The Town of Olds is selling its fibre optic internet, phone, TV service to Telus Communications Inc at a loss, but how much they will lose is still unknown.
A public meeting to discus the “material change” and enable attendees to provide input on the plan is slated to be held Nov. 5 at 3 p.m. in town council chambers.
The anticipated closing date for the sale is Nov. 6.
O-NET provides high-speed internet and phone services. It was created about 11 years ago by volunteer community members with Olds Institute due to concerns among local residents and businesses about access to high-speed internet and other issues. O-NET achieved national fame back in 2013 as Canada's first community-owned fibre-to-the-home provider offering gigabit internet.
In 2021, the Town of Olds forced Olds Fibre Ltd.'s owner, Olds Institute into bankruptcy as part of the Town of Olds' effort to deal with an estimated $18 million worth of debt (a consolidated loan of $14 million and a $4 million line of credit) it was on the hook for as a backer for Olds Fibre. The entity, including Olds Institute's Mountain View Power, was turned into a municipally controlled corporation of which the Town of Olds is the only shareholder.
Word of the latest transaction to sell O-NET was provided in a Town of Olds advertisement in the Oct. 1 edition of the Albertan.
“Subject to the satisfaction of customary closing conditions, the Town intends to sell all of the issued and outstanding shares and undertaking of the corporation (the proposed transaction) to Telus Communications inc. or its designated affiliate (the purchaser),” the ad says.
“Following the completion of the proposed transaction, the purchaser will control all future operations of the corporation,” it adds.
In an email to the Albertan, Brent Williams, the Town of Olds' chief administrative officer, explained why the sale is being made.
“The town could not justify the continued and growing cost to maintain and upgrade the network to the standard required to compete in the telecommunications space while providing quality service to O-NET customers,” he wrote.
Williams said Telus has requested that the sale price “remain confidential,” but added that that figure will come out in the spring as part of the 2024 financial statements.
However, he said the price will not cover the outstanding debt, estimated last year to be about $18 million (a consolidated loan of $14 million and a $4 million line of credit). Town officials say that debt was accumulated primarily to help finance O-NET's installation of fibre optic cable throughout the community.
The ad says that during the meeting, among other things, attendees will be told about the services that Telus intends to provide.
Written submissions on the proposed sale can be emailed to caoadminolds.ca no later than 3 p.m. Nov. 1 in order to get on the meeting agenda.
Anyone wishing to provide input during the meeting must provide written notice of that desire to chief administrative officer Brent Williams via email to the same address as above by the same 3 p.m. Nov. 1. Deadline.
“Anyone who fails to pre-register prior to this deadline will not be permitted to speak,” the ad says.
Telus issued a statement regarding the impending sale.
"We’re excited to welcome O-NET to the Telus family," the statement said, adding that the sale will enable the company to bring its PureFibre network to the community and thereby provide a wide range of integrated offerings.
Telus said all current O-NET employees will join Telus, "bringing their valuable expertise to our organization."
The company said it will operate from the current O-NET location in Olds.