SiFi Networks, a privately owned telecom company based in New Jersey, is hoping to bring their citywide broadband to every Cleveland address at no cost to the city.
The network would give any internet providers access to a high-speed fiber optic network, which transports internet to a home or business. If built, the network could help bridge the digital divide in Cleveland, where the city says two-thirds of residents and businesses are without access to fiber networks.
What is a fiber optic network?
Think of fiber optic as a road delivering internet to your home or business. Unlike some other broadband fibers that may use wires and utility poles, fiber is an underground network that transmits the internet via light pulses through thin glass or plastic tubes. This method allows for faster internet speeds.
SiFi’s proposal essentially builds the infrastructure for another company to provide the service. SiFi has an open network model, which will allow any internet provider to use their infrastructure. This will hypothetically give customers more options for selecting providers since those providers would not have to build their own fiber optic network in Cleveland and could use one that’s already built.
Why do they want to bring it to Cleveland for free?
With two-thirds of the city without connection to fiber optic networks, the investment could spell big profits decades from now for SiFi.
“We’re so far behind other cities,” said Mayor Justin Bibb’s Senior Policy Advisor Austin Davis, citing Cincinnati at 90% fiber connectivity as compared to Cleveland’s roughly 30%. “No company would want to go to Cincinnati because it already exists there. But there’s a real opportunity here, which is thrilling for us.”
The group is backed by the multibillion-dollar European pension fund APG, which looks for steady, long-term investments.
Once laid, the fiber network can be utilized by internet provider services, which will pay Sifi to use the fiber optic network to deliver internet to customers.
The internet itself will not be free. As service providers begin to utilize the network, customers will likely be charged market rates, but Davis said more competition might mean lower prices. SiFi said it also offers a subsidy to disadvantaged families.
Ultimately, Davis said, it’s about raising the ceiling for Cleveland’s capacity. More access to a fiber optic network is attractive for not only potential residents, but new businesses looking to come into the city, particularly high-tech groups or companies with significant data storage needs.
"Right now, we’re not competitive. We’re not even in the conversation," Davis said. “The technology and the infrastructure is going to continue to evolve, and this is the infrastructure the future is built on."
What does SiFi want from Cleveland City Council?
Sifi's proposal, endorsed by Bibb’s administration, would grant the city's director of finance permission to accept funds from SiFi to hire or pay for staff to expedite their permit process to lay their network in the public right of way like streets and tree lawns.
Every company has the right to apply for permits to lay utility infrastructure in the public right of way. But because of SiFi’s sweeping citywide plan, Davis said it will almost certainly bog down city hall operations and approval of those permits.
In a Tuesday presentation to city council's utilities committee, SiFi representatives, Davis and the contractor that would be used to build the network presented their plan. They touted the potential for closing the city's digital divide and creating jobs for local subcontractors to help construct and maintain the network.
SiFi is offering to fund staff that would focus specifically on their permits, as well as other consultants for the project, like an arborist since most of the fiber optic cable will be laid in tree lawns via underground boring techniques.
If approved, the agreement with the city includes a two-year maximum timeline for design and procurement and five years for the citywide build.
Council is expected to vote on the measure when they return from summer recess in September.
Meanwhile, Cleveland considers a low-cost, citywide network
Earlier this year, Bibb introduced a proposal to city council for low-cost, citywide internet alongside the SiFi proposal.
That proposal, which would give local Cleveland internet provider DigitalC $20 million of the city’s pandemic relief funds to build a citywide network, would offer every resident internet access starting at $18 a month.
That proposal has been held while city council explores concerns with the company.
"We're not rushing these pieces of legislation through," Councilmember Brian Kazy told Davis and SiFi representatives in the Tuesday meeting. "That has nothing to do with you... We have other legislation surrounding broadband and wireless that we need to drill down and make sure we have every answer we're comfortable with."
Davis said the administration hopes to give a presentation and update to city council later this summer.
“These policies complement each other nicely,” Davis said. “It’s about both lowering the ground and raising the ceiling for what Cleveland can offer to its residents.”
