Frontier questions broadband grants in West Virginia

West Virginia's largest Internet provider is questioning whether the state Broadband Deployment Council should distribute $3.15 million in grants to make broadband service available to an estimated 2,600 homes in rural communities.

The $1,200-per-household cost is about $500 more than what a federal grant program spends to subsidize broadband expansion in rural areas. One Pocahontas County broadband project recommended for state funding would cost about $10,000 per household. "Clearly West Virginia taxpayers have an interest in the prudent use of their funds," said Frontier Communications executive Dana Waldo, who also serves on the Broadband Council. "Cost should be a concern." Waldo also predicts the grants could discourage private investment. Telecommunication firms might choose not to expand broadband service on their own, if they believe the government plans to subsidize competitors, he said. "State code cautions that the council should respect market forces and avoid duplicating or displacing existing service or getting involved in projects where companies will serve the market in the reasonably near future," said Waldo, senior vice president and general manager of Frontier's West Virginia operations. But council member Lee Fisher, a Braxton County farmer, said Frontier's objections shouldn't stop the board from handing out grants to the company's competitors next week.