VTEL Broadband Dispute: Is Vermont Funding an Overbuilder?

Could ongoing controversy in Vermont involving network operator VTEL be a precursor of controversies to come involving broadband funding for unserved areas? The state of Vermont will allow network operators to collect public funding to deploy broadband to areas where VTEL apparently provides at least some coverage using wireless technology.

At issue is how extensively VTEL covers several Vermont communities where the company received federal broadband stimulus dollars to deploy broadband using wireless. Those communities were part of a bigger project that included building out fiber-to-the-premises in some communities. (VTEL is the incumbent carrier in parts of rural Vermont. The stimulus project included areas inside and outside its home turf.) VTEL has not provided state authorities with a list of addresses in wireless areas that can actually receive service, but there have been so many complaints about VTEL service not reaching some locations that the state made the decision to fund overbuilds of some VTEL wireless serving areas. (Vermont’s budget for broadband deployments is $556,273 for this year, VTDigger reports.) All of this raises some interesting questions.