Dissatisfaction with service from current internet providers led Ken Pearce with the Mineola Economic Development Corp. to seek alternatives.

Pearce reported his findings to the board last Tuesday night.

Lack of reliable service or good customer service spurred Pearce’s investigation into alternatives.

After discussions with Peoples Telephone in Quitman, Pearce said it appears to be feasible for the city to set up internet infrastructure and operate much like any other city utility. He said other Texas cities have pursued that avenue.

He approached Peoples because the company, which is a cooperative providing phone and internet services based in Quitman, has a fiber optic line around the Mineola loop. Its only local customers are city hall, a bank and the civic center.

What the arrangement with Peoples might be would have to be determined.

In his meetings with Peoples, Pearce said one reason the cooperative has not ventured into the Mineola market is doubt about whether there would be enough response to justify the expense of installing costly infrastructure.

But the city could assume some or all of that burden, minimizing the risk for Peoples.

Pearce stressed he is not trying to put other providers out of business, just create some additional competition that would hopefully lead to better service and products.

The MEDC board agreed to continue pursuing the idea.

The city council would have the final say on the project, and funding the infrastructure would likely require bonds.

Pearce said estimates he received from Peoples were based on the percentage of residents who subscribed to the service. Costs for 25% penetration would be $2.5 million and for 50% penetration would be $2.9 million.

Pearce said that Peoples planned to test the waters and sent flyers to residents in the Lakeside neighborhood about fiber optic lines, but received no initial response.

Board member Joe Williams suggested that interest might be higher for cable rather than internet, which Peoples does not provide.