Muscatine, Iowa, Upgrading to FTTH

Muscatine Power & Water (MP&W) announced in late November that it will upgrade its municipal hybrid fiber coaxial (HFC) communications network to an FTTH network. The upgrade will allow Muscatine to offer gigabit speeds. Construction is set to begin in 2016; the FTTH network is scheduled to go live in 2017.

According to the press release, the community hopes to capitalize on the new technology for economic development opportunities, better residential services, and replace an aging system with future proof infrastructure. From the press release [PDF]:

Consideration was also given to two other plans that would have either maintained or incrementally improved the existing HFC system. As stewards of the public trust, the Board of Trustees felt the other options were costly short-term fixes and that FTTH was clearly the superior option.

“Tonight’s decision assures that Muscatine Power and Water will continue to be a leader in telecommunications,” said LoBianco, “the new system will be able meet the bandwidth needs of the community for years to come while reducing maintenance and improving reliability. It ensures that the communications capabilities in Muscatine are as good as in any large city which enjoys the benefits of FTTH technology.”

Muscatine sits in the far southeast corner of the state and is home to approximately 29,000 people. The community established a municipal water utility in 1900, an electric utility in 1922, and its communications utility in 1997. According to the press release, the community was unhappy with the previous incumbent and an overwhelming majority of local voters elected to establish what is now called MachLink. The network offers video and Internet access.

A Muscatine Journal article reporting on a recent meeting of the Board of Water, Electric, and Communications Trustees notes that the project will be funded with an interdepartmental loan, one of the three most common funding mechanisms. (For more on funding municipal networks, check out our fact sheet [PDF].)

The article also reported that the communications utility posted a $64,000 profit in October which was higher than expected. In fact,  the entire year has been better than expected, even though revenues were down: 

The communications utility posted profit of $64,134 in October, compared to the budgeted profit of $43,928. A 3.7 percent decrease in revenue was driven by a lower number of cable television subscribers, but expenses were lower due to lower programming fees. A loss of $26,723 was budgeted for the year through October. Instead, profit of $470,960 was posted.