NTIA Suspends EAGLE-Net Broadband Construction

But issue is environmental studies, not overbuilds, says agency

By John Eggerton -- Broadcasting & Cable, 12/7/2012 3:36:21 PM

The National Telecommunications and Information Administration has temporarily suspended the EAGLE-Net Alliance's broadband build-out, to schools and libraries, which is being partially underwritten by stimulus funding under NTIA's Broadband Technology Opportunities Program (BTOP).

"Yesterday, EAGLE-Net Alliance (ENA) was instructed by the National Telecommunications and Information Administration (NTIA) to temporarily suspend current construction activity while we provide them additional information about our project," the alliance said in an email. "We take this very seriously and are working closely with the NTIA to provide this information in order to resume construction as quickly as possible."

But ENA suggested it was not a big deal anyway. "Although construction has been temporarily postponed, it was already winding down for the 2012 build schedule. Our non-construction related operations will not be affected."

Some local telecoms had complained about being overbuilt. Broadband providers, including many cable operators, are concerned that the government is underwriting overbuilds of their markets in its effort to get broadband to every household.

But Anthony Wilhelm, who heads up the BTOP broadband stimulus funding program, suggested the issue was overbuilding the environment, rather than the competition.

"EAGLE-Net has made considerable progress in achieving its objectives to construct a statewide high-speed broadband network to connect schools and libraries across Colorado," said Wilhelm "However, NTIA has suspended the project and required EAGLE-Net to stop work in order to address concerns about its adherence to environmental and cultural resources requirements," he said in a statement. "Our expectation is that ENA will resolve these issues so that the project can quickly resume and continue to deliver broadband benefits to communities statewide."

An NTIA source speaking on background said that the problem was not overbuilds, but instead that it had learned that ENA was potentially building on routes not analyzed in its environmental impact study, which was the study on which the NTIA based its "no significant impact" finding. As a result, NTIA asked for further clarification from ENA on those routes, and when it did not receive an adequate response, suspended the project.

"NTIA is committed to overseeing our programs and helping ensure proper stewardship of taxpayer dollars," said Wilhelm.