This year, legislators introduced numerous broadband bills and the budget passed by the Indiana House of Representatives calls for $250 million in broadband funding. The following may be unpopular, at least at first glance, but I suggest it begs consideration: In two years, will we consider this a wise “investment”?
Ensuring that every Hoosier has access to high-speed broadband is a worthwhile goal and an Indiana Chamber priority. Enabling everyone who cannot afford it to adopt available service is equally compelling. I argue, however, that we should contemplate thoroughly the future of the industry and consider various options for spending taxpayer dollars efficiently.
On Monday, Elon Musk stated in a series of tweets that SpaceX’s Starlink (satellite) internet service will cover “most of Earth by end of year, all by next year,” and “speed will double to ~300Mb/s.” So, according to these projections, ALL of Indiana will have access to broadband with speeds that are more than 10 times the Federal Communication Commission’s minimum definition of “high speed.” If true, then should we slow the spending on new fiber networks and instead help Hoosiers pay for the $500 Starlink kit? (NOTE: SpaceX is not an Indiana Chamber member).
Indiana has made “the largest single state investment in broadband” in its history, according to the Office of Community and Rural Affairs (OCRA): $100 million. To date, the state has awarded the following broadband grants:
- August 2019: $22.1 million to connect 4,789 homes and businesses
- November 2019: $6.4 million to connect 6,535 homes and businesses
- September 2020: $51.0 million to connect 10,590 homes and businesses
In sum, Indiana has awarded more than $79 million to providers that promise to deliver broadband infrastructure to more than 21,900 locations; in other words, approximately $3,600 per location.
State leaders should also take heed of OCRA’s August 1, 2020 report on the Next Level Connections – Broadband Grants for Rural Areas program. The report only covers projects announced in 2019. The current status of all projects is unknown. That said, at the time of OCRA’s publication – or nearly one year after the first $22.1 million was awarded – the program had resulted in 241 locations being connected and an adoption rate of 43%.
Please do not interpret this Tech Talk as criticism of the Holcomb administration or its objective to expand broadband into rural Indiana. That is a largely universal goal. The question is not “if” but “how” to best accomplish this priority.
I raise these points merely to spur some thought about the future of high-speed broadband technology and facilitate a constructive conversation about the best way to spend hundreds of millions of dollars to provide access and enable adoption.
Starlink will not be the best solution for every Hoosier. Even Musk admits: “How good a solution Starlink is for your connectivity needs will depend on where you are … cellular will always have the advantage in dense urban areas [but] satellites are best for low to medium population density areas.”
In closing, I offer the following: Senate Bill 377 and House Bill 1449 call for the establishment of a “connectivity fund” – which means every resident or business that wants, but does not have, access to high-speed broadband can contact OCRA and providers can competitively bid on providing service to those locations. This policy is “medium agnostic,” guarantees 100% adoption and, arguably, expedites deployment whether it be via a wireless or hardline solution. This, in my view, is an efficient and effective way to expand high-speed broadband to Hoosiers hungry to enter the 21st century.
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