Revenue from QNet, the city of Coquitlam’s fibre optic network, continues to grow, posting a 27% increase in 2015 over the previous year, according to a city staff report.
But it will still be more than a decade before the city’s startup investment in the company is paid back.
The corporation, which is wholly owned by the municipality and financed through fibre leasing revenue, produced a profit of $134,325 — $29,850 higher than expected — on revenue of $552,735. The revenue total beat last year’s figure of $434,060.
“Building on these recurring revenues and conservative future sales estimates, the company expects to repay the city’s $4.95 million investment as well as $1.7 million in interest charges by 2028,” QNet’s annual report stated. “By the end of the 30-year business plan in 2037, accrued profit should total approximately $11.7 million.”
As well, staff noted in the annual report that as a result of its investment in fibre optics, the municipality is currently saving $357,000 per year in operating costs, for a total of close to $4 million since the program was launched.
QNet was incorporated in 2008, with the core fibre optic network installed throughout Coquitlam to link facilities and support their telecommunications requirements. Because the city only requires a small portion of the fibre optic cable to support its services, the company leases the unused portion to local businesses and telecom service providers to extend their reach in the city.
Currently, 55 commercial, residential highrises, schools and wireless carrier sites across the city take advantage of the service, with 10 new customers signing on in 2015, according to the city.
According to a city press release, businesses that sign on with QNet will be able to access one gigabit speeds and higher while residential customers can access 300-mbps connections.
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