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Technological advancements have become the day to day progress, with every individual embracing the modern technology. Among such technological advancements are the fiber optic systems. These are integrated systems that enable users to access internet connections and enjoy telecommunication services, at a fee paid to the server (Mahlke & Go¨ssing, 1987). The companies offering such services are in rush to extend their market segment to new regions. Among such companies is the light company, which wants to engage in its new market within the Frones city. The company has approached me, as the city manager, with a draft of their proposed project.
The Lightup Company has an excellent reputation in fiber optic systems in other cities. Among the provisions is their presented proposal is the liability to installation expenses. The company wants to install fiber optic systems that will interconnect all the homes in Frones city. The company states that it will cater for the installation charges, in terms of equipment and personnel. The company also provides short term maintenance of the installed systems, after which the users will be responsible for the maintenance cost. Upon successful installation of the fiber optic systems, the users will enjoy these services at a monthly fee, just like the electricity charges. These charges will be billed on the rate of usage, hence might vary from one user to another.
The proposed FFTTH (Frones Fiber to the Home) project is beneficial not only to the company and the users but also to the town management. For the first 10 years, the city will have to pay the Lightup Company for the system. The city will in turn benefit from the project through property taxation. An oversight of the proposal indicates that the FFTTH (Frones Fiber to the Home) will mutually benefit the founders and the Company as well. The core beneficiaries will be the residents of the Frones who will be enjoying the fiber optic services.
However, the proposal creates numerous criticisms. Among the issues to criticism are the installation expenses. Installing optic fiber systems requires a lot of cabling. The cables will have to be laid either underground or supported over the poles like the electric cables. The purchase of this equipment’s, the skilled and manual labor to be employed and the maintenance cost that the company claims to cater for a short while might be very high. There is no clarity on how the company will recover these initial expenses. Although the proposal claims that the city will pay for the system, which is not yet approved, the company may, in turn, overcharge the first users over the first 10 years in a mission to recover the installation expenses. From this point of view, it is more probable that the fiber optic services might be costly to the users.
FFTTH (Frones Fiber to the Home) project will not limit the residents of the city to other connection servers like WIFI hotspots and Ethernet connections. There is a need for the company to first conduct a research on the market, evaluating the targeted users’ preference. The Lightup Company needs to come up with an overall estimation on the targeted market before the installation process to avoid losses due to few customers. A big questions my rise from the town management, “Why do we have to pay for the FFTTH (Frones Fiber to the Home) project?” A great debate may arise when FFTTH (Frones Fiber to the Home) proposal tries to relate fiber optic systems to other basic needs such as water and electricity, which the city is responsible for provision to its residents. A general view is likely to rank the optic fiber system among prestigious services such as TV connections, and not a basic residential need such as water and electricity. Failure of the city to pay for the project as stated in the proposal might lead to failure in its installation, or instead turn the burden to the users.
As the town manager, I can approve the FFTTH (Frones Fiber to the Home) proposal to be carried on, but upon provision of a more detailed report on the stipulated monthly charges. This will help to mitigate customers’ exploitation. The installation plan and map also need to be tabled down to avoid the crisis that may arise during the installation process upon interference with existing personal and public properties. There is also need for a report from the residents and residential house owners on their acceptance of the fiber optic installation within their properties, and their compliance with care, use, and maintenance. The Lightup company has a responsibility to provide a report on the defects of their system and the mitigation measures they have put in place to curb such. Otherwise, this is a project that will enhance a remarkable technological advancement within the city, as well as generating more revenue to the town through additional property tax revenue (Chomycz 2002).
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