Rural broadband expansion has been underwhelming, Louisiana audit report shows (2024)

Federal and state officials have been trying to dismantle the "digital divide" since the COVID pandemic forced people indoors and spurred a move to work remotely.

Small, rural and underserved communities have been the driving force behind $1.8 billion coming to Louisiana from federally funded programs with titles such as the Rural Digital Opportunity Fund and Granting Underserved Municipalities Broadband Opportunities, to name a few.

The scope of these projects is vast, with nearly 363,000 sites flagged as needing high-speed internet. Those sites exist throughout the state and in some of its most rural areas.

Broadband rollout has been lagging, according to a May 29 Louisiana Legislative Auditor report on the programs. Some projects have not even entered the construction phase despite a Federal Communications Commission deadline approaching in December.

The two main programs are funded either with RDOF funds or GUMBO funds. The Louisiana Public Service Commission handles the RDOF certification process, while ConnectLA oversees GUMBO/BEAD funds.

According to FCC rules, 40% of RDOF-funded projects are to be completed by the end of 2024, with later arrivals due by the end of 2025. Only 10% of the 146,203 RDOF projects have been completed, with three out of 10 providers still only in the planning phase.

The auditors seemed uncertain that providers would meet the end-of-year deadline.

GUMBO grant projects, which are not beholden to the same FCC rules and timelines, are faring better. As of March, 18.4% of the program's 66,351 locations had been served.

Vaneeth Iyengar, director of ConnectLA, said in a March 2024 House Commerce meeting that GUMBO grant projects are expected to be on schedule.

So far, 3,000 locations have been provided with high-speed internet funded through GUMBO. By the end of 2024, that will grow to 43,000 homes and 2,500 small businesses throughout the state.

The report also stated that ConnectLA lacked the necessary staff to do its job effectively. While it might not be an issue at the moment, the auditors warn that as the program enters the GUMBO 2.0 phase, the scale will increase exponentially and may overwhelm the office.

GUMBO 2.0 money will be dispersed at the end of the year with an expected completion date of 2028.

This lag has real effects on residents who have long argued for faster and more reliable internet in rural communities. In rural Pointe Coupee, activists have argued that the poorest areas of the parishhave not been able to fully enter the modern digital age due to a lack of infrastructure.

Access to high-speed internet can affect quality-of-life areas such aseducationand health.

Residents in Pointe Coupee were paying $215 a month for internet so they could work remotely. In rural St. Landry Parish,one mother paid $125 monthlyfor satellite internet so her children could attend virtual classes during COVID.

Nationally, 90% of U.S. residents have access to high-speed internet compared to Louisiana's 85%, with fewer than 60% of household making less than $20,000 having access.

Another issue flagged by the auditors is the possibility that RDOF-funded providers might overextend and default, leaving gaps in internet coverage — the exact issue this money is aimed to fix.

If companies default, these rural communities might not receive service, at least not through federal funds. According to auditors, RDOF sites cannot receive GUMBO 2.0 funds, regardless of whether the provider can complete the project or not.

The auditors said the LPSC did not properly review federal filings and let providers slip into noncompliance.

LPSC does not disperse RDOF funds and has a very limited role in certification process, an agency spokesperson said.

The report reads that the business is risky, according to stakeholders and policymakers. Nationally, more than $2.8 billion of the $9.2 billion awarded in RDOF's first auction has seen providers defaulting.

LPSC told the auditor that it does not conduct detailed reviews of federal filings because that is Universal Service Administrative Company's primary responsibility.

The auditors suggested that LPSC ensure the RDOF providers submit all status updates, as required by LPSC's orders, that the agency thoroughly review all status information before certification, and the agency requires providers to advertise their broadband and voice services.

LPSC pushed back against auditors and said its jurisdiction over providers is narrow, and its job is simply to certify providers if they meet requirements. The agency told auditors it is working to create measures to ensure that all documents are filed by RDOF-funded providers and that consistent updates are provided.

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