A hybrid model of fiber deployment that takes advantage of the density of urban pockets to help spread the costs to serve rural communities is altafiber’s approach to solving the digital divide. In the above interview, altafiber’s Director of Government Affairs and Business Development, Rob Shema, describes this so-called blender theory as a way to stretch limited public funding.
- 00:22 – The cost difference in serving low-density versus higher-density areas can be significant.
- 01:12 – They call it the blender theory. This mixing of public and private equity is necessary to bring fiber to the most rural residents.
- 02:03 – BEAD requires at least 25% of the funding from private equity.
- 03:02 – Shema makes the point that beyond connectivity, closing the digital divide is somewhat unique to the locale. In urban areas, the conversation is about how to use it, whether for education, or telehealth. In rural areas, however, they find that fiber drives economic development.
- 04:57 – Through its subsidiary, UniCity, altafiber works closely with rural fiber communities to help them understand their needs and what problems broadband connectivity could solve, particularly regarding economic development.
- 05:49 – Shema points out that private equity investment is taking two forms in today’s market; one is about maximizing homes that position the network for an eventual sale, while the other focuses on building an ongoing business.
- 07:01 – Shema explains that Macquarie Asset Management, Altafiber’s current owner, is a builder and owner of infrastructure, such as bridges and roads, and is looking at the long-term as it makes its investments in fiber networks.