Maine Town’s Broadband Network Faces Corporate Challenge

Arrowsic Built Its Own Internet, Now a Giant Competitor Arrives

Arrowsic, Maine residents who banded together to create their own broadband network are now facing an unexpected challenge. A national internet provider, Fidium, has begun offering service in the small midcoast town, undercutting the rates of the community-built system.

A Decade in the Making

The Arrowsic Broadband Authority was established in 2020, culminating a nearly ten-year effort to bring reliable internet service to the town’s approximately 500 residents. After private companies previously declined to serve the area, the town invested over $1 million in federal and private funds to establish its own network, which began service in March 2024.

Competition Emerges

Recently, mailers from Fidium began appearing in Arrowsic mailboxes, advertising broadband services at significantly lower introductory prices than the town’s current offering. Local officials are now urging residents to remain with the municipal network to ensure its sustainability.

“We are a very small network. We are literally on the edge of maintaining that network because we have such a small customer base.”

—Vince Capone, Commissioner on the local broadband authority

Fidium’s parent company, Consolidated Communications, states that its expansion into Arrowsic is not specifically targeted at competing with the town’s network. However, this situation mirrors past conflicts in Maine between established providers and municipal broadband initiatives. An industry group had previously campaigned against similar public network proposals that were rejected by voters in other towns.

Financial Strain and Community Reliance

Fidium plans to offer service starting at $30 per month, a stark contrast to the $49.99 monthly cost for a comparable service from Axiom Technologies, the town’s partner provider. Currently, over 200 homes and businesses in Arrowsic subscribe to the town’s network. Officials project that the Arrowsic authority could contribute approximately $50,000 annually to the town’s budget by 2029, provided a significant majority of residents maintain their subscriptions. Losing even 20% of its customers would create a “critical problem” for the network’s viability.

The town’s financial exposure is limited, as the broadband project incurred no debt and was largely financed by the American Rescue Plan Act. Nevertheless, officials acknowledge that if the authority cannot build sufficient reserves for equipment and storm damage repairs, the town might need to use its savings or seek loans to keep the network operational.

A Surprising Return

The arrival of Fidium has surprised local leaders, particularly since Consolidated Communications had previously refused to invest in broadband infrastructure for Arrowsic. Don Hudson, another commissioner, expressed his astonishment.

“It came as some surprise when all of a sudden we started seeing, essentially, a duplicated system being built on top of ours. If it wasn’t actually happening, it would be laughable.”

—Don Hudson, Commissioner

Consolidated Communications’ ownership of many local telephone poles simplified Fidium’s fiber installation process, bypassing the need for local government approval. Axiom Technologies CEO Mark Ouellette also voiced surprise at Fidium’s entry into Arrowsic.

“Typically, when another provider is in the community with fiberoptics, it’s quite a challenging business case to be made to build out fiber on top of fiber already there, especially in small places. We are going to make a strong case that community cyber connectivity is an important asset for the community … because we return a percentage of our fees to the customer, back to the town.”

—Mark Ouellette, CEO of Axiom Technologies

A Fidium spokesperson indicated that the company’s network upgrades in the neighboring city of Bath, which will connect around 9,700 homes and businesses, are the reason for the expansion into Arrowsic, calling it “spillover.”

“Providing more fiber connectivity options in communities benefits everybody in that area.”

—Kyle Thweatt, Fidium Spokesperson

Officials in Arrowsic remain hopeful that residents will recognize the value of their locally controlled network. The town’s infrastructure is connected to Bath, where approximately 9,700 residences and enterprises will gain broadband access through Fidium’s ongoing improvements. This connectivity to Bath is cited by Fidium as the reason for their expansion into Arrowsic.

The decision to switch ultimately rests with the residents, but Arrowsic officials believe the community’s pride in its self-built network will resonate.

“People who live in Arrowsic have a great fondness for Arrowsic. And they really love this network that we built.”

—Don Hudson, Commissioner

In the United States, communities are increasingly exploring municipal broadband initiatives to ensure equitable internet access, with over 200 such projects operating nationwide. However, these efforts often face pushback from established telecommunications companies, as seen in Arrowsic.