Cost?
As we are now at the planning stage, costs are a big factor not just to the residents; but for us also, as this will dictate how many people join the service and how we can show value for money.. for everyone.
Obviously the costs involved are not the same as providing normal broadband, the initial costs are much much higher at around £70,000, along with the monthly line rental at the exchange which could run to as much as £50,000 per year.
Moreover, the service has to be fair for everyone; although we do have control over the bandwidth, we would like to push forward an unlimited service with a fair use policy for everyone, but we understand some customers will require more than others, such as a business customer or those into online gaming. While at this stage we cannot give an accurate sliding scale charge as we need final subscriber figures, we do plan to have different levels of rental for those who require that extra bit of speed or bandwidth.
Depending on how many people sign up will reflect how much we charge per household and business but as a guide the following may apply:
Residential unlimited broadband = From £17.99 - £29.99 per month (Avg - £19.99)
Business unlimited Broadband = £34.99 per month
This maybe on a sliding scale of speed ranging initially from 2 to 34 Meg, (which may rise in 2011 to 100 Meg)
This is based on 150 households signing up initially and paying by Direct Debit through Eazy Connect, a safe and secure direct debit company based in the south west. The more houses that sign up, the cheaper the service becomes for everyone. so while you may sign up for a £17.99 service at say 2 Mb/s, as more people join the scheme, you will be charged less.. for a higher speed. This will be done automatically. Also, if there is any profit made, because we are a not for profit company, we can either split the balance between everyone, or reinvest the money in a faster network for everyone.
Also we will try to obtain funding for the majority of installation costs for those who apply before the service has been constructed. For those who apply after this date (post funding) they will have to pay the full installation costs of around £181 per household. Obviously it makes sense to sign up early to avoid this cost if you later decide to join the network. But as a guide, the equipment will cost around £181 with a £50 charge to fit and connect.. those who apply pre-funding will only have to pay the £50 fit and connection charge.
Finally, similar to other broadband suppliers, there will be a contract. This contract will be for 36 Months, which is the contract length of the leased line company. In the event that you move, this contract can be transfered free of charge to the new owner. This allows us to plan subscribers and keep the network operational for that duration.
It is key to note that this is our only chance of installing broadband into Northlew, even in 2011/12 the CEO of BT informed me, we may still not be connected due to re cabling costs of around £400,000 making it commercially unviable. This was reinforced in the Daily Telegraph (21st April 2009) which notes that Rural Communities are not included in the 2012 proposal for broadband for all. Therefore, it is very important we get the initial subscribers to make it worth the while for everyone, not to mention making this a model for other communities who have and are suffering the same fate as Northlew & Belstone.