ST. THOMAS - Senators will get another chance to discuss theterritory's broadband future Tuesday after delaying action at a V.I.Senate session last month.
At the session March 24, a bill to provide a $42.5 million localfunding requirement for $68 million in federal broadband grants wassent back to committee for further hearings.
Tuesday, the Senate Committee on Economic Development, Technologyand Agriculture will take up the matter.
Committee chairman Sen. Shawn-Michael Malone said he has invitedfederal and local government officials involved in the project,local telecommunications and Internet providers and at least one"expert" testifier.
The bill up for consideration would authorize the V.I. NextGeneration Network to float a bond for $42.5 million to satisfy theterritory's 30 percent local match for the initiative to upgrade theterritory's Internet infrastructure to a fiber-optic network. Thebond would be backed by gross receipts revenues.
The bill also amends existing law to allow the V.I. Water andPower Authority to provide $15.5 million of in-kind donations to thebroadband initiative. WAPA will provide underground and above-ground conduits for the fiber-optic lines. Once the network isoperational, WAPA will receive a share of the annual profits.
The V.I. Next Generation Network is a wholly owned subsidiary ofthe V.I. Public Finance Authority and was created to build andoperate the territory's first open-access broadband network.
The V.I. government applied for and received four grants toupgrade broadband infrastructure through the U.S. CommerceDepartment's Broadband Technology Opportunity Program of theNational Telecommunications and Information Administration. Thefunds were included in the American Recovery and Reinvestment Act.
The Virgin Islands is the only state or territory to receive allfour broadband grants. To receive the funding however, the localgovernment must put up a 30 percent match.
The project includes the construction of a core fiber-optic ringnetwork on four islands - St. Thomas, Water Island, St. John and St.Croix - that would reduce the territory's cost of connecting to theInternet and increase Internet connection speeds for consumers.
The territory's network would tap into the two sets of fiber-optic lines that cover the globe but stop just offshore of both St.Thomas and St. Croix.
One of the federal grants would be used to establish or renovatemore than 45 public computer centers throughout the territory tobring high speed Internet access to people who may not own computersor have Internet service at home.
The broadband project is referred to as the "middle mile" becausethe government will build the network and sell connections to localservice providers, which would then sell service to homes andbusinesses - the "last mile."
V.I. Next Generation Network President and CEO Julito Francis isoperating under a tight deadline. He has to use $31 million by June30 to avoid losing the federal grants.
Francis told senators on March 24 that he had to file a reportwith the federal government the next day indicating the localgovernment's commitment to putting up the matching funds.
"I had to go back to the feds and couch the response in a mannerthat would not jeopardize the project," Francis told The Daily Newslast week.
While he may have bought the territory some time, the deadlinesfor the project have not changed, and the federal government iswatching the Senate's actions closely, Francis said.
According to the grant requirements, the project must be 67percent complete by June 2012 and 100 percent complete by June 2013.
Malone said he is inviting an expert testifier, John Williams ofVirginia-based MZK Corporation Inc., to Tuesday's hearing. Malonesaid Williams is very familiar with the territory's existing terrainand technology infrastructure. He has done a number of feasibilitystudies in the territory and helped establish the Research andTechnology Park at the University of the Virgin Islands on St.Croix,Malone said.
Malone also contacted the four grant coordinators at the U.S.Commerce Department, and he said they plan to send writtentestimony. He said he asked them to clarify the various deadlinesfor the grants.
"I am definitely in support of broadband for the territory, butthe devil is in the details," Malone said. "The question is: Can wedo it for less, because we do have fiscal issues."
He said maintenance, training, access and cost are the mainissues to be addressed at the hearing.
"With the development taking place in our region, if we don'thave something that will keep us on the cutting edge, then we willhave issues in growing and maintaining a healthy economy down theroad," Malone said.
Malone expects a full day of testimony Tuesday, he said. He alsoinvited the submission of written testimony by interested partiesand asked anyone with concerns or comments to fax or email them tohis office by 5 p.m. today.
The Committee on Economic Development, Technology and Agriculturewill meet at 9:30 a.m. Tuesday on St. Thomas.
Testimony can be emailed to SenatorMalone@gmail.com or faxed to693-3642.
- Contact reporter Aldeth Lewin at 774-7882 ext. 311 or emailalewin@dailynews.vi.
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