SPOTLIGHT: Small city takes big step into telephony

Cairo, Ga., just across the border from Tallahassee, is looking to turn its municipal broadband offering into a profit center for the city. Taking a cue from bigger telcos and cable operators, the city council this week voted to approve adding telephone service to its communications services that already include Internet and cable.

"We outlined expected revenues and costs for FY2009 and what we suspect our subscriber level to be," City Manager Chris Addleton said. "The city will be able to bundle the three and offer a very price-competitive package."

A number of towns in Southwestern Georgia already offer municipal triple-plays and Cairo sees offering telephony as low risk. Total estimated revenue for the first 300 customers is $127,152, annually. Estimated net revenue (subtracting equipment, port charge and activation fee) is $10,698. Check out this story in the Thomasville Times-Enterprise