Largest Barriers to Broadband Deployment? Localities, Often

Generally speaking, policymakers and stakeholders agree that closing the digital divide—ensuing that all Americans have access to quality broadband—is an imperative. Municipalities that charge broadband infrastructure companies unreasonable fees or have other unreasonable conditions prior to accessing municipally-owned resources raise barriers and increase the costs all Americans must pay for broadband access.

The American Legislative Exchange Council recently filed a letter with the Federal Communications Commission discussing how localities increase the cost of broadband deployment by charging unreasonable fees. While some localities may calculate the fees they charge broadband companies based on the cost to the city for surveys and other professional services, some municipalities view broadband companies as sources of revenue rather than as partners that can help connect their residents to the internet.

Broadband providers plan on investing nearly $275 billion over the next seven years upgrading their systems to small cell, or 5G, technology. Current local unreasonable fees may add between 20 and 100 percent to the cost of construction. These are funds broadband companies could use to further build out their networks, reaching unserved and underserved areas.

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To read the rest of the post, and to access the letter filed with the FCC, please visit the ALEC website.