Businesses and residents in unserved rural Alton, ME will have access to broadband speeds of 50 Mbps and higher
August 3, 2017 (New Gloucester, ME) – Maine-based OTT Communications, a division of Otelco Inc., announced today that it has won a ConnectME Authority matching grant that will allow the company to provide high-speed fiber optic broadband service to unserved residents of Alton, Maine. The $78,000 grant will be matched by an equal investment by OTT. The grant supported portion of the build-out will serve 33 premises in the area. At its own expense, OTT will connect an additional 36 homes that it passes to reach the area covered by the grant. Most of those 36 additional homes currently have download speeds of between 4 and 10 Mbps and upload speeds of less than 2 Mbps.
The new FTTH network offers a significant upgrade for Alton customers who currently are in contention for bandwidth during peak times due to the low available bandwidth from West Enfield, and can’t receive consistent quality service due to the last-mile copper. Speed tests during the evening hours (peak usage for family entertainment and student homework completion) at 0.87 MB are well below the 1.5 MB threshold used to identify unserved areas defined by the ConnectME authority. OTT’s FTTH network will improve service levels, and will deliver speeds of 50 Mbps symmetrical and higher.
“Alton is a very rural area of Maine and people there know high speed broadband service is needed to work remotely or grow an at-home business,” said Biddeford-Maine native and Otelco CEO Rob Souza. “Our company was formed by rural Mainers over 100 years ago when the major phone companies were uninterested in bringing telephone service to rural communities. Today’s announcement that we are investing to bring fiber optic infrastructure to Alton demonstrates our ongoing commitment to making sure rural Maine communities and businesses have the technology they need to compete and win in today’s economy.” OTT recently completed FTTH projects in Lowell, Gray, New Gloucester, Maine as well as other projects in Vermont, Alabama and Missouri. A FTTH project is currently underway in West Enfield, Maine as well.
According to Alton residents, there are many businesses, home businesses and students of various ages in the 69 premises either served or passed by the OTT project. Jason Beylerian operates Outdoorstockroom, an online camping equipment business. In an April email of support for the grant application, he noted that while use of cloud based applications is increasing, his Internet speed has not changed in 10 years, and that it greatly hinders his day-to-day business activities. At the time, his online store was just 6-months old, and Jason felt that in order to grow his business, his Internet speed must also grow. “In the six months that I have had my online camping equipment store open, I have found it hard to do essential tasks. I can get them done, but it just takes longer. Time is money, and you don’t stay in business if you’re losing money…We at Outdoorstock.com would benefit greatly by getting real world speeds piped into our home business.”
The Alton Select Board, in a letter of support of the grant, stated, “In Alton, we understand the value of accessible high speed internet for our residents and as a catalyst for economic growth.”
It is important to note that OTT will need to set 40 poles over a 9,000’ stretch of Bennoch Road in order to reach the homes. The need to set new poles represented a serious financial challenge to improving service. The ConnectME grant is helping OTT overcome that challenge. Vice President of New England Operations, Ed Tisdale, indicated that work on the project has already begun and OTT is working with the power company for approval of the proposed pole route. Tisdale anticipates that the project will be completed toward the end of the year.
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.OtelcoInc.com.
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.