Eagle-Net: Feds' review of stimulus-funded broadband network finds shortfalls, but no bombshells

A US Department of Commerce inspector general's review of Eagle-Net Alliance's Colorado high-speed Internet network, paid for with $100.6 million in federal stimulus funding, finds that the project fell far short of its goals and had weak financial controls. But the review didn't unearth much new about the project, which has been a magnet for criticism.

The findings are contained in a 19-page letter that was sent Jan 23 to US Rep Cory Gardner (R-CO) and Rep Scott Tipton (R-CO). The inspector general’s report found that Eagle-Net's network reached 131 “community anchor institutions” -- primarily schools and libraries -- out of the 234 institutions it planned to pass. That leaves 92 it didn’t reach and won’t unless a private company hired to operate the network, TX Communications (doing business as Affiniti), finds new funding for network expansion. The review also found Eagle-Net's financial reporting insufficient, noting that inspectors received two sets of financial numbers with different monetary totals for 11 months in the agency's fiscal 2013.