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In the pursuit of enhanced internet accessibility across the country, especially in rural areas, Texas has been at the forefront with its Rural Broadband Development Program.
Funded significantly by federal taxpayer dollars, this initiative has sparked a nationwide debate about the best methods to ensure widespread connectivity and the respective roles of government and the private sector. This discussion is particularly relevant given the criticisms of similar federal initiatives, such as the Biden Administration’s $42 billion broadband program, which has yet to connect a single household.
In an era where connectivity is as essential as electricity, Texas’ commitment to expanding rural broadband access is commendable, though its approach may be seen as lackluster and is certainly antithetical to free enterprise.
Texas’ Rural Broadband Development Program
The Lone Star State has embarked on substantial initiatives to enhance internet accessibility in its rural areas, utilizing significant federal tax dollars. This commitment prompts a crucial debate on the collectivization and efficiency of such public programs versus potential free enterprise solutions, especially in light of actions taken in recent legislative sessions.
The program aims to bridge the digital divide by extending high-speed internet to underserved and unserved communities across the state. This initiative reflects a growing recognition of broadband as a critical infrastructure for enabling economic growth, education, and healthcare services.
Recent Legislative Sessions
In his 2021 State of the State Address, Texas Governor Greg Abbott (R) said,
“From medicine to education to business, broadband access is not a luxury—it is an essential tool that must be available for all Texans. That’s why I am making the expansion of broadband access an emergency item this session.”
Texas Gov. Greg Abbott (R), 2021 State of the State Address
During the 87th Legislative Session (2021), Texas lawmakers passed legislation, authored by State Rep. Trent Ashby (R-Lufkin), establishing the Broadband Development Office within the office of the Texas Comptroller. This office was tasked with identifying unserved areas and administering funds aimed at boosting broadband infrastructure statewide. Governor Abbott made this issue an emergency legislative item as well.
When Ashby’s legislation was being heard in the House Appropriations Committee, there was robust debate among members on the role the government has in such efforts. State Rep. Matt Schaefer (R-Tyler) brought up concerns multiple times about the lack of a free enterprise approach included in the legislation. Ashby responded to those concerns, saying,
“You know, there’s a reason why there’s—especially when you look at the map, the broadband map that’s been published—that east Texas, south Texas, and El Paso in particular, those areas, and we have millions of Texans that have no access to internet, much less broadband, so I don’t think we can just sit here and say that there’s a market-based solution. There is a market-based solution, but it evidently is going to require some [incentivization] or some incentives, and so I think that’s the whole point here, is that we need to be technologically agnostic to the chairman’s question because what works in Lufkin, may not work in El Paso, may not work in Austin or Tyler, so we need to let the market decide that…”
Ashby went on to also say,
“…you know, broadband is not a luxury, it is an essential part of our daily lives now and just because we live out… they also deserve access to a quality education and prospects to make a good living and be a productive citizen, and so we as Texans..we have an opportunity to stand up and take advantage of this money that’s coming down and maybe make some strategic investments.”
State Rep. Trent Ashby (R-Lufkin), Texas House Appropriations Committee Hearing on House Bill 9, 10.26.22
In the 88th Legislative Session in 2023, lawmakers expanded upon this foundation and allocated additional federal funds, refining the strategies to expand broadband reach. They passed legislation to establish the Texas Broadband Infrastructure Fund, outlining the funding sources, which include state appropriations, federal funding, and donations, and expanded the fund’s reach to include things like 9-1-1 services, broadband pole replacement, and matching funds for existing federal broadband programs. Texas voters later approved the constitutional amendment by 69%, ultimately creating a boon for rural Texas, expected to gain most of the benefit from such programs.
Both the Texas House Committee on State Affairs and the Texas Senate Committee on Finance have been charged with monitoring the implementation of the rural broadband initiatives. The House State Affairs Committee is scheduled to hold an interim public hearing at the end of July to hear invited testimony related to the oversight of associated rulemaking and other governmental actions taken to ensure the intended legislative outcomes of it’s recently passed legislation, among other things. Similarly, the Senate Finance Committee is scheduled to meet in early September for the same purpose.
Use of Federal Taxpayer Dollars
The program’s reliance on federal tax dollars is substantial, argued as necessary to overcome the high initial costs and lower returns expected from rural broadband investment. Critics, however, question the efficiency of this spending and the sustainability of relying on government funds, advocating for a more free enterprise-driven approach.
Federal Efforts and Challenges
Nationally, efforts to expand rural broadband have mirrored those in Texas, involving substantial federal funding and ambitious coverage goals. However, these efforts have been criticized for their slow execution and inefficiency. The Biden administration’s broadband initiative, despite its hefty budget, has struggled with regulatory and logistical delays that have prevented any significant progress in connectivity, as reported by Reason.com.
The Free Enterprise Alternative
Proponents of a free enterprise solution argue that private sector involvement could lead to more innovative and cost-effective broadband solutions due to the following:
- Innovation and Efficiency: Competition drives private companies to innovate and reduce costs, potentially leading to more effective resource deployment and technology development.
- Consumer Choice: A market-driven approach could increase service providers in rural areas, enhancing consumer choice and service quality.
- Reduced Taxpayer Burden: Minimizing government involvement could save taxpayer money and reduce public financial risk by shifting investment responsibilities to the private sector.
- Scalability and Flexibility: Private companies can more readily adjust operations based on market demands and technological advancements compared to government programs constrained by bureaucratic processes.
Starlink: An Example of a Free Enterprise Alternative
Many observers point to free enterprise solutions like Starlink, developed by SpaceX, offering a promising alternative. Utilizing a constellation of satellites, Starlink aims to deliver high-speed internet globally, especially to remote areas where traditional infrastructure is cost-prohibitive.
Benefits of Starlink and Similar Technologies
- Extensive Coverage: Capable of reaching geographically challenging areas, reducing the need for expensive infrastructure.
- Speed of Deployment: Satellite technology bypasses many traditional barriers, enabling quicker service rollout.
- Market-Driven Innovation: Operates under competitive pressures that drive efficiency and service excellence.
Economic and Operational Efficiency
Starlink exemplifies how private investment can lead to more efficient resource use and better services compared to government-led initiatives. The private sector’s responsiveness to market conditions contrasts sharply with the bureaucratic nature of federal and state programs, which often suffer from inefficiency and budget overruns.
Controversy and Debate
The reliance on taxpayer dollars for expanding broadband has sparked debate. Critics, referencing failures like those noted in the Reason.com article, argue that government programs often lead to misallocated resources and financial waste. They advocate for a greater role for private companies, which they believe can offer more sustainable and innovative solutions.
Conclusion
The debate over how best to achieve rural connectivity in Texas and across the U.S. remains vibrant. As Texas continues to expand its Rural Broadband Development Program, it is crucial to learn from both its successes and the apparent shortcomings of similar federal efforts. Incorporating lessons from free enterprise operations like Starlink could lead to a more balanced approach, ensuring efficient use of resources while achieving the goal of universal broadband access. The ongoing evaluation of these approaches will determine the best path forward for connecting rural America.
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