In the coming years, Pennsylvania will receive more than $1 billion in federal funding to bring high-speed internet access to everyone in the state.
It’s a historic opportunity and a serious challenge, according to a new plan from the state Broadband Development Authority that outlines how it will accomplish that goal over the next five years.
The money comes from the wide-ranging bipartisan infrastructure bill signed into law by President Joe Biden in 2021. Pennsylvania will also receive an estimated $900 million for broadband from other federal programs and private investment required as a condition of grant funding.
Here are five obstacles Pennsylvania will have to navigate as it spends the money, according to the authority’s plan:
Workforce shortages
Engineers. Technicians. Electricians. Surveyors. Laborers.
Pennsylvania will need an estimated 117,000 workers to build new broadband networks. The state’s plan details how low unemployment and a tight labor market could make finding them a challenge. In July, internet service providers told the state broadband authority they were having difficulty hiring and keeping workers “due to intense competition, training prerequisites, and the industry’s unique technical demands.” Pennsylvania needs “rapid support” from training programs, the plan says.
Supply chain problems
Although the global supply chain is rebounding after the disruptions of the pandemic, problems remain, the state plan notes. Difficulty obtaining electrical components and high-tech chips could delay projects and drive up costs. Additionally, demand will surge as all 50 states give out grants to build new networks on roughly the same schedule. A federal law that requires all construction materials for infrastructure projects be produced in the U.S. will also limit the available supplies.
Permits
The huge broadband buildout will require a vast number of permits from Pennsylvania’s more than 2,600 municipalities and differences in the way they process them could add costs and slow projects down.
The Broadband Development Authority suggests the state consider paying for temporary staff to help local governments handle permits. Pennsylvania’s plan also argues that establishing a statewide permitting standard would make the process more efficient.
The cost of an internet subscription
Bringing broadband to everyone in the commonwealth won’t improve residents’ lives if the service is too expensive, the Broadband Development Authority warns. As part of an ongoing statewide survey, 56% of respondents said the cost of a subscription was a challenge. Just over half said paying their monthly internet bill was either “somewhat” or “very” difficult.
Exactly what Pennsylvania could require from internet service providers in exchange for grant dollars is still being decided.
The state could mandate that companies receiving grant funds participate in a federal program that gives low-income households discounts of up to $30 per month on their internet bills. In Pennsylvania, however, less than a third of eligible households were enrolled in the program as of July. It is also projected to run out of money next year unless Congress increases its funding.
Limited competition among providers
More than half the responses to the state survey said residents had no choice of internet service provider. A lack of competition can result in higher prices, the plan notes.
Federal rules limit states’ ability to use grant funding to increase competition in areas that already have high-speed internet. But the plan says that when scoring grant proposals, Pennsylvania “may prioritize” companies that “bring competition into the market statewide” by offering a chance for small local companies to grow.
This plan doesn’t spell out how Pennsylvania will evaluate grant proposals and choose which ultimately receive funding. That will come in another document which must be submitted to the federal government by late December.
WHILE YOU’RE HERE… If you learned something from this story, pay it forward and become a member of Spotlight PA so someone else can in the future at spotlightpa.org/donate. Spotlight PA is funded by foundations and readers like you who are committed to accountability journalism that gets results.
![](https://technical.ly/wp-content/uploads/2023/03/SpotlightPA_black_logo.png)
This news article was written by Charlotte Keith of Spotlight PA, an independent, nonpartisan newsroom powered by The Philadelphia Inquirer in partnership with PennLive/The Patriot-News, TribLIVE/Pittsburgh Tribune-Review, and WITF Public Media. Sign up for Spotlight's free newsletters.
Before you go...
Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.
3 ways to support our work:- Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
- Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
- Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
Join our growing Slack community
Join 5,000 tech professionals and entrepreneurs in our community Slack today!