Government Technology reports…
Last year Minnesota received an eye-popping $652 million in federal funding aimed at providing more Internet access to those who don’t have it.
But Internet companies are not going after the federal grants because of the regulations that would be attached to them, including providing low-cost services to low-income households.
Barbara Droher Kline, a consultant working with Le Sueur County to expand its rural broadband, said she spent three days at a seminar recently just learning about the regulatory requirements.“It’s very strict,” she said.
One problem is that there would be a 20-year federal lien on the fiber put in the ground using the grants. That’s something Internet companies and those who would help finance projects aren’t willing to accept.
Earlier this year, Le Sueur County received a $1 million grant from the U.S. Department of Agriculture to expand rural broadband. The money was earmarked by U.S. Rep. Angie Craig and Minnesota U.S. Sens. Amy Klobuchar and Tina Smith.With about two-thirds of Le Sueur County lacking high-speed Internet access, the grant seemed like a big boost.
Kline said the county is hoping to be able to use the $1 million grant, but the regulatory and other roadblocks are making it more difficult.
The county is waiting to hear from the state to see if Bevcomm, a Blue Earth-based Internet provider, will get the approvals it needs to complete a project in the county. There is also another potential project in the pipeline that would connect more residents in Ottawa to high-speed fiber.
She said another problem is that a recent map created to show what parts of the state are eligible for a share of federal/state funding is not accurate. Kline said there was “overreporting” of how much wire/fiber was in the ground in many parts of the state.
In last week’s Office of Broadband Development Office Hours session, community folks talked about how to prepare for BEAD opportunities. A strong suggestion was to start talking to local and/or potential providers now. That may be a way to engage providers and find ways to mitigate or offset the impact of federal regulations.