Muscatine, Iowa, is ready to begin its upgrade, bringing municipal cable network customers up to Fiber-to-the-Home (FTTH) technology. Last week, the Board of Water, Electric & Communications Trustees from Muscatine Power & Water (MP&W) awarded the contract to a firm that will transform the network and bring speeds up to 1 Gigabit per second (1,000 Megabits per second) download tier. No word yet on upload speeds.
As we reported last spring, MP&W is taking a slow march toward finishing this project because there are a number of interlocking pieces that need to fit together correctly. The firm awarded the contract was able to introduce several alternatives that reduced the initial estimate of $8.7 million to $7.5 million. The upgrade will be funded with an interdepartmental loan from the electric utility.
At the same meeting, the Board also reviewed the 2016 budget which came out well for the MachLink communications utility.
Net income of $1,372,919 was budgeted for the communications utility, but actual net income was $2,148,272, with an ending cash balance of $8,257,000. There also is debt of $9,044,000 owed to the electric utility. Gowey said revenues were 3.2 percent over budget, while expenses were 25 percent under.
The upgrade will begin in May and customers are expected to be on the new system as early as August. The project should be completed by the end of 2018.