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HARRISBURG — In the coming years, Pennsylvania will receive more than
$1 billion in federal funding to bring high-speed internet access to
everyone in the state.
It’s a historic opportunity and a serious challenge, according to a
new plan from the state Broadband Development Authority that outlines how it will accomplish that goal over the next five years.
The money comes from the wide-ranging bipartisan infrastructure bill
signed into law by President Joe Biden in 2021. Pennsylvania will also
receive an estimated $900 million for broadband from other federal
programs and private investment required as a condition of grant
funding.
Here are five obstacles Pennsylvania will have to navigate as it spends the money, according to the authority’s plan:
Workforce Shortages
Engineers. Technicians. Electricians. Surveyors. Laborers.
Pennsylvania will need an estimated 117,000 workers to build new
broadband networks. The state’s plan details how low unemployment and a
tight labor market could make finding them a challenge. In July,
internet service providers told the state broadband authority they were
having difficulty hiring and keeping workers "due to intense
competition, training prerequisites, and the industry’s unique technical
demands.” Pennsylvania needs "rapid support” from training programs,
the plan says.
Supply Chain Problems
Although the global supply chain is rebounding after the disruptions
of the pandemic, problems remain, the state plan notes. Difficulty
obtaining electrical components and high-tech chips could delay projects
and drive up costs. Additionally, demand will surge as all 50 states
give out grants to build new networks on roughly the same schedule. A
federal law that requires all construction materials for infrastructure
projects be produced in the U.S. will also limit the available supplies.
The huge broadband buildout will require a vast number of permits
from Pennsylvania’s more than 2,600 municipalities and differences in
the way they process them could add costs and slow projects down.
The Broadband Development Authority suggests the state consider
paying for temporary staff to help local governments handle permits.
Pennsylvania’s plan also argues that establishing a statewide permitting
standard would make the process more efficient.
The Cost Of An Internet Subscription
Bringing broadband to everyone in the commonwealth won’t improve
residents' lives if the service is too expensive, the Broadband
Development Authority warns. As part of an ongoing statewide survey, 56%
of respondents said the cost of a subscription was a challenge. Just
over half said paying their monthly internet bill was either "somewhat”
or "very” difficult.
Exactly what Pennsylvania could require from internet service providers in exchange for grant dollars is still being decided.
The state could mandate that companies receiving grant funds
participate in a federal program that gives low-income households
discounts of up to $30 per month on their internet bills. In
Pennsylvania, however, less than a third of eligible households were
enrolled in the program as of July. It is also projected to run out of
money next year unless Congress increases its funding.
Limited Competition Among Providers
More than half the responses to the state survey said residents had
no choice of internet service provider. A lack of competition can result
in higher prices, the plan notes.
Federal rules limit states’ ability to use grant funding to increase
competition in areas that already have high-speed internet. But the plan
says that when scoring grant proposals, Pennsylvania "may prioritize”
companies that "bring competition into the market statewide” by offering
a chance for small local companies to grow.
This plan doesn’t spell out how Pennsylvania will evaluate grant
proposals and choose which ultimately receive funding. That will come in
another document which must be submitted to the federal government by late December.
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