FCC data indicates that more than 30 million Americans lack access to high-speed internet. People who live in rural and tribal communities outside the urban and suburban areas where most Americans reside feel a good part of that pain, and that’s also true for low-income regions.
President Trump’s call to improve the country’s infrastructure during the campaign season has emboldened many to point out these areas need better access to broadband if they are to have a fighting chance to grow their economies, improve educational opportunities, and offer the latest in healthcare, among other endeavors. But given the limited ability for operators to make a real business case to serve them, it remains to be seen how the country can truly address the problem.
On Wednesday, Senator Shelley Moore Capito (R-W.Va.) introduced what is said to be “tech neutral legislation” to accelerate the development of high-speed internet in low-income and rural communities through the Gigabit Opportunity Act (GO Act). Its stated goal is to expand broadband in these communities by targeting investments to areas with the greatest need, eliminating barriers to investment, and streamlining regulations. Rural broadband has been a pet issue of Capito’s, which you can read more about here.
“The economic benefits of broadband are clear, especially in West Virginia. Investments in broadband in our communities, coupled with smart public/private partnerships, can jumpstart economic development and create jobs,” Capito says. “The GO Act gives states flexibility, streamlines existing regulations, and eliminates barriers to investment so we can better connect our low-income and rural communities.”
The GO Act looks to target investments to low-income and rural areas poised for the most growth by providing tax deferral and immediate expensing for companies investing in gigabit-capable broadband expansion. It also aims to direct the FCC to release a framework that encourages states, counties, and cities to voluntarily adopt streamlined broadband laws and be designated as a “Gigabit Opportunity Zone.” Additionally, the act proposes the temporary deferment of capital gains for broadband investments and upgrades, and allows companies to immediately expense the cost of gigabit-capable equipment in those zones. Finally, it would allow states to issue tax-exempt bonds without a low-income geographic requirement.
FCC Chairman Ajit Pai has often stressed his concerns around the digital divide that exists in the United States, and has repeatedly indicated it is something the Commission needs to pay better attention to in order to provide opportunity to underserved areas.
“One of the most significant things that I’ve seen during my time here is that there is a digital divide in this country − between those who can use cutting-edge communications services and those who do not … We must work to bring the benefits of the digital age to all Americans,” Pai said back in January soon after taking over the chairman post.
Last summer, Capito hosted Pai at the “Adventures on the Gorge” event to draw attention to West Virginia’s broadband challenges. Capito headed up a roundtable to discuss the need for competition to deliver affordable service in both rural and urban markets, how to best streamline regulations for wireless providers, the importance of public/private partnerships to improve technology, and how to ensure that there is accountability for how taxpayer dollars that go toward broadband are used.
In a statement, Pai applauded this week’s introduction by Capito of the GO Act “as an important step toward closing the digital divide, and one that has my full support.” He also reiterated his stance that next-generation networks are increasingly critical to economic opportunity, job creation, and civic engagement.
“But too many parts of rural and urban America can’t attract the investment needed to deploy those networks,” Pai says. “With targeted tax incentives and regulatory streamlining, the GO Act aims to remove the major barriers holding back internet access in economically challenged areas.”
