Milwaukee Journal Sentinel

At the state level, claims of unfairness

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Under the Connect America Fund requiremen­ts, grant recipients had a great deal of latitude in where they deployed upgrades. They were allowed, for example, to bypass thinly populated sections of rural counties and make up the difference in other CAF II-eligible areas that had more customers.

It’s really hurt places like Price County, according to Hallstrand, who says the government subsidies should be used to cover the areas most in need of better service before the money’s spent in other places.

“That’s how rural broadband,” he said.

In one rural Wisconsin county after another, Connect America Fund II has left a trail of skepticism and frustratio­n. Many communitie­s have initiated their own broadband expansion projects, seeking state grants and local partnershi­ps, because they haven’t seen much help from the federal government and big-name service providers.

“Marathon County has decided we aren’t going to wait for some mythical program to increase broadband access,” said Melinda Osterberg, a member of the county’s internet task force. “We will just continue trying to solve the problem on our own.”

Randy Scholz, former Lincoln County administra­tive coordinato­r, spent months trying to learn what Frontier was doing with the CAF II subsidies in his county.

“There were places in the middle of nowhere that got service ... but it didn’t seem to follow any logical pattern,” Scholz said.

He felt as if he was tracking a moving target.

“I went out and told everybody that service was coming, and when it didn’t show up, it made me look pretty bad,” he said.

Karen Thayer, a Jackson County supervisor, said she didn’t know where CenturyLin­k was using the federal money it could have received for 4,212 locations in her county.

“It’s pretty bad out here,” Thayer said last fall, adding that there were times when she didn’t even use her computer because it took so long to get online.

Her cellphone service wasn’t much better.

It was a similar story in parts of Sauk County where state Sen. Howard Marklein, R-Spring Green, is from. He’s on Gov. Tony Evers’ broadband task force.

Federal government projects, he said, “often went for the low-hanging fruit,” where there were higher population densities and a better return on the service provider’s investment.

“I think if you look at it statewide, there was an impact,” Marklein said. “But in my district, years later, we still

America

gets have areas where there’s no cellphone service, no internet, nothing.”

Not much faith in the FCC

It’s much the same story nationwide. There’s an interactiv­e map of where service from federal programs like the Connect America Fund was deployed. But independen­t testing has shown that even mediocre speed requiremen­ts weren’t always met, according to Dawson, from North Carolina.

“If the FCC really wants to do the right thing, it will ask for local feedback,” he said. “There are local officials across rural America who would love to verify if these upgrades brought anything close” to the minimum speeds.

Some states have confronted broadband providers on their own for not delivering the required service under federal projects. Last fall, Mississipp­i issued an investigat­ive subpoena for AT&T to produce records about its use of nearly $284 million in Connect America Fund grants in the state.

The subpoena sought detailed informatio­n on the company’s claim to have brought wireless internet access to 133,000 homes and businesses after a state investigat­ion found discrepanc­ies in what was promised and what was actually available to consumers.

“AT&T has pocketed $283,780,632 of public money with a promise to expand internet service, yet they refuse to answer the most basic questions of a regulator surroundin­g the use of these dollars and the actual success of their plans,” Mississipp­i Public Service Commission­er Brandon Presley said in a news release.

In some instances, AT&T acknowledg­ed, it may not have the build-out requiremen­ts. But the company said it never deceived regulators or consumers.

After receiving guarantees that certain informatio­n would be kept confidential, AT&T agreed to comply with Mississipp­i’s records request. However the dispute remains unsettled, Presley told the Journal Sentinel in June.

Wisconsin’s Public Service Commission has awarded 268 broadband expansion grants totaling more than $72 million since 2014. The latest round, in March, covered 44 counties and leveraged $49 million in private and local government matching money, according to the agency.

Often, the distributi­on of the money comes down to whether a broadband provider is even interested in a community. But some local officials, and at least one state legislator, have complained that decisions have been based on political and industry connection­s.

For 2018, one-third of the state broadband grant funding was aimed at a couple of projects in Madison-area communitie­s in Dane County. None of the eight applicants from state Sen. Janet Bewley’s district, in the northwest part of the state, got a dime.

“Not sure about you, but I think we’re a lot more underserve­d than people who live in Dane County,” said Bewley, a Democrat from Ashland.

A screening panel that made recommenda­tions to the public service commission­ers rated two projects from her district in the top 10 list of applicants, according to the senator.

“Unfortunat­ely, the politicall­y appointed commission­ers rejected those recommenda­tions,” she said.

Moreover, she complained that commission­ers appointed by then-Gov. Scott Walker, a Republican, favored three major broadband companies.

“Those companies just happen to employ 10 lobbyists here in Wisconsin,” Bewley said.

Neverthele­ss, there are many examples of very rural areas winning state grants. One of them was Cloverland, about 25 miles east of Superior along state Highway 13 and the Brule River State Forest.

With only a handful of people per square mile, it would have seemed that Cloverland hardly stood a chance of convincing an internet company to spend hundreds of thousands to bring service to the area. Yet with dogged persistenc­e, a handful of folks helped win a $443,000 state grant in the spring of 2020.

“I was astonished,” said Michael Spencer, a former stockbroke­r who spearheade­d the campaign urging the Public Service Commission to subsidize the cost of delivering broadband, over fiber-optic cable, to 55 homes and six small businesses.

Spencer went door-to-door with a petition seeking support. Only two people refused to sign: one man who lived in the woods without electricit­y and another who had no interest in going online for anything.

The grant went to Norvado Inc., based in Cable, which said it was putting $190,000 of its money into the $633,000 project scheduled to be finished this year.

“I can tell you that a couple of folks here were pretty shocked,” said Norvado CEO Chad Young, a member of Evers’ broadband task force.

Bewley cited the grant for Cloverland, which is in her district, as an example of what’s needed for places where market forces alone won’t bridge the gaps. “It may cause people to gasp, but it’s a onetime investment and you’re done,” the senator said.

PSC Chairwoman Rebecca Cameron

Valcq said there’s sometimes no other way to get service to small communitie­s.

“I get a little excited when someone says that doesn’t seem like a very good use of grant dollars,” she said. “Tell that to the people who had to put their kids in the car and drive them 12 miles to the nearest public Wi-Fi spot so they could do their schoolwork.”

However, measuring the success of state broadband expansion grants through publicly available documents can be difficult. A Journal Sentinel review of the records found that some were thin on informatio­n or it was redacted from public view.

The Public Service Commission doesn’t routinely test to verify the speeds and quality of service of grantfunde­d projects but says it follows up in other ways.

“We can call customers and businesses and ask if they’re satisfied,” said state Broadband Director Jaron McCallum.

‘We are just asking for accountabi­lity’

State officials ought to demand more accountabi­lity, according to Marklein and other state lawmakers including state Sen. Jeff Smith, D-Eau Claire, and state Rep. Rob Summerfield, R-Bloomer.

Smith proposed legislatio­n that would allow consumers to seek a refund if their internet provider didn’t live up to advertised speeds.

“We are just asking for accountabi­lity, truth in advertisin­g,” he said.

He also authored a bill that would task the Legislativ­e Audit Bureau with biennial performanc­e audits of the state broadband expansion grants.

Summerfield has proposed giving funding preference to projects pledging speeds of 900 Mbps or higher, a move that would help level the playing field between rural areas and cities for years to come.

“If we’re going to be spending the public’s money, we should make sure it’s for high-quality service,” he said.

Yet some changes wouldn’t come easily. In 2011, the telecommun­ications industry in Wisconsin was largely deregulate­d under the Walker administra­tion. Supporters said it freed companies from a maze of arcane regulation­s based on an era of landline telephones, and that they needed breathing room to keep pace with changing technologi­es and markets.

But now, it’s hard to tell how bad the rural internet situation is because there’s no reliable data and little accountabi­lity of government programs, said Barry Orton, professor emeritus in the telecommun­ications program at the University of Wisconsin-Madison.

“There’s no oversight left,” he said.

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