Grace Cottage
Ambulances parked outside Grace Cottage Hospital. Photo by Jacki Brown

[G]race Cottage Hospital for years had the unfortunate distinction of being the state’s last hospital without access to cell service. That changed last year. But with the company that finally connected the hospital now on the brink of bankruptcy, a return to landlines looked possible.

Until AT&T’s delivery of a “Cell Site on Wheels,” or COW, which will bolster service at the hospital and in the surrounding area, according to a press release issued Monday by Gov. Phil Scott.

“Within five days of the Governor’s initial request, an AT&T COW arrived in the Grace Cottage parking lot,” the news release said. “This equipment will provide more AT&T coverage than was previously available.”

CoverageCo, the provider that connected Grace Cottage and 26 rural communities, announced last month that it was facing financial collapse. Days later, 70 of the company’s microcells had gone dark, leading to concern that the whole system would stop operating.

One of the main reasons for the financial woes for the company, which rolled out the rural cell technology in Vermont and Rwanda, is that its main revenue stream — fees from carriers after calls were made using the service — wasn’t enough to cover costs.

When the company’s struggles became public, lawmakers and the governor expressed particular concern that communities that relied on the service would soon be unable to make emergency calls on mobile phones, Grace Cottage included.

In an interview last month, Douglas DiVello, the hospital’s CEO, said he dreaded that scenario.

“That’s a very dangerous situation to be in, for anybody,” DiVello said. “Grace Cottage likes to be well known for the quality of care we provide, we don’t want to be known for being the only hospital in the state of Vermont that doesn’t have cellphone reception.”

While CoverageCo reported last week that many of its 160 microcell sites throughout Vermont are still down, the company says it has secured its network for three months, and presented a plan to the Legislature to keep its coverage alive.

The company’s interim CEO Richard Biby is lobbying the state to subsidize some $100,000 in fees for E-911 geo-location services — and help in landing a roaming agreement with AT&T, which so far is one of the few carriers that has not partnered with CoverageCo.

Biby says a roaming agreement with AT&T could bring in about $100,000 more in annual revenue and make CoverageCo financially viable.

In the governor’s news release, Public Service Commissioner June Tierney said her department will “continue to explore all reasonable options to help find an enduring and affordable solution for these communities.”

Hear more about Grace Cottage and CoverageCo in our Deeper Dig podcast:

Xander Landen is VTDigger's political reporter. He previously worked at the Keene Sentinel covering crime, courts and local government. Xander got his start in public radio, writing and producing stories...