Wired for Success: The Business of Broadband

Without a viable broadband infrastructure, the Mountain State is lacking the most important tool to attract new businesses. Groups like Generation West Virginia, as well as a few West Virginia legislators, are championing broadband access as the key to growing and diversifying the economy.

By Samantha Cart

In the digital age, it takes more than quality roads, water lines and electricity to attract new businesses. Organizations are increasingly dependent upon high-speed Internet access as a staple for the modern distribution of goods, services and information. The implementation of accessible and affordable broadband is imperative to economic growth in West Virginia.

According to the National Telecommunications and Information Administration and the Federal Trade Commission, West Virginia ranks 50th in the country for the percentage of the population with access to broadband with download speeds greater than 3 megabits per second (Mbps) and upload speeds greater than 0.768 Mbps. The West Virginia Broadband Deployment Council indicates that 58 percent of state-owned facilities are unable to achieve higher Internet speeds—a number that is below the federal and state definition of broadband—along with 56 percent of the state’s urban residents and 74 percent of rural areas.

“Businesses depend on the interconnectivity that broadband provides, and more business plans include telecommuting staff members, product distribution nationwide and the ability to work on the go from anywhere,” says Natalie Roper, executive director of Generation West Virginia (GWV). “Without broadband infrastructure, businesses are limited to outdated models of production and distribution, and employees are limited to outdated models of work environments.”

GWV promotes increased broadband access because of the fundamental role it plays in attracting and retaining young talent and business—the organization’s core mission. “We serve as a voice for young West Virginians at the Capitol, advocating for increased broadband access in the state to ensure more of the next generation of employers and employees choose West Virginia for business,” says Roper. “Through posts on social media and our website, GWV provides nonpartisan updates on broadband-related legislation and encourages action from our followers to get involved in advocacy. In meetings with Internet providers and legislators alike, we ensure broadband access is the focus and strive to unite differing perspectives around the common goal of keeping more of West Virginia’s young talent in the state.”

West Virginia’s lack of broadband has already cost the state new business and potential jobs. According to Lillian Graning, chief communications officer for the New River Gorge Regional Development Authority, the New River area has experienced the loss of two prospective businesses in the past six months due to lack of broadband coverage and reliable cell phone service in the region.

“High-tech prospects don’t have to build in additional costs to connect to affordable, easily accessible, reliable broadband coverage in other areas,” says Graning. “It can become a barrier when we’re competing against other areas in the nation.”

The importance of a broadband network has not been overlooked by West Virginia legislators. During the 2015 legislative session, two bills were introduced that dealt with researching and developing better access for West Virginians. Senate Bill (SB) 488 established the Broadband Enhancement Council (BEC), which will replace the former Broadband Deployment Council (BDC) that folded at the end of 2014. U.S. Senator Joe Manchin established the BDC in 2009 when he was governor of West Virginia. The Legislature allocated $5 million to the group, which was spent on various wireless Internet projects in rural areas.

“Once the BDC sun set at the end of 2014, there was no longer a state entity focused on improving broadband service in the state. We were delighted the Legislature recognized that this was problematic and passed legislation to create the Broadband Enhancement Council,” says Chris Morris, vice president of business development and external affairs for Citynet. “We supported this legislation as it progressed and agreed wholeheartedly with the shift in the makeup of the BEC. The discussion can now be held from the perspective of broadband users who so desperately want and need service rather than a table full of providers trying to figure out how to make money in the rural markets. Citynet plans to attend the BEC meetings and offer our expertise and thoughts when it is desired.”

The other senate bill concerning broadband in the Mountain State was SB 459. Senator Christopher Walters of Putnam County wrote SB 459 after he studied the fiber optic broadband network recently constructed in Chattanooga, TN. By creating what was intended to be a way to get real-time readings on water, gas and electrical meters, Chattanooga ended up with the fastest, most affordable fiber optic network in the country. Since the network was completed, the city has seen a $250 million increase in its gross domestic product. “When I wrote the bill, I wanted it to be more than just putting my name on somebody else’s work,” says Walters. “After reviewing the network in Chattanooga, I drafted a piece of legislation to build a statewide fiber optic interstate system.”

According to Walters, there are two types of fiber: middle-mile, which is best thought of as long stretches of interstate, like the distance from Huntington to Charleston, and last-mile fiber, which is like the off-ramps that go into the communities and connect to homes and businesses. “What I put together was a plan to build a 2,500-mile interstate of fiber throughout West Virginia,” says Walters. “To put it into perspective, to build two miles of actual interstate costs about $78 million, and to build 2,500 miles of fiber interstate will cost around $72 million. That would bring the interstate system of fiber to every county and almost every community in the State of West Virginia.”

Private companies make their profits from last-mile fiber systems. The addition of a middle-mile system would allow them to extend their businesses to new areas, and it would also promote competition and invite new broadband providers to the Mountain State. Walters’ intention is to build the fastest, most affordable fiber optic system in the United States.

“If this bill had passed and we built this network, West Virginia could have been number one in the nation when people look to build Web-based businesses, and we could have done that for a relatively low cost. When a company is looking for a place to go, they’re looking for access, cost, speed of broadband, price of land and price of power. West Virginia already has one of the lowest costs in the nation for power and one of the lowest land costs in the country.”

SB 459 did not make it out of the Senate Finance Committee before the legislative session ended, but Walters is hopeful for its future. “It’s a generation thing in the Legislature and in business,” says Walters. “Younger generations consider social media and connecting online to be just as important as electricity. It’s a learning curve because the generation before us does not see it that way.”

Walters believes that with more education, the bill will have a chance at passing. He is working with other legislators to make sure the bill is written in the best way to benefit the Mountain State and meeting with other legislators to educate and explain the fiber optic system.

Without a viable broadband network, rural West Virginia is left without the most important tool for economic revitalization. A statewide broadband system will not only diversify choice and competition among providers but it will also invite new businesses, create jobs and inspire young professionals to make the Mountain State their home.