West Virginia Bill Would Bond for Fiber-Optic Lines

BRADENTON, Fla. — A bill is advancing in the West Virginia Legislature that would provide bond financing to build a state-owned fiber optic network.

Senate Bill 459 would provide for the construction of the "middle mile" infrastructure across the state with the goal of offering high-speed Internet to rural communities.

The bill would authorize the Water Development Authority to issue broadband middle mile infrastructure revenue bonds to finance the 2,600-mile network, which would cost about $78 million, according to the Charleston Gazette.

"We are building an interstate highway of fiber," said Sen. Chris Walters, R-Putnam, the bill's sponsor. "The government isn't selling that fiber to households."

Internet service providers would use the state's system to bring the service to homes, businesses, and schools, Walters told the Senate Transportation and Infrastructure Committee Feb. 18.

The bill is opposed by Frontier Communications, the largest Internet provider in the state, the newspaper said.

Kathy Cosco, a lobbyist for Frontier, reportedly told the committee that the project could jeopardize the state's bond ratings, and leave taxpayers on the hook if the network does not earn enough revenue to pay the debt service.

The bill does not specify what revenues would be earmarked to secure the bonds. The measure, as written, prohibits the issuance of any bonds until the Legislature provides the revenue, unless the system's manager identifies a source of income such as from the operation of the network.

The system would be managed by WVNET, the West Virginia Network for Educational Telecomputing network operated by the state's Higher Education Policy Commission.

The Senate Transportation and Infrastructure Committee unanimously approved the bill with some amendments. It now goes to the Finance Committee.

Kentucky is building a similar middle mile fiber optic system to bring high-speed Internet to rural areas of that state. The 3,000-miles of backbone infrastructure is being built with a public-private partnership.

In January, Kentucky announced that it has partnered with Macquarie Capital to design, develop, and operate the network over the next 30 years. The cost is estimated to run up to $350 million, and will be supported by about $30 million in state bonds, and up to $20 million in federal grants.

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