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$600 million in broadband grant requests reveal providers are interested, but there's a catch

By Brock E.W. Turner

Posted October 18, 2021

While the requests will likely result in future investment, there is no timeline on when connections from this series of funding will occur. (Steve Burns, WTIU/WFIU News)

Indiana Governor Eric Holcomb announced today more than 250 requests totaling more than $600 million for broadband investment statewide. 

The requests begin to reveal the desire telecoms have to serve Indiana communities when state dollars incentivize builds.  

While those requests reveal desire, Monday’s announcement isn’t likely to translate to investment for all bids.  

According to Denny Spinner, executive director at the state’s Office of Community & Rural Affairs, policymakers will allocate around $270 million in this round to three separate programs. 

The needs, he says, couldn’t be more apparent. 

“Connectivity is just as much a part of life in rural Indiana and across our state as gas, water, sewer and electric,” Spinner said. “You know, it’s an essential for life.”

State officials will now review each request and follow the legislature’s blueprint for allocation. Spinner says both the amount of time it takes to distribute grants and the final amount remain up in the air.

OCRA expects selections will be completed by the end of March 2022.

The office is currently gathering data on how best to distribute dollars. 

Studies have shown rural communities reap a 4-to-1 return on broadband infrastructure investments, but communications providers don’t often benefit. Providers often don’t have incentive to build in rural communities because of the limited number of customers, high initial build cost, and low population density. 

Estimates show more than one in 10 Hoosiers are unable to access broadband. 

 

This article has been updated.

 

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