OP ED: RURAL BROADBAND PROGRAMS: AMERICA CAN DO BETTER

Rural Broadband Programs: America Can Do Better

by Rafael Fantauzzi

The National Puerto Rican Coalition (NPRC) has long advocated the importance of access to information technology and high-speed Internet service for economic and social advancement in our community, both on the mainland and on the island. Sadly, nearly ten million households lack access to basic broadband infrastructure, and efforts to bridge this digital divide have been slow.

The problem affects Puerto Rico more than almost any other state or territory. According to the FCC, less than 30% of rural Puerto Rican households have access to even the bare minimum standard for broadband services. 

Part of the problem, it seems, is that government programs designed to support new broadband network construction in underserved areas are often hijacked by corporate interests looking to line their pockets. One such program - the U.S. Department of Agriculture's Farm Bill Broadband Loan Program - has loaned nearly $2 billion over the last decade but has failed to make a dent in the number of underserved homes. 

The reason is simple: USDA's rules permit loans to go to companies building in areas in which every household is already served by at least one broadband provider. In most cases, as long as no more than three providers serve parts of a project area, a loan recipient can build over the entire area. These rules are no doubt the product of extensive lobbying by the very companies who apply for the low-interest loans, as it is cheaper and less risky to build where customers already exist than to wire hard-to-reach households that have never before used broadband. 

As Congress and the White House dig in to make tough budget choices, it's not unlikely that we'll hear some members call for the elimination of broadband programs. This would be a terrible idea as so many programs - such as the Broadband Technology Opportunities Program started under the stimulus bill - have already had a positive impact. But if the Farm Bill Broadband Loan Program can't modify it rules to ensure that truly underserved communities get the support they need, this money should be used elsewhere.