Bruce Telecom is feeling a financial pinch.
As Bayshore Broadcasting News Reporter James Morgan tells us, the municipally-owned phone company is telling Kincardine council that it’s making less money, and facing some regulatory challenges.
CEO Mike Andrews says Bruce Telecom will not make its 2009 budget by about half a million dollars, but he doesn’t think things will be too far off 2008 figures.
Bruce Telecom has just given the final 400 thousand dollar installment of its over two million dollar 2008 dividend to the municipality.
The 2009 dividend is projected to be lower, but Andrews says it’s up to council to decide how much it should be, noting company earnings will have an impact on the possible figure.
Andrews says possible regulation changes are in the works as larger companies like Bell, Rogers, and cable providers seek to compete in areas served by Bruce Telecom.
Those changes could further impact the company’s revenue.
He says small telephone companies have been giving stiff competition to the larger players for the past several years, but things are changing now.
Mayor Larry Kraemer — who also sits on the Bruce Telecom Board — says the industry is in a state of flux, and notes competition has not been the norm for the telecom business until recently.
He says businesses go through challenging cycles and he’s aware there are challenges.
Andrews says continuing to diversify the products Bruce Telecom offers is key to keeping it competitive.
The Bruce TV service was launched in the spring of this year but has taken off slowly.
Bruce Mobility however is set to be rolled out early in 2010.
The sharpest criticism of Bruce Telecom comes from Councillor Marsha Leggett.
She says a full appraisal of the value of Bruce Telecom should be done and suggests it might be time to think about selling the utility.
Council also met with Andrews and Board Chair Richard Martin behind closed doors.
Mayor Kraemer was unable to provide any information about the discussion after it was over.