City announces sale of fiber internet program

The City of Houston announced the sale Monday of its fiber internet program to Steelville Telephone Exchange Inc., a broadband provider operating since 1952. The company serves more than 4,000 customers across 786 square miles in Missouri.

City officials cited a lack of resources to expand the fiber network as a reason for the sale. Construction began about four years ago and connections have lagged.

“This ensures good service at good prices for citizens,” said Sam Kelley, Ward I alderman. 

The city initiated the project because of a lack of service in the community and as an economic development tool.

“Over the past several years, we have strived to bring high-speed internet to the City of Houston, but we have encountered significant challenges,” said Viki Narancich, mayor. “We are committed to making decisions that best serve the interests of all our residents, and after thorough review, we determined that selling the fiber assets to Steelville Telephone Exchange is the most responsible course of action.”

The transaction has been in discussion for several months, said the council. Kelley and Ward III Alderman Don Romines led negotiations. The sale will be complete on or before April 7, according to city officials, at which time the funds will be deposited into a high-interest checking account. The final sale price remains undisclosed until the transaction is complete. A new mayor and council – following the April election – will determine the use of the funds. Starting in 2028, the city will pay a $500 monthly fee for internet access for all its properties to STE until April 2035. The city’s fiber department will be phased out as a result of the transaction, according to city officials. 

“We want to be transparent with our citizens,” said Narancich. “Our goal is to make sure that city funds are used in a way that maximizes benefit for all our residents, and that means focusing on projects that provide access to as many people as possible.” 

Within the first six months of the purchase, STE plans to upgrade all customers to one gigabyte internet, change from a Nokia to Calix system, move out of the city storm shelter and connect to a 100 Gigabit network. Within the first 45 days, the company plans to clear the backlog of waiting customers. 

STE intends to finish building the rest of the fiber internet network in Houston (including an uncompleted fourth phase) and projects significant growth in users. Eventually all of the fiber will be buried and not on utility poles. 

Two notification letters will be sent – one to all city residents and another to customers – with the final city-issued bill in April. STE’s first bill will go out at the end of April, with a prorated charge for May. The company will offer online, mobile and phone pay options.

Two company officials, its general manager and board president, attended the meeting. The council also reviewed STE customer survey data that showed high satisfaction.

The company is a highly-regulated provider under the Federal Communications Commission (FCC) and Missouri Public Service Commission (PSC). Plans range from a low-cost, $30 plan for eligible residents to $199.95 per month. Pricing for a Gig is $79.95 monthly. Several plans are available. The price for 2.5 Gig is $99.95 monthly. STE plans on offering telephone service as well. 

The firm has been successful in tapping millions of federal funds aimed at improving rural internet service access in the state. 

The company intends to establish a remote cabinet near the storm shelter for operations, and is considering a future local office. Planned service changes include minimal downtime during network transitions, scheduled between midnight and 6 a.m. for critical institutions. The company is also hiring a local technician.

OTHER MATTERS

• The council agreed to work with Town & Country Supermarket on an easement and pay for materials to hook Hungry Holler, a restaurant, to a four-inch sewer lateral near Sonic Drive-In until a larger sewer line is installed later this year. The restaurant received complaints from a neighbor due to septic tank issues on the neighbor’s property. The city is in the process of reengineering sewer lines on the south side of town – near the restaurant. A Rolla firm is hired. 
• Members of the Texas County Library Foundation expressed a desire to have a portion of the new library’s parking lot – between the building at Pine and First Streets and the post office – asphalted rather than chip sealed. The council committed to considering it in the bidding process. 
• A contract with Delta Regional Authority (DRA) for its States’ Economic Development Assistance Program (SEDAP) program was discussed. According to DRA’s website, the program provides direct investments for basic public infrastructure, transportation infrastructure and business development, with an emphasis on entrepreneurship and workforce development. The council appointed the mayor to perform all duties in relation to the contract and agreed to contribute no additional funds or contributions to the program. 
• Romines stated that a building on Grand Avenue has roof damage that needs attention. Lloyd Wells, administrator, will look into it. 

Narancich and Sean Smith, attorney, were absent from the meeting. The meeting adjourned into closed session at 6:36 p.m.