Fiber-optics rental in Dublin over the next 10 years will mean 100-percent profit for Dublink.

Fiber-optics rental in Dublin over the next 10 years will mean 100-percent profit for Dublink.

Dublin City Council members last week approved a rental agreement with a new company for an optical fiber in the Dublink system, and the possibility of another leasing agreement soon could follow.

In 2009, council members authorized city staff to lease up to 12 optical fibers through Dublink at a rate of $3,000 per month, according to a staff memo.

Thus far, Dublin has leased 10 of the 12 optical fibers. The leases are expected to generate $1.8-million for the city, and the new 10-year contract that council has approved should bring in an additional $720,000.

Dana McDaniel, deputy city manager and economic development director, mentioned the possibility of also leasing another fiber in the near future, potentially bringing in another $720,000.

"That number equals the money we spent building this system," he said. "We can pay for it twice."

Dublin initially invested about $3.2-million in Dublink when it was installed in the late 1990s, McDaniel said.

Dublin also enjoys savings from Dublink through communications. McDaniel said analysis conducted by city staff shows that Dublin has recouped its investment in Dublink over the past 10 years by using it for such city purposes as communications.

"Over the past 10 years, the city has by far recovered its initial investments in both the optical fiber and Wi-Fi systems, even with the city's cost and overhead to run its own system," the staff report stated. "This does not take into consideration the job attraction, value-added services and national and international recognition the city has received for building this infrastructure."

By leasing Dublink fibers, the city expects to recoup its investment in the optical fiber system a second time.

"In subleasing the fibers over the next 10 years, we will make $3.2-million," he told ThisWeek.

The city also has used the optical fiber system as an economic development incentive to attract companies.

Although the resolution approved last week exceeds the number of optical fibers council initially had intended for lease, McDaniel said, 24 fibers still would be available for economic development or maintenance.

With technology advances, McDaniel said, the city could make the optical fibers available for use by several others, making the network "theoretically infinite."

According to the staff report, by using dense wave multi-plexing, or DWDM, the city could split a single pair of fibers into "multiple light waves. This can exponentially increase the capacity of a single pair of fiber and allow multiple users to use the same fiber."

Council member John Reiner applauded McDaniel for getting the city into optical fiber early.

"Thank you for having the moxie to do this," he said. "You've come back with a great return (on investment) and made us proud."