UW To Drop Not-For-Profit Internet Provider WiscNet

The internet provider WiscNet says its business model remains “solid” following the announcement that the University of Wisconsin will get its broadband Internet access elsewhere.

The UW was under pressure from Republicans to part ways with not-for-profit WiscNet, which also offers broadband to K-12 public schools throughout Wisconsin. Republicans contend the university’s backing amounted to a subsidy that let WiscNet undercut the prices of private broadband providers.

WiscNet Executive Director Dave Lois told a panel of lawmakers at the State Capitol that his organization still has a strong budget without the UW.

Lois: “We have money available to us to not only make sure we fulfill our promises to those K-12 [schools] come September, but we can also put new pieces and parts in play as this dynamic situation unfolds.”

But Lois did not downplay the loss of the UW’s business, saying WiscNet was still in the process of figuring out how to proceed without the university. A recent audit showed WiscNet received 27 percent of its user fees from the UW.

Lois: “That’s a big revenue hit from a nonprofit business, but they were also a big customer, so there was a large amount of expenses associated with them.”

Republicans asked Lois and others who testified whether schools still needs a nonprofit broadband provider like WiscNet. Private providers want WiscNet out of the way. Wisconsin State Telecommunications Association Director Bill Esbeck contends WiscNet hurts his members.

Esbeck: “You are going to stifle private sector investment and the type of continuous reinvestment that the telecommunication network demands.”

WiscNet says the telecommunications industry’s profits show it has not been harmed. The UW says it will report by October on how it plans to proceed without WiscNet.