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Money and MI-Connection

Mooresville Tribune

Published: September 9, 2009

The deeper we go into the ownership of MI-Connection, the more we understand the enormous amount of money needed to operate, and grow, a communications system like this.

Providing the constant technology upgrades necessary to make the cable company competitive with other cable companies and satellite providers requires lots of cash. A $12.5 million infusion a year ago from Mooresville and Davidson, which own the system, enabled MI-Connection to complete a massive fiber-optic upgrade that, right now, gives the company leading-edge technology.

Officials hope that upgrade will attract several thousand new commercial and residential customers. We do, too, because we all depend on MI-Connection showing a profit. That's the only way the two towns won't be left holding the bag on their $92.5 million (so far) investment.

However, to actually hook up those new customers, MI-Connection says it is going to need another infusion of cash this year. The total hasn't been disclosed yet; that will likely come in the next several weeks.

The two towns have so much invested in this venture that they won't have any choice but to guarantee more funding for MI-Connection, which is operated by Bristol Virginia Utilities (BVU). MI-Connection is confident it is on the right road for turning around the out-dated and bankrupt Adelphia system that it bought in December 2007, and town officials appear inclined to agree with them.

What MI-Connection mustn't do, however, is continue its mantra that area residents have an obligation to rally behind the company and sign on as customers. Fact is, overwhelming public opinion was against Mooresville's original purchase of the cable system – even the town board was evenly divided in the final vote -- and residents have every right to pursue other cable or satellite options.

Don't ask them to be cheerleaders for something many of them didn't want.

In the long run, though, the fiscal health of our town depends in good measure on the success of MI-Connection. We bought it, we own it and we couldn't sell it now if we wanted to without taking a huge loss. What we depend on is MI-Connection and BVU possessing the talents necessary to make the system work without, hopefully, too much more cash needed from us.