The recipient of a major federal stimulus grant and loan in southwestern Minnesota appears to be having second thoughts about proceeding with a broadband project spread out over three counties. The $15 million project which planned to expand broadband service in 15 communities may be in danger of going into the financial red zone, apparently due at least in part to the escalating costs of fiber optic cable.
Woodstock Telephone Company was approved by the Rural Utilities Service (RUS) to receive a $10.6 million grant and a $4.5 million loan from the American Recovery and Reinvestment Act (ARRA) to expand its fiber network by installing Fiber-to-the-Premise (FTTP) to an additional 3,600 premises in Lyon, Pipestone and Rock counties.
While there’s evidently been no formal announcement, the Minneota city administrator told the Freedom Foundation of Minnesota (FFM) that Woodstock Telephone informed her the company no longer intends to build a key facility in their community to house equipment for the network. FFM calls to Woodstock Telephone had not been returned at the time of this post.
“Our reaction is we’re disappointed because it was going to bring more competitiveness to the market here,” said Sarah Friesen, Minneota city administrator. “We do have high speed internet access, but they were also going to bring another option for television, too, not just the internet.”
The project was heralded in August, 2010 by the RUS, a branch of the US Agriculture Department, as a breakthrough for rural residents that would save or create 41 jobs. “More than 8,000 people stand to benefit, as do approximately 180 businesses and nearly 50 community institutions. In addition to the jobs this project will create upfront, it will help drive economic development and create jobs for decades to come,” according to the press release.
