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May 03, 2016 Return to Headlines

QNet Fibre Optic Network Continues to Exceed Expectations

by Heather Escaravage |

COQUITLAM, BC, May 3, 2016 – Coquitlam’s QNet fibre optic network continues to exceed expectations after posting significant jumps in revenue, cash flow surplus and building connections in 2015.

QNet, which leases out unused capacity in Coquitlam’s extensive fibre optic network, is now providing high-speed connections to 55 commercial properties, residential highrises, schools and wireless carrier sites across the City. Ten of those sites were added in 2015 – twice as many as forecast.

Nine telecom companies have now signed on to provide services through QNet, giving the connected sites access to some of the fastest and most competitively priced high-speed internet, phone, TV and cellular services in the country.

Businesses have access to one gigabit speeds and higher, while residential customers can access 300-Mbps connections (three times as a fast as typical residential cable speeds). This means faster downloads and smoother video streaming, opening the door for telecommuting, HD video conferencing and security monitoring, virtual classrooms, telemedicine and other high bandwidth activities. 

The City-owned utility – which also services City buildings – has so far saved Coquitlam $4 million in telecommunications fees since it was incorporated in 2008, and has generated positive cash flow since 2013 by leasing unused capacity to businesses, governments, and telecom service providers.

Based on QNet’s annual report presented to Council May 2, revenue in 2015 rose to $552,735 (a 27 per cent jump from 2014 and five per cent more than expected). And while capital expenditures were $38,003 (18.3 per cent) higher than anticipated, 2015’s $134,325 cash flow surplus was 31.6 per cent higher than in 2014 and almost 18 per cent more than expected.

QNet expects to repay the City’s $4.95 million initial investment, plus about $1.7 million in interest charges, by 2028. Close to $11.7 million in accumulated profit is projected by 2037.

The annual report attributed some of QNet’s increased revenue and sales growth in 2015 to a new focus on working more closely with customers, including helping them solve their network problems. This approach is expected to continue to spur growth in 2016, along with increased sales driven primarily by the marketing and sales efforts of some of its telecom providers. Up to 15 new building connections are anticipated for 2016.

About QNet

The Coquitlam Optical Network Corporation (QNet) provides businesses, schools and residential highrises with access to Canada’s most competitive broadband services through the City’s state-of-the-art fibre optic network.

QNet leases unused capacity in the City’s carrier-grade fibre optic network to businesses, governments, and telecommunications companies (telecoms) that offer high-speed internet, phone, TV/video and cellular services to local customers at some of the best rates in the country. QNet also leases fibre directly to governments and enterprise businesses.

Incorporated in 2008, QNet is wholly owned by the City of Coquitlam and governed by a board of directors.

For more information about QNet, visit qnetbc.ca.

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Media contact:
Scott Jamieson
Director of Operations
Coquitlam Optical Network Corporation (QNet)
604-927-3626
scott.jamieson@qnetbc.net