NY funds broadband coverage map
The state budget included funding for an updated map that will show gaps in broadband coverage, but local lawmakers are concerned a requirement for subsidizing the rates of low-income residents will drive up the cost of expanding access.
The budget includes $1 million for the Public Service Commission to create a map of areas that lack reliable broadband coverage. The map must be completed within one year.
Also included was a provision that would allow low-income residents to receive broadband at a subsidized rate of $15 per month.
Assemblyman Matt Simpson, R-Horicon, said he is concerned the provision duplicates a federal program that provides discounted rates — up to $50 a month — for low-income residents.He worried about the impact on smaller internet service providers in the North Country, such as Slic Network Solutions.
“You really need accessibility in the North County first. Their service is about $60 a month, so all but $10 a month would be covered in most cases for most people who qualify under the federal government,” he said.
“It’s kind of redundant. It didn’t really address the real issues that are driving up the cost,” he said.
One of the key issues, according to Simpson, is that about 25% of the monthly cost for these broadband providers goes toward taxes. The state assesses taxes on the infrastructure and for laying lines in the right of way. An effort to repeal that did not move forward in the Legislature.
“They haven’t done anything about the cost of building that infrastructure to reach those people,” he said.
The bill contained a provision to limit the effects on smaller providers by exempting companies with fewer than 20,000 subscribers. But that puts a cap on how many people can be served, Simpson said.
The updated map will address a problem in the original map, which categorized a census tract as “served” by broadband if only one person was connected.
“It wasn’t an accurate map to show all of the locations where service is not available,” he said.
Albany legislators are trying a one-size-fits-all approach for the state, not looking at the different regions, he said.
Sen. Dan Stec, R-Queensbury, debated the legislation Tuesday night on the Senate floor. He is concerned the language of this bill is not as good as the bill on Gov. Andrew Cuomo’s desk earlier this year. Cuomo “pocket vetoed” that bill — meaning he let 30 days go by without signing it — because it did not include funding.
Census blocks in the North Country are larger than the ones in New York City and Long Island, Simpson said, and the map may not provide enough detail about which areas are lacking reliable broadband service.
He questioned the discounted rate for low-income residents.
“We’ve got government that’s coming in and arbitrarily saying you have to provide this service at $15 per month. What if your cost is $20 per month? You’re mandating somebody to operate at a loss,” he said.
Stec asked Sen. Liz Krueger, D-Manhattan, chairwoman of the Finance Committee, which service providers were consulted on the bill, and she said it was the bigger providers.
“That’s like asking Walmart to develop rules to govern mom-and-pop stores on Main Street. Yes they’re both retailers, but the way they they’re organized and their business models are very different,” he said.
Larger providers are providing service to urban and suburban areas, he said, creating a niche rural market for smaller providers like Slic.
Retired telecommunications executive Andy McAdoo of Halfmoon said he believes without some sort of universal service requirement, people will be shut out from service.
“Short of some regulatory requirement or financial penalty, they are not going to build 100 megabits per second in places like Huletts Landing,” he said.
Also, rural subscribers will pay more.
“They’re costlier to serve,” he said.