Lessons Learned from the Muni Broadband Failure in Alexandria, MN

Established in 1889, ALP Utilities is a municipal utility based in Alexandria, Minnesota, that provides electricity, water, and communications services to the local community and surrounding areas. It is community-owned and nonprofit, meaning any revenue generated is reinvested into infrastructure rather than distributed to shareholders. Originally focused on electricity and water, ALP expanded into internet services in the mid-1990s, starting with dial-up access when private companies failed to meet local demand.

Over time, ALP shifted to building a fiber-optic network with Runestone Electric Association to improve local connectivity, with a primary focus on business customers. The network never proved to be financially viable.

In January 2023, ALP Utilities announced it is selling its business-facing fiber network to Arvig. Arvig is a telecommunications company, established in 1950 in eastern Otter Tail County, Minnesota. The company offers a wide range of services, including fiber internet, TV, phone, mobile, security, and business IT solutions, with a fiber network spanning roughly 16,500 to 17,500 route miles. The $3.25 million deal included 130 business accounts, 77 route miles of fiber, and 13 miles of conduit.

The sale allows ALP to focus on its core electric and water services while Arvig, which already provides some network services in the area, plans to maintain uninterrupted service for businesses and expand connectivity beyond the city, including joint trenching projects as ALP continues to underground its electric infrastructure.

Seth Nguyen is a 3L at New York Law School.