COLTON, S.D. — Inflation has taken a toll on ambitious state and national plans for expanding access to high-speed internet service, causing funding for the projects to lose purchasing power.
At a project site near Colton, Golden West Telecommunications CEO Denny Law said the price of fiber-optic cable has gone up 15-50% since 2018. He said higher fuel prices and rising wages are also taking a toll as is post-pandemic supply chains for equipment.
“All of those things flow through to increase the price of the broadband deployment,” Law said.
In a South Dakota Searchlight story, Law said Golden West Telecommunications is deciding whether to moderate the size and scope of projects. He’s optimistic that Congress and the Federal Communications Commission will refill broadband funding pools. Law said these projects could not happen without subsidies, and D.C. delivering “will allow companies like Golden West to continue with this for years ahead.”
But not every South Dakota lawmaker is excited about the additional spending.
Rep. Chris Karr, R-Sioux Falls, questions if providing high-speed internet access is the role of government. “The federal government has already been spending billions and billions of dollars on this.” Karr argues that market forces and private-sector initiatives can drive broadband expansion.
“We are stifling innovation; because, when we hand out cash, it’s those that are not innovative that are first to the trough. If inflation has increased the cost, these private companies benefiting from this should pony up that difference.”
According to BroadbandNow, 88% of South Dakotans have access to 100 megabit-per-second internet service, ranking 35th among all states in that statistic.
Meanwhile, in Nebraska, that state’s Farm Bureau is working with SpaceX to expand broadband access in the state. Starlink is a satellite internet constellation operated by American aerospace company SpaceX, providing satellite Internet access coverage to over 54 countries.
Mark McHargue, Nebraska Farm Bureau president said that rather than waiting for state and federal monies to get quality broadband to rural areas, the SpaceX service, “allows us to take the issue of broadband service into our own hands and deliver the connectivity to our ranches, farms, and rural members in a way that avoids regulatory hoops and the high cost of getting fiber installed.
To learn more about high-speed internet access in Nebraska, visit https://broadband.nebraska.gov/Home to review information and provide feedback.
