Internet infrastructure development has become a focal point of federal and state initiatives. However, overlapping programs have led to inefficiencies and redundancies that squander public resources. This article delves into the complexities of these issues, exploring how better coordination could enhance connectivity for underserved communities.

Unleashing Potential: Streamlining Efforts for Effective Broadband Deployment

The Landscape of Internet Funding Programs

The proliferation of internet subsidy programs across the United States is extensive. Federal entities alone manage over 130 initiatives aimed at expanding broadband access. Each state also implements its own set of programs tailored to local needs. In Michigan, for instance, the Michigan High-Speed Internet Office oversees several projects designed to bridge the digital divide. Additionally, some municipalities operate their own networks, funded by taxpayers. This multiplicity of efforts, while well-intentioned, often results in duplication and inefficiency.One notable case comes from Richmond, Virginia. Here, two companies—RiverStreet Communications and Cox Communications—received substantial grants from different federal programs. RiverStreet secured a $40 million award from the Rural Digital Opportunity Fund, intended to connect a specified number of households. However, due to overlapping commitments with Cox, which received funding through another avenue, RiverStreet struggled to meet its obligations. The area was already served by multiple private providers, making it challenging to find unserved homes. This scenario exemplifies the pitfalls of redundant funding and highlights the need for better coordination.

Challenges of Overbuilding

Overbuilding occurs when multiple entities invest in internet infrastructure for the same geographic location. While the concept seems straightforward, identifying and quantifying overbuilding remains a challenge. Private companies typically avoid this issue by conducting thorough market analyses and responding swiftly to competition. Government-funded projects, however, often face bureaucratic delays and loose ties to current market conditions. As a result, there is little incentive to halt or redirect funds even when circumstances change.Citizens Against Government Waste reported that despite spending $44 billion between 2015 and 2020, millions still lack broadband access, particularly in resource-limited areas. With up to $800 billion allocated for federal broadband programs, the risk of wasting taxpayer dollars looms large without enhanced coordination. Andrew Long of the Free State Foundation further notes that inconsistent eligibility criteria among programs can exacerbate redundancy. Different minimum speed thresholds and acceptable technologies open the door for single locations to receive multiple funding sources, sometimes intentionally.

Misallocation of Resources in Michigan

Michigan's approach to utilizing federal internet funding raises concerns about misallocated resources. The state appears to redefine "unserved" areas to direct more spending toward densely populated regions already well-served by internet providers. This strategy leaves rural areas, where most unconnected households reside, with fewer resources. For example, the BEAD program will cost $1.5 billion, and the ROBIN program will spend $236 million at the state level, plus matching funds from local governments. Such significant investments demand scrutiny to ensure they are not wasted on duplicative projects.

Pathways to Improved Coordination

To address these challenges, policymakers must prioritize coordination across various programs. Establishing clear guidelines and consistent eligibility criteria can prevent redundant funding. Moreover, fostering collaboration between federal, state, and local entities can streamline efforts and maximize impact. Public-private partnerships may offer innovative solutions, leveraging the agility of private companies alongside government resources. Ultimately, a coordinated approach can ensure that every dollar spent contributes meaningfully to closing the digital divide and enhancing connectivity for all.