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| Empire State Development Working on Solutions After Mohawk Networks Pulls Out of Lewis County Broadband Project April 19, 2019 04:45 p.m. By: Nick Altmire |
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Office is working on a solution to ensure the continuance of a $7.9 million broadband project build out in Lewis County, with Mohawk Networks pulling out of the project after the company expressed feasibility concerns to ESD officials. Mohawk Networks was awarded a $6.4 million project grant from ESD in March of 2017, during the Phase II process of Governor Andrew Cuomo's Broadband for All program. The grant was awarded after Mohawk Networks submitted the lowest project bid ($7.9 million) with the lowest subsidy amount requested ($6.4 million) to complete the project for the Lewis County region. The project was supposed to provide 3,600 homes in the region with high speed internet access, with about 3,000 of the homes located in Lewis County and the remainder in neighboring sections of Jefferson, St. Lawrence and Oneida counties. At the time of the grant announcement, Mohawk Networks announced service plans for the Lake Bonaparte and Chase Lake areas by May of 2017, followed by service to Copenhagen, Croghan, Montague and Turin by the end 2017 and additional locations in 2018. None of these areas have been serviced by the company at this time. The company currently provides service to approximately 126 locations in Lewis County, mainly through their first phase development in the Lowville area using the county's existing communications tower at the Public Safety Building on Stowe Street. Mohawk Networks will continue to serve these existing customers. In March of this year Mohawk officials met with Lewis County officials to inform them of their intentions to pull out of the project, citing the financial burden and feasibility of completing the towers and infrastructure necessary for the project. In a document provided to county officials at that time, the company said the cost estimates for the project had increased to around $24 million, due in part to increased steel costs and the cost and time associated with acquiring tower sites. “Due to changing construction costs, it became apparent this project was not feasible through no fault of New York State," Allyson Doctor, General Manager of Mohawk Networks said in a statement to linkinglewiscounty.com today. "Both parties worked diligently to make the project viable and the State went above and beyond to make this project a reality. The projected cost of the build, versus the actual cost to complete construction nearly doubled, and Mohawk Networks had to make an extremely difficult decision, based on our own financial stability. ESD has been a fantastic partner - remaining steadfast to the commitment to close the digital divide in New York State." Officials at ESD say they are currently working to find providers to cover the rest of the project buildout in Lewis County. A statement today from ESD's Broadband Program Office to linkinglewiscounty.com reads: "We are disappointed that Mohawk Networks recently informed us of its decision to cancel its broadband build out projects. The Broadband Program Office (BPO) spent more than two years working with the company and provided it with unprecedented support and flexibility to allow it to be successful. To date, the State has not disbursed any funds in connection with Mohawk’s projects, and the BPO is actively speaking with alternative providers about covering any unserved areas as soon as possible." Although the Broadband for All program is a State project, with oversight and adminstration provided at that level, Lewis County officials have been kept in the loop throughout the project phases, while providing Mohawk Networks with local support throughout the process. "Lewis County remains committed to expanding broadband access in the county," Lewis County Manager Ryan Piche told linkinglewiscounty.com. "It's important to both residents and economic growth in the county and we will continue the process in partnership with the State in one form or another." Mohawk Networks, LLC is owned by the Saint Regis Mohawk Tribe’s Tewathahonni Corporation and managed by a seven-person Board that includes members of Tribal Council and the community of Akwesasne. It’s subsidiary, North Country Broadband, Inc., is working to serve customers in the North Country through their Wireless Broadband. We'll update this story as more information becomes available. |
