Internet pricing survey (v6)
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The document compares internet, phone, and TV pricing and service options between the current UTOPIA model, a proposed public-private partnership (PPP) model with Macquarie, and major incumbent providers in Centerville, Utah. It shows that for most residents, switching to the PPP model would save money compared to current costs and plans, especially after introductory rates from incumbents expire. The PPP model also provides faster internet speeds for comparable or lower costs than other options. Switching residents are presented as examples who would save between $6-48 per month depending on their needs and current provider plans.
Internet pricing survey (v6)
- 1. Centerville’s Goals for UTOPIA • High Quality Infrastructure • Competitive Marketplace / Consumer Choice • Financially Self Sustaining
- 3. What’s available on UTOPIA today? Competition.
- 4. Residential Pricing in Centerville (Data) Monthly Service (Internet Only) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) Cable (introductory – regular rate) 300GB Data Cap DSL (introductory – regular rate) 150GB Data Cap Wireless (requires line-of- sight to a tower) 150GB Data Cap 1.5 Mbps $20 - $40 3.0 Mbps $19 (20GB cap) 5.0 Mbps $40 6.0 Mbps $50 7.0 Mbps $20 - $45 10 Mbps $45 15 Mbps $50 25 Mbps $55 $49 $30 - $67 50 Mbps $60-$65 $54-$59 $35 - $77 100 Mbps $60-$80 $54-$74 $115 1.0 Gbps $90-$100 $84-$94 Current UTOPIA Model Macquarie Incumbents For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.
- 5. Residential Pricing in Centerville (D+V) Monthly Service (Internet + Voice) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) Cable (introductory – regular rate) 300GB Data Cap DSL (introductory – regular rate) 150GB Data Cap Wireless (requires line-of- sight to a tower) 150GB Data Cap 1.5 Mbps $75 - $87 3.0 Mbps $29-$39 20GB Cap 5.0 Mbps $60 6.0 Mbps $70 7.0 Mbps $75 - $92 10 Mbps $65 15 Mbps $70 25 Mbps $75 $69 $50 - $87 50 Mbps $82 -$90 $76-$84 $55 - $97 100 Mbps $75-$105 $69-$97 $135 1.0 Gbps $105-$120 $99-$114 Current UTOPIA Model Macquarie Incumbents For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.
- 6. Residential Pricing in Centerville -- TV Monthly Service (Internet + TV – basic package) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) No Data Caps Cable (after introductory period) 300GB Data Cap 3.0 Mbps $65 6.0 Mbps $85 25 Mbps $100 50 Mbps $80 $74 $82 100 Mbps $100 $94 1.0 Gbps $110 $104 Monthly Service (Internet + Voice + TV – basic package) 25 Mbps $120 50 Mbps $105 $99 $190 100 Mbps $125 $119 1.0 Gbps $135 $129 Current UTOPIA Model Macquarie Incumbent
- 7. Google Fiber vs. Macquarie PPP Monthly Service UTOPIA Centerville PPP Model All Areas Google Fiber Provo Free Internet n/a 3/3 Mbps (20GB cap) 5/1 Mbps Data 100 Mbps Data $35-$55 $35 or less n/a 1 Gbps Data $64.95-$84.95 $65 or less $70 + Video $49.95 (~150 ch) TBD $50 (~200 ch) Monthly UTILITY Fee None $9-10 Apt $18-20 SF $36-40 Commercial $5.35 SF $10 Commercial $2,000 Industrial Installation Monthly Lease Fee $2,750 one time or $20 for 20 years or $30 lease None $30 Competition (Residential & Business Service Providers) 9 Residential 10+ Business 9 Residential 10+ Business 1 Residential 0 Business City General Fund: original UTOPIA Debt $8 $8 today dropping to $0 over time unknown Current UTOPIA Model Macquarie Google Fiber
- 8. Incumbent's Reactions to Competition (taken from PPP Report)
- 9. Citizen Joan – Landline only, no internet Current Situation: Uses a landline phone at a cost of $35 month. Savings: Citizen Joan will save $10/month and will now have basic internet access. Future Situation: Adds a phone line to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps Internet + $6 for a phone line for a total of $25.
- 10. Citizen John - No landline, cell phone only, only needs the internet – light user Current Situation: Uses DSL and pays the introductory price of $20/month for a year and then will pay $40/month thereafter for 1.5Mbps/896K service. Savings: Citizen John will pay about the same during the introductory period for better service. After one year, he’ll save $21/month. Future Situation: Decides to upgrade his speed to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps.
- 11. Citizen Joe - No landline, cell phone only, only needs the internet – medium user Current Situation: Uses cable for his internet and pays the introductory price of $30/month for a year and then will pay $67/month thereafter for 25/5Mbps service. Savings: Citizen Joe will pay $19/month more the first year for his internet service if he switches because of the promotional rate he is receiving from the cable provider. After one year, he’ll save $18/month. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $30/month for the 25/25Mbps service. He pays a total of $49/month.
- 12. Citizen Jack – Needs the internet and reliable phone service with unlimited calling Current Situation: Uses the local phone company for his DSL and phone. His plan that includes unlimited long distance has an introductory price of $75/month for a year and then goes up to $92/month thereafter for 7/1Mbps service. Savings: Citizen Jack will save $6/month the first year if he switches and $23/month thereafter for much faster speeds. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $50/month for the 100/100Mbps service and unlimited long distance. He pays a total of $69/month.
- 13. Citizen Jane – Needs the internet for gaming sons, phone service and video Current Situation: Only service fast enough is the cable company. She gets the “triple play” which comes with unlimited phone, basic cable and 50/10Mbps service for an introductory price of $90/month. After the first year, the price will go up to $147/month. Savings: Citizen Jane will pay $9/month more the first year if she switches and then save $48/month thereafter. Future Situation: Decides to switch to an ISP on the fiber network. She pays the utility fee of $19/month and an additional $80/month for the 50/50Mbps service, unlimited long distance and TV. She pays a total of $99/month.
- 14. Citizen Jamal – Serious gamer that needs unlimited phone service and a premium video package Current Situation: Only service fast enough is the cable company. He gets the “triple play” which comes with unlimited phone, basic cable and 105/20Mbps service for an introductory price of $200/month. After the first year, the price will go up to $250/month. Savings: Citizen Jamal will pay $9/month more for the first year if he switches and gets the faster speed and then save $41/month thereafter. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $180/month for the 100/100Mbps service, unlimited long distance and premium channels. He pays a total of $199/month. He decides to upgrade to the 1/1Gbps service for $10/month more.