The local governments of the Twin Counties region will not sell broadband services, but will operate the broadband network as a regional broadband authority. As with conventional transportation roadways, the authority will build and maintain these new digital roads, but private businesses will use the system to deliver broadband services. This is consistent with the Commonwealth's view that municipalities should not compete with the private sector. This approach creates unlimited opportunities for Internet service providers, who can offer a wide variety of services on the network for very low cost.
The current method of charging Internet users for a broadband roadway of a certain capacity is broken. Internet access and service providers make the most money when customers use no Internet access at all, and make the least amount of money if a customer uses the Internet for high bandwidth, but increasingly common services like telephony, video, and music downloads. ISPs are adapting by blocking certain kinds of services or slowing them down to degrade service. This punishes customers for using the Internet and keeps the cost of basic broadband access artificially high.
Instead of charging for Internet access, The Wired Road will offer broadband customers a service-based system that only charges residents and businesses for the services they actually use. As an example, the system would offer several VoIP (Voice over IP) telephony services. Customers will pay the provider of the service a monthly fee, and a small portion would be returned to the broadband authority by the service provider for use of The Wired Road network to deliver the service. This system is already in successful use in Europe. The Twin Counties region will be one of the first areas in the United States to adopt this innovative new approach. Danville, Virginia and Palo Alto, California are also pursuing this approach.
The Wired Road project has received substantial financial and organizational support from the Virginia Department of Housing and Community Development. Mr. William Shelton, Director of DHCD, has been instrumental, as well as Todd Christensen and Joe Blevins. For more information about DHCD's broadband efforts in Virginia, contact Joe Blevins at +276-676-5471 x3.