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May 02, 2017 Return to Headlines

QNet Fibre Optic Network Revenue Rises 51 Per Cent

by Heather Escaravage |

COQUITLAM, BC, May 2, 2017 – Revenues for Coquitlam’s QNet fibre optic network grew 51 per cent in 2016, demonstrating the network’s continued upward trajectory.

QNet’s 2016 Annual Report, presented to City Council on May 1, outlined this significant revenue increase along with higher-than-anticipated cash-flow surplus and building connections. 

QNet, which leases out unused capacity in Coquitlam’s extensive fibre optic network, is now providing high-speed connections to 73 commercial properties, residential highrises, schools and wireless carrier sites across the city. Eighteen of those sites were added in 2016, three more than forecast. 

Eight telecom companies currently 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) at competitive rates. 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 $4.3 million in telecommunications fees since it was incorporated in 2008, and has generated positive cash flow since 2013.

QNet’s success story continued in 2016, with revenue growing to $829,534. This led to QNET producing a cash flow surplus of $246,039 in 2016, $92,009 higher than expected. After amortization and interest, the surplus came to $47,569.

QNet is still on target to repay the City’s $4.95 million initial investment, plus about $1.45 million in interest charges, by 2028. About $11.6 million in accumulated profit is projected by 2037.

Looking ahead to 2017, QNET is forecasting continued revenues and sales growth based on the stepped-up marketing and sales efforts of telecom providers, an expanded fibre optic footprint and customer base, and an ongoing focus on solving network problems for clients and stakeholders. 

Capital work in 2017 will include new arterial fibre along North Road, including high-count fibre cable and lateral vaults for fibre access. Twelve new building connections are also anticipated for 2017, for a total of 85 QNet leases.

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 www.qnetbc.ca.

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Media contact:
Danny Bandiera
General Manager
Coquitlam Optical Network Corporation (QNet)
604-927-3607
dbandiera@coquitlam.ca
www.qnetbc.net