Yellowstone Fiber, formerly Bozeman Fiber, is a 501(c)(3) nonprofit organization currently deploying a fiber-optic broadband network throughout Bozeman, Montana, with an eye to potential expansion into surrounding Gallatin County. Bozeman is home to Montana State University and is a booming, high-technology community, with active tech entrepreneurs. To illustrate community interest in connectivity, Yellowstone Fiber CEO Greg Metzger said that he has a standing offer of $250,000 from one rural resident to finance a connection to their area.
Bozeman Fiber started as a community anchor institution network with 27 miles of fiber connecting schools, libraries, and local government entities within Bozeman. The board of directors made the decision to deploy a fiber-to-the-home (FTTH) network throughout the community. There are approximately 18,000 homes with 22,000 prospective passings in Bozeman. Yellowstone is projecting a 50 percent to 60 percent take rate over the next few years.
With an ethernet network design and deployment, each customer has their own dedicated fiber to the central office. This allows for a service offering of up to 10 symmetrical Gbps no matter their location, including those customers who require long rural fiber runs to reach homes or businesses. In addition, this network design can accommodate customers who want enhanced security and advanced services. This is in contrast with the more standard Gigabit Passive Optical Network (GPON) design, which uses optical splitters to reduce the number of fiber strands per customer passing.
Yellowstone Fiber contracts with UTOPIA Fiber, a large, publicly owned, Utah-based open-access network provider, for network design and engineering, marketing, and operations services. Yellowstone manages the construction contracting and inspections process. This partnership allows Yellowstone to ensure high quality while reducing the need for a large staff. Metzger also credits the UTOPIA Fiber relationship for providing investor assurance when Yellowstone recently issued a $65 million revenue bond.
In addition to UTOPIA bolstering investor confidence, Yellowstone’s standing as a nonprofit corporation provides a unique financing advantage, as the tax-exempt nature of the bonds reduces the required interest rate necessary to attract bond-buying investors. Metzger credits Yellowstone’s relationship with UTOPIA for its ability to sell these bonds as a start-up network owner.
Yellowstone Fiber will be an integral asset to the Bozeman community and to Gallatin County, as the network supports an already vibrant local tech economy.