Broadband provider deploys fiber service with a wrinkle—the users themselves own each network

A recent article about Silicon Valley residents who formed a co-op Internet service provider might have people wondering what it would take to get the same thing in their hometowns. The most obvious obstacle is the price—in Los Altos Hills, California, residents have had to pay anywhere from $5,000 to $12,000 upfront for a fiber-to-the-home Internet connection. But the company that built the Los Altos Hills network says its model isn't just for wealthy people. "This is not the 1 percent solution, as people derisively call it to my face," Next Level Networks CEO David Barron said. "Los Altos Hills was unique." When Next Level builds a local network, the residents own the infrastructure and split the upfront costs. Residents themselves take care of finding potential customers, and installation begins once enough people sign up. "Our first customers were wealthy because they were motivated and willing to take a risk," Barron said. But the per-resident costs will be "much less expensive" elsewhere, particularly for multi-unit buildings or homeowner associations where houses are close together, he said. Next Level designs each network, installs fiber, arranges for backhaul, and provides Internet service. The networks are open-access, so other entities could offer broadband over the same wires. Barron also thinks Next Level's model can work in low-income areas, with government subsidies. "There are incentives that can be created for building owners to install these networks in low-income housing or lower-income housing... there are lots of programs from government entities to subsidize broadband costs," he said.