News Articles Related to the PMLDnet.com Wireless Project
  • An article from The Landmark that summarizes the PMLD wireless internet solution.
Some history . . .

Princeton is a rural community located 15 miles north of Worcester, Massachusetts. It is sparsely populated and zoning restrictions significantly limit future build-out of the Town.

Residents and businesses have very limited access to high-speed internet service offerings. Cable television has not been installed in the Town and Verizon’s DSL internet service is limited to a small area near the Town Common.

Market research has shown that only 15% of the Town’s resident and businesses currently subscribe to high-speed internet service (DSL or satellite), but that 80% of Princeton's households would be interested in a high-speed internet access service.

With a capture rate of 40% within five years, PMLD expects to achieve an acceptable rate of return on this project.
 

PMLD has developed an internet capability for the Town

PMLD considers the delivery of high-speed internet service to be consistent with its mission as a service provider to the Town of Princeton. Princeton Municipal Light Department (PMLD) is the electricity provider in Princeton and has been providing reliable service to the Town for almost a century. PMLD is a Town-owned asset and was strongly encouraged to take the lead in delivering high-speed internet service.

PMLD has branded its high-speed internet service as PMLDnet which will be operated as an independent business unit. PMLDnet will be able to take advantage of existing PMLD assets and infrastructure such as utility poles, operations buildings, professional staff and rights-of-way.

PMLDnet will deliver internet service to subscribers through a wireless internet network consisting of 22 antennas located throughout Town. Alvarion, the world’s largest provider of wireless network equipment, has been designated as the technology provider for this venture. Alvarion has a proven track record of success in similar applications and the technology is considered to be both reliable and appropriate for Princeton. The main internet feed will originate in PMLD’s central office, retransmitted through the network of antennas, and ultimately deliver high-speed internet to customer subscriber equipment installed in each home or business.

Financial overview of the PMLDnet project

The project was approved by a ¾ majority vote at Princeton's Annual Town Meeting. Based on reasonable expense projections, PMLD estimates that a borrowing of $600,000 will be required to finance the startup of the project. The term of the tax-exempt bond will be 5 years at an estimated interest rate of 5% (+/- 1%).

PMLD recognizes that technology evolves quickly in this market space and that by installing PMLDnet cost effectively and utilizing existing assets, PMLDnet will be profitable in a very short period of time. Based on penetration rates of 15%, 20% and 25% for residences and 15%, 25% and 35% for businesses over the first three years, PMLDnet’s annual cash flow is positive. PMLDnet will generate enough revenues to reinvestment in future technology, replace equipment and upgrade the wireless network.

PMLD estimates that the entire network and system can be installed within six to eight months. It is expected that deployment will be completed by the end of 2006.

PMLDnet services

PMLDnet offers a selection of service plans for both the residential and business subscriber. The basic residential service plan will likely be the most popular, providing high-speed internet access at 1.0 Mbps. It will be priced to be competitive with other similar offerings (i.e., the current Verizon DSL service provided to a portion of the Town). Other service options will be available at faster speeds and higher monthly fees.

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In summary, PMLD feels strongly that PMLDnet will be a valuable resource to the community it serves. PMLDnet is a business consistent with PMLD’s overall mission as a reliable and low-cost service provider in the Town of Princeton.