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Public-Private Project to Bring "I-Way" Statewide by 2017

ky.gov

Kentucky officials are planning an ambitious infrastructure project to lay over 3,000 miles of fiber optic cable to bring the Commonwealth's internet and cell phone services to among some of the fastest in the U.S. 

The project is being called the "Next Generation Kentucky Information Highway" or "I-Way." 

Gov. Steve Beshear and U.S. Rep Hal Rogers announced the partnership with Australia-based investment firm Macquarie Capital today.

“We are on an aggressive timeline and believe that the Macquarie team’s technical capabilities and history of innovative solutions are the best fit for this important project,” said Beshear. “Kentucky’s Internet speed and accessibility have lagged behind the rest of the nation far too long. This partnership puts us on the path to propel the Commonwealth forward in education, economic development, health care, public safety and much more.”

Kentucky ranks 46th in broadband availability with 23 percent of rural areas having no access at all. Beshear says reliable internet access has become as much a utility in the 21st century as water or electricity. 

The $250 million to $350 million dollar project is being paid for upfront mostly by private sources. However, $30 million will come from state funds and the Center for Rural Development will seek federal grants for another $10 million. 

The public-private partnership - also known as a P3 - will allow the state to access private resources.  Beshear says the P3 was used to build the network on an accelerated timetable with no additional cost to Kentucky taxpayers. 

“If we were to rely solely on state government funding to get this project off the ground, it would take years, if not decades," said Beshear. "Those kinds of tax dollars just aren’t available. In this technology-dependent economy, we can’t afford to wait another minute. That’s why this partnership is so valuable – it ramps up this project to the speed of the private sector without any additional burden on our taxpayers.”

The first state of the project will begin in Eastern Kentucky building the main broadband fiber lines. Once complete, these "middle mile" lines will allow internet service providers, cities and other groups to tap into the lines to complete the "last mile" - lines that run to individual homes and businesses. 

The project will take advantage of existing infrastructure where available and partner with local telecommunications companies, municipalities and major carriers to reduce construction costs. 

The project is also offering cell phone companies to use the "middle mile" network to add capacity and broaden coverage in areas that have traditionally poor cell phone reception. 

When the project is complete, fiber optics will be in place in all 120 counties. However, the first leg of the project marks eastern Kentucky as the first priority. The push for more accessible high-speed broadband was a recommendation that emerged from the SOAR (Shaping Our Appalachian Region) initiative. 

Kentucky will have ownership of the network but Macquarie Group is contracted to operate it for 30 years.

Macquarie will begin work on phase one to design the overall state system and determine the scale of the project. Design and cost estimates are due for review by the end of February 2015. Construction of the first segments are expected to begin in the summer and completed by April 2016. The total project cost will depend upon the use of existing infrastructure versus new routes. 

The entire project is expected to be complete by end of 2016 with all end points connected by mid-2018. 

Rob Canning is a native of Murray, KY, a 2015 TV Production grad of Murray State. At MSU, he served as team captain of the Murray State Rowing Club. Rob's goal is to become a screenwriter, film director or producer and looks to the likes of Quentin Tarantino and Guy Ritchie for inspiration. He appreciates good music, mainly favoring British rock n' roll, and approves of anything with Jack White's name on it. When not studying, rowing or writing, Rob enjoys spending his free time with a book or guitar.
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