Today, the California Public Utilities Commission (Commission) voted to approve the purchase of Bright Fiber Network, Inc. (Bright Fiber) by Race Telecommunications, Inc. (Race), giving the green light to a $26.8 million fiber-to-the-home build, servicing 1,941 households in western Nevada County. The project was approved with a unanimous 4-0 vote.
The original Commission California Advanced Services Fund (CASF) grant for the project was awarded to Bright Fiber in December 2015 but was delayed by developments in other federal grant programs and Bright Fiber’s search for financing to meet required matching funds. In June 2018, Race announced its planned acquisition of Bright Fiber, which it will operate as a wholly owned subsidiary to complete and manage the project. A successful internet service provider that has received ten and completed nine Commission-funded rural broadband projects in California, Race will provide all necessary financing and bring deep technical and managerial expertise to the Bright Fiber project.
“It’s been a ten-year journey to arrive at the point where construction can finally begin on this transformational gigabit fiber project in an area of rural Nevada County where broadband internet access is severely limited,” said John Paul, President of Bright Fiber. “My neighborhood champions, the hundreds of project supporters, and I are simply thrilled and grateful that the Commission approved Race taking the helm and completing Bright Fiber’s vision to bring our community into the Information Age.”
To contain costs, which have steeply risen since the project’s original application in 2013, Bright Fiber and Race proposed an amended plan with 25% of the installation underground and 75% aerial, meaning the fiber will be attached to existing poles, similar to telephone and electric infrastructure. The Commission reviewed and approved these changes to the broadband project, including a $69,534 reduction in the CASF grant—now amended to $16,086,789. The revised total cost of the project will be $26,811,315. The Commission confirmed that the lack of reliable and affordable broadband in the project area still exists, and this transfer enables the project to move forward. Under Assembly Bill 1665, the Commission is working to provide broadband access to 98% of California residents by region.
The Commission granted an extension of the original construction deadline to May 2020. Race has already completed engineering for the amended project and stated it will immediately begin the permitting process with local authorities, aiming to complete the project within the required timeframe.
“Race is humbled and grateful that the Commission has moved quickly to approve this transfer of control of Bright Fiber and review the needed CASF project changes so that Race can construct this important project for the community,” said Raul Alcaraz, President of Race. “Our team at Race has been blessed with a successful track record of CASF projects, and we feel confident we can deliver a reliable, fast, and affordable broadband system.”
Race and Bright Fiber will hold a Town Hall meeting for the community on the evening of Wednesday, January 30th to describe the amended project and answer questions. The location and time of the Town Hall will be announced shortly.
About Race Telecommunications, Inc.:
Founded in 1994, Race Telecommunications, Inc. has a successful track record of delivering high-speed fiber solutions to rural and disadvantaged communities that are both affordable and sustainable. Working in partnership with the California Public Utilities Commission and non-profit community advocacy groups, Race is committed to bridging the Digital Divide in California.
About Bright Fiber Network, Inc.:
Bright Fiber Network, Inc. is an independent internet service provider in Nevada County. The company began as Spiral Internet in May 2006. Since its inception, Bright Fiber has evolved its business and service offerings in the rural broadband market and has worked tirelessly to bring a state-of-the-art fiber network to western Nevada County. After the sale of BFN to Race, BFN will focus exclusively on the fiber-to-the-home CASF project. A separate company, Spiral Internet LLC, has been spun off from BFN and will offer web hosting, dial-up, email, and DSL resale services under the leadership of John Paul.
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