Town officials optimistic about MI-Connection's new direction

In a recent press release, MI-Connection officials said they had two things to celebrate this month: the cable company’s third-year anniversary and its move toward more self-sufficiency by splitting with management company Bristol Virginia Utilities.

But let’s face it: After three years of scathing reports about MI-Connection’s financial woes – including $4.4 million needed from the Town of Mooresville and $2 million from Davidson in fiscal year 2011 – suffice it to say, a “celebration” isn’t in order.

For the first time since the towns purchased the cable system, however, town officials – even those who have vocally opposed Mooresville’s ownership of a cable company – seem to be a little optimistic. Why?

“We have been subsidizing a system that we had no say or control in how it was being managed or operated,” Commissioner Miles Atkins said. Moving the management and operation of MI-Connection to Mooresville “means there will be oversight and accountability for the first time since the system was purchased.”

Mayor Chris Montgomery says he believes a shift to more local control will have a “positive impact on subscribership, profitability and (the) overall success of the system.”

But on the other hand, eliminating an outside management company also means that one “barrier” between local government and media is being eliminated. When Mooresville and Davidson were considering the cable system’s purchase, many local residents argued that government has no place owning a private business and worse, a form of media.

Government officials, to placate those skeptics, said BVU and MI-Connection’s board of directors would provide a barrier between the government and the media. But with BVU almost out of the picture, is government one step closer to managing and controlling local media?

“Did we really ever fool anybody into thinking that government wasn’t controlling it?” asked Commissioner Chris Carney. “We may not have wanted to be in control, but once they asked for money from the towns, we were in control.”

Montgomery and Commissioner Mac Herring said the MI-Connection board of directors – whose voting members are appointed by Mooresville and Davidson commissioners – will continue to serve as a barrier between the government and media.

Commissioner Rhett Dusenbury, who along with Montgomery made MI-Connection somewhat of a campaign stumping issue last year, said he is still opposed to government owning a private-industry company. However, he said, “If a change in the company makeup saves the taxpayers money, I would support the change.”

Carney said it’s pointless to “argue philosophy” at this point because what’s done is done. He said MI-Connection “got off on the wrong foot,” and town officials owe citizens an apology for “the serious mistakes that were made.”

However, “fast-forward to today, and what you have is a complete re-launching of MI-Connection,” Carney said. “By us, along with Davidson commissioners, being more hands-on, a much better plan has emerged. We have the right groups of people in place. We have attacked it from every angle we can, and now we’re seeing results.

“We’re looking to get customers and cut serious costs that allow (MI-Connection) to be more effectively and efficiently run, and that’s a good thing. That’s real progress.”

MI-Connection, once the final agreement with BVU is in place, will be taking over the system’s finances, marketing and sales, business development and human resources. BVU – according to the recently signed memorandum of understanding with MI-Connection – will continue handling billing, customer-service calls and technical support.

Montgomery, in a sit-down chat this week, actually sounded excited about the possibilities once MI-Connection’s sales and marketing move from Virginia to Mooresville. He is eager for MI-Connection to start marketing itself as the small-town alternative to a corporate-giant like Time Warner Cable. And since one of his favorite parts of being mayor is interacting with people, Montgomery said he has even considered making personal calls to residents to chat with them about MI-Connection.

The fact is, MI-Connection needs more customers to generate more revenue and pay its debt service. And as was pointed out by Davidson Town Manager Leamon Brice in a February 2010 letter reprinted at www.DavidsonNews.net, “until new customers sign up for telephone, internet and cable services, the towns will be required to subsidize MI-Connection.” Although the potential extent of that subsidy is frightening, residents are tired of being “scared” into signing up for MI-Connection, especially when public opinion was overwhelmingly against the town’s purchase of the system in the first place. And clearly, bullying residents hasn’t proven to be effective.

While perhaps “unsophisticated” and unlikely, since government officials don’t have time to personally call each and every Mooresville and Davidson resident to chat about cable, Montgomery’s approach is a breath of fresh air compared to the alternative. He says it just makes sense: “I don’t believe in shoving it down people’s throats. I would just like to talk to people about it. Time Warner is a corporate machine. We need to bring MI-Connection down to a level where it’s more personable.”

And moving MI-Connection’s operations from Virginia to Mooresville means marketing and sales ideas will be tailored to local people by local people.

Still, not everything is sunshine and rainbows. Many promises were made to Mooresville and Davison residents about MI-Connection, and the cable system, in its three years, hasn’t delivered. We were told MI-Connection would be profitable in five years and that the original debt for the system’s purchase would be repaid entirely through system revenues. That hasn’t happened – by a long shot. We were told MI-Connection would build fiber-to-the-premises infrastructure, making the system a driving force for economic development. That hasn’t turned out to be true, either.

The optimism among government leaders – even those who have opposed MI-Connection in the past – isn’t going to magically make everything better. It isn’t going to fix the mistakes that have been made, and it isn’t going to make the system successful or profitable overnight. But it is nice to know that a little hope exists in an otherwise seemingly hopeless situation.

Optimism is a welcome change.

This column was originally printed in the Dec. 17 edition of Mooresville Weekly. To participate in the discussion, leave comments here or at http://mooresvilleweekly.com/opinion/2010/12/‘mi-correction’/