Cox Business: Local cable infrastructure helped win bid to build OSHEAN broadband stimulus project

A new deal with Cox Business and OSHEAN, a consortium of Rhode Island anchor institutions, illustrates what could be a new opportunity for cable operators.

OSHEAN, which previously acted as a connectivity buying consortium for member organizations, won a $21.7 million broadband stimulus grant to build a 350-mile high-speed network to interconnect anchor institutions throughout the state -- and the position of Cox Business as the incumbent cable operator serving 98% of the state was a big advantage in helping the company win the business. Cox Business competed against other network operators to win the OSHEAN business but had a cost advantage over those competitors because it already has ductwork and rights of way throughout the state. The primary targets for the broadband stimulus program were remote areas that lacked broadband or had broadband available only at low speeds -- and Rhode Island might not appear to fit that target. But OSHEAN won the stimulus award because “the problem was affordable bandwidth,” said Mark Scott, New England vice president for Cox Business. The OSHEAN network will have 48 strands and will pass through 38 of 39 cities in Rhode Island. Construction is scheduled to begin in May and to be completed in the spring of 2013. The agreement includes an initial 20-year indefeasible right of use (IRU) contract that can be extended for up to 40 years. Cox will be responsible for physical maintenance and cable upgrades.