The Shadow
Waynesboro-based Ntelos says legislation being considered by the Virginia General Assembly could jeopardize its plans to expand broadband infrastructure throughout Alleghany County.
A bill (HB387) introduced by Del. William Janis, R-Glen Allen, would cost Ntelos approximately $16 million per year in revenues it collects from long-distance carries that utilize its network to complete calls.
The bill, now before the House Committee on Commerce and Labor, would reduce the rates long-distance companies pay Ntelos and other local phone companies for outgoing and incoming calls on the local companies’ networks.
Ntelos argues that issues cited in Janis’ legislation should be handled by the State Corporation Commission, which handles utilities.
Ntelos says that if Janis’ legislation passes, it will be forced to lay off employees, cut its capital improvement plans and reject an $8 million federal stimulus grant it received last month to expand its broadband capabilities in Alleghany County.
The stimulus grant requires an $8 million match from Ntelos, which wants to establish a broadband fiber-optic network to homes and businesses throughout Alleghany County.
The broadband project would reach approximately 4,000 homes in Alleghany County, 230 businesses, schools, libraries, fire and rescue facilities and Dabney S. Lancaster Community College, according to Ntelos officials.
Ntelos is attempting to drum up opposition to Janis’ legislation on the local level. Friday, Covington City Council sent a letter to the House Commerce and Labor Committee, stating its objections to Janis’ legislation.
The letter, signed by all five members of city council says: “Covington City Council has learned at we may lose our $8 million federal stimulus grant to build a fiber-optic broadband network in Covington and Alleghany County. If true, this is catastrophic news that will damage the Alleghany Highlands’ ability to compete in the 21st century.
“The Alleghany Highlands has lost 2,600 jobs due to business and plant closures. The only way that we can stay competitive in the world market is through fiber-optic broadband. The jobs of today and the future rely on this technology.
“There is a domino effect if we lose our ability to compete. The Alleghany Highlands loses our brightest and best citizens, who have to leave the area for employment. Businesses and industries will look elsewhere to find localities that are wired with the latest technology. Our schools, community college, and governments will lose their competitive edge to learn and compete in the 21st century.
“This $8 million project is likely our only chance to build a fiber-optic broadband infrastructure for business, industry, education and government in one of the most rural parts of Virginia. Please don’t deny us this opportunity.”
Ntelos officials say that in addition to permanent jobs broadband could help bring to the Highlands, 40 jobs would created during implementation.
