Oregon has work to do to be ready for influx of money to expand broadband

Up to $1 billion in federal money could be pumped into Oregon in the next few years to give more people full access to high-speed broadband internet. But the state’s recently created agency has work to do to make sure underserved communities are treated equitably.

That was among the findings in an audit of the Oregon Broadband Office conducted by the Secretary of State’s Office and released Wednesday.

Access to high-speed broadband is one of the primary roadblocks to bridging the “digital divide,” the unequal access to digital technology for those of lower economic means.

Setting up a system

The Oregon Broadband Office was created by a 2018 executive order. It operates under Business Oregon.

The state Legislature expanded the office’s responsibilities in 2019, but did not give it additional money to carry out those improvements. The department has expanded to 12 employees, but most of those were hired since September 2022.

The federal government allocated $65 billion in the Infrastructure Investment and Jobs Act of 2021 to improve access to broadband in rural areas in the United States. Leaders in Oregon estimate the state will receive between $400 million and $1 billion over the next few years.

Much of that money will be distributed to internet providers through grants through the Oregon Broadband Office.

The audit says the state’s office likely will be prepared to receive the grant money, but it will require assistance from the Business Oregon staff to distribute it.

The Oregon Broadband Office has a $162 million budget, including $120 million from the American Rescue Plan.

The state has already received several grants to assist with expanding access to high-speed broadband, including a recent one to develop a five-year plan.

The auditors determined the state will need to focus on planning, including documenting and distributing its processes, policies and procedures, timelines, maps and establishing milestones for projects.

Mapping availability

One of the challenges, according to the audit, of figuring out where incoming money will go is the lack of accurate maps showing current high-speed broadband availability in the state.

According to the FCC’s National Broadband Availability Map, areas in the Coast Range, such as around Falls City, are without 100% broadband coverage, as are areas in the Cascade Range, such as around Detroit and Oakridge.

Most maps show the areas that are underserved or unserved with broadband are largely in central, eastern and southern Oregon.

But none of the maps is definitive.

More than 300 internet service providers operate in Oregon. Some telephone companies and co-ops also provide internet access.

Rural, income inequities

Much of the lack of access in Oregon is due to geography – an estimated 1.7 million of 4.2 million people in the state live in rural areas where they can’t get access to high-speed broadband.

That means if someone doesn’t live in an incorporated city in a densely populated area like the Willamette Valley, they are less likely to have access to the internet.

The audit pointed out the state does not have a plan to address cost disparities in broadband access; a plan for leveraging funds that could come from the federal government; or a diversity, equity and inclusion plan, despite underrepresented communities being most adversely impacted by lack of access.

Income level also plays a role in access to the internet, according to the audit. Fewer than half of people in the bottom 20% of income have access to the internet while 95% of people who are in the top 20% of income have access.

Private investment in broadband has focused on more dense areas like Portland and Salem, leaving little incentive for providers to move into more rural areas.

When the COVID-19 pandemic closed schools in March 2020, families without access to broadband took their children to parking lots of libraries, schools and other locations so they could attend classes online. Some school district distributed wireless hotspots by school buses.

Tribal lands were hit harder, according to the auditors. Most broadband grants have required matching funds, which has been difficult for some tribes to come up with. There are also environmental factors on tribal lands, which sometimes encompass noncontiguous areas or large swaths of forest.

In some more remote areas, technologies like satellite internet are available, but those can cost $600 per month, compared to $100 per month for broadband.

And the cost to put a fiber internet line in the ground is about $5 per foot in the Willamette Valley, according to the audit. In more remote areas, that can grow to $55 per foot.

Bill Poehler covers Marion County for the Statesman Journal. Contact him at bpoehler@StatesmanJournal.com