FromJuly 9, 2021 3:42 PM
CLARKSVILLE, Tennessee – In 2007, the Clarksville Electricity Department built a fiber optic network throughout the city, installing new lines in every home and every business to remotely manage meters, restore power faster and improve operational efficiency. The system will also allow renamed CDE Lightband offer high-speed broadband Internet access, voice over IP phone services, and IPTV services to individuals and businesses.
CDE’s broadband division borrowed $ 17 million from the electrical division to do this, according to a CDE press release.
“It was a daunting task and a difficult time for all of us as we took a giant leap forward in investing in our community and started a new business that was very different from our current business model,” said Brian Taylor, CEO of CDE Lightband. release.
Since CDE Lightband’s electrical division owns and maintains a fiber network, the broadband division must pay rent, loan payments and apportioned general expenses totaling more than $ 10 million annually, it said.
This allowed the electrical division to build or upgrade six substations for a total of $ 29 million, plus over $ 16 million in campus upgrades and renovations, all with cash, rather than channeling this massive investment into the bond market. CDE was able to make an additional $ 10 million a year from other power grid improvements.
Fourteen years later, CDE Lightband broadband has taken over 30% of the market and served over 25,000 customers. “They are the preferred primary supplier for two local governments, the school system and the university, as well as many other corporate and small business clients,” the statement said.
The proceeds allowed CDE Lightband to repay the inter-divisional loan 17 years earlier than planned.
“This is a milestone we have worked hard on and our broadband team and our clients have helped us achieve the success we have achieved today. I am very proud of the progress we have made and the important role that CDE Lightband plays in the community, ”Taylor said.