Based on a recent feasibility study, Decatur Utilities is choosing not to jump into the high-stakes, high-speed internet service competition for residential or commercial customers that it had been considering. The Municipal Utilities Board decided last week to instead build a 47-mile fiber backbone network that supports its own operations at an estimated cost of $4.5 million.
However, General Manager Ray Hardin said the decision does not rule out expanding into retail internet service in the future. It puts the utility in position for possible expansions should it decide to take this step later on, he said. "We were encouraged by the projected subscription rates that the market survey determined,” Hardin said.
“But in the end analysis, we felt it was more financially prudent to implement the fiber ring for internal use only and reserve the right to revisit retail applications in the future.” Hardin said they’re “not ready” to pursue high-speed internet on the retail side to residential and commercial customers. “We want to build this for DU’s use but position ourselves and design it in a way, if that changes in any way in the future, we have the opportunity to pursue it at that time.
” Hardin said. Board member Al Cheatham said he appreciates the conservative approach to the issue but supports the utility taking the first step of creating an internal network. “We need to let the market and the economy play out,” Cheatham said.
“To me, we need to be pru.
