Nulty on EC Fiber: "Too Shovel-Ready? Never!"

Publication Date: 
February 1, 2010
Author(s): 
Tim Nulty

Tim Nulty describes the "most rural" FTTH project in America - a large multi-community build in Vermont, the state with the largest percentage of people living outside metropolitan statistical areas. This is more of a technical article, explaining why the network is necessary, who they have contracted with, and the topology of the network.

Beginning in early 2008, ECFiber developed a project to bring fiber to every single premises in its area: “universal service -- no exceptions, no excuses” without any assistance from the State. This project was completely self-sustaining from the revenues of subscribers alone. A public offering of $90 million of Certificates of Participation, fully compliant with SEC requirements, was prepared by Oppenheimer Company and was on the verge of closing when Lehman Brothers collapsed and with it the entire municipal debt market.

ECFiber had to start again from scratch. Fortunately, the Stimulus Bill passed about this time and ECFiber redirected its financing efforts to that source. It was not a difficult matter to recast its Public Offering documents into an application for a BIP loan. No grants are needed by the ECFiber project and none are asked for. Vermonters generally don’t approve of free taxpayer handouts except in extreme circumstances. ECFiber is completely viable and requesting grants would be, in our view, unnecessary and, hence, improper.

We continue hoping the RUS will stop wasting time with lesser projects and direct a loan to these folks in Vermont.

OSP - Outside Plant