An internet and cable company has reversed course and decided to accept a grant to expand broadband access in Caribou and other communities throughout Maine.
Charter Communications, parent company of Spectrum, had been on track to receive $6.8 million in funding from the Maine Connectivity Authority. But on Oct. 25, Charter declined the grant because of disagreements over an affordable connectivity requirement.
Three days later, Charter told Maine Connectivity it would comply with the requirement, and the authority reported Nov. 3 it would award the grant package.
Had Charter not changed its mind, Caribou’s quest to connect its most rural residents to the internet would have hit a major wall — especially since the city’s utilities district failed to obtain a grant to build its own internet network. Now, the Aroostook County community is one of several statewide where lower-income residents will be able to obtain internet service.
“It looks like MCA will present Charter with a full grant package — a place we were in back in September,” Caribou City Manager Penny Thompson said, adding she would reach out to Spectrum and Maine Connectivity to confirm if things will proceed as planned in Caribou.
The City Council’s broadband committee will meet on Wednesday to discuss next steps, Thompson said.
Other communities the grant will support are Dayton, Denmark, Fryeburg, Harrison, Howland, Lovell, Milbridge, Milford, Mount Vernon, Orrington, Otisfield, Parsonsfield and Presque Isle.
The Maine Connectivity Authority requires all ReachME grant recipients to become part of the Federal Communication Commission’s Affordable Connectivity Program. Through the program, qualifying low-income customers receive at least $30 per month off their monthly internet bills.
Less than half of the 14,933 households in Aroostook County who qualify are enrolled in the Affordable Connectivity Program, according to the latest data from the Universal Service Administrative Co., which administers FCC funds.
Caribou has been working for a year and a half to expand its connection capabilities. At first there were two options on the table: an expansion by Spectrum and the city utilities district’s plan. Spectrum pressured the city last November to nix the local project, but the utilities district questioned Spectrum’s plan to connect the most rural residents.
The district applied for a $1.6 million Connect the Ready grant through Maine Connectivity Authority, but in February, the authority rejected the application, saying other areas had more urgent internet needs.
Connect the Ready grants primarily target unserved communities — those who have no internet at all — according to the authority’s website. Reach Me funds provide incentives for existing service providers to expand their reach.
Now that Charter and the connectivity authority have agreed on the grant, they will collaborate on providing service, Maine Connectivity Authority President Andrew Butcher said.
“Based upon Charter’s application, we anticipate new service to begin in the coming year and will be working with Charter to outline these timelines for each community their grant covers,” Butcher said.
Authority staff worked with Charter/Spectrum to reach a compromise on the affordable internet requirement, Butcher said. He declined to detail specifics. The authority will provide the full grant agreement package to Charter in the coming week, he said.
The connectivity authority follows U.S. Treasury requirements that internet providers join the Affordable Connectivity Program so low-income households can have high-speed internet covered with subsidies, Butcher said.
“By working with large incumbent providers like Charter in programs like this, we are able to ensure that everyone benefits from Maine’s accelerated broadband expansion,” he said.
Spectrum officials did not respond to requests for comment.
