Dubbed the Broadband Connections for Rural Opportunities Program Act, the legislation seeks to combine loan and grant programs that could finance large-scale broadband infrastructure projects in the north country.
Projects could see funding of up to 50 percent with federal grants as well as up to 75 percent in combination with loans available through the U.S. Department of Agriculture’s Rural Utilities Service.
Additionally, the bill doubles the authorized funding for the Rural Utilities Service program to $50 million per fiscal year.
“Every single business, family and farm in this county and in this state need internet access, and so this is fundamental.” Sen. Gillibrand said. “It’s as important as electricity, it’s as important as water. We have to have this for our communities to thrive.”
Westelcom covers roughly 186 miles from east to west and 60 miles north to south. Within towns and villages in the coverage zone, Westelcom has fiber networks for business and healthcare facilities.
Paul F. Barton, president and general manager of Westelcom, said the challenge of providing broadband access to farms in rural communities is the business model — fiber internet construction costs $15,000 to $20,000 per mile, and if there are only a couple of homes or businesses within a vast area, the cost per customer skyrockets.
Mr. Barton said the grant component of Sen. Gillibrand’s legislation would help offset those costs, allowing for broadband internet installation at a cheaper rate for customers. With farms now more reliant on internet to run operations, Mr. Barton said Westelcom has had discussions with local farmers on how to provide faster internet. But the costs have gotten in the way.
“We could very easily drain our cash flow building out fiber with no return for many years,” Mr. Barton said.
Scott A. Gray, chairman of the Jefferson County Board of Legislators, said that with agriculture being one of the county’s largest industries, the bill could give it a competitive edge.
“Anytime we can make our region more competitive and close the gap like this, we’re further ahead,” he said.
Earlier this year, U.S. Rep. Elise M. Stefanik, R-Willsboro, also made strides to improve internet access to farmers. In July she introduced the Precision Farming Act of 2016, which offers financial incentives for broadband providers and farms. Service providers would receive a one-time $15,000 reimbursement for each line installed for a qualifying precision farming operation. Additionally, farmers who apply for loans to cover installation costs will have their applications prioritized per the Rural Electrification Act.
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©2016 Watertown Daily Times (Watertown, N.Y.)
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