MSU officials will be reevaluating a proposal for MSU to create a new for-profit Internet service providing company.
MSU Provost Lou Anna Simon, who presented the proposal at last month’s Board of Trustees meeting, refused to comment about the reevaluation, saying it only was taken off the trustee’s agenda, not suspended.
The proposal would have created an Internet service providing company operating with a lower overhead cost than local competitors. The service would make use of the broadband legislation package passed through the state Senate and tax benefits provided to educational institutions.
The broadband legislation would create standard fees for companies to deploy broadband in Michigan, replacing the city-by-city costs that plague providers.
“At this point, I think there was a bit of initial discussion that there were enough unanswered questions that we would postpone it,” Trustee Colleen McNamara said. “I don’t support it. Is that a business that MSU should be in, do we know anything about it?”
While MSU’s proposed broadband company remains in uncertainty, broadband itself is moving toward a more widespread presence in Michigan.
Sen. Dianne Byrum, D-Onondaga, said she stands behind the broadband legislation package.
“I’m very supportive of it, it passed through on a very strong vote,” Byrum said. “Fundamentally there was a belief of the committee that this is an important economic development tool for Michigan.”
Although she was not involved with its development, Byrum approved of Simon’s proposal.
“I would submit that it’s not much different from the research park concept or on a federal level, the space program,” she said. “And look at the benefits that come out of the space program.”
David Gift, vice provost for libraries, computing and technology, said the proposal was crafted as part of an effort in Michigan to get more residents connected to high-speed Internet.
But opponents of the plan, such as Rich Studley, senior vice president of government relations for the Michigan Chamber of Commerce, said the idea was underhanded.
MSU officials rebuffed any ulterior motives, and said the university is studying the proposal.
“We think it is totally unfair for a governmental institution to take advantage of their tax-exempt status and get into competition with private companies,” Studley said.
Chamber of Commerce officials hoped that the university would stay focused on education instead of business, he said.
“What do we think about that memo? In a word - outrageous,” Studley said.
