The publically funded Christchurch fibre company Enable Networks announced a profit of $1.36 million at its AGM today.

Chief Executive Steve Fuller says that demand has exceeded expectation, with revenue growth 170% ahead of budget.

“After just two years of operation we already have the largest open access fibre network in Christchurch. Demand for our services has exceeded our expectations and resulted in significant customer connections – we expect this to grow.”

Fuller says the company is especially pleased with its financial performance given the “current economic climate”. Last financial year Enable Networks posted a loss of $306,000.

Enable Networks is a wholly owned subsidiary of the Christchurch City Council, and has to date deployed 112kms of fibre, which is terminated in 160 locations. It plans to invest $36 million to expand the open access fibre network so that it can serve 85% of Christchurch businesses.

The fibre network is considered an investment in making Christchurch an attractive location for businesses, such as the HP centre of applications development which opened in August.

Enable Networks Chairman Bill Luff, who is also the Canterbury Development Corporation chief executive, said at the opening that economic modelling indicated the HP Centre has the potential to contribute $40 million a year to the local economy.

However not everyone has welcomed the fibre network. Earlier in the year TelstraClear CEO Allan Freeth claimed at an industry conference that Enable Networks is an example of ratepayer money being used to overbuild existing networks owned by private companies.

Enable Networks board of directors includes Murray Milner, former CTO of Telecom and author of the Treasury report earlier this year which estimated that the cost to deploying fibre to individual premises is around $2000 per premise.