Monday, 11 May 2015

Orillia explores the benefits of fiber

A group driving an effort to develop an ultra high-speed fiber optic broadband network in southwestern Ontario is calling on Orillia to hop aboard.

Organizers of the SWIFT project are seeking $10,000 in interim funding towards an initiative aimed at ensuring rural communities aren’t left behind in the digital economy.

“We think it’s really important that we make an investment today into fiber so that we’re able to scale to the needs of the future, which are coming at us like a freight train,” said Geoff Hogan, a representative for the project.

Hogan likened the copper-based communications infrastructure that is widely available today to a single-lane bridge.

“The car can come at you pretty quickly, but you can’t send another car back the other way,” he said.

Fiber optics, by comparison, “is like a highway.

“They run both ways at the same time very quickly and are infinitely scalable,” he added.

Fiber-optic cable costs about $25,000 per kilometer to install and is “a critical infrastructure, just the same as roads, water and hydro today,” Hogan added.

All aspects of the economy – from agri-business and government to education and manufacturing – require ultra high-speed connectivity to operate in today’s economy.

Yet this infrastructure is installed by large privately owned companies that decide who has access to the cable and at what price, Hogan said.

The network proposed under the SWIFT project will be accessible to all, Hogan added.

“We want to make sure it is ubiquitous and equitable for everybody, whether you are on the fringes of Orillia or you are in downtown Orillia you get the same services,” he added.

SWIFT will use funds from the federal and provincial governments as an incentive for the private sector to establish fiber optic infrastructure in locations “where they don’t get a real return on investment,” Hogan said.

The private sector will pay royalties back to SWIFT, which will use that pot of capital to encourage additional investments in fiber optics.

“Until, at the end of our 20-year timeline, every home and business and resident in this region has connected to fiber optics,” he said.

The Western Ontario Wardens’ Caucus, a non-profit organization comprising the heads of council from 15 rural municipalities, initiated the project.

Partnering in the initiative is the Southwest Economic Alliance, with representation from counties and cities, schools, the private and public sectors.

The network will cost about $243 million, with organizers seeking $81 million each from the federal and provincial governments.

Participating municipalities will collectively contribute $16 million.

“The balance will come from the private sector,” said Hogan.

Organizers are in discussions with eight separated municipalities, including Barrie, Brantford, Guelph, London, St. Thomas, and Windsor.

Under the proposed model, Orillia would contribute $78,000 toward capital costs over five years.

The request was a source of confusion for at least one councilor.

“We already have fiber-optic cable within our community, and it’s already servicing, if I’m not mistaken, a few businesses in our community,” said Coun. Ralph Cipolla. “What are the benefits to us?”

Expanding fiber optic infrastructure across Orillia will ensure access where it currently doesn’t exist, said chief financial officer Bob Ripley.

Bringing additional fiber-optic capacity to Orillia will help remove barriers to businesses that rely on communications technology, added Coun. Ted Emond.

“Anything we can do to be current and seize the future,” he added.

Service fees paid by users and providers will be reinvested in expanding access, lowering rates and ensuring the network is self-sustaining.

Staff will report back on the request.

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