Rural Connectivity - Urgent: Do Not Release T-Mobile from Broadband Contract Obligations in Southern Orange County

[Lewis Stanford]

Dear Board Members, both collectively and individually, 

Dear Members of the Orange County Board of Commissioners,

I am writing to express my deep concern and strong opposition to any proposal that would allow T-Mobile (the successor to LUMOS) to be released from its binding obligation to deliver fiber-optic broadband to rural parts of Orange County—particularly southern Orange County.

This is not just a technical or logistical matter. It is a question of basic fairness, infrastructure equity, and the integrity of public commitments made to those who have, for too long, been underserved.

1.      Southern Orange County Was Always the Intended Priority
It is outrageous that LUMOS was permitted to begin fiber buildout in the most densely populated and affluent areas of our county—areas that already enjoyed high-speed cable internet, often in excess of 100 Mbps, including the northern subdivisions of the Town of Hillsborough. Meanwhile, the real rural residents, those that private providers find unprofitable—those most in need of the support—were pushed to the end of the line. This alone undermines the spirit and letter of the funding sources intended for underserved areas. But to now consider abandoning the project before these rural areas are completed would compound that injustice.

2.      Rural Electrification.  We’ve been here before, as we all know, Franklin D. Roosevelt stepped in in 1936 for the exact same issue in the form of the Rural Electrification ACT (REA). It didn’t beg or force the local utilities to provide power.  Instead, it provided funds to local communities to get the job down themselves.  This worked in 1936. What excuse do we have for failing in 2025?

3.      This Project Was Publicly Funded for Our Benefit
Let me remind the Board: these broadband improvements were not funded solely by corporate goodwill. They were made possible by federal dollars from the Infrastructure Investment and Jobs Act—a once-in-a-generation opportunity to close the digital divide—and specifically, $10 million allocated to Orange County for this purpose.

These funds were designated to help communities like ours, where driveways are long, houses are spaced far apart, and private providers have no financial incentive to serve. If this contract is abandoned, it will leave residents with no viable path to modern internet access—and millions of dollars of public investment stranded.

4.      The Cost of Inaction is Too High
In the absence of this buildout, rural residents are left with pitifully slow DSL service—often averaging 1.5–3 Mbps—or expensive and unreliable satellite alternatives. In 2024, that level of service is unacceptable. Internet access is no longer a luxury—it is as critical as electricity or running water. President Biden and countless state leaders have said as much, and the realities of remote education, telehealth, and farm operations demand it.

5.      T-Mobile’s Financial Capacity is Not in Doubt
T-Mobile, which now owns LUMOS, reported $11.34 billion in net profit last year alone. Its stock has appreciated more than 24% over the past year. The argument that this contract is too costly or inconvenient for them does not hold water. If they are permitted to walk away from a taxpayer-backed deal simply because the profit margins aren’t high enough, what message does that send about our public planning process?

6.      What Must Be Done
I urge the Board to take the following actions:

- Enforce the contract with T-Mobile to the full extent of the law. If necessary, pursue litigation. Yes, I understand Orange County is conflict-averse, but in this case, failing to act would amount to abandoning your constituents.
- If legal enforcement is not pursued, then the County must immediately set aside funds to complete the rural fiber buildout using other means, whether via public infrastructure investment or another qualified provider.

It is my understanding that this project was supposed to be complete by Spring 2024. Southern Orange County residents have waited long enough. We deserve better—and the County must honor its obligation to us.

Lewis Stanford

R. Lewis Stanford

8010 Gold Mine Road

Chapel Hill, NC 27516

Business Attorney - Retired

Phone: 919 260-7985

Email: lewis.g...@gmail.com

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[Lewis Stanford]

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[Jamezetta Bedford]

Mr. Stanford,

On behalf of the Board, thank you for sharing your comments and concerns regarding internet access and the proposed amendment to the grant contract with Lumos. The Board will consider an amendment tonight during our meeting at 7 pm at Southern Human Services on Homestead Road. Here's the link to the agenda:  http://server3.co.orange.nc.us:8088/WebLink/Browse.aspx?dbid=0&startid=76599&row=1&cr=1   

Total contract:  $40 Million - $30 M investment by Northstate/Lumos and $10M from Orange County ARPA federal funds.

  OC would pay Lumos $1M to start, $3M more after 3,000 passes completed and the remaining $6M after the total 6,370 passes are completed.

Only unserved or underserved houses could be covered legally using these ARPA funds. Many have inadequate internet, but still do not qualify under these terms for ARPA funded coverage. Other providers sat with staff and went through the addresses one by one on this issue. 

In 2024 difficulties slowed progress and this summer Lumos reported that they have spent over $20M more than agreed upon ($50M+) and need to reduce the number served. To-date, 5,187 passes completed (81.4%) and $4M ARPA funds paid to Lumos. 

The contract is not in breach yet. The remedy if the 6,370 passes are not done is that Lumos does not get paid the remaining $6M. That's how an incentives/grant type contract works. 

And, the ARPA rules mean the only other use would be for very similar fiber installation, but 1) there is no time for a different rfp; 2) there is no other government doing this type of project for OC to transfer the funds so 3) if unused, the funds revert to the federal government. 

The final deadline is 12/31/26 to fully expend the remaining $6M. 

The amendment proposes that another 665 passes be constructed, a reduction of 518.  The revised payout schedule is: 

199 new passes and OC pays $2.6M (recognizing the large increase from 3,000 to 5,187 completed since the last payment).

111 more new passes and OC pays $1.3M.

final 355 new passes and OC pays $1.3M.

That sums to 665 new passes and $5.2M.  The total achieved would be 92% of the original goal and 92% of the $10M would be paid out. $800,000 would revert to the federal government.  If they can do more passes then more $ could be paid out.

Yes, there are risks that from 1 to 665 passes will not be completed. There is also no other remedy. 

The county will continue to apply for new programs like BEAD and others. The 518 addresses now cut and those that were in the "doughnut" areas are certainly disappointed and many are angry. I've attached a list of the 665 addresses to be covered in the amendment. 

Sincerely,

Jamezetta Bedford, Chair

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From: Lewis Stanford <lewis.g...@gmail.com>
Sent: Thursday, September 11, 2025 3:25 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Rural Connectivity - Urgent: Do Not Release T-Mobile from Broadband Contract Obligations in Southern Orange County

 

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