CenturyLink sues Idaho for $37 million over state broadband project

CenturyLink and Education Networks of America are suing the state of Idaho for $37 million over claims that it broke the terms of their broadband agreement, one that includes expanding their fiber network to support a state broadband project for local schools. This suit follows a decision made by Idaho Attorney General Lawrence Wasden demanding the two companies repay the millions of dollars that the state had paid them for services.

CenturyLink and Education Networks of America said in a Salt Lake Tribune article that the contract was void due to missteps taken by the state. The pair said they want to be paid for the work they did. Additionally, the two companies said they want to be compensated for the investment they made to meet the future terms of the contract, including the extension of fiber facilities to hard to reach rural areas. In its lawsuit, CenturyLink officials said that state officials -- including Gov CL "Butch" Otter (R-ID) and other legislative leaders -- told them that Idaho should pay for the network services the telecommunication company provided to them. Although state lawmakers proposed an $8 million settlement, Idaho will have to pay out a larger amount of money for the troubled state broadband plan. The project, which was launched in 2008, aimed to provide one broadband network for all schools across the state. To date, Idaho taxpayers have paid over $29 million for the project.