North Florida Broadband Authority: Mainstreet Broadband, NFBA's touted business partner, goes bust
Posted August 2, 2012 10:45 am | Part XXI
Wireless broadband represented by a plug. NFBA in the
soup again.
Lake City, FL – The secretive and seriously behind schedule North Florida Broadband Authority met yesterday morning in Lake City to award a 12th hour hastily rearranged bid for its Network Operator, an illegal bid that only days before included its touted partner and RUS Loan recipient, Mainstreet Broadband. Since May 9th, when the NFBA rolled out Mainstreet as its last mile provider of choice, Mainstreet was being heralded as the prime "commercial partner" that in the NFBA's words, was going to "expand high speed internet service to rural north central Florida." Yesterday, as the NFBA meeting drew to a close, Mainstreet Broadband announced on its website that it "ceased operations." Not one word was mentioned to the NFBA's Board of Directors by the NFBA management.
The story began three years ago
Mike Mies proclaims the benefits of the NFBA/Mainstreet
May marriage.
The Mainstreet/NFBA story really began when the newly formed NFBA received the Obama Stimulus Grant at the end of 2009. The NFBA territory was concurrent with much of the territory covered by the RUS loan to bring internet service to underserved rural communities that Mainstreet received from the Department of Agriculture.
One insider, with the condition of anonymity, told the Observer that Mainstreet was in a panic when the NFBA received the Federal Grant. "Mainstreet was trying to sign up assets [tower space] as quickly as possible. They were afraid that the NFBA was going to come in and get the assets before Mainstreet could."
With wireless broadband, if one doesn't have a tower or similar high structure on which to install their transmitters, they can't reach potential customers.
"This is what turns this around."
On May 9, 2012, the NFBA announced to much fanfare that the NFBA and Mainstreet became commercial partners. The NFBA's inexperienced general manager, Richelle Sucara, announced to the NFBA Board of Directors, "This was a comprehensive effort. This is what turns this around for the organization."
At the May 9th NFBA meeting, the NFEDP/FSU's Jeff Hendry announced about the Mainstreet/NFBA partnership, "They've been in the fox hole with us from the beginning. I'm glad to see that they're here and strong." Mr. Hendry explained that the NFBA's job was to build other relationships with last mile providers like Mainstreet. In three years and until yesterday, they had signed up none other than Mainstreet. Yesterday, two last mile providers came on board, one of which was from out of state.
NFBA Project Manager, Donny Lort, proclaims the benefits
of the Mainstreet/NFBA marriage to the NFBA Board during
the May announcement.
The NFBA's unvetted Project Manager, Donny Lort, told the NFBA Board about the new relationship with Mainstreet, "Smile – This is an exciting time. This is huge."
Mainstreet's founder and CEO Mike Miese told the NFBA, "We're smiling... Our ultimate objective is getting customers on the network."
Mr. Mies then told the NFBA, "We're happy to be the internet service provider to the NFBA. We are powering their office."
Mr. Mies continued, "Like you, we are funded by the Federal Government. We have a $34 million loan. You have a grant. It's great to see these federal programs working together... We are already providing service in ten of the NFBA counties... We need these in kind assets... We are a for profit company... Any help that you can provide would be greatly appreciated."
During yesterday's, Aug. 1 NFBA meeting, GM Sucara
mentioned not a word about Mainstreet or its demise.
Recently, in a network redesign kept secret by both the NFBA and folks at the NTIA, the federal agency in charge of the NFBA grant, no one would say why the NFBA needed to run fiber to Jacksonville and then to Orlando, one of the two main communication hubs of the NFBA network. This, along with other proposed fiber installations added another $4.5 million dollars to the NFBA project. It is not clear from which pocket of the American People that funding was coming.
A careful examination of the audio of the May 9th meeting revealed that the now defunct Mainstreet had a plan, which was being helped along by their partner, the NFBA and the Federal Government.
Mr. Mies told the NFBA, "All the traffic that we are handing off to other providers, we would prefer to be taking that back to our POP in Jacksonville." A POP is a main distribution hub. This is where Mainstreet hooked up to the internet. This hookup would have allowed Mainstreet to bypass purchasing internet service from the NFBA and would have enabled them to sell their own internet service at cost savings/profit potential to Mainstreet. This scheme would have also reduced the income to the NFBA.
With the demise of Mainstreet, it is not clear if the Feds will allow the NFBA purchase of $4.5 million of fiber to continue.
The NFBA train wreck continues
Once again, the North Florida Broadband Authority finds itself in a big mess. It is now at least a year behind schedule and has only a handful of customers on the network. The recent bid for network operator was bogus, suspect and protested, and now its main business partner, Mainstreet Broadband has gone out of business.
It is clear that the top brass of the NFBA and a few select others had to know this was in the wind, as there was not one smiling face among any of the NFBA insiders at yesterday's tension filled meeting, making it clear why NFBA insider, Lake City Manager, Wendell Johnson, tried to pick a fight with your reporter after the meeting concluded and the Board Clerk went hysterical.
Yesterday afternoon, the NFBA, along with Mainstreet's other customers in Florida and Georgia, were most likely looking for another internet service provider. They were getting no help from Mainstreet's website.