A bill in the Georgia legislature that would tap a new source of funding for broadband is getting pushback from industry and lawmakers. Senate Bill 65 would convert a portion of a state fund that now subsidizes landline service provided by rural telephone companies into a pot of money to be used for broadband projects.
That portion of the Universal Access Fund (UAF) is due to expire later this year, a decade after the fund was created, according to the Walker County Messenger. Funds from the UAF would supplement the $20 million Gov. Brian Kemp set aside for broadband in the $26.5 billion mid-year budget.
Bill sponsor Sen. Steve Gooch, (R-Dahlonega) told a Senate committee, “Twenty million dollars … is a good start, but we need to put more money into this year [and subsequent years] until the problem is fixed.”
Lobbyists for AT&T and several small rural telcos agree that expanding broadband into unserved rural areas is critical to the state’s economy. But they said it’s not necessary to use UAF money. “There are many federal government programs doling out substantial amounts of funding to spread broadband,” said Kevin Curtin, assistant vice president of legislative affairs for AT&T Georgia.
Others argued lawmakers should look to the state’s general fund to support broadband projects, as Kemp just did with the $20 million allocation, reported the Walker County Messenger.
Some members of the Senate Regulated Industries Committee were skeptical of the measure. Committee Chairman Bill Cowsert, (R-Athens), wondered whether rural telcos would raise their rates after the UAF expires and they’re no longer receiving subsidies.
Sen. Lindsey Tippins, (R-Marietta), said converting a portion of the UAF to a broadband fund might not raise much money because many Georgians are getting rid of their landline telephones in favor of cell phones. “You’re talking about a decreasing pool of revenue,” Tippins said.
Reader Interactions