Max Fibre

The gift that keeps on taking

fiber, the system in /a>, La., last month received another warning from city auditors, an advisory that appears to have become an annual thing.

Lafayette’s auditors voiced similar concerns in their reports the last two years. In 2012, they punctuated it with a calculation that the $140-million system was costing the city $45,000 a day.

LUS officials have been trying to put a smiling face on this by noting that the operation is cash-flow positive, which simply means that is taking in more than it’s spending on a day-to-day basis, but does not factor in its enormous long-term debt liability. They’ve also tried some sales gimmicks, like doubling the amount of bandwidth capacity for an additional $5 a month. This deal goes for everyone except low-income customers, for whom provision of quality high-speed service was a major justification for LUS Fiber’s creation. They remain stuck with a 3 Mb/s connection, about a quarter to a fifth of the speed you now get from cable.

Read More… www.rstreet.org

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