American Rescue Plan Act (ARPA)

Virginia’s recently passed law to speed broadband deployment to rural areas now has a financial component. Gov Glenn Youngkin’s (R-VA) signature on the General Assembly’s budget bill will move $50 million over two years from the general fund to the Virginia Telecommunication Initiative, or VATI. The new law, SB 713, is set to go into effect July 1.

Despite the challenges we’ve faced, we’ve emerged stronger and poised for future growth. Investing in high-speed internet is an Administration-wide priority, with a goal of connecting every American by 2030. It’s a key example of our agenda to expand our economy’s capacity to produce in order to drive growth while increasing opportunity for people and places that haven’t had enough of it.

Treasury Secretary Janet Yellen visited a recently completed Comcast rural broadband project in Stafford County, Virginia, highlighting that this is a public-private project between Comcast and the county. The giant cable company is involved in public-private partnerships across its national footprint. For years cable operators such as Comcast, Charter and Cox have fought hard against municipal broadband projects, always crying that it’s wrong for taxpayer dollars to compete against their private investments.

In 2021, Los Angeles County leaders decided they wanted to close the digital divide in some underserved areas. So, the county issued a request for proposal, soliciting bids from broadband providers. Surprisingly, WeLink, a relatively unknown fixed wireless access (FWA) provider, won the contract, beating out incumbents such as AT&T and Charter Communications.

Windstream, Colquitt Electric Membership Cooperative (EMC) and Lowndes County (GA), are teaming up on a $39 million public-private partnership to bring broadband to about 16,000 locations in the county. Windstream is contributing about $17.6 million. The other $21.7 million is funded through the Georgia State Fiscal Recovery Fund and the county. Windstream will handle cost overruns. The project, which will provide multi-gigabit service to users, will include 806 miles of fiber.

 There are several important changes to the broadband industry that came out of our collective pandemic experience.

The rural broadband industry has such a great success story to tell. In the face of transformative technologies, regulatory challenges and increasing competition, you have embraced that change, stayed committed and looked to close the digital divide by delivering the robust and high-quality services that you do every single day. Your commitment to sustainable networks and affordable services is what really has made rural communities fertile ground for innovation. We’ve seen that in so many ways, and this innovation contributes billions of dollars to the U.S. economy every single year.

The National Telecommunications and Information Administration preparing to award over $44 billion to construct rural broadband networks. Almost by definition, these networks will be built in rural areas where it’s hard to justify a business plan where revenues generated from the grant areas are sufficient to fund the ongoing operation and eventual upgrades to any broadband networks.

The Pennsylvania Broadband Development Authority (PBDA) approved $204 million in Broadband Infrastructure Program (BIP) grant awards to 53 projects in 42 counties across Pennsylvania that will connect 40,000 homes and businesses, bringing high-speed internet to over 100,000 Pennsylvanians. The grants, awarded to businesses and non-profits, will be matched by more than $200 million in private investment.

The Maine Connectivity Authority awarded two grants to connect hard-to-reach locations in Fayette and Wilton with access to affordable, quality, high-speed internet. The Town of Fayette, in cooperation with Consolidated Communications, will receive a Connect the Ready grant of $1,875,000 to reach approximately 440 homes and businesses. The town of Wilton, also in collaboration with Consolidated Communications, will receive a Reach Me grant of $311,000 to connect approximately 169 hard-to-reach locations requiring underground infrastructure.