vi gets 59 million for fiber optic network

Sounds like a lot of money but it won't go far enough.

The groups looking to purchase Innovative out of bankruptcy estimated that it would take $125 million spent over the first two years just to bring Innovative's technology current and even more to bring it up to state of the art.

This is one of many reasons that no one was willing to pay a lot of cash to purchase Innovative's properties.

Jim

Hmmm...OK. I suspect by the time we can get fiber running to our houses here the rest of the world will be using quantum networks and transporters...

It will go straight into the general fund and used to pay salaries.

I am surprised that they are not requiring a third party fiduciary to monitor the funds.

I can't speak to this grant individually,but federal $$ appropriated for specific projects are audited several times during the draw-down process. Money can be reclaimed by the feds if not spent in accordance with the grant specs.

Here are the results of one such audit

http://demmansay.com/files/2010_Abandoned_Vehicle_Task_Force.pdf

"The St. Thomas Task Force failed to implement internal control procedures to ensure that established Government rules and regulations were followed and the financial integrity of the program protected.

LEPC officials failed to meet their fiduciary responsibilities by allowing St. Thomas Task Force officials to: (i) manage the Federal funds outside of the Government’s accounting system established by Finance; and, (ii) continually submit incomplete financial reports while receiving additional funding.

Finance officials failed to meet their fiduciary responsibility by allowing St. Thomas Task Force officials to manage its miscellaneous appropriations outside of the Government’s accounting system without ensuring that required controls were established to safeguard those funds.

The Government may have to reimburse at least $344,664 in Federal funds.

A fraud scheme was perpetrated costing the Government $1,903,684."

That's what I mean, the Feds don't fool around, they take their money back. And, if they decide it's not just stupidity but fraud, they can file federal criminal charges.

If someone has to actually distinguish Legally between stupidity and fraud here in the VI -- where would they start ?? and what would be the 1st question ?? -- and I Sincerely wonder if the Federal Hooligans are any different than the locals??

"...Sincerely wonder if the Federal Hooligans are any different than the locals??"

AMEN.

sloop

I can hear the local government people just licking their chops at this. It will never happen, not in my life time. And if it starts the the money will just go away.

billd

so much optimism

So much realism.

touche' it's half full for me

touche' it's half full for me

Half full/half empty only works when the volume is somewhere near half. It's a completely different animal when someone sees a nearly full glass as being half empty. Ditto if a nearly empty glass is seen as half full.

This is something I actually know a little about.
I am cautiously optimistic.
Jim Dandy, they aren't trying to reach all areas Innovative covers, just build out the middle-mile.

If you look at Innovative's route maps the fiber middle miles are already in place on both islands. While you can take fiber deeper into the system to the node it won't make much difference as most customers are stuck with deteriorated copper pairs. Since Innovative is subsidized as a phone company there is no economic incentive for them to use the coaxial plant of their CATV operation to deliver data services.

We are going to get our HSD using Wi-Fi or Wimax. (BBVI or Choice)

Jim

Does anyone have any background on how Innovative was allowed to gain control over both Cable and Phone? This was a huge mistake.

The whole concept of subsidizing phone lines should really be done away with in the era of cell service. It makes no sense anymore.

If Innovative wasn't getting big subsidies for every landline subscriber they would've kept up their cable network to deliver high speed internet to the home. As it stands now though you are correct Jim in that they do not want to do that as the whole reason they use DSL as it forces you to get a subsidized landline.

BUT the jig is almost up as DSL can't scale past 2mbps and that is going to be considered very paltry in the very near future. With less and less people needing landlines, a DSL product that cannot deliver competitive speeds (no longer forcing people to keep a landline), and a crumbling Cable infrastructure that cannot deliver services from 5 years ago (HD) nevermind today (high speed internet) the future for Innovative is incredibly dim.

Maybe the NRTC can sell this thing to Verizon, Comcast or some other well capitalized company so they can invest in the infrastructure the way that crook Prosser was supposed to be doing with the money he stole from them.

Sean

Don't forget that Innovative's owners also owned a newspaper (Daily News ), offered cell service, owned a bank as well as Channel 2.

Innovative has very little to sell anymore that is of any real value. Stateside, where local governments are not as obstructionist as in the VI, an over builder would come in and build a fiber to the home outside plant. It would not cost any more than replacing Innovative's twisted pair and coaxial networks. A new all fiber plant could be run with 150 employees and not all of them would not need to be in the Virgin Islands. A modern single network fiber plant also would need less electricity to operate.

The VI Government is never going to let this happen as they want to protect the 495 jobs at Innovative many of which are unionized.

The prospects for Innovative are bleak as cell phones replace land lines (which doubly hurts Innovative as they have let their cell phone customers dwindle from 11,000 to 1,000 by not investing in new technology ) satellite providers offer much more for less than Innovative is charging and wireless internet providers take HSD customers. At best Innovative had 30 - 40% of the HSD market and if Choice's new offering delivers as advertised then Innovative is going to have to cut prices to hold its share and more importantly lock people into land lines so they can collect their government subsidies. Fewer landlines means fewer customers to sell LD to at $0.07 per minute.

VOIP providers will also take a slice out of Innovative particularly now that both Choice and Vonage are actively marketing this service to the VI.

Jim