Broadband initiatives affected by federal funding woes
CHENANGO COUNTY – Counties across New York may have trouble connecting to more than $170 million in federal funds for the purpose of making high speed internet access available in rural areas.
In a conference call with reporters on Wednesday, U.S. Senator Charles Schumer explained that the money, which was set aside for Upstate New York to expand broadband and high speed internet service, could be sent to other parts of the county because Verizon refused to participate in the “Connect America Fund,” a public-private partnership that uses taxpayer dollars to leverage private investments for high speed internet infrastructure.
Because Verizon did not accept money allocated through the Connect America Fund, the FCC is proposing to bid that money out to other states. But Schumer argues that money should stay in New York and be made available to other companies for the same purpose.
“The federal government should invest, not divest, in upstate internet access,” Schumer said. “That is why I am urging the FCC to immediately reverse course on this senseless proposal that takes money away from Upstate New York.”
Meanwhile, several other telecommunications companies nationwide have accepted funds through Connect America.
Schumer is partnering with Gov. Andrew Cuomo to reclaim the federal $170 million investment which would supplement the $500 million the state made available for broadband deployment just last year. It’s the governor’s proposal to have 100 megabyte per second broadband in the entire state by 2019.
In New York’s Souther Tier, there are nearly 64,00 households without access to high speed internet. Nearly 20,000 eligible Verizon locations are eligible for $8.1 million in federal funding.
In 2015, Chenango County officials took a step toward expanding broadband locally by investing $15,000 in a study to investigate the feasibility of broadband to homes and businesses in rural areas where high speed internet is inaccessible. Local funds paid 50 percent the cost of the study while the remaining 50 percent was picked up by Southern Tier East Regional Planning Development, an economic development organization contracted by the county to help identify quality of life issues in the area.
To date, only 25 percent of Chenango County has high-speed internet access. When the study’s complete, county administrators and Southern Tier East hope to use results to entice a private-public partnership with a telecommunications company to fund the construction of broadband infrastructure in rural areas of the county.
If the study yields results that support a need for broadband, Southern Tier East will seek state and federal grants and tax breaks that incentivize private investment for broadband infrastructure. The cost of fiber optic capable for broadband, on average, reaches upward of $40,000 per mile and only increases if cable is run underground. But there may be opportunities for state funding to leverage private investments if the county has a formalized plan.
As for any potential for federal money to leverage state and local investments, Senator Schumer is calling on the FCC to adopt rules that enable states like New York, who are conducting their own state-funded broadband auctions, to partner with the FCC in order to achieve deployment objectives that meet or exceed those of the Connect America Fund program so that the money can remain where it was originally allocated.
In a conference call with reporters on Wednesday, U.S. Senator Charles Schumer explained that the money, which was set aside for Upstate New York to expand broadband and high speed internet service, could be sent to other parts of the county because Verizon refused to participate in the “Connect America Fund,” a public-private partnership that uses taxpayer dollars to leverage private investments for high speed internet infrastructure.
Because Verizon did not accept money allocated through the Connect America Fund, the FCC is proposing to bid that money out to other states. But Schumer argues that money should stay in New York and be made available to other companies for the same purpose.
“The federal government should invest, not divest, in upstate internet access,” Schumer said. “That is why I am urging the FCC to immediately reverse course on this senseless proposal that takes money away from Upstate New York.”
Meanwhile, several other telecommunications companies nationwide have accepted funds through Connect America.
Schumer is partnering with Gov. Andrew Cuomo to reclaim the federal $170 million investment which would supplement the $500 million the state made available for broadband deployment just last year. It’s the governor’s proposal to have 100 megabyte per second broadband in the entire state by 2019.
In New York’s Souther Tier, there are nearly 64,00 households without access to high speed internet. Nearly 20,000 eligible Verizon locations are eligible for $8.1 million in federal funding.
In 2015, Chenango County officials took a step toward expanding broadband locally by investing $15,000 in a study to investigate the feasibility of broadband to homes and businesses in rural areas where high speed internet is inaccessible. Local funds paid 50 percent the cost of the study while the remaining 50 percent was picked up by Southern Tier East Regional Planning Development, an economic development organization contracted by the county to help identify quality of life issues in the area.
To date, only 25 percent of Chenango County has high-speed internet access. When the study’s complete, county administrators and Southern Tier East hope to use results to entice a private-public partnership with a telecommunications company to fund the construction of broadband infrastructure in rural areas of the county.
If the study yields results that support a need for broadband, Southern Tier East will seek state and federal grants and tax breaks that incentivize private investment for broadband infrastructure. The cost of fiber optic capable for broadband, on average, reaches upward of $40,000 per mile and only increases if cable is run underground. But there may be opportunities for state funding to leverage private investments if the county has a formalized plan.
As for any potential for federal money to leverage state and local investments, Senator Schumer is calling on the FCC to adopt rules that enable states like New York, who are conducting their own state-funded broadband auctions, to partner with the FCC in order to achieve deployment objectives that meet or exceed those of the Connect America Fund program so that the money can remain where it was originally allocated.
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