Colorado law to hold large internet companies accountable

Monday, Aug. 20, 2018 1:51 PM
A recently enacted law will require large telecom companies to provide internet services of equal speed and price if they take over state grants from smaller companies.

A recently enacted state law could help ensure faster internet service reaches customers when companies apply for state grants to fund infrastructure.

The Colorado Legislature set aside $115 million to support rural broadband development from 2019 until 2023, and House Bill 18-1099 was written to hold large companies that receive the grants more accountable.

The bill went into effect last week and was inspired by CenturyLink’s failure to meet the expectations of residents in Ridgway, said Rep. Barbara McLachlan, D-Durango, who sponsored the bill.

Last year, a state grant was awarded to a small company to bring fiber-optic internet service to the town, according Colorado Counties Inc. But CenturyLink was able to legally take the grant under a state law that gives large companies providing internet in rural areas the right of first refusal on grants from the state’s broadband deployment fund.

The smaller company, Clearnetworx, proposed building fiber to homes and businesses in the core of Ridgway and providing wireless internet to outlying areas, said Jordan Beezley, broadband deployment director.


CenturyLink installed fiber in Ridgway, but not to homes and businesses, said Francie Dudrey, a spokeswoman for CenturyLink.

CenturyLink is providing faster or comparable download speeds to more customers when compared to the service Clearnetworx proposed, Beezley said. However, some homes and businesses are receiving slower upload speeds, he said.

Under the new law, if a large existing company takes a grant under right of first refusal it must provide internet services at the speed and price the smaller company promised.

“It adds that little level of competition between a smaller company and CenturyLink,” McLachlan said.

In 2017, the state’s broadband fund awarded two grants to smaller Southwest Colorado companies.

ForeThought received $268,500 to improve service at Cascade Village, and AlignTec received $592,729 to improve service to an area northeast of Bayfield, according to the Department of Regulatory Agencies.

Other areas in the region, such as the Lightner Creek area, could benefit from additional infrastructure, said Miriam Gillow-Wiles, the executive director of the Southwest Colorado Council of Governments.

The state has budgeted $18.7 million for rural broadband grants in 2019, and it has set aside more that $20 million each year until 2023.

mshinn@durangoherald.comThis story has been updated to correct and clarify the internet service that CenturyLink is providing to Ridgway.