CHARLESTON, W.Va. — The bill that would create a $72 million high-speed Internet network owned by West Virginia is pending in the Senate Government Organization Committee, but a representative of cable television system operators sees no need for it.
As proposed, the legislation provides for the construction of a statewide, fiber loop — called a “middle mile” — covering a total of 2,500 miles with the goal of improving Internet service while bringing down prices for that service for businesses and homes.
Senator Chris Walters (R-Putnam, 08), one of the sponsors of the bill, previously said it was revenue neutral since bonds to fund the infrastructure project would only issued through the state Water Development Authority if enough Internet providers agreed to utilize the network to make it self sustaining.
“The first thing that needs to be examined here is really the policy question of whether the state should enter into competition with the private sector, particularly in an area where we believe there is more than adequate coverage around the state,” said Mark Polen, executive director of the West Virginia Cable Telecommunications Association.
His group’s members, Polen said, have already built more than 6,600 miles of fiber connecting to 50 of West Virginia’s 55 counties. In the past 15 years, he estimated private companies have invested more than $2 billion in the Mountain State’s internet infrastructure.
“In terms of there being a need for a total statewide network that is owned and operated by the state of West Virginia, that sounds way disproportionate to the problem or the challenges that the state faces,” said Polen who claimed the project would not provide broadband Internet service to one additional business or residence.
“The issue, in our minds, is not this middle mile network, it is how to extend service from whatever fiber network exists into the rural areas that have no service, the so-called last mile,” said Polen.
“Significant investments,” he said, are needed along those final miles.
During an appearance on Thursday’s MetroNews “Talkline,” Polen admitted competition was a concern. “If the government comes in with a subsidized statewide network, it would definitely be unfair competition to the private sector,” he said.
Earlier this week, Walters argued increased competition would be positive for customers.
In addition to bonds, the proposal would also draw on potential grant funding through state Department of Health and Human Resources and the state Department of Education.
Nationally, West Virginia is near the bottom of the list for accessibility to reliable high-speed Internet service.