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Connecting Arizona: Record funding builds on broadband expansion efforts


Arizona’s billion-dollar broadband plan will expand high-speed internet to all residents
To increase broadband access, Arizona is embarking on a historic effort to bridge the broadband divide and deliver high-speed internet to all Arizonans.
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For many, a life without the internet is unimaginable. Reliable high-speed internet has become increasingly important to day-to-day life. People rely on the internet for everything from education and work to socializing and health care. Quality internet empowers people to learn, successfully work, and accomplish daily tasks.

Residents in some areas can experience frustrations with the lack of or limited access to the internet. Charlie Costello, a resident of Bullhead City, had daily interruptions to her slow internet service, making it challenging for her to write emails, handle business and go about her day. “It just made me nuts,” Costello said. “So when I got access to fiber optic, I jumped at it,” she said, referring to the state’s broadband expansion that connected her home to faster internet speeds.

Stories like Costello’s are frequent across the U.S., especially in rural areas that tend to lack telecommunication infrastructure.

In Arizona, about 31% of Arizona households — nearly 800,000 — are underserved or unserved with little or no access to the internet, according to a 2022 report by the Arizona Commerce Authority (ACA).

To increase broadband access, Arizona is embarking on a historic effort to bridge the broadband divide and deliver high-speed internet to all Arizonans.

Record federal funding

Connecting all of Arizona with high-speed internet is a priority of state leaders. In June, Gov. Katie Hobbs announced Arizona received a nearly billion-dollar federal broadband grant to help build infrastructure and deploy technology, the largest broadband investment in state history.

“For too long, millions of Arizonans have lacked this access, preventing them from attaining good paying jobs, quality education and even basic health care services,” Hobbs said in June 2023. “With this funding, my administration will work with local, tribal and industry partners to connect every Arizonan in every community across the state and build an Arizona that works for everyone.”

The $993 million grant comes from the federal Broadband, Equity, Access and Deployment (BEAD) Program, managed by the National Telecommunications Information Administration (NTIA), and part of the bipartisan infrastructure bill passed in 2021.

Arizona’s BEAD Program, overseen by the ACA’s State Broadband Office, aims to reduce barriers or hurdles for internet service providers, while leveraging federal partnership opportunities. Once the state’s plans are approved by the NTIA, the work can begin – as soon as 2025 – and possibly completed in two to three years.

The end result has the potential to transform health care, education, public safety and economic development.

“These investments will improve the lives of those who lack access to reliable, high-speed internet and drive further economic growth in our state,” said Sandra Watson, president and CEO of the Arizona Commerce Authority (ACA). “In our digitally connected world, ensuring access to broadband is essential to increase economic opportunity and growth statewide.”

Importance of affordability

Making it affordable is critical. The Federal Communications Commission’s Affordable Connectivity Program helps qualifying applicants lower their internet bills up to $30 per month ($75 per month on tribal lands). One-time discounts on laptop, desktop and table purchases are available, too.

The state also plans to work with nonprofit partners to recycle older devices that are donated by businesses and provide them to underserved communities.

As rural Arizona and tribal nations become more connected, Arizona’s economic development efforts will further soar, enhancing the competitiveness of existing companies and creating more opportunities for new investments.

Planning for the future

For years, Arizona has been laying the groundwork for a vast broadband network to connect 91 cities and towns in 15 counties and across 22 federally recognized tribal nations.

Arizona allocated funds toward broadband initiatives and pursued federal funding for planning studies. Legislation was passed to streamline technology deployment, and construction of important infrastructure began.

In 2017, the Arizona Department of Transportation (ADOT) started creating a middle-mile network — a fiber backbone connecting data centers to rural communities. ADOT began laying conduit, through which fiber will run, along I-10, I-17 and I-40 and select state routes.

Arizona is among several states owning its middle-mile network, which can serve an estimated 80% of unserved and underserved households. Advancing the work on the middle-mile has put Arizona in the perfect position to execute the new broadband investments.

The new investments and corresponding actions will have a lasting impact for decades. The new generation of fiber is powerful and will serve the system for at least the next 50 years, the ACA estimates.

Following the COVID-19 pandemic, which magnified the importance of internet connectivity, reliability and affordability, the state used $190 million in new federal funds to start 20 projects in 13 counties. Upgraded connections were made in an estimated 100,000 households, 500 businesses, and 800 community anchor sites, such as libraries, hospitals, schools and government buildings.

This next last-mile network, to connect the fiber backbone to more households and businesses, will enable electric co-ops and private service providers to deliver high-speed internet to communities.

In just a few years, this massive broadband push will bring a generational change to the everyday life of Arizonans no matter where they live across the state.

To learn more about Arizona’s broadband initiatives and actions, visit azcommerce.com/broadband/.


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