Burlington Telecom: The City's Broadband Story

Burlington, Vermont, waterfront and boathouse on Lake Champlain. Photo: Tony Webster from Minneapolis, Minnesota / Wikimedia Commons, CC BY-SA 2.0.

Long before “fiber to the home” was a common phrase, Burlington set out to build its own. Burlington Telecom (BT) became one of the first city-owned fiber-optic networks in the country, offering internet, television and phone service. Its history includes ambition, a financial crisis that shook city government, years of litigation and a sale to a private company. It’s still cited when Vermont debates who should build broadband.

Why Burlington built it

In the late 1990s and early 2000s, city leaders worried that private providers wouldn’t upgrade Burlington to modern broadband quickly or affordably. The city sought state approval to build a municipal network, and the Vermont Public Service Board (now the Public Utility Commission) granted a certificate with conditions. One key condition: city taxpayers shouldn’t be left carrying the system’s costs.

Construction began in the early 2000s, and service rolled out to customers in the mid-2000s.

The financial crisis

By 2009, BT was in serious financial trouble. The network had cost more and signed up customers more slowly than projected. Investigations later showed the city had moved general-fund cash to BT, about $17 million, beyond what its state certificate allowed. BT also struggled to make payments on a lease-financing arrangement for its equipment with CitiCapital, a Citigroup unit.

The situation became a major political crisis in early 2010. Mayor Bob Kiss and City Council President Bill Keogh issued public statements as the council and the public demanded answers. State regulators opened proceedings, Citibank sued the city, and Moody’s cut Burlington’s credit rating, raising the city’s borrowing costs. In March 2012, voters elected Miro Weinberger mayor, partly on promises to fix the city’s finances.

Settlement and sale

Over the next several years, the city worked through a settlement with Citibank, including an interim arrangement that put BT under the temporary ownership of Blue Water Holdings while a permanent buyer was sought. After a public selection process with several bidders, the city chose Schurz Communications, an Indiana-based family-owned company that owns several regional broadband providers.

The Vermont Public Utility Commission approved the sale, and in March 2019 Schurz subsidiary Champlain Broadband LLC closed on the acquisition. BT kept its name and local management, and the sale agreement included commitments on service and customer protections. Burlington’s credit rating later recovered.

Burlington Telecom today

BT remains a Schurz Communications company and describes itself as a 100% fiber-to-the-home provider. It serves Burlington and parts of South Burlington, Winooski, Essex Town, Essex Junction and Colchester, according to the company. In January 2026, BT announced that longtime leader Mike Loucy had retired and that Mike Callahan had been named president and general manager.

Lessons for Vermont’s broadband buildout

BT’s story is a cautionary tale and a proof of concept. The network showed a city could build and run high-quality fiber. The crisis showed how much governance, financial transparency and realistic subscriber projections matter when public money is involved.

Those lessons shaped Vermont’s later approach. Rural fiber is now being built largely by Communications Union Districts (CUDs), municipal entities formed by groups of towns. By law, CUDs can’t put member towns’ taxpayers on the hook for their debts, and they’ve relied on federal and state grants, revenue bonds and partnerships with private operators. Read our explainer on how CUDs work.

Key dates

Early 2000s: Burlington wins state approval to build a municipal fiber network and begins construction.
Mid-2000s: Service launches to homes and businesses.
2009–2010: The financial crisis becomes public, including roughly $17 million in city funds moved to BT, troubles with lease financing, and a Citibank lawsuit.
2010: Moody’s downgrades Burlington’s credit rating.
2014–2015: A settlement with Citibank and an interim ownership arrangement through Blue Water Holdings.
December 2017: The asset purchase agreement with Schurz’s Champlain Broadband is signed.
March 2019: The sale closes after state regulatory approval.
January 2026: Mike Callahan becomes president and general manager of BT.

Why it still matters

Municipal broadband remains a live policy question nationally. Burlington’s experience is often cited by both supporters, who point to the network’s quality and survival, and skeptics, who point to the financial risk taxpayers faced.

Related coverage

See our guide to Church Street Marketplace, Burlington’s downtown pedestrian mall, and our explainer on small business financing. More in Business.

Sources

Schurz Communications, “Champlain Broadband Closes on Transaction to Acquire Burlington Telecom,” March 13, 2019: https://www.schurz.com/2019/03/schurz-communications-subsidiary-champlain-broadband-closes-on-transaction-to-acquire-burlington-telecom-in-vermont/
Burlington Telecom, leadership announcement, Jan. 7, 2026: https://www.burlingtontelecom.com/
Vermont Public Utility Commission, Burlington Telecom dockets: https://epuc.vermont.gov/
City of Burlington: https://www.burlingtonvt.gov/