Kincardine council

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Kincardine has endorsed Phase 1 of a $5.57-million upgrade project for Bruce Telecom, to be completed over three years.

The municipal telephone company presented its report to council, initially, at a board meeting June 30.

That report showed that Bruce Telecom can increase its bandwidth substantially to keep up with the competition in such things as high-speed Internet, HDTV and cellular programs, without borrowing any money.

The cost has come in under the projected $6.2-million and Phase 1 will begin in 2010, continue in 2011 and be completed in 2012, with Phase 2 running 2013-14.

Eric Dobson, president and chief executive officer of Bruce Telecom, brought the report to the council meeting July 7 and noted that for this year, the company is looking to spend $2.1-million (of the $4-million total cost for Phase 1) on the upgrade project, plus other capital projects, for a total cost of $4.07-million for 2010.

Councillor Kenneth Craig asked how Bruce Telecom is positioned to take on the competition.

"That was the impetus for the changes we're making," said Dobson. "We've had no competition for local phone service, but a bit for cellphone and Internet phone service. We expect sometime next year, there will be competition for local phone service.

"If our competition thinks they're going to come in and find a sleepy, 100-year-old company, they'll be in for a surprise. We will be ready for the competition."

Dobson said if revenues exceed projections, Bruce Telecom will return to its regular dividend of $1.2-million to the municipality earlier than predicted.

Mayor Larry Kraemer said there would be an advantage for the company to show the benefit of that dividend to the taxpayers. He said it works out to about $150/household.

Dobson said other phone companies do that. "It wouldn't hurt to remind them," he said.

To see the Bruce Telecom presentation and five-year capital forecast, click here

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Tuesday, July 13, 2010