COLUMBIA — A North Carolina internet provider caused quite a stir when it announced this month that it would spend $100 million to install 1,200 miles of high-speed fiber-optic cable across the Columbia area.
Expansion into the Palmetto State by Lummus, headquartered in High Point, N.C., is one of several announcements state officials expect in the first quarter of 2023, as South Carolina and the federal government make what State Broadband Office Administrator Jim Stritzinger calls “an investment.” Once in a Generation” to develop the country’s Internet capacity.
In metropolitan areas, such as Colombia, where many existing providers already operate, additional competition could prompt companies to lower prices or improve service in an effort to retain customers.
“South Carolina benefits when a new provider comes into the state, especially one that has a lot of resources,” Stritzinger said. “The online space is very competitive. Everyone notices when a new player enters the market.”
He described Lumos’ investment as huge and that it would rely solely on private financing.
Lumos, which was born out of the merger of two service providers in North Carolina and Virginia, is one of a number of regional providers that have been on a growing spree, pledging to quadruple the miles of fiber it owns by 2026 with the backing of private equity owner EQT.
Hired in August, CEO Brian Stading has been hired from another regional internet company in the Pacific Northwest to oversee the expansion. The Columbia marks the Lumos’ first foray into South Carolina.
A spokeswoman for Lumos said the company is targeting cities with fast approval processes and existing resources, which reduces the time it takes for the company to become incorporated.
“The Greater Columbia area is a great example of partners willing to help us reduce our time to market and lack of widespread fiber-to-the-home service today, and we will continue to look for similar partnerships across South Carolina and the Mid-Atlantic region,” the company said in a statement.
As it enters the market, internet company Lumos is looking for parts of Colombia and its suburbs that might have fewer internet options. In addition to growth in Northeast and Southeast Columbia, the company will provide services in Forest Acres, Arcadia Lakes, West Columbia, Cayce, Springdale, Southeast Lexington County, and St. Andrews and areas of west Irmo and north Lexington between the towns and Lake Murray where residential growth has been prevalent. Lumos / Introduction
As it enters the market, Lumos is looking for parts of Colombia and its suburbs that might have fewer Internet options. In addition to growth in Northeast and Southeast Columbia, the company will provide services in Forest Acres, Arcadia Lakes, West Columbia, Cayce, Springdale, Southeast Lexington County, and St. Andrews and areas of west Irmo and north Lexington between the towns and Lake Murray where residential growth has been prevalent.
“This partnership will catapult us across the digital divide and keep us competitive in terms of economic development,” said Richland County Council presenter Walker, in a statement when the partnership was announced.
Engineering work for Lumos will begin in mid-2023, and construction will begin shortly after.
In addition to the Lumos investment, Spectrum added connections to 200 homes and small businesses in northeastern Richland County in April 2022 as part of a larger national investment by the company in underserved communities. And over the past five years, AT&T has spent $175 million in the Midlands.
Stritzinger said the large amounts of federal dollars, distributed as part of the nation’s response to COVID-19 and the growing needs for remote work, school and telemedicine, have prompted investment into more areas of the state and the Midlands, such as the lower Richland region.
“Lower Richland was traditionally heavily disadvantaged and is no longer,” he said, adding that several other internet providers are expected to enter the area in the next two weeks.
And to spur development, Stritzinger’s broadband office has $400 million in federal COVID-19 relief dollars to hand over the next two years. The first tranche of $180 million will be announced this week.
The program prioritizes areas with a large number of school children, areas difficult to develop by US housing and urban development and areas without Internet service. To qualify for grant money, an internet provider must participate in the federal government’s Affordable Connection Program that subsidizes broadband for low-income households.
And the Government Broadband Office has until the end of 2024 to hand over the remaining funds. After that, another round of federal investment is expected from the Biden administration’s infrastructure package. The state will find out how much additional funding it will receive at the end of June.