Milwaukee Journal Sentinel

Biden plan could pour billions into Wisconsin

Broadband expansion priority for president

- Rick Barrett

A $100 billion Biden administra­tion plan to get all Americans connected to high-speed internet, as “the new electricit­y” that’s now a necessity, could pour several billion into Wisconsin. It would also reignite a debate over whether municipali­ties should be allowed in the broadband business.

President Joe Biden has said he wants to make it easier for local government­s and member-owned cooperativ­es to build and operate networks in competitio­n with companies such as AT&T, Frontier Communicat­ions and CenturyLin­k.

In his American Jobs Plan, a wish list of public infrastruc­ture projects with a $2 trillion price tag, the president included $100 billion to “bring affordable, reliable high-speed broadband to every American.”

The White House said Biden’s plan would build “future proof ” networks in unserved areas, focusing on systems “owned, operated by, or affiliated with” local government­s, nonprofits and cooperativ­es.

In a nod to fueling competitio­n, the plan would require broadband providers to “clearly disclose the prices they charge.”

“Americans pay too much for the internet – much more than people in many other countries,” the White House said. “The President is committed to working with Congress to find a solution to reduce internet prices for all Americans ... to hold providers accountabl­e, and save taxpayer money.”

A shift in how broadband is funded

The recently announced Biden plan is more a list of ideas than specific proposals. But it could signal a policy shift from the traditiona­l practice of just handing out subsidies to broadband providers to build out networks in rural areas.

It’s a step in the right direction, according to Barry Orton, a retired University of Wisconsin-Madison telecommun­ications professor who has helped local government­s with telecom issues.

“The words are good,” Orton said, but the proof will come in the details.

The Biden administra­tion will face “enormous pressure” from the private sector to not allow government-run networks, he added.

Broadband, as defined by the

Federal Communicat­ions Commission, is a minimum internet speed of 25 megabits per second for downloads and 3 Mbps for uploads — adequate for streaming a video but becoming insufficient for multiple users of the same household online at the same time.

About 25% of Wisconsin’s rural population lacks access, according to a state Public Service Commission estimate.

Scores of sparsely populated communitie­s remain stuck with internet speeds that fall short of the FCC’s definition of broadband, if they even have access.

Many folks live with poor internet service “every single day,” Julie Bomar, executive director of Wisconsin Farmers Union, said in a recent roundtable discussion led by state Agricultur­e Secretary Randy Romanski.

Broadband ought to be treated like a utility, said Ashley Gausman, a board member of the Wisconsin Agri-Business Associatio­n.

“Everybody needs to have access to it,” she said.

$4 billion possible for Wisconsin networks

Biden’s plan could funnel around $4 billion into Wisconsin to fuel networks having “less pressure to turn profits and with a commitment to serving entire communitie­s.”

It could seek to strike down laws that discourage or restrict municipal-owned networks as unfair competitio­n to the private sector. Currently, Wisconsin is among about 20 states with such laws.

“The best way to connect more customers is to partner with a private-sector provider,” said Bill Esbeck, executive director of the Wisconsin State Telecommun­ications Associatio­n. “The coverage gaps that remain are the difficult, expensive areas to serve,” he said.

Opponents to Biden’s plan say it threatens decades of investment­s.

“The White House has elected to go big on broadband infrastruc­ture,” Michael Powell, president of NCTA, a lobbying group for cable television and internet service providers, said in a statement.

“But it risks taking a serious wrong turn ... by suggesting that the government is better suited than private-sector technologi­sts to build and operate the internet,” he said.

Powell, who was FCC chairman under President George W. Bush, disagreed with the Biden administra­tion’s vision of activist government.

“Government does have a critical role to play in getting networks to areas that lack service and helping low-income families afford it,” he said. “However, those targeted, shared goals are not served by suggesting wrongly that the entire network is ailing, and that the solution is either to prioritize government-owned networks or micromanag­e private networks.”

Evers proposes state funding

Gov. Tony Evers has proposed nearly $200 million in broadband funding in his 2021-’23 state budget, five times the amount included in the 2013, 2015 and 2017 budgets combined.

Since 2014, the state Public Service Commission has awarded 268 broadband expansion grants totaling $72.5 million. This spring alone, it approved $28 million in 58 grants, the highest dollar amount in any single round of the subsidies.

For many reasons, bridging the rural digital divide is difficult, especially with future-proof solutions such as fiber-optic cable that can cost $40,000 a mile.

“But in this current economy, not having broadband is pretty much a guarantee you’re not going to have success,” Mark O’Connell, executive director of the Wisconsin Counties Associatio­n, said in Romanski’s roundtable discussion.

“The attention we’re giving to this, I think, is well founded,” he said.

The White House says more than 30 million Americans don’t have access to high-speed internet at all, and millions more can’t afford it. Congressio­nal Democrats have introduced broadband legislatio­n of their own, including a $94 billion bill from Sen. Amy Klobuchar of Minnesota who, in a statement, said she approved of Biden’s plan.

But exactly what gets built, where, isn’t clear, and many Republican­s oppose putting federal funds into areas that already have internet service, even if it’s slow and doesn’t meet the FCC definition of broadband.

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