Lessons Learned from the Muni Broadband Failure in Crawfordsville, IN
Crawfordsville Electric Light & Power (CELP) is a municipally owned utility serving the City of Crawfordsville, Indiana, created to provide reliable electric power and essential energy services. Established in 1890 as Indiana’s first municipal electric utility, CELP has a long history of community-focused operations and reinvestment in local infrastructure. The utility provides affordable, efficient, and sustainable power while supporting the city’s growth and technological advancement, including initiatives to expand broadband connectivity and enhance public services.
In 2005, Crawfordsville Electric Light & Power (CEL&P) launched Accelplus, a municipally owned fiber-to-the-home (FTTH) network, to provide Internet and video services. Despite its promise, the network struggled financially and faced a lawsuit from the U.S. Bank after failing to meet debt payments tied to its financing structure. In 2013, the City of Crawfordsville approved the sale of Accelplus and its assets to Metronet for $5.2 million, with additional city incentives bringing the total settlement to $5.6 million, allowing the city to avoid a $19.6 million lawsuit. Under the deal, Metronet leased property and fiber from CEL&P through long-term agreements and invested about $2 million in network upgrades, expanding services to include voice.
Metronet’s acquisition brought financial relief, though some local residents lamented the loss of community-based service and responsiveness that Accelplus had provided. However, Metronet appears to be much better positioned to serve the broadband needs of the community. Metronet is a rapidly growing FTTH provider. It was recently acquired by a joint venture between T-Mobile and investment firm KKR, a partnership intended to boost the reach, scale, and resources of Metronet and fuel further expansion. Metronet serves over 2.6 million homes and businesses across more than 300 communities in around 19 states.
Seth Nguyen is a 3L at New York Law School.