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Kutztown Area Patriot > News

Kutztown approves service agreement with Berks Products

Published: Monday, September 28, 2009

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By Phil Ellingsworth Jr.
Patriot Intern

The Kutztown Borough Council approved an agreement with Hometown Utilicom and Berks Products, 3 to 2, with council members Amy Bray and Kevin Snyder casting the dissenting votes.

The agreement will allow Hometown Utilicom to become Berks Products Internet provider, since Berks Products is ending their contract with Verizon.

The agreement between the two companies allows Berks Products to connect to the service provider, paying 25 percent of the cost to build a fiber optic line. Since Berks Products is covering a quarter of the cost, the borough is allowing them not to pay for service for two years.

According to council president Malcolm Eidle, the 25 percent and two years of service are equivalent. Eidle said it would take the borough four years to make a profit from the agreement.

Mayor Sandy Green expressed concern over building the fiber optic line to the area, which only has approximately 14 potential clients. Green and Bray were concerned with not seeing a good return-on-investment.

 

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