Microcell bidders pitch blimps for rural cellphone coverage woes

[W]hen Vermont asked for “creative solutions” in an August request for proposals to expand cell coverage to rural corners of the state, at least one company came through.

The Department of Public Service revealed Thursday that one of the two bids for the $900,000 project would deploy blimps across the state to direct cell signals to hard-to-reach places.

The vendor behind that proposal, according to Clay Purvis, the director of telecoms and connectivity, has pitched “a novel solution that would involve civilian application of aerostat technology along the lines of equipment already in use by the military.”

Aerostats can range from balloons to airships. They are filled with gas that is lighter than air, allowing them to remain floating.

Purvis provided an update of the microcell bids to the Senate Finance Committee on Thursday. In a written statement, he said both bidders have a “proven track records of deploying wireless networks,” but did not name them or give details of the confidential proposals.

The second vendor proposed “operating small-cell and macro sites using a ‘real estate’ model in which carriers pay a flat fee for use of a site.”

That proposal would use newer technology and a different business model from CoverageCo, which made a failed effort to turn Vermont’s uncovered rural areas into a viable business. The state canceled its contract after CoverageCo went broke.

The CoverageCo model used $4 million in state-purchased microcell equipment — about 400 Radio Access Network devices that can be attached to utility poles or buildings — to create a 2G network in rural areas.

Companies that agreed to participate then allowed their subscribers to roam on the network and paid CoverageCo depending on how much networks were used. The business model failed largely because AT&T didn’t participate and there wasn’t enough call traffic to pay for upkeep and utility costs.

The “real estate” model now being considered by the DPS would instead have companies pay a flat fee up front to use the rural networks.

Purvis wrote that neither bidder proposed reviving the CoverageCo model. “This is a strong indication that the private market alone does not see microcells as a viable means of serving rural and sparsely populated area,” he said.

The department is still reviewing the proposals, Purvis wrote, adding that “questions concerning the viability of each of the two vendor’s business model remain.”

“The Department is intent on ensuring that this funding is used responsibly and is not misspent on another failed wireless broadband project,” he wrote.

Meanwhile, large swaths of the state are without any cell coverage at all. Purvis wrote that the DPS is also looking into the possibility of loaning municipalities the old microcell equipment to use on the cheap, or perhaps free of charge.

Without more state funding, however, that would likely saddle local governments with the same upkeep costs that helped sink CoverageCo.

Lawmakers had little to say Friday on the proposals, given that they have only seen rough outlines of what is on the table.

What was the initial reaction in Senate Finance Thursday?

“It was bemused suspicion, I guess,” said committee member Sen. Chris Pearson, P/D-Chittenden.

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