July 29, 2010
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Broadband to Rutledge?

By Colby Dunn
News Writer

The screeching, the pinging, the waiting, and waiting, and waiting–in other words, all the trademarks of dial-up Internet access–could soon be only a memory for Rutledge residents if the city council agrees to go after a stimulus grant that could bring broadband to the city.

Council members heard from Demetrius Geddis of Gap Technologies, an Atlanta fiber optics consultancy company, who pitched a partnership to pursue stimulus funding earmarked for bringing broadband to rural areas.

The first round of cash was handed out under this program last Thursday, Dec. 17, including $33.5 million to the North Georgia Network Cooperative to extend fiber optic broadband north of Atlanta and into the north Georgia mountains.
Vice President Joe Biden announced $182 million in grants last week, with the rest of the $2 billion already awarded to be announced in coming months.

The American Recovery and Reinvestment Act of 2009 set aside $7.2 billion to connect rural areas to high-speed internet, and the Rural Utilities Service and the National Telecommunications and Information Administration, who run the program jointly, have said that rural areas like Rutledge will get only one more shot at the cash after an enthusiastic response in the first round.

Geddis, who has done post-graduate research in fiber optics, pitched the idea to council members, asking them to consider a partnership with his company that would provide high-speed internet access to residents who currently have none.

"They [the federal government] are really trying to provide money for infrastructure development," Geddis said. "It's attractive in terms of economic development from the business side, plus if the housing market ever turns around, that's attractive."

Geddis estimated that linking up Rutledge with fiber optic connections would cost around $1 million, and although the government, he said, frowns upon applications for 100 percent grant funding, contributions from the municipality could be in either a loan to cover remaining costs, up-front cash or in-kind donations, like a building or piece of land to house the central office of the fiber optic operations.

Council members seemed interested, but wary of the economic sustainability of the idea, especially if the city would need to foot the bill for a portion of the $1 million.

"I'm not sure the economics are going to work here," said council member Tom Strott, noting that the town is so small, paying back loans through profits taken from potential service users would be minimal. "I would be surprised if 30 percent of the people would say 'Hey, I want fiber optic in my house."

Geddis acknowledged the difficulties, pointing to them as a reason that commercial broadband has bypassed the town thus far and why the federal government is stepping in now.

"They know that it's not a good business sell," he said, "but they know that it's good for the country."

Mayor Spencer Knight also expressed interest in the project, but said it was too early in the game to make any promises.
"It sounds good," he said, "but where we'd be committed at this time, we don't know."

Council members asked Geddis to come to them with more information, at which time they would pursue a dialog about the issue.

The dates for the next round of competition have not yet been announced, although Geddis estimated that they should be sometime in the first quarter of 2010. 

Printed in the December 24, 2009 edition.
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