Regular readers will recognize the story that the Minnesota Star Tribune tells of grant funds lost because of light scrutiny on applicants for federal funding. Broadband advocates are hoping that a new law will help protect loss in the future…
So some locals were optimistic when, in 2020, LTD Broadband, a company with Minnesota ties, received more than a billion dollars in federal funding to provide broadband to rural areas like Le Sueur County. Because of the provisional grant, the county found itself shut out of state funding for its own programs because of possible overlap with LTD territories — even though officials in Le Sueur worried the company’s efforts would fail.
LTD’s plans fell apart in 2022 after state and federal regulators revoked key licenses and canceled grants after determining the company couldn’t fulfill its promises.
The result has been missed opportunities for the county, said Barbara Droher Kline, a financial planner and rural broadband consultant for Le Sueur County. She and other broadband advocates said they hope a new federal law will force the U.S. government to do a better job vetting broadband internet providers and their promises.
The Rural Broadband Protection Act, introduced by U.S. Sens. Amy Klobuchar of Minnesota and Shelley Moore Capito of West Virginia, directs the Federal Communications Commission to provide more thorough scrutiny.
“The new FCC vetting process will confirm that providers have the ability — financially, technically and operationally — to follow through with their commitments,” Klobuchar said in a statement to the Minnesota Star Tribune. “This will prevent situations where companies that win federal funding to deploy rural broadband cannot actually deliver service.”
Advocates say the impetus for the law came from the fallout with LTD. The company, which rebranded in 2023 and is now known as GigFire, did not respond to requests for comment.