Find Funding
Broadband Toolkit Modules
- Introduction
- Module 1: Broadband 101
- Module 2: Regional & Tribal Planning
- Module 3: Data Driven Decisions
- Module 4: Find Funding
- Module 5: Bridging the Digital Divide
- Module 6: Broadband and Workforce
- Module 7: Broadband and Tourism
- Module 8: Broadband Definitions
- Module 9: Who’s Who of Rural Wisconsin Broadband
Investing in Fiber Broadband: Long-Term Value and Funding Strategies
While installing fiber broadband requires significant capital investment, it offers much better long-term value compared to other technologies. Fiber is more durable, easier to maintain, and provides excellent scalable, symmetrical performance, ensuring smooth online experiences for activities like video calls and 4K/8K streaming.
Funding is a necessary component to any broadband plan. Most broadband grants have significant technical components, so communities should work closely with broadband ISPs on grant applications. ISPs will bring the majority of the funds needed to deploy broadband. Where gaps in funding exist there may be Federal, State or local match funding to incentivize providers to prioritize communities within your region.
Fiber Costs
Fiber optic cables are renowned for their durability and long lifespan. Typically, they can last between 20 to 30 years or more when maintained under optimal conditions. The cost of fiber optic cables can vary in the market. Additional expenses include labor, installation (whether boring or overhead), handholes or huts, engineering, permitting, related equipment, utility power build, and cleanup.
Factors Affecting Fiber Costs
- Supply & Demand: Inflation and increased demand are driving up the costs of labor, fiber, and related services.
- Soil Conditions: Areas with minimal topsoil and rock near the surface can significantly increase costs, potentially doubling or tripling expenses due to the need for boring. Replacing utility poles in rocky areas, such as granite or steep slopes, can cost as much as $420,000 per mile.
- Customer Density (ROI): ISPs typically aim to keep costs around $2,000 per location, balancing expenses with anticipated returns and bank loan requirements.
Review state and federal funding sources for potential match funding for broadband projects. Rural communities have successfully used ARPA funds for local matches, as well as tax levies or bonding to attract ISPs. To enhance your project’s funding chances, finalize your broadband plans with input from providers before funds become available, as opportunities and deadlines can arise quickly. Additionally, communities can seek funding independently to present to providers as part of the discussion.
Broadband Funding Resources
Notable Model: California Broadband Loan Loss Reserve Fund
In 2021, the State of California established a Broadband Loan Loss Reserve Fund to support the financing of local broadband infrastructure projects. This $750 million fund provides credit enhancements, enabling local governments and non-profits to secure more favorable borrowing terms from bond markets and financial institutions. By mitigating lenders’ concerns, the program improves access to financing, aiming to accelerate the deployment of high-speed broadband in underserved areas and foster digital equity and economic growth across the state.
Checklist for Broadband Funding
- Review the Office of Rural Prosperity Broadband Funding Chart and identify which programs your community may be eligible to apply.
- Identify programs that fit within the timeframe for installation.
- Determine risk tolerance for grants, loans, or a combination of the two
- Select the entity that has the capacity to manage the grant/loan and identify the personnel
- Identify and collect documentation for application. It will be necessary to work with the provider to gather this information.
- Information will include budget details for the full project
- Engineering analysis
- Proof of successful ability to manage federal or state funds
- Build in reporting metrics for funding the community will apply for to determine how the funds will be used by the provider to achieve community goals
- Work with provider to identify deadlines for all funding
- Create workplan for applications (if necessary)
- Draft MOUs or contracts with providers (if necessary)
- Apply for grants/loans with provider technical expertise
