Lake Connections Sale Highlights Municipal Decision to Get Out of the Broadband Business

The Lake County (MN) board of supervisors recently unanimously voted for a Lake Connections sale, offering the municipal broadband network up to what they hope is the highest bidder. Lake Connections was formed seven years ago and obtained $66 million in funding to build the municipally owned broadband network serving Lake County in Minnesota. The sale process will “… be a highly structured, collaborative process between the county and the US Department of Agriculture’s Rural Utilities Service (RUS), the lender that provided the majority of the funding for the network’s construction.” The county promised to kick in $15 million to fund the “drops” for the FTTP network. The Federal Communications Commission also provided a $3.5 million grant, according to the news report. On the one hand, the Lake County government feels strongly that this was the only way to bring advanced broadband services to their community, and apparently, would do it again if given the chance. On the other hand, it also reveals the financial commitments building and operating broadband networks requires, and the risk associated with it. Some argue that local governments shouldn’t take on that risk. The leadership of Lake County seems to think the private sector is better suited to finish and operate the network, probably due in large part to the financial obligations it requires.