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Ground Level Blog
Dave Peters

Mediacom files its formal complaint against Lake County’s broadband plan

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Thanks to StimulatingBroadband.com for finding the 26-page complaint that Mediacom filed with the U.S. Department of Agriculture's inspector general, arguing against Lake County's proposed broadband project.

The complaint, filed Feb. 7, argues that the $66 million project is likely to fail financially and the award of federal stimulus money was made under false pretenses. Mediacom, which supplies broadband service to Two Harbors, Silver Bay and several other Lake County towns by means of its cable TV service, is asking the inspector general to halt the award.

Lake County is hoping to use the award to build a fiber optic network to every home in the county plus some in neighboring St. Louis County. The effort got a stubbed toe when the county was unable to forge a deal with the company it hoped to contract with to run the operation. The company, National Public Broadband, was associated with a troubled project in Burlington, VT.

The county has since agreed with another consultant to continue work.

Mediacom's complaint, which vice president Thomas Larson threatened in January, argues partly that the arrangement with National Public Broadband was improper but also that the Lake County project is financially not viable and will result in the county defaulting on the federal loan that makes up the bulk of the award.