Mayor Justin Bibb picked DigitalC for a $20 million city contract to provide low-cost broadband internet to Cleveland residents. That included offering $18-a-month internet for at least five years.
DigitalC rents its internet from Everstream, which built an in-ground fiber network throughout Cleveland.
In May, Everstream filed for Chapter 11 bankruptcy protection, and on Aug. 1, it was announced that Missouri-based Bluebird Fiber would purchase Everstream. That sale should be closed by the end of 2025.
Edmonds, responding to questions at a council committee hearing Thursday, said that Bluebird has not indicated they’ll change the price they offer DigitalC. Edmonds said DigitalC is also looking to find other suppliers.
Assets of DigitalC and Everstream were once part of OneCommunity, which was created in 2004 to extend fiber for broadband services to hospitals and other nonprofits.
DigitalC started connecting residents under the new city contract in 2024, but the five years of $18 a month started this July, Edmonds told council.
Edmonds said that the $18-a-month price point is well below costs for DigitalC, and he added that for many internet providers, residents are not a money-maker.
DigitalC plans to generate revenue by offering internet to businesses and other larger internet users to be sustainable over time. The nonprofit is piloting that service with five customers at the moment, Edmonds said.
As of Sept. 30, DigitalC had 6,471 subscribers. Edmonds told council that DigitalC is now available to all Cleveland residents — though he said previously that DigitalC is prioritizing households that either didn’t have broadband before or were previously on the federal Affordable Connectivity Program.
Under the city’s contract, DigitalC must connect 23,500 households over four years, with benchmarks to hit each year.
DigitalC had to connect 3,500 households in 2024 but only connected 2,800 and lost $1 million of its $1.75 million payment. The nonprofit’s goal is 4,700 new customers in 2025, and it is currently on track, according to numbers provided to council.
Councilman Brian Kazy, who chairs council’s utilities committee, said he was willing to cut DigitalC some slack in 2024. But if DigitalC doesn’t hit its 2025 goal, it’s all or nothing.
DigitalC is funded by Cleveland’s $20 million contract, as well as $10 million from state funds and another $20 million from the Mandel Foundation and David and Inez Myers Foundation.
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