CARIBOU, Maine – Broadband expansion projects throughout Maine, including central Aroostook County, may be in jeopardy if contract negotiations between Charter Communications and the Maine Connectivity Authority fall through this week.
In April, the Maine Connectivity Authority awarded Charter Communications, the parent company of Spectrum, $6,891,229 through its ReachME Line Extension Program, which promises to help internet providers expand current networks. The funding is slated to expand Spectrum’s networks in Caribou, Presque Isle, Dayton, Denmark, Fryeburg, Milford, Orrington, Mt. Vernon, Parsonsfield, Harrison, Howland, Otisfield, Milbridge and Lovell.
Caribou has been banking on Spectrum’s plans as a way to assist residents in rural sections of the city who are in more dire need of modern internet. City councilors endorsed Spectrum’s project over one proposed by the Caribou Utilities District after Spectrum promised to complete the expansion in 12 to 18 months. The utilities district aimed to build a city-wide dark fiber network, starting with rural areas, over a period of at least five years.
The utilities district lost a major Maine Connectivity Authority grant earlier this year that would have kicked off its project. Its board of trustees, like the city council, opted to instead support any company willing to expand their broadband network in Caribou, including Spectrum.
But last week, Charter officials decided to decline their $6.8 million grant after disagreements between them and Maine Connectivity Authority over requirements related to affordable connectivity options for customers.
Charter officials did not immediately respond to requests for comment Monday regarding what contract terms they disagreed with.
Maine Connectivity Authority requires all ReachME recipients to become part of the Federal Communication Commission’s Affordable Connectivity Program. Funded through $14.2 billion in federal funds, the program provides at least a $30 discount per month on qualifying low-income customers’ monthly internet bills.
As of August, 48.3 percent of qualifying households in Aroostook County, equal to 7,202 households, were enrolled in the Affordable Connectivity Program, according to data from the Universal Service Administrative Company, which administers FCC funds.
“The requirement [to take part in Affordable Connectivity] was featured prominently throughout numerous stages of MCA’s program guidelines, educational sessions and grant application process,” said Maine Connectivity Authority President Andrew Butcher.
Charter has since agreed to re-enter negotiations with Maine Connectivity Authority, in hopes of reaching a deal by Friday, Nov. 3, Butcher said.
If negotiations are successful, Spectrum could finalize its contract with Maine Connectivity Authority and move forward with plans to fund Caribou’s project through $496,983 of its $6.8 million.
Prior to receiving the ReachME grant, Charter officials had proposed that Caribou pay $496,983 of the proposed $1.4 million expansion, so long as the city did not give funds to the utilities district.
