CWA study measures the public benefit of broadband projects funded by the American Rescue Plan

CWA has published its first-ever “Broadband Report Card,” an in-depth ranking of more than a dozen broadband deployment projects across the country that were built using the American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Funds (SLFRF). The 14 county-level projects across ten states were evaluated on measures of public transparency, labor standards, and equity, including counties’ ability to drive additional funding from private companies to match ARPA funds and whether the projects offered and advertised a low-cost plan for low-income households. CWA hopes to inform policymakers about the importance of transparency and accountability as their states move towards deploying billions in BEAD funding.

A project from Kenton County, Kentucky, which sits outside of Cincinnati, earned the top ranking and a perfect score of 20 out of 20 points for its public transparency efforts, and for utilizing a workforce that is largely union-represented, directly-employed, and that receives prevailing wages and good benefits. Kenton County officials made the project agreement publicly available online and gave frequent updates on its status during public meetings. In addition, the company Kenton County chose to work with, Altafiber, contributed a $30 million investment on top of the county’s $10.8 million ARPA funding, and committed to offering and advertising the Affordable Connectivity Program.

In Beaver County, Pennsylvania, a suburb of Pittsburgh, a project contracted with Verizon also scored high, thanks to Verizon’s commitment to using their union workforce and to investing more than the county into the project.

Newton County, Georgia, outside of Atlanta, received one of the lowest scores, with no project timeline publicly available, and no map to indicate affected locations. While the county provided $500,000 in ARPA funds to Paladin Wireless in 2022 to deliver broadband to the entire county, Paladin reported having coverage available to only 3.6 percent of the county by December 2023. Paladin Wireless did not contribute any matching funds to the county’s awarded ARPA funding. In further evidence of problematic procurement practices, the county awarded a previous contract in 2019 for which Paladin was the only bidder.

“CWA Local 4400 members in Ohio are proud to be setting a higher standard for broadband projects that are long-lasting and stimulating our local communities. At the same time, we know that commitments from broadband companies to pay good wages, provide affordable service to customers, and make their own investments on top of public funding aren’t automatic, especially if a grant program is structured to reward a race to the bottom,” said CWA Local 4400 President Jason Ballman in Ohio. CWA Local 4400 represents workers at Cincinnati Bell’s Altifiber, who are leading the broadband build in Kenton County, KY. “That’s why, as states prepare to receive billions in federal dollars from BEAD to help close the digital divide, decision makers need to ensure accountability from the companies they choose to work with, prioritizing transparency, equity and the creation of good, local union jobs.”

Of the fourteen projects included in the report, only five utilized union labor, reflecting the corporate opposition to unions in the broadband sector that has held down wages and working conditions. The projects that did use union-represented workforces performed better on both labor standards and other measures, including that the broadband providers made significant matching contributions, enabling federal dollars to go further.

“At Local 13000 in Pennsylvania, we know what it means to build broadband the right way, and that starts with a highly-qualified local workforce. Thanks to Beaver County’s close collaboration with Verizon, and their joint effort to prioritize union workers, we’ve been able to ensure that the federal dollars from ARPA are going towards a high quality buildout,” said CWA Local 13000 President Jim Gardler in Pennsylvania. CWA Local 13000 represents the Verizon workers who are leading the broadband build in Beaver County, PA. “While the size of the IIJA’s broadband buildout is unprecedented, the deployment process is not. As states begin receiving BEAD funding, we hope policymakers are taking note of our project and paying attention to what real accountability and integrity looks like, and how this has translated into positives for us in Beaver County.”

As states prepare to solicit bids from companies seeking to receive BEAD funding, CWA highlights three key areas that decision makers must prioritize, including stakeholder involvement and public transparency; high-road labor practices that ensure prevailing wages and a commitment to hiring locally; and ensuring policymakers take a long-term view in evaluating broadband technology, considering future network costs and the benefits of fiber infrastructure.

"Broadband connectivity and jobs must reach communities of color that have historically been underrepresented in the technical space. Federal funds from the Infrastructure Investment and Jobs Act should be directed towards these communities, ensuring that digital equity programs educate and empower residents to secure quality online jobs and connectivity fostering true inclusivity and economic growth,” said Tanya D. Acker, President, Denver Chapter, A. Philip Randolph Institute. “CWA's report shows that equity and transparency are key for ensuring access to high quality broadband for all.”

CWA’s analysis allows policymakers to see how strong oversight, or the lack therefore, translates into whether a project nets quality jobs and affordable service for communities. The study also provides insight for state broadband offices to make informed decisions on the providers they choose to work with, in order to ensure this funding not only expands broadband service, but stimulates local economies at the same time.

“Closing the digital divide is a racial and economic justice issue. Internet services are essential to ensuring that kids can do their schoolwork, parents can work from home, and families and individuals can access various social services online,” said Local Progress Executive Director Ivan Luevanos-Elms. “As billions in federal dollars go towards a nationwide broadband buildout, municipal and county governments will continue to play a critical role in ensuring these funds promote equity in their communities and lead to successful, long-lasting connectivity. CWA’s report shows us that, while some local governments understand the size of this opportunity, there’s still a lot of work that needs to be done to close the gap.”

CWA represents experienced broadband technicians and service representatives who believe in digital equity and high speed broadband for all. The union’s local leaders continue to serve as an essential expert resource for states and localities as they invest in broadband infrastructure that will stand the test of time.

"With limited ARPA broadband infrastructure dollars, it's important that local governments make thoughtful choices about how they solve connectivity gaps in their communities,” said Ry Marcattilio, Associate Director for Research at the Institute for Local Self-Reliance (ILSR). “This report shows the importance of picking the right path rather than writing a blank check. Those communities that privileged an open public process, future-proof fiber, and a partner willing to invest in the community will reap the benefits for years to come."

Links:

A Report Card for Broadband Projects Funded by the American Rescue Plan (CWA, July 2024)

Decades of slow wage growth for telecommunications workers (EPI, Oct. 2020)

CWA: Broadband workers' safety and wages have gone down (Fierce Network, July 29, 2024)

Putnam County Gets Low Scores In National Analysis Of Broadband Expansion (West Virginia Public Radio, July 25, 2024)

Broadband Projects Vary Widely on Transparency, Equity, and Labor Standards: Report (Telecompetitor, July 26, 2024)