Solid lines indicate placement of fiber optic cable in the Upper Peninsula. The dotted lines indicate future cable locations, including this summer's planned installation from Kinross to St. Ignace. The US- project is considered for 2011. (Peninsula Fiber Network map) Like much of rural America, most of the Eastern Upper Peninsula lacks the high technology services that are dominating the way people conduct business in the larger cities. Funding being sought for two Internet projects, however, could eventually provide residents more choices and affordability in Internet, telephone, and television service. This summer, a fiber optic cable will be installed from Kinross to the Mackinac Bridge along Mackinac Trail and along State Street in St. Ignace. The optical fiber cable would provide broadband Internet access to unserved areas, and for others it would give Internet, cable television, satellite, and telephone providers more capacity.

Eventually, residents could have more choices of carriers, better service, faster Internet speeds, and it would be more affordable, say U.P. businessmen and one Chippewa County commissioner.

The Kinross-to-St. Ignace project will run the lines underground along Mackinac Trail. Similar technology has already been put in place from Kinross to Drummond Island. When the fiber optic line reaches St. Ignace, it has yet to be decided whether the lines will be installed underground or above ground. That decision is expected in a few weeks.

If the grants come through, plans are also underway to install a fiber optic cable from St. Ignace west to Ironwood along US-2 in 2011. Also depending on grants is a separate project to connect each home in the area to the fiber optic network, similar to the way individual homes are connected to a municipal sewer line.

A fiber optic line already runs across the Mackinac Bridge from Gaylord to Sault Ste. Marie, although that line is not an open line and does not offer the ability to add connections to individual buildings.

Developing fast, affordable Internet connections has long been identified as a stumbling block to development in the region.

“It's a formidable problem in the U.P.,” said Tom Sumbler of Peninsula Fiber Network (PFN) of Munising. “We're talking about 17,000 square miles, 300,000 people. That's a large problem to solve, a very low density and a very large area to cover.”

Mr. Sumbler met with Mackinac County commissioners Dawn Nelson and Lawrence Leveille Friday, February 26. The company provides fiber optic-based telecommunications in 11 U.P. counties in partnership with Hiawatha Telephone Company and Baraga Telephone Company. Fiber cable is installed in the ground and above ground, depending on circumstances, said Mr. Sumbler. His company sells broadband service to carriers through its fiber optic network and then they offer it to residents.

Also attending the meeting were Chippewa County commissioner Jesse Knoll and Lighthouse.net general manager Steve Mason.

Peninsula Fiber Network is seeking county support through a letter to be included with its grant application for stimulus funds to be awarded in the second round of the federal program established to increase jobs, improve infrastructure, and provide economic benefits to the country. If awarded, the funds would be used on the US-2 corridor project. The letter would indicate the county does not have services it needs now at an affordable rate.

For the grant, the company is partnering with the Michigan Educational Research and Information Triad (MERIT), which will connect schools and libraries. MERIT, formed in 1966 by state universities to network schools and nonprofits, received a similar grant for the Lower Peninsula in the first round of the federal stimulus program.

The fiber cable being installed is a main network of service and use of it is sold to carriers like Lighthouse.net and others, which are considered “last-mile” providers. They sell service to homes.

Broadband service is limited in the U.P. and in most areas does not exist, with no network cable available. Companies have shied away from developing the U.P., preferring to establish a presence in more populated areas where their return on investment is faster. Mr. Sumbler said his company has made a business of serving rural areas.

“Somebody needed to do it,” he said. “We're doing it and the customers are signing up for it and it's turning into a viable business for us. We have to be careful, though, doing a footstep at a time, otherwise we could expand too rapidly and go broke. So we're doing it carefully and methodically and customers are coming.”

A second grant is being sought to take the service offered by the company and deliver it directly to house. The project to serve homes is spearheaded by Chippewa County. As part of the grant requirement, all emergency services also would be interconnected, although that won't be possible without the fiber cable installed by PFN, said Mr. Mason, whose company buys service from PFN.

The Chippewa County project would take fiber optic cable access one step further by connecting each home in Chippewa, Mackinac, and Luce counties to the fiber network. The Internet service provider, Lighthouse.net, is working with Chippewa County to apply for second round stimulus grant, which is needed to help fund the project. The grant comes in the form of loan of roughly $50 million, with cost to each county of about $16 million. Selling use of the line eventually would pay for the project and repay the loan, said Mr. Knoll.

The grant would provide funds that would transform communication in the U.P., said Mr. Mason. Residents in Mackinac, Chippewa, and Luce counties could be on the leading edge of technology, with fiber coming directly to each home giving broadband connections and letting homeowners choose who will provide their services for television, Internet, and telephone, and assist in medical situations.

Ambulance services, he noted, will be able to tap into the network at the scene to communicate with hospitals.

Homeowners also could decide not to use the connection, he said. For those who do, the connection would mean companies would have to compete for business from each homeowner and homeowners would have more companies to chose from. The increased competition should help reduce costs for the service, said Mr. Mason. There are pockets in the U.P. where no service exists and other areas where only one provider offers services. That would all change if each home was connected to the fiber network.

“What it should mean to the residents in all three of the counties affordable, high speed Internet,” said Mr. Knoll.

Representing the Chippewa County grant process at Thursday's meeting, Mr. Knoll sought support from Mackinac County commissioners. Chippewa County commissioners are scheduled to vote on whether to submit the grant application at their Monday, March meeting.

Mrs. Nelson and Mr. Leveille said they support both the plans for the US-2 corridor and the fiber the home project. They agreed bring both projects to the full board to discuss drafting letters of support in a special meeting set for Thursday, March 4, at 6 p.m.

Mrs. Nelson said that most of the calls she gets from county residents regarding a need for Internet service are from the Naubinway and Curtis areas.

Mackinac County commissioners heard about a broadband initiative in October 2009, when three other companies, Cherry Capital Connection, Nodin Communications, and Aspen Wireless Technologies approached the commission for support. At that time, they were unable to get the support and funding they needed from both Chippewa and Mackinac counties.

The applications are due March 15, and grants will be awarded the fall.

“It's a tremendous plan, if it happens,” said Mr. Mason. “There were 22,000 grant applications in the first round and there probably will more in the second round. We qualify under all the requirements, but we're not the only ones.”

The organizers now ask residents to contact U.S. Representative Bart Stupak, and Senators Carl Levin and Debbie Stabenow and request their support of the grants.