Vermont's economic growth has been nearly stagnant pretty
much since the turn of the century.
Looking at employment statistics since 1999 we can see that Vermont's employment
numbers have remained fairly level at roughly 340,000 even during the
2008-2010 recession. On the other hand, they haven't grown since the recession
either. While Chittenden County has experienced growth, the rest of Vermont has
not.
The factors affecting the overall economy in Vermont are
many, and the interaction among them is complex. I am not attempting to address the issue
comprehensively here. However, the House Committee on Energy & Technology
is looking at one aspect of the challenge -- how the limited access to high
speed internet affects Vermont's economy.
For the past two weeks we have heard testimony from Vermont's telephone
companies, cable providers, community broadband companies, small businesses,
municipalities, and the farming community which utilizes access to the internet
for GPS controlled tilling, fertilizing and harvesting. One thing is clear:
outside of Chittenden County and city centers, Vermonters' internet speeds are
slo-o-ow. While most Vermonters are able to get DSL with speeds of 4 Mbps
(Megabits per second), many in more remote locations have only dial-up. The
federal standard for satisfactory speeds is 100 Mbps, which requires cable or
fiber connectivity. As we become more of an information-based economy, access
to high-speed internet is essential for economic growth. So, the question
becomes, how do we achieve this in Vermont?
The limiting factor when it comes to building high-speed
broadband is cost per connection. In
rural areas where customers are relatively far apart, the investment required
to run miles of cable for few connections is prohibitive. Wireless connection
is possible, but the wireless transmitters require a fiber or cable connection,
and Vermont's terrain often limits the effectiveness of those devices. Some
communities have formed organizations called Connectivity Union Districts
(CUDs) that are non-profit entities that aggregate investments from several
municipalities to build independent fiber networks to serve the member
communities. There are several in
Vermont including EC Fiber in the Connecticut River Valley and Kingdom
Community Fiber (KCF) in the Northeast Kingdom.
KCF has been given permission from the state of Vermont to connect to an
existing fiber network owned by the state. State connectivity funds will be
used to install the connection interfaces at various locations that will be
leased to KCF to build fiber networks in communities running from St. Johnsbury
north and west to Highgate.
The Energy & Technology Committee is now working on
legislation that will encourage further development of fiber networks
throughout rural Vermont. The 2 percent VT USF charge on our phone bills
supports the E-911 system, the Lifeline phone access program for seniors, and
the TTY service for hearing impaired persons. What is left over from those
revenues is used to support the Connectivity Initiative Fund. Governor Scott has proposed a $1M infusion to
the fund to increase broadband. We
believe that we can do better. We are working on a bill that, in addition to
the Governor's proposal, will increase the USF charge to 2.5 percent with the
additional revenues dedicated to connectivity.
This would amount to a 50 cent increase on a $100 phone bill. We also hope to benefit from additional
federal dollars as a result of the recently passed federal Farm Bill. Back in the 1950s Vermont made a concerted
investment in getting electricity out to the last mile. Broadband is the 21st
century equivalent to that effort. It's
a key ingredient necessary for growing Vermont's economy.
