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Wadsworth might hook up city-run phone service
Nov 06, 2009 (The Akron Beacon Journal - McClatchy-Tribune Information Services via COMTEX) --
The city of Wadsworth is exploring the possibility of providing telephone service to its residents through Wadsnet, the Internet service provided by the city.
Wadsworth already has its own cable company and electric utility.
City Council's Public Service Committee said a survey found that 88 percent of 455 people responding would support a city-run phone system.
A previous study showed that about 40 percent of the city's businesses would join the customer base. The Chamber of Commerce reported there are 800 to 900 businesses in Wadsworth.
Residents complained about power outages and customer service issues with the current phone providers, Verizon and Time Warner Cable.
Service Director John Easton said there is no perfect utility service and the telephone product, like cable and the Internet, would be unable to avoid some service issues.
Easton said the startup cost would be about $90,000 and suggested financing the cost over five years. If revenue were not available, the funds to pay the interest on a note could come from a telecommunications fund, which has a cash balance of about $1 million, he said.
Easton said it would take two to three years before the city could break even with the service. Its success rate would depend on how many customers it attracted.
A monthly charge of $32.95 for the service including all taxes was an initial projection, but council members say they want a more competitive price.
Bruce Darlington of Ward 4, who heads the Public Service Committee, said he wants to be able to offer residents one all-inclusive rate, not a base rate that is higher once fees and taxes are added. He is also looking into whether taxes and surcharges applied to land-line phones would be avoided if the city went with Internet telephone, and what taxes would be imposed by the telecommunications industry.
The price is the stumbling block for Councilman-at-large Jim Riley, who also sits on the committee.
"It's a good idea to offer another service to the community, but if we can't get a decent price for it, then I don't think I will be able to support it. That's the bottom line, can we get the service for a fair price? Why pay for something we can get cheaper somewhere else?"
Easton said the committee is also considering how to factor in cell phones, because many people rely on them for long-distance calls and are disconnecting land lines in their homes.
The public service committee will meet again Wednesday and plan to vote on whether it's something they can pursue now.
Marilyn Miller can be reached at 330-996-3098 or mmiller@thebeaconjournal.com.
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