ECFiber Reports Robust Results from First Year Operations

  • ECFiber
ROYALTON, VT – After years of planning, ECFiber, a privately funded, non-profit municipal entity owned jointly by 23 Vermont towns, reported robust results for its first full year of operations ending on December 31, 2012.

The primary objective of ECFiber during 2012 was to extend its fiber-optic network in Barnard and Bethel, which connected its first customers in August, 2011. That mission was accomplished. By the end of 2012 there were 298 residential and business customers connected along 42 miles of fiber-optic cable.

ECFiber’s initial build-out was fueled by private investments totaling $1.2 million.

Exceeding ARPU Projections
Revenues are driven by the number of customers per mile and the Average Revenue Per User (ARPU). ECFiber’s business plan called for six actual connections per mile, but by year-end, ECFiber had outperformed projections with over seven connections per mile and rising. The network produced 2012 annualized subscriber revenues of over $450,000.

On the expense side, both capital and operating costs per subscriber came in as projected. With income performing better than expected and expenses on target, confidence is building that the original business model, conceived back in 2008, is sound and achievable.

This confidence was demonstrated in three more fund-raising campaigns undertaken in order to extend the network beyond the initial four towns (Barnard, Bethel, Pomfret and Royalton). During these campaigns ECFiber raised an additional $1.8 million, double its initial projection. Those funds will be spent in 2013, extending the network into the towns of Chelsea, Norwich, Sharon, Strafford, Thetford, Tunbridge, Vershire, and Woodstock as well as building additional routes in the first four towns.

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