BUSINESS

Wisconsin will get at least $100 million for broadband expansion under the massive federal infrastructure bill

Rick Barrett
Milwaukee Journal Sentinel
Workers with Antico-Based Beno Communications Construction LLC bury fiber optic cable near Gresham. The Wittenberg Telephone Co. partnered with the Stockbridge-Munsee Band of Mohican Indians and landed a $457,508 Public Service Commission grant to bring service to about 200 homes and 25 businesses including the North Star Casino in Shawano County. The tribe supplemented the grant with money to cover hundreds of more homes. Once fiber optic cable is buried in the ground, it can be upgraded through electronics and software from stations located hundreds of miles away.

Wisconsin will get at least $100 million, to be used for broadband expansion, under the massive infrastructure bill passed by Congress and expected to be signed into law by President Joe Biden.

But it will take an almost surgical approach to solving the digital divide, in both rural and urban areas, for the money to be spent effectively, a panel of experts said Tuesday in a “broadband solutions” event sponsored by the Milwaukee Journal Sentinel, USA TODAY NETWORK-Wisconsin, and Marquette University’s O’Brien Fellowship in Public Service Journalism.

Otherwise, there’s a risk that people who already lack broadband, also known as high-speed internet, will be left even further behind as the gap widens between those who have the service and those who don’t.

“We know that it’s not just accessibility, but it’s affordability as well,” said one of the panelists, Rebecca Cameron Valcq, chairperson of the Wisconsin Public Service Commission.

Nationwide, Biden’s $1.2 trillion infrastructure plan includes about $65 billion for broadband expansion through a variety of programs. The largest of those, $42.5 billion, will provide an initial allocation of $100 million to every state, with additional funding based on coverage maps being developed by the Federal Communications Commission.

“I think we are in a very good position because of the number of dollars that are flowing in this direction. The federal government is now turning on the hose,” said one of Tuesday's panelists, Barry Orton, professor emeritus, telecommunications, University of Wisconsin-Madison.

“I would say that for municipalities and other public entities that are looking to provide broadband to their citizens, this is going to be their window of opportunity,” Orton said.

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The expansion projects would be required to deliver minimum broadband speeds of 100 megabit per second downloads and 20 Mbps uploads, much faster than what’s currently available in many rural areas. Grant recipients would also be required to provide at least one low-cost service plan for customers, although the program would not dictate prices. 

“Implemented correctly, this investment should go great distances toward connecting the millions of rural customers who still need reliable, sustainable and affordable access,” said one of the panelists, Shirley Bloomfield, CEO of NCTA—The Rural Broadband Association.

The infrastructure plan also allocates $14.2 billion for a broadband subsidy meant to replace the FCC's existing Emergency Broadband Benefit program. The new funding would create a permanent $30 a month subsidy to help low-income families afford service. 

"We are getting to the point where we are starting to take a very close look at affordability," Valcq said.

There's $2.75 billion for digital equity and inclusion work aimed at areas, typically with large populations of people of color, that have been overlooked or underserved by broadband service providers.

"If we are not really aggressive and thoughtful in our approach, we actually run the risk of putting people who are already disconnected -- because they may be income insecure or are in other historically marginalized groups -- even further behind," said one of the panelists, Vickie Robinson, general manager of Microsoft Corp's Airband Initiative that has launched service in Milwaukee's Lindsay Heights neighborhood. 

Some of the infrastructure money could start flowing into Wisconsin and other states in the next 12 months, although much of it will be over a period of about five years. 

"It's not just about writing checks for where we think the money should go. It's about using the best data that we can get our hands on to ensure that the dollars are going to be very targeted," Valcq said. "There is still work to be done, for sure."

Tuesday, the state PSC and Gov. Tony Evers announced that $100 million will be available for the next round of state broadband expansion grants. That's in addition to the hundreds of millions of dollars in state and federal funding already spent or allocated. 

The funding for the state grants comes from the 2021-'23 biennial budget signed by Evers in July, which provided $129 million over the biennium for expanding broadband to unserved and underserved areas of the state.

"We intend to open up that round of grant funding around December 1, with the aim of being able to award grants in the late spring or early summer of 2022," Valcq said. 

A significant portion of rural Wisconsin — if it has access to the internet at all — lacks access at broadband speeds, meaning a connection of at least 25 megabit per second downloads and 3 Mbps uploads. For them, ordinary tasks such as posting a video on a website are all but impossible.

"Broadband is not a luxury. It is a necessity for everyday living, and that is just becoming more and more apparent," Valcq said.

Tuesday's online event included Valcq, Bloomfield, Orton, Robinson, Jim Tuckwell, chairman of the Vilas County Economic Development Corp.; Keith Gabbard, CEO of the People's Rural Telephone Cooperative in McKee, Ky., and Jim Paine, mayor of the City of Superior.

A replay of the entire event is available on the Journal Sentinel's Facebook page.