From AP - News Headlines -

Urbana City Council Votes to Accept Big Broadband Grant, Joining Champaign & U of I

Champaign-Urbana is ready to say "yes" to a federal grant for a fiber-optic broadband network. The Urbana City Council voted 5 to nothing Monday night to accept the grant --- joining Champaign and the University of Illinois in endorsing the "UC2B" Broadband project.

Champaign, Urbana and the U of I are accepting a $22.5 million federal recovery grant to pay the lion's share of the cost of building the fiber-optic rings linking schools, hospitals, city buildings and libraries --- plus fiber-optic connections to send low-cost service to 4600 homes in underserved areas. U of I Associate Vice Chancellor for Public Engagement Pradeep Khanna told council members of the value of the new high-speed telecom network in attracting business.

"From first-hand experience, I can say, the lack of redundant broadband access already has been cited by many firms, as the key reason for not being interested in locating in Champaign-Urbana", said Khanna, who also heads Corporate Relations for the university's Public Engagement office.

Once the broadband network is built, local officials will have to figure out how to manage and market it ... and how to find the money to complete home service connections for the rest of Champaign-Urbana.

Alderman Brandon Bowersox, who will now serve on the Broadband Project's Policy Committee, says the economic questions pose the biggest risks. He says UC2B must offer service that makes enough money to pay for its operations and maintenance.

Meanwhile, project organizer Michael Smeltzer says they've already applied to Google, which is planning to install high-speed broadband service in select cities. Although he concedes it's a long shot, Smeltzer says they hope Google will consider funding the installation of broadband connections in the rest of Champaign-Urbana.

Monday night's vote commits Urbana to $345,000 in matching funds for the UC2B project. Champaign, the U of I and the state are also providing funding.