SUPERIOR — Lessons learned during the first six months of operation could allow ConnectSuperior to offer faster speeds and lower the cost for service providers as the city prepares to build the second phase of the fiber optic network for broadband.
Superior’s Communications and Information Technology Committee recommended a batch of proposals Thursday, Jan. 15, to achieve just that.
The proposals add an option for 2 gigabits per second service for both residential and commercial customers.
“The 2 gig option is not an option anywhere in the Twin Ports,” said Councilor Tylor Elm, committee chair.
The 2026 budget recommended for ConnectSuperior maintains some wholesale rates and decreases others. Wholesale rates are what internet service providers pay to access the city’s network to provide internet service to Superior residents and businesses connected to the network.
Wholesale rates for residential service would hold flat for speeds of 300 megabits per second, 600 mbps and 1 gig (1,000 mbps).
Wholesale rates to serve commercial customers with a speed of 500 mbps or 1 gig would decrease. The wholesale rate for the new 2 gig service will be about $10 less than 1 gig service cost under the current rate structure.
Lowering the rates for commercial service right-sizes the market that exists in Superior, said Stephanie Becken, broadband manager.
Becken said she included options for higher speeds and dedicated services as options to consider in the future. However, rates were not set and would require addition to the rate structure that would be determined by the Superior City Council.
“I’m asking for some flexibility to offer these bigger packages for different uses and also custom speeds because we can do 10G, which is super exciting,” Becken said.
The committee also recommended amending agreements with internet service providers — Duluthian Networks LLC, Advanced Stream Inc. and Norvado Inc. — to reflect the new rates and speeds available over the city’s network.
The budget projects a $313,000 deficit in 2026. A deficit was anticipated for the first two years of operation or until the network passed about 4,000 premises, according to a 2023 feasibility study conducted by Magellan.
Currently the network passes about 1,150 premises. Plans to nearly double that number are in the works for 2026.
The committee also recommended awarding a contract for the second phase of construction, which will build out the fiber optic network immediately north of Belknap Street to the railroad tracks in North End.
Kramer Service Group submitted the low bid of $1.49 million among seven bidders and was recommended to build phase 2, which will run past about 1,100 homes and businesses.
The committee also recommended amending its contract with Mi-Tech, the engineering firm that did the final design of the network, for construction oversight.
The final agreement the committee recommended amending was an agreement with WIN LLC to better reflect how the network operations center works with the city and internet service providers. There was no change to the cost of the service.
The City Council will consider the recommendations at 6:30 p.m. Tuesday, Jan. 20, in Room 201 of the Government Center.
