Lake County, Selling Fiber Network, Asks FCC to End RBE Status

recipient as part of its plan to sell the fiber optic network to Pinpoint Holdings. The county said it "dramatically" expanded broadband availability in unserved and underserved areas north and northeast of Duluth, but the project also was rife with "unexpected challenges and delays" that hampered its ability to meet its economic commitments and it was unable to secure financing to continue operating and expanding the network. It said Pinpoint was the winning bidder for the network, and has indicated it doesn't want to continue with the RBE grant program once it closes on the sale. The county said since the RBE program doesn't have a specific process for discontinuing participation, the agency should follow the same process as for relinquishment of Connect America Funds. It said out of an RBE grant award of $3.49 million OK'd by the FCC in 2016 (see 1612130006), it's so far received $1.63 million and that as of Aug. 1, it had built out to serve 3,102 locations, or 36.51 percent of those eligible. It said that, along with giving up its RBE grant status, it and the FCC should agree the county would retain 36.51 percent of the grant support it was awarded, $1.27 million, and return any more funds. Mediacom in 2011 challenged the Rural Utilities Service Broadband Infrastructure Program project as not financially viable, prompting a congressional investigation (see 1303140055 and 1205070046). Then-RUS Administrator Jonathan Adelstein, now Wireless Infrastructure Association president, testified government would seek full repayment of the loan to Lake County in event of a default (see 1205170068). The municipality said Pinpoint sale proceeds would to go the RUS. "From the moment it was conceived, anyone with even a cursory knowledge of the telecom business knew the Lake County broadband project did not add up," Mediacom emailed. "Lake Connections was an unquestionable financial disaster, and taxpayers deserve better."