of which have remained relatively flat over the years, while included features have expanded over time. In the meantime, the PUD commissioners are awaiting Magellan’s report on T-Mobile’s feedback, and have acknowledged that they’re not yet ready to apply for grants until those numbers come in.