Nearly a decade ago, Alameda, Calif., decided it needed to provide cable TV and Internet service to its residents, believing that jumping early into the telecom industry's boom would both provide a needed service to a populace it believed underserved, and give the island city a stable revenue stream.
Alamedians are discovering all that glitters isn't necessarily gold. After spending nearly $85 million to launch and operate the service, the city-owned Alameda Power & Telecom wants to sell what has become an expensive albatross.
The telecom portion of the business has never turned a profit and the city is facing a $33 million balloon payment on the original construction bond. AT&T's general manager told the San Francisco Chronicle the telecom could break even this year-excluding its debt.
For more:
- Read the San Francisco Chronicle's story [1]
Links:
[1] http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/03/24/BAS7VPQ58.DTL