Stock market volatility that has been torturing companies and investors for months has reached Colorado, and it’s scrambled some major circuits concerning fiber optic enhancements. Last week Omaha-based Adesta Communications Inc., suspended further construction on fiber optic lines running along Interstate 70.
The halt in construction could present challenges for Moffat County, which has spent $1.2 million in prepaid services for NC Telecom to lay fiber from Rifle to Craig. The original intent was to connect those lines to the statewide fiber network being constructed by Adesta. Adesta’s financial shortfalls put a dent in that plan, but won’t slow Moffat County’s plan for high speed telecommunications, according to Moffat County Commissioners and NC Telecom management.
“Instead of provisioning [access] from Adesta to connect Rifle to Grand Junction, we will be provisioning from an alternate provider,” Dennie Mecham, general manager for NC Telecom, said.
The identity of the alternate provider won’t be released until an agreement is finalized, which is expected by the end of this week.
“We should still meet our dates [for completion],” Mecham said.
That completion date is June, 1, 2001, according to Moffat County Commissioners.
From the beginning of the Colorado Highway 13 fiber project, a contingency plan existed in case a company failed financially or withdrew from the project. In this instance, Adesta’s partner, 360 Networks of Vancouver, British Columbia, backed out of the portion of the project that included laying fiber optic cable along I-70.
The company that is responsible for the Craig to Rifle circuit is Five Points Utilities, and Five Points General Manager Tim Thayne said that the withdrawal of Adesta won’t effect their work at all. “We work directly with NC Telecom, and now we’ll be a direct contractor instead of a sub-contractor with Adesta leaving; that’s the only difference,” Thayne said. Because the two companies already have a working relationship “it’s a good chance” that Five Points would become involved in the Rifle to Grand Junction circuit completion.
NC Telecom began negotiations with an alternate provider for the Rifle to Grand Junction portion of the Colorado State Police circuit being installed for the Moffat County Public Safety Center once Adesta announced its withdrawal. The construction schedule and price will not be affected by the switch, Mecham said.
Moffat County Commissioner Marianna Raftopoulos said the board’s decision to bring these high-speed access lines into Moffat County now looks even smarter.
“Counties that haven’t moved on this issue will most likely have to wait even longer,” she said.
The Moffat County Board of Commissioners met Monday, and Adesta’s decision was one of the main topics of discussion.
Selecting NC Telecom with its built-in backups has shown to be a very valuable decision, Raftopoulos said.