MBI, the state agency in charge of $50 million, last week suddenly pulled funding from the rural broadband cooperative.
NORTHAMPTON -- WiredWest on Friday slammed a recent, highly-critical statement from the Massachusetts Broadband Institute, saying in a point-by-point rebuttal that the state agency's efforts to undermine the 44-town municipal light plant cooperative amount to "bureaucratic blackmail" and are tied to a desire to control the overall deployment of rural broadband in the state, which would be funded with millions of taxpayers dollars.
On Dec. 1 Mass Broadband issued a letter to dozens of local officials in western Massachusetts, saying that the cooperative's operating plan to bring high-speed Internet to 44 rural towns is "not compatible with the best interests of the Commonwealth, the towns, or their residents." MBI said it would pull state funding from Wired West for now, and encouraged select board members not to sign a pending operating agreement with the cooperative.
By issuing the unexpected statement, Mass Broadband has "sewn confusion in the towns, thrown the project into chaos, and subjected it to further delays," wrote Wired West chair Monica Webb in a statement distributed to the press. "We need the state to stop throwing up unnecessary roadblocks."
Webb suggested that MBI is motivated by the desire to control the "final mile" of the broadband project, to be funded with tens of millions of public dollars and a stream of subscriber fees. MBI already has the authority to invest $40 million in state dollars committed by the state legislature. At least three times that much would be raised by local borrowing by the member towns.
"MBI's desire to control the project and minimize the ability of towns to oversee its expenditure of their funds, despite the towns providing most of the money, is the reason MBI is stepping in at this late date," wrote Webb, in offering a possible motive for why the Massachusetts Technology Collaborative agency would want to block the implementation of an operating agreement between member towns and WiredWest.
WiredWest, governed by representatives from each of its towns, has been working to bring high-speed Internet to western Massachusetts since 2011.
It's been known since then that Wired West intends to build, plan, and operate a 44-town, regionally-owned fiber optic network, wrote Webb. Mass Broadband in its Dec. 1 letter asserted that WiredWest has only "recently" moved beyond educational and outreach efforts into the network business.
"It is misleading to imply that WiredWest has changed its mission," Webb wrote.
The interests of Wired West are not different from the interests of its member towns, she added: "It is a cooperative of the towns, by the towns and for the towns.... WiredWest is nothing but the towns. It is governed by a Board of Directors, representing each of the member towns..."
As for a Mass Broadband statement that the Wired West financial model is flawed, Webb hit hard, saying the plan has been extensively reviewed by member towns, and vetted by an independent consultant who has no financial interest in the project.
Webb accused Mass Broadband of making factually inaccurate statements in its Dec. 1 letter.
It's not true, she wrote, that towns and their municipal light plants would "transfer ownership" of the network to WiredWest: "The towns are choosing to jointly own the network, and WiredWest serves as the mechanism to manage it."
WiredWest has been the "driving force in Western Massachusetts" to implement rural broadband, Webb wrote, and has already worked with town to form municipal light plants, conducted market research, procured cost estimates and network design, completed financial modeling, signed up 7,000 subscribers, helped 24 towns pass bond authorizations, and compiled an "exhaustively-vetted business plan and operating agreement."
Forty-four towns have agreed to WiredWest membership, and 24 of those have authorized borrowing. "Refusing to fund the solution chosen by the towns is bureaucratic blackmail," wrote Webb.
MBI adopted a policy in July which requires the towns to own their own broadband infrastructure. WiredWest officials said that cooperative ownership of the network, through an affiliation of municipal light plants, is not in violation of that policy.
MBI has not come up with its own solution to building a regional network, and has refused to share a report commissioned by the state that looked at the WiredWest model, said various local officials at the Saturday meeting. The report was prepared by the multinational IT consulting firm known as WiPro, they said.
"We were completely blindsided by MassBroadband," said Glenn Cardinal of Buckland, a WiredWest member. "We'd been in weekly discussions with them, and everything seemed fine. Nobody saw this coming."