Monday, April 14, 2014

Grand Experiment Falling Apart

The grand experiment of new companies getting into the broadband space via government money is coming to a close I think. In Florida, we had some middle mile winners escape to South America with the money - and no network build. Now in Illinois, Cincinnati-based Gigabit Squared is being asked to account for its $2 million loan.

"Gigabit Squared is turning into a saga that’s perhaps more aptly titled Gigabit Screwed. In the latest chapter, the president and co-founder of the company, Mark Ansboury, confirmed that’s he’s parting ways with the Cincinnati, Ohio-based broadband Internet provider." [Geekwire report]

Engadget has details on Gigabit Squared's project in Seattle that is dead in the water with GSQ owing the city about $52K. Seattle itself wrote an update on the FTTH project that GSQ was working on here. These 2 failures are from 2014.

Gigabit Squared had secured funding of $200 million from private placement from businesses and then added money from municipalities. GSQ chose 6 cities in 2012. And then much like Google Fiber, a lot of noise but no actual network.

Gigabit Squared is a digital economic development corporation specializing in the planning, implementation and roll-out of IT-enabled infrastructure. <-- awesome marketing; good PR; and like many CLECs, an awesome ability to get funding - followed by poor execution.

BTW, AT&T is going Gigabit in NC in 6 cities in the Triangle and Triad.

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