The muni FTTH network owned by the city of Salisbury, North Carolina, is finishing the calendar year with over 1600 subscribers. The network just began signing up customers 13 months ago.
“We already said in the first four years, we would not break even,” City Councilman Brian Miller said. “That’s not a surprise to anyone.”
According to documents, the city expects Fibrant to become cash-flow positive after four years. The city billed the first Fibrant customers one year ago in December 2010.
The city expects Fibrant to eliminate its deficit as more people sign up and revenues increase. The utility, which competes with private providers like Time Warner Cable, has a 13 percent market share, interim City Manager Doug Paris said, and is billing about $200,000 a month.
“We’re growing in what is an extremely tough market,” Paris said.
Paris said after the meeting Fibrant has about 1,600 customers. The utility needs about 4,500 to become cash-flow positive.
Salisbury has a new mayor coming into office, but he is a supporter of the network, as was the outgoing mayor, who spent a significant amount of time defending the community network from Time Warner Cable's attacks via the state legislature.