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Big Telecom Companies Asked Wisconsin State to Provide More Funds
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Big Telecom Companies Asked Wisconsin State to Provide More Funds

Apr 7, 2022
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A number of applications were submitted to the Wisconsin Public Service Commission for broadband expansion permissions. Major telecom companies including AT&T and Frontier have asked the state for millions in granting the expansion. The federal programs have already provided tens of millions to most of these companies to enhance service in Wisconsin. Experts across the country are distrustful of providing public cash to them.

A professor of telecommunications at UW-Madison, Barry Orton issued a statement. He said some companies including Charter, AT&T, and Frontier will just utilize this money to switch to their current capital expenditures. Most of them have previously done it multiple times. They could select service sectors based on expected revenue and leave their less profitable customers out of service in Wisconsin.

Connect America Fund from FCC

However, previous federal programs such as the Connect America Fund from FCC delivered millions of dollars. Larger telecom companies with the objective of upgrading services without high-speed internet areas collected the FCC fund. These programs were inefficiently designed and improperly deployed.

The director of the Community Broadband Networks Initiative, Christopher Mitchell issued a statement. He said the Connect America Fund just needed that projects offer a significant internet speed. The project required 10 megabits/ sec for downloading and 1 megabit/ sec for upload speed.

More Telecom Firms Asked for Grants

Moreover, Bug Tassel Wireless in Marathon County requested a $3 million grant. The company also committed more than $3 million to its own funds. This amount is dedicated to constructing a 90-mile fiberoptic line in Marathon County to connect 635 residences and 16 businesses.

Frontier also submitted a request for $4.3 million, committed at least $13 million of its own funds. The firm will use funds for a project. It would bring fiberoptic internet hookups to 9,884 residences and 812 businesses in Lincoln, Marathon, and Clark counties. Cirrinity also asked for a grant of around $900 and committed $750 of its own funds. The firm will utilize the funds to provide fiberoptic internet hookups to 365 residences and 15 businesses in Reid.

Broadband Enhancement in Wisconsin

The deployment of fiberoptic cables on the ground is considered expensive for high-speed internet access. National companies have some financial benefits to utilize their investment in rural areas for potential customers. Most experts have alleged those big telecom companies for using the funds of the federal government in profitable areas.

Meanwhile, AT&T has received at least $45 million from the federal government to empower broadband in Wisconsin. The company has also asked for around $10 million of grants from the state. The firm has also discovered challenges in these programs such as expanding service in deprived areas. A spokesperson for AT&T, Jim Greer said the company is committed to working to close the digital divide.

The Internet Projects in Wisconsin

However, Spectrum also made the largest request of around $200 million in grants from Wisconsin state. The firm has collected at least $160 million in federal funds in Wisconsin for internet projects. This project received around $1 million in grants during the last 2 years. The company is committed to utilizing its own funds of at least $3 million on these projects.

TDS also received $80 million for internet projects from the federal government in Wisconsin. The firm also asked for at least $22 million from the state. A spokesperson for TDS, Missy Keller said the company has used federal funding, grants, and invested millions to enhance internet access. TDS is now expanding broadband access to around 35 thousand rural residences in Wisconsin.