Red Deer County is spending $5 million to improve rural broadband this year.
Valo Networks, the county’s partner in the rural fibre optic venture, says the financial commitment will allow nearly 1,900 county residents to get hooked up to high-speed Internet service. At a contracting-signing event with Valo in 2020, it was said the network would cost about $20 million.
On Tuesday, county council gave administration the green light to explore an opportunity with EQUS Connect, which would work with municipalities investing in broadband to pool their resources, improving economies of scale and increasing the customer market base and revenue opportunities.
“Currently, many municipalities struggle with the high cost of fibre and operating as an “island” within a greater regional scope,” says a report from the county’s IT manager Darren Young. “This partnership could resolve some of these challenges.”
The EQUS partnership would allow the county to divest itself of the administration and operation of the broadband network, reducing the county’s financial and legal risks without losing municipal control.
“We have been told loud and clear by our residents (about) the importance of the Internet,” said Mayor Jim Wood.
The county embarked on its broadband initiative because no others were stepping up to provide the service and the municipality follow through with the project.
“I think we have a great opportunity,” said Wood. “Nothing ventured, nothing gained — ever.”
Coun. Connie Huelsman said similar partnerships created the gas co-ops that have proven successful. “I think it’s a great thing to explore this.”
Coun. Christine Moore, who voted against approving spending the $5 million, expressed concern about spending millions without a business plan from EQUS.
“I want to be clear I totally support rural broadband and the desperate need we have for it,” said Moore, saying her concerns lie with spending the money without more information from EQUS on its plans.
“It’s the order of things,” she said.
County corporate services director Heather Surkan EQUS’s financial modelling and business plan will be part of the negotiations.
Red Deer County has invested $13 million so far in the project. Delburne is taking part and the county is negotiating with a number of other communities considering contributing.
So far, 180 kilometres of fibre optic cable has been installed and four towers built south of Delburne, at Horn Hill, Spruce View and Blindman Industrial Park along with four connectivity hubs. Connections have also been made with Edmonton and Calgary Internet Gateways.
Nearly 260 customers are now hooked up to the network.
This story was updated on Feb. 10, 2022 with some additional details.