For more than two years, the prospect of expanding to two nearby communities has been on the LUS Fiber to-do list in Lafayette. Now that the municipal fiber optic network has achieved at least a 40 percent take rate, the time is right to reach Youngsville and Broussard.
In 2016, the utility generated $36 million in revenue, according to Director of Utilities Terry Huval. The triple-play network has been generating profits since 2013; this will be the first expansion outside of Lafayette city limits.
Poised Pretty, Prudent Planning
Within the next few weeks, LUS plans to begin installing fiber in one subdivision in Broussard and one subdivision in Youngsville. The expansion will progress in “measured steps,” said Huval, so LUS Fiber can evaluate interest in the new areas. "Like any business," he said, "we have to be prudent in how we expand."
Back in 2015, we reported on potential expansion plans that would have required the two communities to pay for the cost of expansion. At the time, Brossard and Youngsville weren’t keen on the idea, but now LUS Fiber is in a position to tackle the project without financial assistance from the two towns. The network has still not reached every premise in Lafayette, but Huval looks at the opportunity to reach Youngsville and Broussard as a way to solidify the utility’s financial position to complete the city deployment.
Some subdivisions were developed in the city after LUS Fiber's first bond sale, so they have not been serviced yet, Huval said. But LUS Fiber will be extended to those areas in the city at the same time fiber is extended to some areas of Youngsville and Broussard, he said.
"Every home (in the city of Lafayette) will have access to fiber," Huval said. "That's the intention."
“The investment is very small compared to what the benefits could be down the road for us,” Huval said, adding that the expansion is...