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Fiberhoods New Destination for Start-Up Businesses
As more and more businesses consider broadband a critical utility, property demand reflects the need for high-speed Internet. In Kansas City, property designated as a future Fiberhood is already in high demand. Phillip Dampier reports in Stop the Cap! that tech businesses are relocating to get the jump on the gigabit fiber service, inching property values up in targeted areas.
And it is not commercial property in demand. Companies want access to the future gigabit network and are buying in residential areas, which are the first slated to recieve the fiber service. From the article:
Google is not officially selling fiber service to businesses just yet. Answer? Buy residential property in the area and move workers who could deliver increased productivity with faster Internet speeds.
That was the answer for Local Ruckus LLC, which is opening its new headquarters in a 2,500-square foot home in the first neighborhood scheduled to receive Google Fiber service.
“It just makes life easier,” CEO Adam Arredondo told the Kansas City Star.
Tech start-ups have been the target for the community since the Google Fiber intitiative. More and more are finding their way into the future fiber hoods and to the Kansas City region. The city is also using special initiatives to bring high tech companies and their jobs to Missouri.
Communities that are building their own FTTH networks should take a look at Google's approach. They neighborhood by neighborhood contests helped to make sure everyone knew about the network, increasing excitement. Marketing is tremendously important to securing enough subscribers to pay the debts of building the network.
Also from the article:
KCMO mayor Sly James last month unveiled Launch KC — an effort to attract technology companies to Kansas City, particularly start-ups.
James announced five companies and Union Station were prepared to offer free or “very affordable” office space in the city’s Crossroads district, the West Bottoms, and downtown. Office space is even available at the Kansas City International Airport.
Other initiatives would stimulate businesses with attractive sale-and-leaseback offers and exemptions for sales and property taxes.
Kansas City's initiatives focus on the needs of small companies that make up a large part of the tech industry, rather than giant companies that want brick-and-mortar incentives. The city is also working on developing free Wi-fi and hoping to attract a data center for cloud storage and web hosting companies.
As to how communities can best meet the telecommunications needs of their local businesses, we profiled one of the best at that skill: BVU Authority. They do an incredible job and have tremendous take rates among businesses as a result.
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