Michigan broadband earns ‘B’ on think tank report card
(The Center Square) – Michigan received a “B” and a score of 88 on the 2020 Broadband Scorecard Report that R Street released late last week.
R Street is a Washington, D.C., based think tank, and 2021 marks the second year the institution has issued its broadband scorecard. In its inaugural report, Michigan also earned a “B.”
The report compares states based on the laws they use to govern the regulatory review process for broadband deployment. The factors involved include local government’s management of the public rights-of-way that broadband providers need access to, permitting review, franchising and zoning.
“Good laws governing franchising and small cell deployment give Michigan a well-balanced regime, but there is still room for improvement,” the report said.
Although R Street Technology and Innovation Fellow Jeffrey Westling, the report’s author, determined a recently adopted Michigan law to allow electric co-ops to provide broadband is beneficial, he notes the potential drawback of stifling competition when utilities and cooperatives deny access to public rights of way, which hinders deployment of broadband service in underserved communities.
Westling also noted Michigan does not cap or limit fees for accessing rights of way.
Michigan could improve if it placed limits on in-kind contributions and implemented a dig-once law, he said.
In-kind or non-monetary contributions are defined as free services provided to such recipients as government buildings. Federal regulations restrict in-kind contributions, and Westling argues more states should limit them as well.
Dig-once, also called “joint-trenching,” mandates multiple providers excavate the same right of way. This, wrote Westling, increases deployment efficiency as well as minimizes traffic flow disruptions.
“It may sound benign, but providers often need to get thousands of permits for just a single city, and the costs quickly become a barrier as the providers need to sort through different rules and lengthy delays,” Westling told The Center Square. “The major markets will still see deployment regardless, but communities on the edge may have to wait longer or pay more for next generation services.”
Even with streamlining regulations, however, deploying infrastructure in many communities does not allow providers to be profitable for a basic connection, let alone next generation networks, Westling explained.
“That is why we have seen many states begin to explore options like grant programs, which target unserved areas of the state,” he said. “Subsidy programs go beyond the scope of our scorecard, but it is important for state legislators to remember that grants still come from the taxpayers, and regulatory red tape can limit the value of each dollar spent. Therefore, states should continue to look towards streamlining local review processes even if they decide to pursue deployment subsidies.”
Subsidies and grants can help or even be necessary, but the requirements of the program make a difference, he noted.
“Users tend to not need upload speeds similar to download speeds, and focusing subsidies on 100 Mbps upload seems very excessive to me when many people can’t even get connected,” Westling said.
Westling’s report cites a study that concludes 5G deployment will result in $1.5 trillion increase in U.S. gross domestic product, as well as spur the creation of 4.5 million jobs, largely because of new and increased infrastructure investments.
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