Will New York State broadband plan boost FiOS build-out?

New York State Lieutenant Governor Kathy Hochul announced this past week that the Cuomo administration wants every state resident to be able to access broadband by the year 2019.

According to the Associated Press:

“If approved by state lawmakers the expansion plan would set aside $500 million to go to private broadband providers who invest a matching amount. Priority would be given to providers who guarantee faster Internet speeds.”

The expenditure would be financed from $5 billion worth of settlements with banks and other institutions.

The question is this: will this proposed subsidy encourage Verizon to build FiOS in upstate New York cities? In Buffalo, Albany, and Syracuse, Verizon has deployed FiOS in suburban communities, but has refused to expand its all-fiber network into the cities.

Cuomo administration unveils broadband plan (WHAM-TV, Jan. 16, 2015)