US Man Sick of Paying Bills Builds His Own Broadband, Gets Rs 20 Crore From Govt

A Michigan man was fed up with his broadband’s slow speed and high fibre network fees, so he built his own, and the government has now granted him $2.6 million, or roughly Rs 20.7 crore. Surprising right? Let’s dive right in and explore more about him!

Who is Jared Mauch?

Jared Mauch, a Washtenaw County resident, was fed up with his network provider’s slow 1.5Mbps internet speed. He got a T1 line at a time when 1.5 Mbps was considered a good Internet connection. Mauch expected that as broadband technology advanced, an ISP would install cable or fibre in his home. It never happened.

Later, he switched to a wireless Internet service provider with a speed of 50Mbps. When Mauch contacted Comcast, the company estimated that connecting his home to its cable network would cost $50,000.

According to Mauch, he received DSL from AT&T, the incumbent phone provider, about five years ago. However, AT&T’s announced plans for his neighbourhood had a top speed of 1.5Mbps, which was adequate in 2002 but not in 2020. AT&T stopped providing basic DSL to new customers in October and hasn’t upgraded many rural locations to newer substitutes, leaving users like Mauch with few options.

Mauch claimed to have spent approximately $145,000 (over 1 crore), $95,000 (approximately 75 lakh) of which was paid to the contractor who installed the majority of the fibre conduits. To avoid gas lines and other impediments, fibre cables are typically six feet underground, and in some cases up to twenty feet underground.

About The Broadband

Rather than accepting the impending impasse, Jared, a network engineer, decided to establish his own Internet Service Provider (ISP). Jared established his own broadband company, Washtenaw Fibre Properties LLC. Jared grew from around 70 customers in his area to nearly 600 customers by 2021.

Mauch had wired 30 homes as of early January and had about ten more to go. Instead of his initial estimate of around 35%, the actual number of potential buyers has been closer to 70%. Mauch claims that the customers he has yet to contact rely primarily on cell phone service.

Mauch had planned to spend $60,000 (approximately Rs. 47 lakh) on the project, but the final cost was more than double that. Some clients contributed $5,000 (approximately 3.9 lakh) up front to help with construction costs, and in exchange, they will receive service credits for several years now that the network is in place. Based on the amount he invested and the revenue he anticipates, Mauch calculates that he will reach break even in 42 months.

Mauch is growing thanks to government funding of $2.6 million (nearly 21 crores). Mauch will offer 100Mbps symmetrical Internet with unlimited data for $55 per month, and 1Gbps with unlimited data for $79 per month. Mauch stated that his typical installation fee is $199. In contrast to many larger ISPs, Mauch provides simple bills with only one line item for Internet service and no additional charges.

The United States is one of the countries with the most expensive Internet service. It stands at number 119 among 195 countries while India is at number 34. Liked this post? Don’t forget to check out our other short stories in our Quick Read section