August 20, 2019
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Alton voters approve $150,000 to expand fiber broadband

Community Author: Fluent IMC
Post Date:
Updated:

ALTON and NEW GLOUCESTER, ME  – OTELCO, the incumbent telecommunications provider to the Town of Alton, is pleased to announce that it will proceed with a collaboration that will allow the company to build a town-wide broadband network. At the annual town meeting, held on March 30, Alton voters nearly unanimously approved the appropriation of $150,000 to expand fiber broadband to all 329 town locations. Alton’s contribution to the broadband project will be funded by the Juniper Ridge Fund that is furnished by tipping fees from the Juniper Ridge Landfill in Old Town.

OTELCO will be investing $290,000 toward the project, and both the Town’s investment and OTELCO’s are contingent on a successful $260,000 grant application by OTELCO to the ConnectME Authority.

Currently, OTELCO has fiber-to-the-premise (FTTP) available to 69 of the 329 locations in Alton, a project that began in 2017 and was partially funded by a ConnectME Authority grant.

Alton town administrator, Ron Borja, said, “Once word spread that OTELCO completed the fiber build to the 69 locations at the north end of town along the Bennoch Road, we saw a situation of the ‘haves’ and ‘have nots.’ Aside from the quality of life and place that fiber broadband offers our citizens, we feel that its availability is also a major factor in the town’s economic development.” Borja said that the town’s proximity to I-95 and Bangor along with its low tax rate are three important elements for potential business development, and that broadband connectivity is equally important.

OTELCO’s initial build on Bennoch Road was funded in part by a ConnectME grant and required that there be municipal support for the project.

“When the town reached out OTELCO a year or so after the Bennoch Road project to see how we could facilitate building to the rest of the town, I explained that we had no immediate construction plans for Alton, but that we could look at some kind of financial collaboration,” said OTELCO Marketing and Public Relations manager, Tracy Scheckel. “Ron explained that a majority of the Select Board was serious about town-wide FTTP and asked us to develop a budget estimate.”

“When OTELCO provided a budget estimate of $700,000 and suggested a three-way funding model including a grant from the ConnectME Authority, things began to come together,” said Alton Select Board chair, John Belding. “The Town of Alton has the benefit of the Juniper Ridge Fund for projects like this, and we didn’t have to impact property taxes with the appropriation.”

With the affirmative vote of the $150,000 appropriation, OTELCO will now apply to the ConnectME Authority in the upcoming grant round. Assuming the application is successful, and the grant is awarded, network construction will commence in the spring of 2019 and be complete in approximately 6 months.

About OTELCO

OTELCO Inc. provides wireline telecommunications services in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia. The Company’s services include local and long distance telephone, digital high-speed data lines, transport services, network access, cable television and other related services. With approximately 99,000 voice and data access lines, which are collectively referred to as access line equivalents, OTELCO is among the top 25 largest local exchange carriers in the United States based on number of access lines. OTELCO operates eleven incumbent telephone companies serving rural markets, or rural local exchange carriers. It also provides competitive retail and wholesale communications services and technology consulting, managed services and private/hybrid cloud hosting services through several subsidiaries. For more information, visit the Company’s website at www.otelco.com.

OTELCO Forward Looking Statements

Statements in this press release that are not statements of historical or current fact constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results, or from any future results expressed or implied by such forward-looking statements. In addition to statements, which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes”, “belief”, “expects,” “intends,” “anticipates,” “plans”, or similar terms to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission.