Re: Comment on the recent LUMOS/T-Mobile exchanges.

[Jamezetta Bedford]

Tony,

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. 

I don't know about Durham. I don't think they were using ARPA $. 

Sincerely,

Jamezetta Bedford, Chair

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From: tony...@nc.rr.com <tony...@nc.rr.com>
Sent: Monday, September 15, 2025 5:47 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Comment on the recent LUMOS/T-Mobile exchanges.

 

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Hi Commissioners and Staff,

 

When someone says “reduces the number of households served from 6,370 to 5,852” that is true in the contract but incorrect in the big picture. Consider the households being passed and therefore have the option for service even thought they are not on “the list”.  The fallacy being that those who were on “the list” were the only ones lacking service and knew about the project.

 

The cruel irony being that many did not have the internet to know about the program in the first place. I suspect your list would be a lot longe had more people known. This is borne out by the availability to ~15,000 households stated in the county presentation.

 

On the subject of BEAD funding that is a complete pipe dream. You know this because Orange County is a tier 3 county and therefore last on the list for funding such as this.

 

I think Ms Buckner asks some interesting questions in her note. Are Durham or other counties having the same bad experience with Lumos/T-Mobile as Orange? My sources tell me that the work continues in Alamance County (Graham/Burlington), and they are rapidly expanding elsewhere. Is this simple extortion?

 

See you tomorrow evening!

-Tony

[Travis Myren]

Tony,

 

The NCDIT Broadband website has the recommended BEAD locations:  https://www.ncbroadband.gov/BEADFinalProposal

 

I am counting about 1,000 addresses in Orange County that are recommended for BEAD funding.  It’s a mixture of fiber and satellite providers and is subject to approval by the National Telecommunications and Information Administration, but this is what we know today.

 

Take care.

Travis