Kevin Schoen, CEO of ACD.net gave a presentation on how his company could apply for part of a $20 million state grant to provide broadband internet service to underserved areas of Barry County and if successful, bring fiber optic broadband to an area of the county.
In answer to commissioner’s questions, Schoen outlined the process.
The grant allows the private sector to apply for the competitive state subsidy with a 10 percent or more match, they haven’t determined what their match would be, Schoen said. The grant application is due in Aug.30.
Criteria for residents to receive service paid for by the grant must be receiving less than 10 megabits per second from their current service.
The City of Hastings would not qualify since its broadband service is faster than 10 megabits a second and considered adequate. ACD.net sent letters to 5,700 potential subscribers, as well as ads on Facebook and Google, to see what broadband they have; a requirement of the grant. Some 600 residents responded.
A cost analysis on a section will determine if they ask for grants for that section, followed by engineering and design work and obtaining permits, then construction in phases. It will take two to four weeks to install “the backbone infrastructure,” they will sign up residents and then do the hookups, he said. He’s hopeful the state will offer $20 million a year in grants for more area coverage of more underserved areas every year.
Schoen said the average cost for infrastructure installation to each residence would roughly be around $3,000.
“Would the $3,000 cost be passed on,” Commissioner David Jackson asked.
Schoen said if they serviced 1,000 homes at $3,000 each, average, the company might gamble 20 percent of its own money, would show they have $600,000 allocated for it, “and the government makes up the other $2.4 million dollars.”
“Now, we may have installation charges to the house that could cost anywhere from $150 to $300 or $500, but mostly we want to make that as low as possible because we know that it’s an economic impediment to getting broadband.”
The service delivers 1,000 megabits per second for a monthly fee of $59.95, and fiber lasts 50 years with the speeds unlimited, he said. The preferred installation method is using or installing utility poles, but they will go underground if they have to, as required in housing subdivisions.
His company has won earlier grants to underserved areas. In 2005 to 2008 for $12 million and in 2012, $40 million for a number of smaller counties, he said. Schoen was invited to the meeting by Commissioner Dan Parker who said the Barry County Chamber of Commerce and Economic Development Authority has been working behind the scenes and other companies should also make presentations to the commissioners.
Schoen said he has the support of State Senator John Bizon and State Rep. Julie Calley. Commissioners offered to supply a resolution of support for the company when he requests it.
“That would be useful and helpful to us,” he said.
