The socio-economic impacts of broadband Internet are clear, council heard during its Feb. 21 workshop.
According to administrative staff, businesses have access to an important tool that makes them more relevant and able to compete in the digital age. The service provides an additional incentive for families to consider settling in Sundre while offering residents a higher standard of living, council heard. And it was pointed out that the municipality itself could even generate revenue down the road if the town pursues a partnership that includes municipal ownership of the network.
Pros and cons of different options were presented including the following:
Municipally-owned network
• Town provides up to $2.75 million in debenture borrowing for four years
• Annual impact of debt repayment is almost $180,000
• Reserve funding would get system underway
• With a conservative estimate of 30 per cent residential and 50 per cent business buy-in over four years, a positive net cash flow is achieved
• After 15 years, the infrastructure reserve has been fully replenished plus an accumulation of about $500,000, and the municipality would also be generating at least $130,000 a year or more depending on uptake
Privately-owned network
• The municipality completely loses the potential to generate revenue
• Private enterprise would be responsible for all capital and operational expenses
• Residents and businesses would receive home phone, television and Internet service through this option
• No financial risk to the municipality