National broadband reporting is a hot mess and the cost to deliver high-speed Internet to underserved rural areas is even more complicated.
BroadbandNow, an independent research and advocacy group that monitors nationwide broadband deployment, reports that more than 1 million Arkansans lack the high-speed service, contradicting Federal Communications Commission estimates that 574,000 homes are not served.
The number is important because it will determine the ultimate cost of delivering broadband to those homes. Right now, there is a wide disagreement in the state over just how much funding to devote to closing the broadband gap.
Gov. Asa Hutchinson and his Commerce Department were pinned to the mat in the wrestling match with legislative leaders recently over how much federal money is needed to improve broadband service in the state.
The administration was seeking $150 million, which only would have allowed deployment to 150,000 Arkansans, but surrendered after legislative resistance. The governor worked with the Arkansas Legislative Council on a compromise dedicating $30 million to deployment on about 17 projects.
It's a start but there's still a long way to go if the BroadbandNow analysis is correct.
To assess deployment, the FCC sends a form to providers asking the carriers to certify the census blocks they cover with broadband service.
The problem, however, is that a provider will check a box that says it covers a census block but that doesn't necessarily mean every household in that census block receives broadband service. Yet the carrier gets credits for the entire block.
The average census block in the U.S. ranges from 600 to 3,000 people. So if a provider delivers broadband to 60 homes in a census block of 600, the FCC counts that as 600 homes receiving broadband.
BroadbandNow entered specific house addresses to test against the FCC data and uncovered the discrepancies.
"The key thing we're comparing is the accuracy of the census-block data vs. the reality of the address-level data," said Tyler Cooper, editor in chief of BroadbandNow. "The reality is there are homes and addresses that are slipping between the cracks."
There are consistent errors in the FCC's approach, according to Cooper. "In Arkansas' case, an error is made 22% of the time in the FCC's estimation," he said.
Ultimately, that means almost 500,000 Arkansans don't receive the service but the FCC measure indicates they do.
BroadbandNow conducted a manual survey of 1,000 households in Arkansas to determine the error rate and get a more accurate reading of just who receives the high-speed service and who doesn't.
The cost to deliver service to the 1 million Arkansans, many of whom are in hard-to-reach rural areas?
"It's very, very difficult to predict costs of broadband proliferation with any degree of accuracy at the stat level," Cooper said. "We're really talking about a mixed deployment. Arkansas is not using one technology or one infrastructure. And then the technologies haven't stabilized in price at all."
Bottom line: it's too difficult to gauge because costs vary based on the technology used. Today, there are multiple ways to deliver broadband, including fixed wireless, fiber to the home, orbiting satellites, traditional networks like cable and DSL or 5G, which is the latest in cellular technology.
Nationally, the FCC estimates that about 14.5 million Americans are without access to broadband Internet. BroadbandNow, however, puts that number at 43.6 million, about triple what the federal agency projects.
The full study is available at broadbandnow.com.
CAPITAL GAINS
Arkansas Capital Corporation has been awarded a $1.2 million grant by the U.S. Treasury Department to boost lending to small businesses crippled by the coronavirus.
The Little Rock lender is one of 860 Community Development Financial Institutions selected to receive rapid response grants from the federal agency.
Arkansas Capital plans to use the funding to reach underserved entrepreneurial markets in communities across Arkansas.
"Women, people of color, and veterans all significantly contribute to our economy, and we will ensure that continues," Sam Walls, president and chief executive officer of Arkansas Capital, said in a statement.
"This award will allow us to be creative in the ways we connect small business owners with finance opportunities and link them to quality technical assistance providers to create enduring businesses."
Working in partnership with commercial banks, government agencies and other entities at the local, state, regional, and national levels, Arkansas Capital has deployed more than $2 billion in capital financing.
RAISE A GLASS
Tuesday afternoon 10 local entrepreneurs will pitch their products and services to win $31,000 in prizes. The Shark Tank-like competition will be held virtually at 3 p.m. so you'll have to raise a glass at home this year.
Businesses owned by women, veterans and persons of color were favored as contestants in this year's competition. The group focuses on Arkansas-based businesses that have been financially harmed by the pandemic and have annual sales of under $100,000. The 10 contestants range from a Spanish tutoring business to a computer coding company to a pizza catering operation among others.
Each entrepreneur will make a three-minute pitch to a three-judge panel and the virtual crowd. The judges will pitch in and vote for their favorites.
The winner walks away with $15,000 in cash. Second place grabs $10,000 and third place wins $5,000. The online audience will get to vote for its favorite, who will win $10,000 in cash.
The event is collaboration between the Little Rock Venture Center, Venture Noire and the Arkansas Small Business Technology and Development Center.
More information is available at venturecenter.co.
BUILDING BLACK BUSINESS
About 40 Black-owned businesses and nonprofits in the state are receiving financial support from the Arkansas Community Foundation and the Arkansas Black Philanthropy Collaborative.
The grants support programs and initiatives established to help Black people and communities in the Little Rock metro area, including Pulaski, Saline, Perry, Grant, Faulkner and Lonoke counties.
Funding is provided by Facebook while the Community Foundation is providing infrastructure support to deliver the grants and Black leaders in Central Arkansas selected the organizations to receive money.
Grant recipients serve areas that include small businesses support and economic development, community improvement, human services, civil rights, leadership development, education, arts and culture and health.
"This significant grant funding will empower Black-led organizations to amplify their voice in the giving space," said Derek Lewis of the Black Philanthropy Collaborative. "All 40 grant recipients were able to demonstrate established relationships and a good track record of working on activities that impact Black communities."
Column ideas or recommendations? Thoughts or musings that need pursuing? Contact me at amoreau@adgnewsroom.com or at 501-378-3567.