Connecting Rural Utah to the World

by Jerry Oldroyd

The impact of having adequate and affordable access to broadband in rural communities in Utah is enormous, increasing residents’ economic growth potential and giving them the opportunity to connect and compete in the global economy. Broadband not only improves the quality of rural healthcare, public safety and education, but it also attracts businesses to rural areas. Some studies have shown that rural communities have benefited from broadband by attracting large businesses and information technology-based businesses to their areas. The benefits of having broadband extend to small Web-based businesses, farmers, artists and local tourism authorities in rural areas. Increased use of the Internet promotes economic development in other areas as well, by increasing demand for broadband-delivered and broadband-related products and services.

At the federal level, Congress has acknowledged the benefits that broadband provides and the necessity of ensuring that all Americans have access to affordable broadband. There are numerous federal programs that offer funding for broadband access in rural areas. Congress recently passed legislation requiring the development of a rural broadband strategy, improvements in the collection of federal data on the deployment and adoption of broadband services, and the development of a national broadband plan.

In the recently passed economic stimulus package, the American Recovery and Reinvestment Act of 2009, Congress appropriated $7.2 billion for grants and loans to expand broadband deployment programs to be administered by the USDA’s Rural Utilities Service (RUS) and the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA). The RUS appropriations are to fund existing programs aimed at improving broadband access to rural communities. The NTIA program is intended to provide new and improved broadband access to unserved and underserved areas; provide broadband education, training, equipment and support to schools, libraries, healthcare providers and support organizations; improve access to broadband service by public safety agencies; and stimulate the demand for broadband, economic growth and job creation. Applicants for NTIA grants will include Indian tribes, nonprofit corporations, institutions, service providers, infrastructure providers, public-private partnerships, municipalities and states, including the state of Utah.

The Federal Communications Commission (FCC) recently released a report to Congress entitled, Bringing Broadband to Rural America: Report on a Rural Broadband Strategy. In the report, the FCC recommends that the various federal agencies administering broadband-related programs improve coordination of broadband policies and initiatives with other federal agencies, Tribal, state, and local governments, and community organizations in rural areas. Many of these organizations and entities have issues and knowledge unique to their areas and communities that would assist the federal agencies in administering programs.

The state of Utah, as part of its broadband policy, will also coordinate with local entities and service providers in its efforts to identify priorities and requirements for the deployment of broadband service to consumers and businesses in Utah. These issues are being addressed by the Utah Governor’s Office of Economic Development. Initially, the state will perform a needs assessment by obtaining comprehensive and accurate information on the availability of broadband service in rural areas of Utah, the extent to which consumers and businesses subscribe to broadband service, speeds, prices and the demand for broadband services. This information will be conveyed on a broadband map, which will be updated to track availability and infrastructure deployment of broadband service in rural Utah and assist with federal mapping efforts. The state of Utah will identify broadband priorities that are important throughout the state and will consult with NTIA and RUS to help implement a comprehensive program that will begin to address the broadband and economic development priorities of rural Utah.

Jerold G. Oldroyd is a partner at Ballard Spahr Andrews & Ingersoll LLP in the Business & Finance Department, and partner-in-charge of the Communications Group. He is a member of the Government Relations & Regulatory Affairs Group, and the Economic Stabilization and Recovery Initiative. He concentrates his practice in communications and government affairs, advising clients regarding the regulatory, legislative and municipal aspects of telecommunications law. Sharon M. Bertelsen is of counsel at Ballard Spahr and a member of the Business & Finance Department and Communications Group. She contributed to this article.