I have heard of the same thing being done via microwave before.
Basically using e-rate money to purchase licensed links to
crossconnect schools or to provide them with an internet/wan
connection, while using part of the capacity for other uses. Nothing
against it, as far as I know.

Also MoreNet here in Missouri does something similar with fiber.

On Wed, Mar 2, 2016 at 10:22 AM, CBB - Jay Fuller
<[email protected]> wrote:
>
> So - everything I had pretty much heard about this before - means this can't
> be done and is illegal.
> But actually - I guess not.  If a local company in the state of Alabama
> expands to connect school systems
> using e-rate money , the additional pairs of fiber can be used for other
> purposes, right?
>
> I know of this traveller company... (quoted in the article).  They're a lot
> like our WISPs, except we never hear
> that they do any business. We are on a lot of the same towers.  Apparently
> they only do business customers.
>
> http://www.al.com/news/index.ssf/2016/02/schools_will_bring_high-speed.html
>
> Nearly three dozen Alabama public school systems will take the first step
> this month to build their own high-speed Internet networks.
>
> It is the first phase of a plan to extend high-speed Internet into rural
> Alabama announced by Gov. Robert Bentley in his Feb. 2 State of the State
> speech.
>
> More school districts will follow in 2017 and 2018 until publicly owned
> networks bring high-speed Internet to thousands of state students who don't
> have it now, officials say.
>
> The schools will be seeking bids from companies who want to build, operate
> and maintain – but not own - high-speed Internet connections to schools and
> libraries, state officials say.
>
> Experts from across the state, led by Office of Broadband Development
> Director Kathy Johnson, have been studying how to do it since July 2015.
>
> What the governor said
>
>  "Technology is growing at lightning speed, changing the way we educate,
> deliver healthcare and even start a business," Bentley said in his speech.
> "Yet our communities and rural areas cannot tap into the potential that
> Broadband access would bring."
>
> Other cities and counties across America are rapidly  extending high-speed
> Internet. A recent Washington conference showed how doctors are monitoring
> patients over high-speed lines, students are watching live demonstrations
> from distant colleges, and cities are putting free high-speed Internet into
> community centers in low-income neighborhoods.
>
> Nearly 1 million Alabamians have no access to high-speed Internet, according
> to a recent federal study, and 41 percent of them are in the state's rural
> areas.
> alabama broadband map.JPGThis map, which is several years old and was
> generated for the Connect Alabama effort, shows Broadband or high-speed
> Internet providers in rural Alabama. The lightest colored areas have 1 or 2
> providers and the darkest have 5 or more providers.
>
> Part of the reason is business economics. Running fiber cable or using
> towers to beam Wi-Fi Internet access costs money. Private companies want a
> return on that investment.
>
> "If you've only got 50 or 60 customers (in a town)," explains Tim Erwin,
> owner and CEO of Huntsville's Traveller Multimedia Network, "how do you stay
> in business?"
>
> State Education Trust Fund money
>
> In the first phase of Bentley's plan, State Education Trust Fund money would
> match federal grants to build the fiber networks, Johnson said this week.
> The federal grant program is called E-rate, and it can pay up to 90 percent
> of the cost of running the fiber cable to rural areas.
>
> The federal share of the spending comes from fees paid by all Americans on
> their telephone bills now.
>
> Bentley says rural connectivity won't just improve schools, law enforcement
> communications and healthcare. He told the Legislature it will lead to
> "enhanced economic development opportunities."
>
> The governor offered few specifics on how the state will take to make that
> happen, but he did mention "cutting the bureaucracy" around Internet service
> now and providing infrastructure.
>
> Cutting the bureaucracy could mean making it easier for companies to access
> public rights of way and power poles to extend their services. It isn't
> immediately clear what "providing infrastructure" might mean.
>
> Opelika and Auburn
>
> One example of the complications is found in Opelika and neighboring Auburn.
> Opelika has a municipally owned and operated high-speed system that provides
> television, telephone and Internet service to customers – so-called "Triple
> Play" service. The city originally ran and connected its fiber cable to
> create a "smart" utility grid, then realized it could provide additional
> services.
>
> But Opelika is banned by state law from offering Internet service to
> next-door Auburn because Auburn isn't in the Opelika city limits. Fencing
> Opelika protects other commercial Internet providers.
>
> Those Internet providers, including large telecommunications companies such
> as AT&T, Comcast and Charter, are leery of publicly owned Internet, to say
> the least.
>
> But providing high-speed Internet to schools and libraries isn't as
> controversial.
>
>  "We have provided school buildings with power, water and roads," Johnson
> said. "It's the government's role to also provide high-speed Internet."
>
> 'Not a horrible idea'
>
> "That's not a horrible idea at all," David Williams of the Washington-based
> Taxpayers Protection Alliance said Tuesday of the school initiative.
>
> "This is money that's already there," Williams said of the E-rate program.
> "I wouldn't want to see the tax rate increased to put into the program."
>
> Williams' organization opposes most publicly owned Internet as a bad
> investment. He does not agree that providing high-speed Internet is "a core
> government service."
>
> Devil in the details?
>
> Back at Huntsville's Traveller Multimedia Network, Erwin is already serving
> rural areas with wireless connectivity across 2,700 square miles of North
> Alabama, including service for major new developments like the Polaris plant
> in areas without fiber access.
>
> "The issue comes down to how you make it happen," Erwin said of expanding
> service. He believes Bentley is sincere, but he's worried that big players
> could have undue influence in what happens next. "The usual suspects," he
> calls them.
>
>

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