Bruce Telecom’s top executive recently updated Kincardine Council about what’s been happening at the municipally-owned communications company.
When it comes to products and services, CEO Mike Andrews says the fibre to the home project in Southampton is 40 per cent complete.
As for the Bruce TV service, where television is provided to consumers through phone lines, it is now being offered in the bundle packages customers can purchase for other services like telephone and internet.
Plans are still in the works for Bruce Mobility cellular phone service. Negotiations are underway with Bell Canada and the service could be rolled out in October or November of this year, or early in 2010.
Andrews acknowledges that when it comes to the cell phone business, Bruce Telecom is a small fish in a large stream with large fish.
He says the process takes time with key negotiations involving other players.
As for revenue, Andrews says it is so far below 2009 budget projections, but he won’t say by how much.
However, he believes that in the face of coming competition for local phone service, Bruce Telecom can hold it’s own, especially with its mobility and TV service.
Mayor Larry Kraemer, a member of the Bruce Telecom board, says the utility hasn’t lost any money over the past five years, and made over two million last year.
With respect to its relationship with the municipality, Bruce Telecom is developing a policy on how it will pay its quarterly dividend to the municipality, a policy hasn’t existed previously.
Andrews doesn’t see it as changing policy, but rather setting it. He says having a formal payout policy gives the board guidance, and the municipality predictability of the payout each year.
Chief Financial Officer Laurel Stein says the company wants to focus on strategic planning, targets for expansion, and focusing on sustainable growth.
She says the annual capital budget is 15 to 23 per cent of gross revenue and the company does not want to use debt as a means of financing.
Stein says the quarterly payments to the municipality will be made in March, June, September, and December.
Bruce Telecom paid out 1.2 million dollars to the municipality in 2008, and the average amount since 2005 has been 1.26 million per year.