Municipally-owned broadband is a complex and controversial topic under debate. Many local governments, including Lake County, Minnesota, believe that controlling broadband is the only way to bring advanced services to the community, reported the Lake County News Chronicle. However, there are many financial commitments to build, operate, and maintain a network, with risks associated with the move.
In Lake County, Minnesota, the local government decided to construct their own broadband network seven years ago. The network, called Lake Connections, came at a time when existing broadband companies weren’t willing to bring a network to rural Lake County. It was built with $66 million in funding, is the largest rural broadband project in Minnesota and the third-largest in the nation. The network is now 95 percent finalized, but there have been some difficulties getting it completed. Lake Connections has run into some hiccups including lawsuits involving contractors and delayed service; there are 700 residents who have signed up for service but have yet to receive it.
The Lake County board of supervisors is now looking to exit the broadband business and sell Lake Connections to the private sector; they’re not interested in funding the network any longer. The board recently voted unanimously to sell to the highest bidder. According to the News Chronicle, the sale process will “… be a highly structured, collaborative process between the county and the U.S. Department of Agriculture’s Rural Utilities Service (RUS), the lender that provided the majority of the funding for the network’s construction.”
According to Lake County Administrator Matt Huddleston, “We were able to build a state-of-the-art network that provides new opportunities to our businesses and residents at a time when nobody else would do so. We now have the opportunity to seek an owner that can provide the expertise in managing the network and make the necessary investments for the work that still needs to be completed.”
During the transition, the county committed to contributing $15 million to fund the “drops” for the FTTP network and the FCC also provided a $3.5 million grant, according to the Daily Chronicle. Commissioner Rich Sve noted, “We have the opportunity to work with whoever will own this network in the future and the ability to aid the rest of the construction throughout our county so we get it all done.”
June 22, 2017
Reader Interactions