Colorado Recommends Some Expensive Projects

States have to make some tough decisions. The top recommended project on the Colorado governor’s list (h/t Baller Herbst Law Firm’s stimulus resources), the Colorado Community Anchor Broadband Consortium (CCABC) asks for $175 million in grants and also $175 million in loans. That’s a lot, even if it connects every educational institution and public library in the state.

It will be a tough decision for the federal government, which may not have $350 million for Colorado and may have to fund only part of the project.

The next project on the list, Brainstorm Internet, was one of the best-written applications I saw. It uses DragonWave for backhaul and Redline’s WiMAX equipment and promises to reach a large number of businesses and residences, relative to cost. It looks like a very solid project, exactly what the stimulus was designed for, and asks for only about $6 million, half grant and half loans.

The Viaero Cellular project for Northeast Colorado looks to me like the kind of project the stimulus should not fund. The cellco already has the land plots for the towers, and might, I think, serve this area anyway. It’s asking for $154 million, which is a lot. The company promises to deliver a transparently-managed and open network, but I’m not certain that would be possible.

In contrast to the network applications, some of which seem too expensive, the public computer center applications are generally around one million dollars per project and would deliver clear and measurable value — and would not happen without stimulus funds. Even Denver’s public library is asking for barely more than $250,000.

Educating people on the advantages that broadband can provide them is a valuable task but it will be very difficult to measure. The state has its own project, and I assume that will be funded. Two other projects aim to improve the use of IT in healthcare — a valuable effort but one whose results will also be difficult to measure.

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