The $1.2 trillion Infrastructure Investment and Jobs Act … sets aside over $42 billion for states to build local broadband networks in their unserved and underserved communities, many of them in rural areas. It also allocates $14 billion to continue to subsidize provision of broadband service to low-income residents; in this way inner city students can do their homework on their connected laptops at home, and elderly patients in rural areas can visit virtually with their doctors. … Generally speaking, private activity bonds, or PABs, allow private service providers to borrow funds from bond investors at tax-exempt rates to finance “qualified broadband projects” as defined in the new law. While PABs are issued by a governmental entity, the proceeds can be loaned to private service providers who would ultimately be liable for repayment of the PABs. A qualified broadband project is one in which the PAB applicant provides broadband service in an eligible census block group area that has speeds of not less than 100 megabits per second (mbps) for downloads and 20 mbps for uploads. In addition, once the PAB applicant finishes its buildout, it must be able to show that 90% of the residences and businesses that are able to receive the applicant’s new signal could not have received access to slower 25/3 mbps broadband before the PAB was issued.
Source: The Bond Buyer
