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SPENCER – Should Spencer switch from its current cable provider to a fiber optics alternative?
Selectmen are open to the idea and will hear more from representatives of Whip City Fiber in Westfield, following an initial presentation on August 18.
Started as a gas and electric company 125 years ago, Whip City Fiber’s optics division began about a dozen years ago. It currently has 17,500 customers, serves 20 communities, mostly in western Massachusetts and builds and maintains networks for residential and commercial properties.
Andrew Short, accounts manager and John Mitchell, assistant general manager at Westfield Gas Electric, along with Jamie Cincotta, telecom superintendent, represented the company at the Board of Selectmen’s meeting.
Prior to the meeting, Town Administrator Jeff Bridges and Selectmen Chair Jared Grigg met with those representatives in West Springfield to discuss a possible project in Spencer.
“Spectrum’s prices are going up and there is no competition in town,” Grigg said as the reason for exploring the fiber optics alternative. “There is the potential to generate revenue if we do this project.”
Short explained that in addition to building and maintaining networks for a community, its Westfield-based staff as Internet provider, handles procurement, customer service, sales and marketing, collections and billing.
As network operator, services include data security, construction and repair, network monitoring and “everything to run the product.”
Mitchell said the town owns the network and benefits from its revenues while Whip City provides “turnkey solutions.”
A preliminary review of Spencer shows it has 12,000 residents and 5,100 households over 98 miles. Ninety-two percent have broadband access/subscriptions. Sixty-five percent have overhead and 35% use underground infrastructure.
They would have to build out to West Brookfield, he said, where the “middle mile,” exists.
The representatives emphasized the availability of live customer service personnel as well as six linemen, five technicians and additional emergency response contacts.
Cincotta said they have a three-acre lot of fiber in storage, which is “enough to re-build two towns.”
Mitchell said as a municipality itself, all the contracting and procurement is streamlined through intermunicipal agreements.
He added, “There are no investors, no Wall Street or shareholders to please.”
Short explained that Spencer would set its own rates, with Mitchell noting the town starts by taking out a bond and then using the rates to pay off the bond.
Using one estimate model of borrowing $21 to $24 million, he said the town could pay off the bond in 20 years, set a rate of $96.95 per month and bring in $404,000 annually.
Selectmen asked a series of questions ranging from distance to travel for repair vehicles (one and a half hours) and the fiber life span (30 years) to the burden it may place on Town Hall.
Bridges said there are 14 customer service people working in Westfield and he did not see the project placing a burden. The only possibility would be adding hours to the collector’s office if residents decided to pay their bills in person there.
The representatives noted that the process would involve Spencer establishing a Municipal Light Board comprised of three to five members that offer control and direction of how the plant is run. Usually a selectman and volunteers serve on the MLB.
“It is a lot to think about,” said Selectman Ralph Hicks.
“I think there is a lot of potential there,” added Grigg.
Selectmen Vice Chair Jonathan Viner said he would like to see more detailed, comprehensive information about the technical aspects of their services. Viner, along with his fellow board members, expressed interest in going to Westfield to see the operations first hand.
