From AP - News Headlines -

Big Broadband Proposal Wins Endrosement of Urbana City Council

The Urbana Champaign Big Broadband project took another step toward becoming a reality Monday night by winning the Urbana City Council's approval. The council passed two resolutions supporting the plan to launch a community-wide fast and affordable fiber-optic network --- starting with service to low-income and underserved parts of town.

On Tuesday night, the Champaign City Council will vote on the same resolutions that the Urbana Council approved the previous night -- support for the grant application and participation in a consortium with the University of Illinois to oversee the project.

Supporters of the project, known as UC2B, plan to submit an application for a federal economic stimulus grant that - if awarded - would provide 80 percent of the funding. UC2B plans to apply for a smaller state grant this week. Together, Urbana, Champaign and the University of Illinois would match the grants with about 2.4 million dollars of their own money.

UC2B organizer Mike Smeltzer says that because the project is spread over three years, the cities and the U of I don't have to pay the money out all at once.

"The federal government's not going to give us all the money at once," Smeltzer explains. "It's only going to give us money as we make progress, and as we show our match. So as long as we show up with a third of our matching funds, they'll give us a third of the money. And a year later when we need more money, we'll show up with a third, and they'll give us another match."

The supporters envision UC2B branching out to cover the whole community in the future. But the initial buildout would be just in the low-income underserved areas. A community survey has revealed that the territory that could qualify for the grant is smaller than expected --- covering just about 45-hundred people in Champaign and Urbana.

U of I Library Science professor Abdul Alkalimat (al-KAL-ee-mat) says he doesn't think the smaller size will hurt UC2B's chances of winning government funding.

Because it makes it a smaller project, and therefore, from the state level, they could include us at a lesser cost, therefore others might have an opportunity. So in this sense, we think it won't hurt us, it will help us."

The state grant application must be submitted by Wednesday. The federal grant application is due on August 14th.