The Lake County fiber network is now serving a limited number of customers in northern Minnesota. According to the Lake County News Chronicle, the network's triple-play services are lit and bringing better connectivity to Silver Bay and Two Harbors.

About 100 customers in Silver Bay take service via the network; beta testers in Two Harbors are helping Lake Connections, the entity managing the network, straighten out any kinks in Phase One. Phase Two, which is more than 60% complete, will bring service to Duluth Township, Knife River, Silver Creek Townships, and Beaver Bay Township. Phase Two is scheduled for completion this summer; Lake Connections anticipates network completion in the fall of 2015.

The Lake County project has been plagued with problems, including delays cause by incumbents. Mediacom filed complaints with the Inspector General based on unsound allegations. While the cable company was not confident enough to sue, its accusations wasted time and money for Lake County. Frontier asserted ownership of a significant number of Two Harbors utility poles, even though the City has maintained them, and the two are still involved in negotiations over ownership and fiber placement on the poles. The Minnesota Cable Companies Association (MCCA) delayed the project further by submitting a massive data request.

The FTTH project is one of the largest stimulus projects, totaling approximately $70 million in grants, loans, and local matching funds. The project will cover almost 3,000 square miles when complete, connect almost 100 community anchor institutions, and provide services to over 1,000 businesses.

After many delays, Lake County is now in the process of hanging in fiber for its extensive fiber optic network project called Lake Connections. A recent report from WDIO.com in Duluth reminds us that Mediacom and other opponents of the project have continued to obstruct the progress of a network that will connect thousands of households who presently have no broadband options.

As we have seen in a few other stimulus-supported projects, companies like Mediacom are trying to protect their overpriced, last-generation networks by working with Republicans that want to discredit anything stimulus-related. It is sad to see so many rural households caught in the crossfire, particularly knowing that Mediacom has no plans to expand outside a few towns in the County - this means that if Mediacom were able to stop this project, many people would have no hope of getting real access to the Internet.

From the article and the video we have reposted below:

The Rural Utilities Service (RUS) is the branch of the USDA that approves money spent on the project. County Administrator Matt Huddleston said there is no indication the money will stop flowing.

“In the meantime we're focused on building the network and RUS is continually seeing our contracts move to them, and they're approving them and providing us the funds at this time to continue building it,” Huddleston said.

He said $20 million is tied up in contracts, and construction will move forward.

Connections to homes and businesses in Two Harbors and Silver Bay should be finished by July according to officials. Then a connection to Duluth will be built to connect the entire network to the rest of the world. Officials said the network will reach up to Ely by the end of 2015.

The project is divided into three phases with this first phase in full swing. According to the most recent Gaining Speed Newsetter [PDF], over 4,600 feet of fiber was placed on poles in Silver Bay during the first week of April.

The project has been slowed both by the intervention of Mediacom and its own decision to remove the original management team and bring in a new group.

Lake County, a rural area on the north side of Minnesota's portion of Lake Superior, has long suffered with just dial up and satellite, with slow cable connections available in some of the towns. After receiving a stimulus project to build a county-owned FTTH project connecting everyone, many thought their broadband troubles were over.

But Mediacom attacked first, with unsubstantiated allegations of rules violations that investigators found to be lacking in merit. When Mediacom announced it would not further delay the project with a lawsuit, we again thought the project would proceed. 

But now a dispute over who owns some of the poles is holding up the project. The Lake County News reports that Frontier  asserts ownership of some poles on which aerial fiber optic cables sit as the project nears completion of Phase One. From the article:

There have been questions over the ownership of these poles in recent weeks. The poles, many of which Lake Connections has already utilized for attaching fiber, are within Two Harbors city limits. Frontier, a telecommunications provider in Lake County, said Lake Connections connected to their poles without submitting permit applications.

In an earlier report (reprinted here on mobilitytechzone.com and edited to include comments from Frontier), Mayor Randy Bolen declined to take an official position on the dispute between Frontier Communications and the install company, Lake Connections.

According to that October 25th report, there was a pole agreement between the two, but the agreement did not approach the issue of pole ownership. Rather than bring up the issue during negotiations, Frontier has waited until now to raise the challenge. Also from the article:

And for all its accusations, Larsen says Mediacom will not sue. Spending millions of dollars on a lawsuit in a place where the company serves so few homes, he said, "is not a great business decision."

The conflict that ensued is part of a national struggle. Public officials and some of their constituents argue that rural broadband is like rural electrification: It's a lifeline for small-town America that the free market will not extend. "We've been ridiculously underserved in this area for years," said Andy Fisher, who owns a Lake County bed-and-breakfast and a rural cross-country skiing lodge. The cable companies "are working in the interest of their profits. But if they're not going to serve this area, what are we going to do?"

"Lake County wants to make this into a David and Goliath story, where Mediacom is Goliath and poor little Lake County is David," said Tom Larsen, Mediacom's group vice president of legal and public affairs. "The truth is we're David because we're fighting [the government]. It's just the same story repeated all over the country."

Kevin O’Grady, a staffer for the Public Utilities Commission, called Thursday’s 5-0 vote “uneventful.” He said that aside from a protest from the Minnesota Cable Communications Association that was withdrawn just before the vote, the application was “nothing out of the ordinary.” The cable association, which faces competition from the fiber project, had complained that the county, without a public vote, couldn’t be the legal authority to provide telecommunications services under Minnesota law. The commission, responding to the complaint, said the authority would be granted to Lake Communications, which it deemed had a proper relationship with the county in providing the service. … The county plans to build the network and lease the lines to Lake Communications for revenue. In its original response to the cable association’s complaint, the state commission said Lake Communications’ application “complies with the requirements typically applied by the commission to applications” across the state. It also stated that Lake Communications’ financial statements were “sufficient and consistent with the financial information filed by other applicants for authority.”

Thanks to Minnesota Public Radio for an update on stimulus broadband projects in NE MN. A massive non-profit middle-mile project called the NorthEast Service Cooperative will finally provide redundancy and modern connections to an area long neglected by Qwest.

Hundreds of miles of fiber optic cables will bring faster Internet access to the Arrowhead region of Minnesota by the end of this summer. Ground for a broadband network stretching 915 miles was broken yesterday. Sen. Al Franken (D-MN) and other politicians were on hand to tout the long-term economic significance of this federally funded project.

Soon, entire counties will not have to fear disastrous meltdowns from Qwest's inability to offer reliable services, as when they went 12 hours without any telecommunications, meaning police could not run background checks or run plates, credit cards and ATMs went offline, and border security had to use Canadian comms.

Northland News offered greater coverage as well as a video that would not embed here for reasons unknown.

The 915 miles of fiber optic network will stretch across eight counties in the Arrowhead Region and bring world class web speeds to the area.

…

State lawmakers were also on hand at the ceremony and say this type of technology is pivotal to economic development.

"I want this to be the next step in people realizing that economic diversification on the Iron Range can be done because we are wired, we're ready to go, and we have a work force that is second to none," said state Sen. David Tomassoni.

We have to wonder how many of these legislators will support removing barriers in Minnesota law to communities building their own networks.

Note that the the NE Service Coop is a middle-mile network and that Frontier will be using it to improve their services.

The Minnesota Cable Communications Association joined the fray at the end of February, sending a massive data request to Lake County and all the governments within the project area. County Attorney Laura Auron said she “objected to the characterization” the cable industry advocate group made about the project. The MCCA wrote that is was “deeply concerned about the shroud of secrecy” about the project, calling efforts to get the project in line with state and federal rules “opaque.” The association demanded to see the county’s business plan and contracts for the project. It also asked all the cities and townships in the joint powers association, a requirement under the Rural Utilities Service rules for grants and loans, to provide all information regarding the fiber project discussed at council and board meetings.