In a livestream just before Thanksgiving, Christopher was joined by Althea Networks CEO Deborah Simpier and NetEquity Networks Founder and CEO Isfandiyar Shaheen (Asfi) to discuss an innovative financing model for building Fiber-to-the-Home (FTTH) with the potential to bring quality broadband connections to the millions of homes around the country that are currently un- or underserved. Best described as a “fiber condominium” approach, it pairs collectively owned network infrastructure with the equity boost that comes with bringing symmetrical gigabit access to residential housing.
In a new video, Shaheen explains how it works in both the short term and over time, with last-mile fiber connections made by leveraging Home Equity Lines of Credit (HELOC) in modest amounts from local credit unions and a payment arrangement that covers everything from the construction to customer service calls.
The meat of the discussion starts around 6:35, with Shaheen describing how a $60-70/month payment for fiber Internet access breaks down. It covers everything needed, including payments for the HELOC to the local credit union, transit rates for the middle-mile network operator, maintenance fees, and an organizing entity like NetEquity Networks to bring all these stakeholders together and manage the connection.
It’s a fascinating model, with some new relationships that need to be created but no revolutionary technology or fundamentally new financing structures.
Watch the video below: