Customers attend a Whip City Fiber open house on July 16 at the Westfield Gas & Electric operations center.
Reminder Publishing submitted photo
WESTFIELD — Whip City Fiber is on track to reach every Westfield neighborhood next year or sooner.
Westfield Gas & Electric officials gave an update on their broadband internet service at two open houses July 16 to answer customers’ questions on scheduling, installation, streaming, speed, and small business offerings.
Most of the city already has access to Whip City Fiber service, and WG&E General Manager Thomas Flaherty said there’s a pretty robust construction plan for this year.
“We’re still on track for all of Westfield to have access by the mid-first quarter of next year, if not by the end of this year,” Flaherty said.
He said the utility just established service on Lockhouse and Root roads, and was planning this month to begin serving School Street, Washington Street and Arnold Street downtown. He said a couple of multiple-unit buildings, such as Washington House and General Shepard Apartments, may take a little more work “fishing the fiber” for the installation, but they will have access by next year.
There is no cost for installation for Westfield residents unless it’s a special situation, like a half-mile driveway, Flaherty said. For commercial and industrial accounts, there is a cost for installation; however, if they agree to contract for a period of time, he said the utility may waive a portion or all of the cost, also depending on the complexity of the installation.
Currently, Whip City Fiber has just over 17,000 subscribers, with between 8,000 to 9,000 in Westfield.
“Right now, we’re doing about 30 installations a week in both new and existing areas,” Flaherty said.
Flaherty said Whip City Fiber earned just over $10 million overall in revenues; $7 million from Westfield, and $3 million from the 20 communities the system serves in the Hilltowns, which helps to pay payroll and operations. Whip City Fiber handles the billing, customer service and operations capability for the towns, which also own their own fiber networks.
“That’s how we’re able to run an efficient business,” he said, adding that it makes more sense for the smaller communities to partner with them, because they can contract with Whip City Fiber at a significantly lower price than each town running its own business.
Flaherty said net income for fiber last year was $3.5 million, with $3.5 million spent on normal expenses, such as payroll, and another $3.5 million spent on construction in Westfield. He said fiber is not like laying electric wire, which can last 30 years. The expected life of a server and routers is five to seven years, at a much higher cost.
“That left $3.5 million for net income for the total business in the Whip City Fiber division,” Flaherty said.
Flaherty said recently, West Springfield voted unanimously in favor of an $11 million bond to build fiber infrastructure. Whip City Fiber is also now paying contractors to work in West Springfield, a $30 million project which that city will fund and own, but which still hits the Whip City Fiber revenue line during the buildout. Flaherty said he expects to start adding 1,000 customers in the first four areas in West Springfield beginning in August.
