A few corrections. On Tuesday and Wednesday, in Parts Four and Five of this editorial series, I wrote about the Delta-Montrose Electric Association (DMEA) and its broadband subsidiary, Elevate Fiber.
I got a call from DMEA’s COO Virginia Harman, suggesting that I correct a few inaccuracies in those articles.
To begin with, I had credited an Elevate marketing image to Portland-based Pivot Group, but was told that, in fact, the design work came from DMEA’s in-house marketing team. I’d also mistakenly reported — based on online research — a business conflict between CenturyLink and DMEA regarding broadband installations in Ridgway, CO … when in fact the conflict did not involve Elevate Fiber. (Further research suggests the conflict actually involved CenturyLink and Telluride-based Clearnetworx.)
My article had also quoted the CEO of La Plata Electric Association, Mike Dreyspring, suggesting that DMEA had taken financial risks in starting their broadband service, and implying that Elevate had been, essentially, rescued by Montrose-based Region 10 League for Economic Assistance and Planning.
According to Ms. Harman:
While we recognize that some companies have failed due to financial struggles, this is not true of DMEA and Elevate. We understood the enormity of building a new utility from the ground up, and the financial and human capital investment needed. Therefore we protected our financial position from the onset of Elevate.
When we launched Elevate, we established a process for determining where to build. We carefully evaluated and determined a take rate for each area of our build. These take rates are the number of members who must pre-subscribe for our internet service before we will build in their area. This process ensures the financial stability and long-term success of Elevate…
While we appreciate our partnership with Region 10, it is wholly inaccurate to state that they ‘saved DMEA from financial difficulties.’ We provided in-kind support for Region 10’s grant application in 2015. In exchange for our support, Region 10 provided us with funding to assist with easement perfection. The impact of this financial support from Region 10 to Elevate, while greatly appreciated, has amounted to less than 1% of our project cost.
It sometimes takes a village to bring essential infrastructure to a community, when the national telecom companies are reluctant to participate. And even when the big dogs are involved — as we see in Pagosa Springs, where CenturyLink and USA Communications continue to be players in the broadband game — it’s sometimes the small dog that comes out on top.
That kind of outcome might be on the horizon, here in Archuleta County. At its Tuesday, January 8 meeting, the Pagosa Springs Town Council approved a letter of support for a Department of Regulatory Agencies (DORA) grant application scheduled to be submitted next week by the smallest of Pagosa’s three local ISP providers: Skywerx Internet Services.
Although the grant comes from the state Broadband Fund, only an established ISP is eligible to receive the grant. The Town and County governments have agreed, however, to provide matching funds for the grant. The completed infrastructure will belong to Skywerx.
From the Town letter:
Dear Grant Committee Members,
The Town of Pagosa Springs Town Council provides this letter of support for Skywerx Industries, LLC’s grant application for funds from the Colorado High Cost Fund (HCF). Skywerx has been an integral part of improving broadband service in Archuleta County through fiber and fixed based technology for 15 years.
Archuleta County is a picturesque community surrounded by forested mountains and open space creating a beautiful yet topographically challenged county. Many of the areas outside of the main Highway 160 corridor have limited fiber access due to distance, bedrock, the high cost of trenching, and the beautiful trees and mountains that make up our rural areas. It is cost prohibitive for providers such as CenturyLink to access these more remote yet populated areas. Utilizing Skywerx’s fixed based wireless technology for these harder-to-reach project areas, we believe we can finally connect some of the more remote regions of our county…
Skywerx Industries, LLC was Pagosa Springs’ second recognized Colorado Company to Watch and they have been making huge strides ‘lighting up’ difficult internet connected communities, primarily in Colorado. We would like to see their efforts continue as they connect remote Pagosa Springs and Archuleta County areas through this grant project proposal.
The Town Council would appreciate your support for Skywerx’s application for High Cost Fund grant monies for this critical community project.
Respectfully,
Don Volger, Mayor
There’s more than one way to deliver internet services. Once upon a time, here in Pagosa Springs, you needed a phone line and a dial-up modem, and a lot of patience. More recently, fiber optic cable has been the delivery method du jour for speeds faster than 10 Mbps. But Skywerx, over the past 15 years, has been serving up ever-faster internet speeds using microwave towers and technology similar to cell-phone delivery.
I understand the Broadband Fund grant — if awarded — will help fund six new Skywerx towers in various locations around Archuleta County, with the potential to improve service to maybe 1,000 households.
The underlying philosophy? “Build it and they will come.” But will those 1,000 households actually sign up for Skywerx service, if it becomes available? That seems to be an insignificant detail, at the moment, to the people promoting broadband in Archuleta County.
But it’s been an essential part of the expansion plans in, for example, the DMEA service area.
From DMEA’s Virginia Harman:
When we launched Elevate, we established a process for determining where to build. We carefully evaluated and determined a take rate for each area of our build. These take rates are the number of members who must pre-subscribe for our internet service before we will build in their area. This process ensures the financial stability and long-term success of Elevate.
I recommend visiting join.elevatefiber.com to see this in action. You will see that we have a list of zones, each with a pre-registration goal. As our members pre-register for service, their name is added to the list and their zone gets closer to being built.
In short, we build based upon member interest. We have used this method from the start and it has ensured we do not over-capitalize or make poor financial decisions.
I, too, recommend that you visit join.elevatefiber.com to see this process in action.
I likewise recommend our Town and County government officials visit the DMEA website, and see how things ought to be done.