Michigan
Michigan utility Traverse City Light & Power says it may finally complete Phase 1 of its municipal broadband network by late 2025, with hopes of turning a positive cash flow in 2026. The project, launched in 2019, has posted annual losses since inception and is expected to lose another $645,000 this year, according to Mackinac Center.
Chief Financial Officer Karla Myers-Beman acknowledged the continued losses but called them typical for startup projects. However, the utility had originally promised profitability by 2021, with $1.2 million in projected revenue—a goal now four years overdue.
Studies show Traverse City’s experience isn’t unusual. Research by Penn State Professor Christopher Yoo found that most municipal broadband systems struggle financially, with nearly 90 percent failing to generate sufficient cash flow to cover their debts on schedule.
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