Burlington Telecom
Encyclopedia
Burlington Telecom is a municipal telecommunications company providing residents of Burlington, Vermont
with television, telephone and internet services. The company runs its communications offerings on a city-wide fiber-optic network.
of the newly created Burlington Telecom, a division of the city government. The network was laid in stages. The first stage was finished and profitable by 2003. The first and second stages became profitable by 2006. This led local government officials to believe the project would result in a major funding source for public coffers in the future.
In September 2009 Burlington informed the Vermont Public Service Board
it had used $17 million in city money to support Burlington Telecom operations since early 2008. The failure to repay that loan was a violation of Burlington Telecom's state license. The revelation prompted a forensic audit of Burlington Telecom by the Public Service Department and, in early 2010, a criminal referral to the Vermont Attorney General
. Two private citizens also filed suit in Chittenden Superior Court in Burlington to compel Burlington Telecom to repay the $17 million.
A special committee created by the City Council and including four citizens experienced in finance or telecommunications concluded in January 2010 that Burlington Telecom was unable to support its debt load. In mid-February 2010, Burlington Telecom defaulted on an interest payment of $386,000 to its commercial lender, CitiLeasing.
In 2008, the company encountered controversy when it attempted to remove the Al Jazeera English language station from its basic offerings. After Burlington Telecom decided the channel would be removed from all cable package offerings, the city council and Mayor Kiss delayed the decision for discussion. A public meeting on the issue of Al Jazeera English's removal was aired on the international network. After two public meetings, an oversight committee for Burlington Telecom decided the channel would continue to be offered in certain cable packages.
's downrated the debt for the city two notches to A2, "upper medium" from Aa3, "high quality." Moody's also downrated the credit rating for Burlington International Airport
. The Vermont Public Service Commission has asked for a criminal investigation. The general manager resigned.
Burlington, Vermont
Burlington is the largest city in the U.S. state of Vermont and the shire town of Chittenden County. Burlington lies south of the U.S.-Canadian border and some south of Montreal....
with television, telephone and internet services. The company runs its communications offerings on a city-wide fiber-optic network.
History
A home network connecting every residence and business of Burlington was conceived in the 1980s. There were a number of failed attempts in the 1990s. A funding source could not be found. An experienced telecommunications expert, Tim Nulty, was hired as a consultant by the city. Nulty became General ManagerGeneral manager
General manager is a descriptive term for certain executives in a business operation. It is also a formal title held by some business executives, most commonly in the hospitality industry.-Generic usage:...
of the newly created Burlington Telecom, a division of the city government. The network was laid in stages. The first stage was finished and profitable by 2003. The first and second stages became profitable by 2006. This led local government officials to believe the project would result in a major funding source for public coffers in the future.
In September 2009 Burlington informed the Vermont Public Service Board
Vermont Public Service Board
The Vermont Public Service Board is the public utilities commission of the State of Vermont, with quasi-judicial licensing and regulatory responsibilities over electric utilities , natural gas companies, telecommunications companies, cable television systems and water companies...
it had used $17 million in city money to support Burlington Telecom operations since early 2008. The failure to repay that loan was a violation of Burlington Telecom's state license. The revelation prompted a forensic audit of Burlington Telecom by the Public Service Department and, in early 2010, a criminal referral to the Vermont Attorney General
Vermont Attorney General
The Vermont Attorney General is one of five cabinet-level constitutional officers in the U.S. state of Vermont which are elected every two years. It was created by an act of the Vermont General Assembly in 1790, repealed in 1797, and revived in 1904. The office began as a one-person operation...
. Two private citizens also filed suit in Chittenden Superior Court in Burlington to compel Burlington Telecom to repay the $17 million.
A special committee created by the City Council and including four citizens experienced in finance or telecommunications concluded in January 2010 that Burlington Telecom was unable to support its debt load. In mid-February 2010, Burlington Telecom defaulted on an interest payment of $386,000 to its commercial lender, CitiLeasing.
Al Jazeera
Burlington Telecom offered local channels and free channel offerings on cable. In January 2007, Al Jazeera English was added to the cable lineup as Burlington Telecom did not have to pay for the network's feed.In 2008, the company encountered controversy when it attempted to remove the Al Jazeera English language station from its basic offerings. After Burlington Telecom decided the channel would be removed from all cable package offerings, the city council and Mayor Kiss delayed the decision for discussion. A public meeting on the issue of Al Jazeera English's removal was aired on the international network. After two public meetings, an oversight committee for Burlington Telecom decided the channel would continue to be offered in certain cable packages.
Bond
In 2010, the company was unable to pay the $1.5 million interest on its bonds. It also owed the city of Burlington $17 million. As a result, MoodyMoody
Moody may refer to:Places:* Moody, Alabama, USA* Moody, Missouri, USA* Moody, Texas, USA* Moody County, South Dakota, USA* Port Moody, British Columbia, Canada* Moody's Corner, Nova Scotia, Canada* Moody, South Australia, Australia...
's downrated the debt for the city two notches to A2, "upper medium" from Aa3, "high quality." Moody's also downrated the credit rating for Burlington International Airport
Burlington International Airport
Burlington International Airport is a joint-use public and military airport in Chittenden County, Vermont, United States. It is owned by the City of Burlington...
. The Vermont Public Service Commission has asked for a criminal investigation. The general manager resigned.