Is Town of Newmarket's fibre internet network worth the $5M investment?

Yorkregion.com
September 12, 2018
Teresa Latchford

Lloyd Ainey isn’t convinced the town becoming a high-speed fibre internet provider is in the best interest of the taxpayer.

The Newmarket resident has been in the Internet business for more than three decades and doesn’t understand why the town is spending $5 million over the next four years to put fibre lines into the ground and attempting to compete with telecom giants such as Bell and Rogers, who are doing the same in the area.

In June, the town announced its launch of Envi Network, a municipally-owned Internet service provider through Newmarket Hydro Holding, with a mission to build a local fibre-optic broadband network to service businesses and, eventually, residential customers.

“Bell just sent out a flyer offering the same service as the town plans to offer and cheaper than what the town will charge,” Ainey said. “If I came to you and offered you the same service for more, would you take it? I think not.”

Ainey pointed out many service providers, including his business that serves the GTA, rent fibre lines from the large providers because it is more cost effective.

“I don’t think this is a business the town should be in,” he added. “It seems like it’s just a pet project that they are hanging on to.”

Envi general manager Jim Gratmans confirmed the network will be able to provide upload and download speeds up to 10 Gb/s, the same as what other competitors are beginning to offer in the area.

“Bell is just coming in with this service, but we don’t want to rent the fibre, we want to own it so we have control for smart city initiatives moving forward,” he explained. “We believe people are looking for alternatives to the mainstream providers and that we can offer exceptional customer service to compete.”

Gratmans pointed out the goal is to run a for-profit company and he expects Envi will be turning a profit by the end of the fourth year of operation, even with the $1.5-million per year operational cost. He confirmed there has been much interest from the business community and there are already contracts underway.

“The first customers to come online will be the town and Newmarket Tay Hydro,” he said. “The fibre being laid along Harry Walker Parkway, Davis Drive, Yonge and Leslie streets will be complete by the fall.”

Several case studies were reviewed, including Sarnia, Mississauga and more that have done the same and Gratmans said each has experienced a positive impact to economic development in the community.

“The value of owning Envi is the money spent stays in the community,” he said. “At some point we expect to be in the same position as Newmarket Hydro, paying dividends to the town when we are turning a profit.”

The bottom line is Envi will have control of the infrastructure when opportunities to improve the community arise and the town will eventually be making money from the profits, according to Gratmans.

For more, visit Envinetwork.com.