Lumos/Verizon Internet Access in rural southern Orange County

[Rachel Bearman]

Dear County Commissioners - 

I know this issue is to be discussed this evening. I respectfully ask that you hold Verizon to the stated contract to bring reliable internet access to rural southern Orange. We were always last on the long-term plan and it is incredibly discouraging that now we will potentially be left behind.  I have lived in my home for over 20 years and have lived with unreliable internet. We currently pay for two systems to have access and both are unreliable and often do not work. 

Allowing Verizon to potentially walk-away from the contract: 

• is inequitable and a violation of the contract
• impacts property values
• makes it harder for school kids to participate and keep up using the internet
• makes it harder for households to get and share information that affects them
• makes it harder for people to age in place and
• impacts county sales tax through online sales tax revenues

I understand the contract is not straight-forward and that Verizon may still walk-away, but I hope you, our County Commissioners do not. I hope, in making this decision, you support those in southern Orange who have been waiting patiently for access. 

Thank you for your consideration - 

Rachel Bearman

[Jamezetta Bedford]

Hi Rachel,

Sorry to be late in replying. I was not able to read your email prior to the 7:00 meeting last week. The Board did approve an amendment with Lumos.  Here's some of the basic info I copy/paste from earlier emails prior to the meeting. I recognize this was not the action you preferred. 

"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: Rachel Bearman <rsbe...@gmail.com>
Sent: Tuesday, September 16, 2025 5:42 PM
To: ALL_BOCC_MANAGER_CLERK <OCB...@orangecountync.gov>
Subject: Lumos/Verizon Internet Access in rural southern Orange County

 

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