Ohio policy group critical of government-owned broadband networks

Two Ohio counties plan to make use of greater than $60 million in federal COVID-19 reduction funds to develop broadband networks, a transfer a coverage group believes may ultimately be pricey to taxpayers.

The Buckeye Institute cautioned communities in opposition to beginning or increasing government-owned broadband networks that might seemingly result in eventual bills for upgrades, upkeep and repair after federal cash is gone.

In a coverage memo, Higher Methods to Construct and Develop Broadband Service in Ohio, The Buckeye Institute’s Greg Lawson pointed to Clark County, which already has a plan in place to spend $2.2 million to start out its community, and Summit County, which needs to make use of $60 million to improve its community, as two communities that selected the flawed path.

As an alternative, the memo urges neighborhood leaders to depend on “environment friendly, taxpayer-friendly partnerships with non-public broadband suppliers to construct or develop broadband service or provide service vouchers to shoppers in underserved areas of the state.

“Such proposals provide short-sighted options with nice long-term threat, and so they ignore considerably higher, less expensive choices for increasing broadband entry to succeed in underserved communities,” the memo reads.

The memo additionally challenges the argument a scarcity of private-sector competitors within the broadband market justifies authorities involvement. Lawson stated the market has pushed broadband costs down since 2016.

Lawson pointed towards Ohio’s just lately enacted grant program as a greater means of utilizing and defending taxpayer cash.

“The Ohio Residential Broadband Growth Grant Program, for instance, strategically targets authorities assets to develop broadband protection whereas defending taxpayer investments by creating public-private partnerships. This system tailors authorities grants to shut gaps between what business service suppliers will spend to construct a community and the complete value of offering the ‘final mile’ to underserved communities,” the memo reads.

Earlier this month, Republican Gov. Mike DeWine introduced $232 million in grants from this system are anticipated to impression 40,000 Ohioans. Eleven web companies suppliers will share the cash that might be used for 33 broadband growth initiatives in 31 totally different counties.

In keeping with a information launch from DeWine, 300,000 households within the state, representing about 1 million folks, lack broadband web.