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- Subscribe - Contact Us - Rate Card - Place an Ad Archives Revels Classifieds Real Estate Menu Guide Wedding Weather Subscribe Contact Us April 30, 2005 Too early to pull plug on fiber network There are 3.8 million reasons for the city to pull the plug on its experiment called the Ashland Fiber Network. Support for an end to the economic drain is growing. Recent news reports suggest the Ashland City Council is seriously considering an exit strategy. It’s hard to be too critical of this. With Ashland’s economy built on few stout economic engines, having a multimillion-dollar expense seems anything but prudent. But a second hard look at our local economic picture presents compelling reasons for the city council to take as long a view as possible. Internet service is a fast becoming a staple of utilities, akin to water and electricity. Municipalities that weathered the early financial storms of acquiring these needed resources are often in a far better place as years go by. Often, history teaches us, what starts out as a loss, turns into earnings. The potential for future engines of economic growth is limited, making the possibilities of technology here vastly more important than other municipalities. When the housing market has topped out or if tourism has a downturn, a budding technological industry could offer a needed boost. Ashland Fiber Network is mostly unprofitable because of debt related to start-up costs. The unfortunate swing in the fortunes of dot-com businesses impacted revenue growth related to AFN — though many would argue to what degree — at a critical time when the company had counted on it. In this way, Ashland was like many stock holders who watched the potential of the ’90s turn into the debt of this decade. But times change, and despite setbacks, technology sectors are figuring out how to be profitable in the coming years. The need for Internet services is not going to decline, but grow. It may never again be the roaring ’90s, but the industry as a whole is the future. Ashland is well positioned for this future. The benefits of a city-owned fiber network will likely turn to profits down the road. The community has already seen some ancillary benefits. In the near future, the $3.8 million loss projected for payments on the debt will likely be matched by any attempt to sell the beleaguered enterprise — the debt will not be covered by a sale. Covering the debt gives the fiber network a chance to realize its potential in the marketplace, rather than absorbing the loss with nothing to show for it. Ashland’s economic picture is strong enough to weather the losses of AFN in the hopes of a reward for many years into the future. It hurts now, but it will hurt more to cut our losses and sell, long before we see the possible fruits of owning a vast fiber network in an age of modern technology. DailyTidings.com Home Page Archives | Revels | Classifieds | Real Estate Guide | Weather | Subscribe | Contact Us Copyright 2005 Ashland Daily Tidings and Ottaway Newspapers All Rights Reserved Free Musick Downloads Slippers Ceramic Piggy Banks Heloc Calenders 2005 Women's & Men's Slippers Accelerate Weightloss Products Memory Foam Mattress tcg student loan consolidation Home Equity Loans teleconferencing W2 Forms cortisol weight loss Diamonds Futures Broker Bad Credit Loans Auto & Personal Loans Mesothelioma Free Home-Loan Referrals Sports Betting Website Design & Marketing Student Loans African Safari Conference Calls - $50/Month Security Systems Helzberg Diamonds Currancy Exchange Online Casinos Community Student Loans Bonus Casino Poker Games Homeschooling Auto Insurance Mortgage Calculator Mailing Lists Mystery Shopping Jobs Debt Consolidation Loans Payday Loans Click Here .:Advertisements:. Site Search: RESOURCES - Mail Tribune News - ODOT Road Cams