Criticism targets state IEN plan
COEUR d'ALENE - Several Idaho Internet providers, including one from Coeur d'Alene, contend that the state's plan to create a statewide broadband network linking schools, universities and communities is going to end up costing Idaho taxpayers millions of dollars more than it should.
Mike Kennedy, a Coeur d'Alene City Council member and president of Intermax Networks, was among the local providers who spoke to lawmakers in Boise last week regarding Qwest Communications Corp.'s $50 million contract with the state to build the Idaho Education Network.
"Our contentions come down to two things: cost and duplication of services," Kennedy said.
Kennedy, along with representatives from First Step, a Moscow Internet provider, and Microserv, out of Idaho Falls, asked legislators to delay spending the next $3 million installment planned for the phased project, claiming they are already providing these services to institutions at a significantly lower cost.
The installment money comes from a grant from the private J.A. and Kathryn Albertson Foundation, but directing it toward the IEN must be approved by the state's Joint Finance-Appropriations Committee.
The IEN is funded through the Idaho Department of Administration's budget.
Once the grant money and stimulus dollars are gone, the cost will come from the state's general fund, Kennedy said.
Estimates created by First Step in Moscow show the local ISP could provide services for three years to nine high schools in North Central Idaho for $233,280. The company estimates the cost to the state as planned through the IEN will be $869,407.
Kennedy said if the state steps back and revisits the issues, it won't have a negative impact on Idaho school children but rather, extend the life of the funds that are available.
"This is a good project. The Idaho Education Network makes sense for kids all over the state," Kennedy said. "For the taxpayer, we believe this is a better deal."
Tom Luna, Idaho's superintendent of instruction, said the IEN gives schools experiencing unprecedented budget cuts a way to provide programs that meet the needs of all students.
"Any delay in spending authority for the IEN would put a halt to this program and limit the opportunities available to students across our state," Luna said.
Garry Lough, communications director for the IEN, defended the state's plan and the award of the contract last year to Qwest.
"After having these prices out there publicly, it's easy for people to come forward and say they can do it for less money," Lough said.
The local ISPs didn't participate in the bid process, he said.
Another hitch in the budget-setting process comes from Syringa Networks, a consortium of rural telecommunications providers who are suing the state over award of the contract to Qwest over Syringa's lower bid.
Lawmakers decided to hold off on setting the Department of Administration's budget so the two sides of the lawsuit can go through mediation.
Intermax, First Serv and Microserv are not part of the lawsuit.
Kennedy said local ISPs assumed they would be part of the final project, that Qwest would provide the broadband backbone, and the smaller ISPs would be able to provide the "on-ramps and off-ramps" for the school districts.
Had they realized they would be excluded from the final project, Kennedy said they could have banded together and submitted a competitive proposal.
The state's plan could also reduce Internet accessibility for residents in rural areas, Kennedy said, because the ISPs will no longer have larger customers like schools to help pay for the smaller ISP's infrastructures in those areas.