Inside the controversial Colorado EAGLE-Net broadband project

The potential benefits of a much-maligned broadband-expansion project funded largely with taxpayer dollars, as well as its shortfalls, are on display in the ski-resort town of Steamboat Springs (CO).

For years, CenturyLink has charged the city's school district $100 for each megabit per second of Internet connectivity, at least 10 times the price that Denver-area schools pay. Enter EAGLE-Net, the quasi-governmental entity that secured $100.6 million in federal stimulus funding 2½ years ago to expand broadband coverage across Colorado, promising to connect every school district to its high-speed network. The mere threat of an additional fiber-optic backbone reaching the mountain community helped the city negotiate lower fees with CenturyLink, said Tim Miles, technology director for the Steamboat Springs School District.

"Because of EAGLE-Net coming into town, bringing the competition, CenturyLink has come down on price," Miles said. Problem is, EAGLE-Net isn't there yet. It is months behind schedule and facing mounting criticism about its spending and network build-out.