Is Whip City Fiber a House of Cards?
A Western Mass Town or City’s Investment in Whip City Fiber Is Potentially Risky
There is increasing concern among Western Mass residents about the rapid decision-making process affecting vital community resources without adequate public input—a situation that could worsen with high-cost broadband projects that are not a critical community need.
Municipal broadband projects are notorious for exceeding initial cost estimates, posing a risk that Western Mass taxpayers could be forced to cover the cost of financial overruns.
Example: In West Springfield, town leaders are facing difficult budget decisions while federal funds dwindle. Nonetheless, the town has pushed forward on a risky broadband network, Whip City Fiber, which could cost taxpayers over $25 million, even though it is expected to serve only half of the town’s residents and never be profitable. West Springfield leaders should make wise choices with limited government resources and invest in the taxpayers’ priorities—public safety and education—not an unnecessary broadband network.
Questions that Taxpayers and Select Board Members Should Be Asking
West Springfield has already committed $13.5 million to Whip City Fiber, but after being in the project for more than 3 years, why are only 200 people (according to Mayor William Reichelt) currently connected to the network? Is this a normal pace for Whip City Fiber, or is this better than usual?
Why has it taken 3+ years for Whip City Fiber to connect 200 people to the network in West Springfield? How does this vary, if at all, from the original projections?
Is $67,500 per customer the normal cost to connect to Whip City Fiber, or is it usually higher? What’s the average cost to connect each customer in a smaller Western Mass city or town?
Why is the Whip City Fiber network incomplete 8+ years after launch? Is the installation happening according to plan?
Why does Westfield Gas & Electric’s government-owned network, Whip City Fiber, not break out the broadband network’s financials in its annual reporting to show transparently how the network is performing? What’s Whip City Fiber hiding?
How are Whip City Fiber’s individual partner networks in small Western Mass towns doing, financially?
What percentage of a town or city’s residents have to be connected to Whip City Fiber for it to be self-sufficient or profitable? What towns or cities in Western Mass have achieved this subscription rate?
Are Westfield Gas & Electric’s steep rate increases (compared to other utility companies) signaling that the utility is burdening gas and electric consumers to subsidize Whip City Fiber?
The Big Question: Is Whip City Fiber a House of Cards?
Taxpayers beware!