Wireless Internet Rates
|Meeting Date:||September 5, 2006||Primary Staff Contact:||Joseph Franell|
|Contributing Departments:||N/A||Secondary Staff Contact:||N/A|
|Estimate Time:||20 Minutes|
Statement: The Ashland Fiber Network (AFN) is in the progress of launching a new product line, wireless internet, requiring us to set appropriate retail rates. This product is branded as afnAnywhere.
|Staff Recommendation: |
Staff recommends the adoption of the rate for the new wireless service as detailed in the attached resolution.
At the inception of AFN, there was a commitment to make advanced services available to all Ashland residents. The deployment of wireless internet fulfills that commitment. There are about 1000 addresses in Ashland that were not included in the original build out. The afnAnywhere wireless product will allow occupants of those buildings to have access to AFN internet services.
Customers do not need to call anyone to get service. People buy the service from the afnAnywhere website via credit card. This web site or activation portal links to our utility billing system, processes the credit card payment, and activates the service for the specified period of time. Customers can purchase service in day, week, and month time-frames. We do not intend on providing customer technical support or e-mail service for this product.
This product can also be used by the mobile and short-term user. Visitors to Ashland and mobile professionals can take advantage of our wireless while away from home and the office.
You will see in the proposed rates that we are also proposing to offer afnAnywhere as an add-on for our current "wired" customers through our ISP's. Purchasing wireless as an add-on will enable our existing customer base to stay connected via personal data assistants (PDA's), laptops, and smart phones over our network while traveling around town. The ISP's can also use this as a retention tool to reduce incidents of customers switching to the competition for internet service (churn).
In its current structure, we need rates approved for the following:
While there has been an interest expressed by some of our ISP's about them retailing the monthly wireless service, the AFN staff did not structure the billing to allow for them to do so. At this time, neither the IT department nor the finance department has the resources to wholesale this product to the ISP's. Since the market for the monthly product is so small, we intend to only revisit this if there seems to be a large enough demand to warrant the dedication of the necessary resources to support wholesaling it.
Council moves to approve Resolution 2006-____ .
Council moves to approve Resolution 2006-____, with the following changes.