FOR IMMEDIATE RELEASE August 22, 2000
CARY TAKES NEXT STEP IN GETTING CABLE COMPETITION: ISSUES RFI
CARY, NC – The Town of Cary wants cable competition bad and it’s willing to consider incentives for just the right fit—that’s the message going out today in Cary’s Request For Information (RFI). The RFI is being sent to about two dozen companies that may be interested in overbuilding Cary’s existing cable system and providing competition to its owner, Time Warner Cable. And in addition to what has already been shown to be a very lucrative cable market, responding companies may also have access to millions of dollars that the Town already plans to spend on related services.First, the Town government is interested in entering into a long-term services contract with a single provider for its own existing and future telecommunications needs including local and long distance telephone, data transmission, internet access and web hosting, and closed circuit and other video services. Cary currently spends over $500,000 annually contracting with BellSouth for many of these services. Second, the new company may also be eligible for several million dollars from the Town if it can also provide Cary with the services associated with the Town’s planned centralized traffic control system currently under design.
"We’re looking for one stop shopping for service needs," said Cary’s Town Manager Bill Coleman. "Our needs require fiber solutions and, therefore, are extremely compatible with a total cable television fiber overlay. The question for us will be if a new provider can offer us an attractive service package. If that’s the case, then a company responding to this RFI may be looking at a substantial annual revenue incentive to come in and compete."
In January 1999 following citizen complaints over rising cable television rates without significant service or programming improvements, the Town of Cary decided to investigate the construction and operation of an alternative, competitive fiber optic network to provide voice, data, high-speed Internet access and video services to all of Cary. In March 1999 the Cary Town Council appointed a special advisory committee of Cary citizens who work at area high-tech companies to give technical advice and recommendations on various aspects of the project. The Town also funded a feasibility study and the development of a business plan by outside consultants--Rendall and Associates, since acquired by the Gartner Group.
Both the feasibility study--completed in October 1999--and the business plan--completed in May 2000--demonstrated that construction of the fiber optic network would be feasible and profitable for a private company. The RFI was prepared over the summer and released today in hopes of attracting owners/operators of the network.
Interested companies have until 2:00 PM October 3, 2000 to file their formal response with the Town. After that, the Town may require individual respondents to give an oral presentation about their response.
Following this, a recommendation from Town staff on the best way to move forward will go to the Cary Town Council for their direction.
Information about the fiber optic overlay project, including the RFI, is available on the Town’s website,
www.townofcary.org.###
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PRIMARY CONTACTS: |
Bill Stice, Technology Services Director, 469-4027 |