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Annoying for the residents affected but absolutely the right decision. However, it could have been foreseen in November before the contract was signed that this was a stupid idea. And why rely on a US company when a local company (Xplore Inc.) also offers this? Were there any local laws that require the contract to be awarded to the cheaper/better provider, even if there are local companies?
Governments are always pressured to take the lowest bid, regardless of whether that bid is realistic, and regardless of how often it blows up in their faces.
Having used Xplore when I lived in an unserviced rural area, the service is extremely shotty.
This is the right decision non the less.