‘Number-one obstructionist': Electricity co-ops lambasted for slow broadband rollout

Yahoo

02-04-2025

Rep. Ed Soliday, R-Valparaiso, leads an energy committee on Tuesday, March 11, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle)
More than a billion dollars worth of government incentives to boost rural Hoosier broadband access could get tangled in the utility pole attachment fight between Indiana's electricity providers and telecommunications companies — prompting a major potential amendment and several hostile exchanges at a Tuesday committee hearing.
'For three years of my life, I have been trying to get the utilities and the telecoms to agree,' the committee's frustrated leader, Rep. Ed Soliday, began. '… And so, we now are here.'
'The loser in all of this is the rural person who needs broadband,' he said. '… I'm going to give out phone numbers of who to call when they come to me and say their children are going to McDonald's to do their homework.'
Senate Bill 502 is lawmakers' attempt to mediate.
Communities struggle to get connected, despite billions in broadband investment
For now, it would require telecommunications companies to 'prove to you that there is a problem,' AT&T Indiana President Bill Soards told a corresponding Senate committee in February. His and other companies would submit information on their attachment requests to the Indiana Broadband Office quarterly until July 2030.
But a detailed amendment from Soliday, R-Valparaiso, would strike the reporting requirements and instead set deadlines to push both provider types toward collaboration — or face the consequences. If a pole owner's noncompliance causes a telecommunications company to lose government funding for a broadband project, the owner could owe the company $25,000.
The committee didn't take a decision on the edits Tuesday. It will consider the legislation again next week.
'Some of you are concerned about the amendment. Let me say this: it can get a lot worse,' Soliday warned. He later threatened to raise it to $250,000.
'We need to solve the problem. All the creative solutions to get around (or) away from this — I will devote my entire life to getting this done.'
Over the last four years, Indiana has poured $350 million into rural access to modern high-speed internet, according to bill author Sen. Andy Zay, R-Huntington. The state was also allocated nearly $870 million in 2023, as part of a $43 billion federal 'internet for all' initiative; an estimated 150,000 Hoosier addresses are eligible, per Indiana Chief Broadband Office Steve Cox. The office is still working on a spending proposal.
Broadband providers contend that pole owners — like electric utilities — are hindering progress.
In February's Senate committee hearing, Spectrum parent Charter Communications reported that its successful pole attachment applications averaged a nearly 400-day wait for approval. But thousands of pending applications have languished for about 500 days, on average.
Electric utilities cite incomplete and inaccurate telecommunications applications as primary causes of delay. They maintain that illegal or improperly done attachments risk damaging the state's electric infrastructure — dubbed the 'backbone for the broadband rollout,' by Michael Charbonneau, government relations head for the Indiana Electric Cooperatives.
'We have worked in good faith with other stakeholders,' Charbonneau told the committee, 'to develop a framework for processing pole attachments related to broadband grant funding.'
His organization opposed the amendment, citing 'significant' financial penalties, to the chagrin of lawmakers disappointed by slow progress.
'We've got the money to do it. So it just baffles me that, in that whole time frame, industry has not come together and figured out how to do this,' said Rep. Jim Pressel, R-Rolling Prairie.
Soliday was more aggressive.
'You know what I think, Mr. Charbonneau? You don't want a solution!' he asserted. 'You're in the business of broadband, aren't you? Aren't you? … You are competing with the broadband companies. Are you, or are you not?'
Charbonneau said 27 of his organization's 38 members have some involvement, generally starting a decade ago, 'because someone had to deliver broadband to rural Indiana.'
He pushed back on the allegations, saying, 'We want rural Indiana to succeed, and it needs broadband and electricity to do so.'
Charbonneau stood before the committee for more than thirty minutes. Questions about the amendment, attachment requests, contracts and delays repeatedly lapsed into heated exchanges — prompting audible gasps from some audience members.
As lawmakers neared caucus time, Soliday said they'd continue discussions next week 'because, what I heard you say in your testimony today is that, by Oct. 1, it is impossible for the REMCs (rural electric membership cooperatives) to agree to any type of timeline or performance standards with the telecoms. …'
'No, it is not —' Charbonneau began.
'Then, you can. It's a binary question. Yes or no?' Soliday pressed.
After several more exchanges, Charbonneau said he was concerned less about the deadline and more that all parties were working 'in good faith.' He sought a solution without fines.
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'What you'd really like is no accountability, and we can continue with this … indefinitely. That's what I'm hearing you say,' Soliday said, as Charbonneau reiterated his aversion to the penalties.
'Three. Years. And we wind up with storytelling every time. We need a solution. So if your answer is (that) it can't be done, you shouldn't even be here,' Soliday added.
'Mr. Chairman, I'm not saying it can't be done. I'm here to say we oppose this amendment,' Charbonneau replied.
The back-and-forth continued until Soliday dubbed the REMCs the 'number-one obstructionist.'
'Wow,' Charbonneau said.
'And that is a fact that I can document. And here we go again,' Soliday concluded. 'So, (I'll) be happy to see you all next Tuesday. Do you have a different amendment? How many hours have we met? All I get is mush. Thank you for your testimony. … With that, we are adjourned.'
Indiana's broadband problems may go beyond state lines, however.
The federal broadband effort is falling behind schedule, Stateline has reported. And, under President Donald Trump's administration, it faces an overhaul that could push lucrative contracts toward Elon Musk — the world's richest man and a top Trump adviser — according to the National Public Radio. One of the furthest-along states, West Virginia, is reworking its proposal to better align with the administration's desires, per Broadband Breakfast.
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