Cleveland, OH is moving forward with Mayor Justin Bibb’s $20 million broadband expansion plan. Cleveland.com reported that the American Rescue Plan Act funds will be utilized to bring affordable service to the city.
The local non-profit DigitalC is teed up to implement expansion; however, some City Council members aren’t confident that the organization can deliver since it hasn’t “proven itself at scale.” The non-profit currently has 2,000 subscribers and requires a total of 25,000 in the next four years to be sustainable.
Cleveland.com reported that funds will be withheld from DigitalC until it meets certain milestones, including expanding its subscriber base by 3,500 and providing digital literacy training to 7,500 residents. The city will release $3.75 million if the non-profit meets these goals.
“Everything is going to be performance-based, and DigitalC is going to have to prove themselves the first year before any of the dollars are dispersed,” said city Utilities Chair Brian Kazy. He added that the non-profit must continue to expand its customer base and provide digital literacy education for the duration of the contract to collect more funds from the city. Kazy noted that DigitalC would not get extra money if it exceeds its goals and will not get partial funds if it fails to reach them.
DigitalC, which won the four-year bid against telecoms like AT&T, Spectrum, and T-Mobile, has promised upload and download speeds of at least 100 Mbps at $18 per month for all Cleveland homes. According to DigitalC CEO Joshua Edmonds, the company recently secured $20 million from the Jack, Joseph, and Morton Mandel Foundation, and the David and Inez Myers Foundation, and $3 million from the federal government, which will help the non-profit scale up operations.
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