The Vermont Community Broadband Board on Thursday launched a $116 million broadband construction grant program that is set to fund projects beginning this spring.
Vermont’s nine communications union districts, plus the small communication carriers and internet service providers that are working alongside the communication districts, can all apply for the funding.
“These grants are important to drive down the entry cost,” Christine Hallquist, executive director of the Community Broadband Board, told the Senate Finance Committee on Thursday. Funding broadband through grants, rather than bonds, decreases the consumer cost, she said.
The community broadband board’s goal is to provide universal broadband access throughout Vermont with upload and download speeds of 100 megabits per second. Currently, just 29.2% of Vermont households meet that standard, according to the Department of Public Service.
Inadequate broadband service has become an acute problem during the pandemic, with remote schooling and telehealth appointments next to impossible in some areas of the state. In addition, many businesses rely on high-speed broadband.
Partnering with the communications union districts, the broadband board recently purchased 2,000 miles of fiber-optic cable, enough to cover 18 to 24 months of construction, according to Rob Fish, the board’s deputy director.
Hallquist told the Senate Finance Committee that the fiber was purchased at last year’s prices, saving the state $2 million.
“The entire country, with the billions of dollars being invested in broadband, it’s gonna be like a whale watch. Everybody’s gonna run over and try to get all the material, get all the labor,” Hallquist said. Now, she said, “fiber-optic lead times are running out as much as a year.”
In addition to the $116 million in construction grants, Gov. Phil Scott wants to use a lot of federal money — $95 million in American Rescue Plan Act funds and $100 million from the Infrastructure Investment and Jobs Act — to support broadband buildout. Those requests are part of his budget proposal for the fiscal year that starts July 1.
“We were very pleased with the governor’s request and appreciate his continued support,” Fish said.
Hallquist told the committee that a staffing shortage could inhibit the state’s goals. Vermont needs 200 additional technicians, she said.
“There is a limited supply of technicians, so now we’re reaching out beyond the region to look at what we can get across the country for help,” she said.
The committee had concerns that those workers would leave the state after the broadband projects, but Hallquist suggested the technician jobs provide a stepping stone to higher-paying IT and electrical work.
The Vermont Community Broadband Board estimates it will cost $558 million to $607 million to reach its goals.
“We’re working aggressively to get that last Vermonter connected in five years,” Hallquist said.
