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Illinois Wants Gigabit Squared to Return $2 Million Grant
by Karl Bode 01:31PM Monday Mar 31 2014
After making a lot of noise and getting a lot of press last year about their ability to help cities improve penetration of 1 Gbps connections, Gigabit Squared turned out to be a bit of a pipe dream in Seattle. The city's partnership with Seattle -- and in turn their effort to build a 1 Gbps fiber network -- went up in smoke after the city complained that GigaBit Squared owed the city $52,250 but hadn't managed to actually do much of any work.

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The problems resulted in the resignation of a high-level Gigabit Squared executive, and now it appears the company is running into similar problems in Chicago. According to the Chicago Sun Times, the state is now trying to get $2 million in grant money back from the company, while accusing it of "lying repeatedly” about where and how the money was actually spent.

Gigabit Squared's response is much like its response to the problems it encountered in Seattle. Namely, to insist that nothing's wrong:
"Gigabit Squared’s new leadership team has a proactive, open, and honest dialoague (sic) with the State of Illinois to move towards a positive resolution of the project. This has included access to the company, its records, leadership, and meeting every deadline provided as part of the State’s normal review process.

“We are particularly puzzled by the comments regarding our delaying the process which is contrary to both verbal and written comments from the State indicating its appreciation for our openness and cooperation during this process," the statement said.
The Illinois Department of Commerce and Economic Opportunity, in contrast, says that Gigabit Squared only used $250,000 of the funds for "legitimate purposes" -- and that the company has failed repeatedly to disclose funding details.

topics flat nest 

Snohomish, WA


Gigabit Squared, LLC is a digital economic development corporation that specializes in the planning, implementation and rollout of communications infrastructure. Unlike incumbent telecommunications providers in the United States, who typically own and operate networks in addition to providing wholesale and retail Internet access services, Gigabit Squared designs and builds networks, but does not always finance, operate and maintain those networks.

Having raise $200 million back in 2011, does anybody remember them actually completing ANY usable network?
or is this all a pipe dream?

what's up
The Lou

Re: Umm...

That's not what their current website states... prominently on their homepage.

Evanston, IL
Is it really that hard to know they didn't do anything?

Their promises were to make almost no change, so not only did they underpromise but they also underdelivered simultaneously! They couldn't even keep up with the ridiculously terrible promises in the first place.


Newbury Park, CA

That Windy City

The City of Chicago doesn't like to deal with with lying, thieving scoundrels.... I've been told that they themselves hold the top position in that regard.
I read it in an email - so it must be true.

Washington, IL

Re: That Windy City

BTW, I just read the Chicago Sun-Times article.....Gigabit Squared's grant money was to cover a large part of Chicago's South Side, East of the Dan Ryan expressway. And guess who's neighborhood is smack dab in the middle of that area?????.......If you guessed BHO, go to the head of the class!!!!!

netbus developer
Evanston, IL

Re: That Windy City

yeah because correlation equals causation. gtfo

Going Nucking Futs

Chicago, IL

Don't Steal

The Government hates competition.

United We Stand, Divided We Fall

Santa Cruz, CA

1 recommendation

Re: Don't Steal

Yah but at least you usually get something when govt runs things.
They subsidized power and telephone lines that still kind of work 60 - 80 years later ...
Let them eat FIBER!

Seattle, WA

The whole thing reminds me of The Simpsons

... when Homer was running his upstart compu-global-hyper-mega-net, where the comic book guy needs a faster connection (to download nude pictures of Captain Janeway) compatible with his tolken ring adapters and Homer just stares at him and says "Please give me money".

Sounds like Gigabit Squared wants a solution in which they get to back out without paying a dime back to Illinois. Im pretty sure Seattle (who's Tech chief Erin Devoto, recently resigned) is going to sell whats owed to them into collections.