Redwood Meadows to vote on internet as a public utility

Redwood Meadows residents will vote on whether internet service should become a public utility after an initial offer for high speed fibre optic access ballooned in cost.

"They discovered they could not do the job for what they thought they could," said Paul Sawler, the mayor of the community west of Calgary.

Axia, an Alberta-based internet service provider, initially said it could provide the service to the community as long as 290 households signed two-year contracts.

Residents who signed up would pay $99 each month and the town would pay an initial cost of $100,000.

Now all 350 households would have to sign up at$109 per month for 25 years.

Location affects the cost

That proposal will go before the community in a plebiscite on Thursday.

"The reality of Redwood, with its density and its water tables and geography, it creates a much higher cost for a fibre implementation than a normal town with normal densities," said Robert Price, the vice-president of services for Axia.

According to a letter fromthe Redwood Meadowscouncil to residents, Axia initially thought it could install the infrastructure at a cost of $2,500 per house. That number jumped to $7,500 per household after the company did more detailed engineering work.

The community said in its letter thatAxiaprovided no options for terminating the contractso the townsite would be tied to a single internet provider for 25 years.

Will Geczi and his wife, Kathleen Henrichon, already have internet service for $75 per month. They now worry they'll be forced to switch to Axia and pay more.

They say that's no way to do business.

"If you are as good and as fast as you say you are, you're going to get the rest of us," said Kathleen.

'Stepping into the lion's den'

Representatives from Axiawill be at a meeting in Redwood Meadows on Tuesday night, two days before the vote.

A look at the town's Facebook page and the comments from frustrated residentsindicates the company could be in for challenging night.

"I applaud them for stepping into the lion's den to own the situation that has been created," wrote Scott Ackerman, the community's deputy mayor in charge of finance, in a comment thread.

"They have been notified and understand there are going to be some tough questions."

Price says there's nothing finalized at this point and the company is simply proposing a solution to a problem.

"We think it's a great win-win and so webelieve it's a smart answer," he said.

"But, of course, it always comes down to each individual's view of what makes sense to them and their priorities. So, we'll find out."

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