TMCnet News
OMU eyes extending Internet service to customers [Messenger-Inquirer, Owensboro, Ky.](Messenger-Inquirer (Owensboro, KY) Via Acquire Media NewsEdge) Oct. 03--Officials with Owensboro Municipal Utilities told the city utility commission Thursday that OMU is already situated to begin providing fiber-optic Internet service to customers. OMU already provides fiber-optic Internet to 85 city businesses, OMU Superintendent of Communications Christopher Poynter told board members during a Thursday work session at OMU offices on Tamarack Road. Because of that, the utility has 117 miles of fiber-optic line strung around the city that can be used to extend fiber-optic Internet to OMU customers. Doing so would provide city residents with Internet service that would be faster than what is currently available though Internet provided by DSL or cable lines, Poynter said. "This is one of the fastest ways to deliver" Internet service, Poynter said. Thurday's discussion was part of OMU's five-year strategic plan, and two possible plans for expanding into the fiber-optic Internet market were presented. Although no action was taken at the work session, OMU spokeswoman Sonya Dixon said it was likely the staff would make a recommendation on how best to proceed in the near future. "Certainly, the commission seemed enthusiastic and interested, so we'll look for their lead," Dixon said after the meeting. According to information Poynter provided the board, the Federal Communications Commission considers broadband Internet as any service that has a download speed of four megabytes per second. Already, technology is requiring faster speeds; Poynter's presentation said downloading a HD movie requires a speed of five megabytes per second, while super HD movies require a download speed of seven megabytes per second. Homes will multiple devices connected to the Internet disrupt connections of only four megabytes per second. Poynter said by extending fiber-optic Internet, the utility could potentially offer packages with download speeds ranging from 50 megabytes per second to one gigabyte per second. Community access to very high-speed Internet would benefit economic development, Poynter said. Since extending fiber-optic Internet, the city of Chattanooga has seen benefits in education, economic development and increases in payments in lieu of taxes, he said. "In my opinion, not being connected to the information superhighway is almost as detrimental as not being connected to an interstate," he said. Poynter presented two options; the first involves creating a pilot program in fiscal year 2015 and gradually expanding the system to be able to reach 35 percent of OMU customers by 2025. In that case, expenses to build the system would increase annually, from about $11,600 in fiscal year 2016, to $53,000 by fiscal year 2025. Estimated annual revenue by 2025 is $1.085 million. The second scenario would require the utility to bond $15 million, with the goal of being able to provide coverage to 100 percent of OMU customers at fiscal year 2019. Under that scenario, OMU officials anticipate an annual revenue of $3.282 million by fiscal year 2025. A survey of 300 randomly selected OMU customers found 20 percent would sign up for fiber-optic service through the utility if it were available, Poynter said. Fifty seven percent of those polled said they would not sign up for the service. Dixon said the company that conducted the poll simply asked the question without attempting to explain what fiber-optic Internet means. Building the fiber-optic Internet service would also be a step in building a "smart grid" over the community. Dixon said a "smart grid" would reduce the time of power outages, allow people to monitor their electric usage and provide other services. "Eventually our customers are going to demand a smart grid," OMU General Manager Terry Nulty said. Nulty said the utility could take out a $15 million bond without the bond affecting energy customer's electric rates. "This is a strategic question for the board," Nulty said. "I believe it's critical for the future of our community, not just OMU, but our community." James Mayse, 691-7303, [email protected] ___ (c)2014 the Messenger-Inquirer (Owensboro, Ky.) Visit the Messenger-Inquirer (Owensboro, Ky.) at www.messenger-inquirer.com Distributed by MCT Information Services |