Altafiber Deal Promises Another Internet Choice for 15,000 Westerville Homes
Altafiber plans Westerville expansion, bringing new internet option — and neighborhood construction
Altafiber, a Cincinnati-based telecommunications company formerly known as Cincinnati Bell, plans to bring high-speed internet to about 15,000 Westerville homes, adding another provider to a market that already includes AT&T, Spectrum and Breezeline.
Unlike the cable networks generally used by Spectrum and Breezeline in Westerville, altafiber plans to run fiber directly to the homes included in its project.
But the new service will arrive first as construction.
Before residents can connect, some will see utility markings, work crews, digging and equipment installed in public rights-of-way near their streets and yards. Similar telecommunications projects have already raised concerns about damaged lawns, construction delays and communication with residents.
Westerville’s agreement with altafiber promises another fiber provider. It also means years of work in local neighborhoods.
Altafiber will pay to build and operate the residential network. Westerville will receive lease revenue, fiber capacity for city operations and payments intended to help cover construction-related costs.
For residents, the potential benefit is greater competition. Whether that produces lower bills or better service remains unclear because altafiber has not released its prices, post-promotional rates, coverage map or neighborhood construction schedule.
Those details will determine whether residents receive a meaningful new choice — or simply endure another round of digging near their homes.
AT&T already advertises fiber service in parts of Westerville, with availability and speeds varying by address. The company offers speeds of up to 5 gigabits per second where service is available.
Spectrum serves the city with advertised speeds of up to 1 gigabit per second. Although Spectrum describes its network as “fiber-powered,” its local service generally uses coaxial cable for the final connection to a home.
Altafiber plans to run fiber directly to homes included in its project.
The company will set its own rates, equipment fees and promotional offers. Westerville will not operate the residential service or control its prices.
A ding altafiber as a third major provider could pressure the companies to compete on price, speed and customer service. It also could give residents another option when they are unhappy with their current provider.
Why Westerville made the deal
Westerville could have considered building a residential network by expanding the infrastructure it operates through the WeConnect Data Center.
Doing so could have required a multimillion-dollar public investment and made the city responsible for running a residential internet company. Under the agreement, altafiber assumes the construction costs and the financial risk of attracting enough customers to make the project profitable.
“High-speed internet is an absolute necessity for modern daily life,” City Manager Monica Dupee said in the city’s announcement. “We found a way to do it without a multi-million dollar investment.”
Construction is expected to begin this summer and last about three years. The agreement allows extensions for delays involving permits, regulations, rights-of-way or other parties. The city has not released a detailed map of the approximately 15,000 homes included in the project or said when work will reach individual neighborhoods.
How WeConnect fits into the agreement
WeConnect is a city-owned data center and fiber network that has served businesses and government operations since 2011.
The network includes more than 60 miles of fiber, according to the city. Until now, it has primarily served businesses, public facilities and municipal operations rather than residential customers.
Altafiber will install equipment inside the WeConnect facility and use it as a local base for serving Westerville customers. Under the agreement presented to City Council, altafiber will pay WeConnect $8,732.48 a month for 15 years, totaling about $1.57 million.
That is gross revenue. The city will continue to incur costs for electricity, cooling, security, maintenance and staff support. It has not estimated how much lease revenue will remain after those expenses. Westerville also will receive long-term access to fiber it can use for city facilities and electric-system operations. The city will pay maintenance costs based on how much of the network it uses.
Altafiber will provide additional money during construction to help cover permitting, inspections and utility-locating work. The amount was not included in the May 19 summary presented to City Council.
What residents will notice first
For many residents, the project’s first sign will not be faster internet. It will be crews outside their homes.
Workers will install cable, conduit and equipment throughout neighborhoods. Underground construction could bring utility markings, directional boring, temporary lawn damage and new utility boxes.
The city says the agreement gives it stronger authority to coordinate construction, respond to complaints and require altafiber and its contractors to comply with local bonding, insurance and permitting rules.
Those protections will matter to residents whose streets and yards are affected. So will advance notice, clear construction schedules and prompt repairs when damage occurs according to the city.
Residents eventually will need to know whether altafiber serves their address, what the service costs after promotional offers expire and how it compares with AT&T and Spectrum.
The agreement gives altafiber access to about 15,000 potential customers. In return, Westerville receives lease revenue and municipal fiber capacity without building its own residential network.
But residents will bear the disruption before they can judge the benefit.
Until altafiber releases its coverage map, construction schedule and regular prices, the value of the deal will remain an open question.
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