City passes on fiber contract

Published 7:02 am Sunday, April 26, 2015

Negotiations between the City of Brookhaven and C Spire over the company’s ultra-fast fiber Internet service broke down in the fall of 2014. But residents never knew the Mississippi-based communications company was considering bringing its Fiber to the Home program to the city.

That’s because the Board of Aldermen discussed the contract negotiations in executive session, which is closed to the public and the media. A contract between the city and C Spire was never brought up for a vote in a public meeting.

Details of the negotiations have not been released, but board members are drafting a letter that will outline their reasons for not agreeing to C Spire’s contract proposal.

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“We agree that the people need some answers,” Alderman-at-Large Karen Sullivan said.

Mayor Joe Cox and Sullivan said the city was wary of some of the contract’s language. Cox said he understood the technology is a great advancement and he supports it.

“We are trying to look out for the future of Brookhaven,” Cox said.

Fiber is a new generation of Internet connection that has been estimated at 100 times faster than the current average connection speed. Internet works similar to a high traffic area. When a car is alone on the road, the car can maintain the optimal speed. As more cars are added, traffic slows down to make accommodations.

With the Internet, when one device is working, it runs at the optimal speed. The more devices that are connected, the more the Internet speed is slowed down. Just as only so many cars can travel through a busy area at a time, only so much information can be passed through the Internet.

Fiber would essentially increase the amount of roadway, which would then allow more information to pass through at an optimal level.

Google began the first fiber initiative in 2010. C Spire followed in 2013 in an effort to bring the advanced technology to Mississippi.

Bill Jacobs, a long-time Lincoln County resident who has been interested in having fiber come to Brookhaven, said fiber could promote economic growth because it would increase the quality of living.

“Industries have a checklist they follow dependent on the industry needs,” he said. “The more positive checkmarks the higher the community ranks.”

Since having fiber service will be in limited communities, Jacobs, the former owner of The Daily Leader, said there is a belief that people will search out communities that have such. That would impact housing values and ad valorem taxes for the city. Jacobs also predicted that more tax dollars due to more taxpayers should lower tax rates.

Jacobs also explained that C Spire would bring TV, Internet and phone services, and the city would receive 5 percent of the money made from subscriptions. Jacobs said the city currently makes 5 percent from Cable One and AT&T, which provides about $117,000 annually. The city does not make money from satellite companies. Jacobs said C Spire could help reverse the trend of moving to satellite providers.

Jacobs said his concern is that Brookhaven is losing residents.  Fiber could promote movement into the city. He also said studies have shown that houses with fiber Internet show an increase in property values.

Jacobs admitted that the city does have issues to evaluate and weigh against the positives.

“The issue here is that nobody knew because they did everything in executive session,” he said.

Dave Miller, senior manager of C Spire media relations, said the contract C Spire presents to cities includes language that will help expedite the construction process.

“We’re not asking a lot for the millions we are investing in the community,” he said.

Miller, who did not quote specifics about the Brookhaven negotiations, said the project is not for every city, and the city must weigh its own vision against C Spire’s vision. He said for the project to work both C Spire and the city must share the same vision.