PORTSMOUTH, Va. (WVEC) — Portsmouth's plan to construct 55-miles of fiber lines throughout the city over the next 5 years remains on track, but the question of how to pay for the project is up for debate,
At Monday's city council work session, Mayor John Rowe and council members talked about the funding options available to them. The city has already allocated $3.55 million for the capital improvement project in the fiscal year 2018 and 2019 budgets.
That leaves about $5 million to complete the construction.
The city is currently receiving PPEA proposals to see if private companies have any ideas on how to partner with the government to help pay for this project. However, Mayor Rowe and others expressed concern about ceding some control of the fiber lines to another entity. Rowe suggested if the city could fund the project independently, the council should try to do that.
That would require tax revenue, bond purchasing, or other solutions. Portsmouth Chief Information Officer Daniel Jones said maintaining control of the fiber network in-house would be preferable.
"We can provide bandwidth to our municipal operations without having to go through a carrier," Jones said.
Jones said broadband connectivity today is similar to electricity at the turn of the century, adding that businesses are looking for a connection, not location.
"Our aspiration behind this is to bring new carriers into the city for competition," Jones said. "Most residents now are choosing between Verizon or Cox."
New carriers would theoretically create more competition among internet service providers, driving prices down and benefiting consumers. Additionally, Jones said the fiber lines will help reach areas of Portsmouth that are currently not served or under-served in terms of internet access.
The project is on track for completion by 2022.
Jones said it would boost connectivity throughout Hampton Roads as a region. City Council will reexamine the different ways to pay for the project within the next 2 months, Jones said.
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