Saturday, July 03, 1999
Lebanon profits from Internet, cable venture
Services compete with Time-Warner
BY DAVID ECK
Enquirer Contributor
LEBANON — Four months after it went online, revenue from Lebanon's cable television and Internet access service is in line with council projections.
At a council finance committee meeting this week, it was revealed that the cable and Internet access revenue for June, 1999 was $27,820 — which is $1,283 over the projected revenue of $26,537 for the month. Expenses were also about $3,000 less than what was anticipated, council members said.
“We're very happy; however, we'd always like to have more,” said Councilman John McComb. “I think we've proven to ourselves that the model itself is accurate.”
The projections, which look ahead 30 years, anticipate the telecommunications operations showing a positive cash flow by September.
The system also pays $16,500 a month into a reserve fund for future capital improvements. That fund will allow for new equipment upgrades without requiring an adjustment in rates, Mr. McComb said.
The report says 945 new customers are anticipated to subscribe to the cable system in July and the number of new customers is expected to increase monthly. The projections are conservative, officials say.
“We didn't want to create pie-in-the-sky numbers,” Mr. McComb said.
The city has 735 homes hooked up to its cable service, and 2,900 customers have signed up.
Telecommunications are expected to become a separate city department in January, 2000. The electric, water and safety departments will use the network in the coming years, with each department paying a portion of the cost.
The city's $7 million fiber-optic network was originally envisioned to enable the city's electric company to compete with private utilities and promote economic development. Cable TV, which was launched in February, was an add-on.
The network will also allow electronic meter readings for gas and water, and officials are looking at the system to carry automatic fire alarms.
But it's the cable that has received the most publicity, and has put other cable providers on notice. At $20.98 a month for expanded cable, the city's rate was as much as 34 percent lower than Time-Warner's rate for the service. Time-Warner on Thursday began offering digital service and dropped its rates for basic and expanded cable to match the city's charges.
“I would encourage them to lower their rates to everybody,” Mr. McComb said. “... This just proves that competition is good for the consumer.”
The city also announced on Thursday that it has dropped the price of high-speed Internet service. Residential Internet service dropped $10 to $29.95 a month and Internet service for businesses went to $39.95 a month from $79.95, Mr. McComb said.
25th reunion: Time to take stock
Bell gets ringing welcome
Jailed mother barred from nursing
Aquarium loses animals
Police targeting litterers
Sweltering forecast triggers smog alert
Judge says: Don't tread on me
Big spender arrested with others' credit cards
Radioactive train load worries Indianans
The Fourth grows as a highway holiday
Boone County festival aims for more robust Taste
Cleves' fireworks moved to Monday
GET TO IT
Airstream owners trade tales of the open road
27 acres stay in Deerfield Twp.
Airport seeks options, partners to fund projects
Basketball scandal hits ex-official
Building boom changes city face
Clock fund raising on time
Commercial building booms in Middletown
Grants to slow sewage overflow
Hazard putting on a show, but president is headliner
Husband arraigned in killing
Lebanon profits from Internet, cable venture
Man arrested in shooting of teen
Man sues city, 2 officers in Feb. shooting
Mary Brogan, teacher, wife and cancer activist, left mark
Middle-schoolers 'Earn and Learn' at summer program
State to maintain insurance checks
Teacher gets settlement but no apology
TRISTATE DIGEST
Warren Co. police linked through computer network
Wilder tries to fund fire update
