Christine Hallquist's plan to bring fiber-optic cable to Vermont: How would it work?

April McCullum | Burlington Free Press

Show Caption Hide Caption Christine Hallquist's fiber internet plan Christine Hallquist, the Democratic candidate for governor, says she can connect all Vermonters to high-speed internet by requiring electric companies to hang fiber-optic cable.

On a sunny day, Christine Hallquist can stream video on her computer in her Hyde Park home, but not in high definition.

When the weather turns bad, Hallquist says her internet connection gets less reliable.

"I probably have to reset my modem daily, at least," Hallquist said. "When it's pouring rain, I lose connection completely."

Hallquist has a plan to fix her internet problem, as well those of others living in rural Vermont — a plan that's central to the Democratic candidate's bid to become governor.

"I will get fiber-optic to every home and business in Vermont," Hallquist promised in her campaign kickoff speech, "so every Vermonter can partake in the 21st-century economy."

More: Scott and Hallquist: Get to know the VT governor candidates

Previous governors have promised universal broadband. Hallquist is going further by proposing universal fiber-optic cable, which she says would revitalize Vermont's small towns and attract families to the state.

But for the plan to work, Hallquist would need the cooperation of virtually every electric utility in the state. The power companies would bear the cost and do the work.

The Hallquist plan

If Hallquist is elected governor, her plan is to pass legislation that would require electric utilities to hang fiber-optic cable in their service areas, she explained in an interview late last month. The power companies could make money by leasing the fiber to internet service providers.

Utilities would not be allowed to compete with traditional telecom companies by selling internet service directly to customers.

"When I talk about doing fiber, I'm not saying that the electric companies are going to provide the services, because that would be unfair," Hallquist said.

There would be no state funding to go along with the mandate. Hallquist believes that neither utilities nor telecom companies would put up a fight if the legislation is done correctly.

"I think the electric utility providers are going to want to do it anyway," said Hallquist, who was the CEO of Vermont Electric Cooperative until she resigned this year to run for governor. "So we'll make it a requirement, but you’re not going to get resistance from the electric utilities."

No other state in the nation has passed such a mandate.

"Can somebody be forced to build a network? I don’t think so, but maybe," said Jonathan Chambers, a former Federal Communications Commission official who now consults with electric co-ops around the nation that are interested in fiber.

More: Christine Hallquist: An inclusive candidate and a 'policy wonk'

Chambers applauds Hallquist's focus on building fiber to every home and business, which he believes is the logical long-term solution for rural internet access.

"I would disagree with an awful lot of what Christine thinks is the solution," Chambers said in a telephone interview, "but the goal is absolutely correct."

An old promise

In his inaugural address in 2007, Gov. Jim Douglas promised full internet and cell-phone coverage in three years and imagined that Vermont would be the nation's "first true e-state." State government created the Vermont Telecommunications Authority, backed by state bonding, to lead the infrastructure investments.

Gov. Peter Shumlin adopted the same goal of universal access. In 2015, Shumlin declared that all Vermont addresses had access to broadband or a plan to make it happen. Some of those addresses were connected at speeds well below the federal government's definition of broadband.

Gov. Phil Scott has not promised so-called "last-mile" broadband, but his administration has continued the approach of using state grants to support broadband projects.

"We have some more work to do in terms of bringing higher-speed broadband to all parts of the state," Scott said in an interview at the Burlington Free Press.

Today, an estimated 73 percent of Vermont homes and businesses are served by internet access that meets the federal government's speed benchmark for broadband, which is 25 Mbps download and 3 Mbps upload. Just 13 percent of the state is served by fiber, which offers connection at the highest speed.

Cost has been the greatest barrier to getting fiber to Vermont homes and businesses. The state's 2014 telecom plan summarized the challenge like this: "The cost of bringing service to rural areas may outpace the revenues providers can expect to receive from selling broadband service."

When asked about his broadband plan, Scott emphasized the good news: Many communities, including Springfield and Newport, have what the governor described as high-speed access. And the governor said 260 schools have high-speed access, which was better than he'd expected.

Scott said he is interested in talking with the Vermont Electric Power Co. about expanding their existing fiber network. He is focused on population centers, rather than promising to reach every address.

Utilities step up

At the heart of Hallquist's idea is a concept that has already been tested elsewhere: Electric utilities can take the lead on fiber.

Utilities across the country, from New York to Iowa to Missouri, have begun to install broadband networks in rural areas that had been passed over by traditional telecom companies.

"It’s very successful," said Angie Edge, vice president of finance and administration at Pulse Broadband, an organization that consults with electric utilities. "And most if not all of our projects have a higher take rate than we expected," referring to the number of customers signing up for the internet service.

Experts say that utilities can often hang fiber at a lower cost leveraging existing utility poles and rights-of-way. (Hallquist said utilities have an additional cost advantage: They pay back their infrastructure borrowing over a longer period than a telecom company.)

Vermont Electric Cooperative is no stranger to fiber projects. The utility won a federal grant in 2011 to hang fiber to support its smart grid infrastructure. Hallquist requested a waiver that allowed VEC to hang additional fiber that could be made available to telecom providers, she said.

More: VT Insights: Hallquist-Scott poll tells two tales

VEC has continued to discuss its options for fiber after Hallquist's departure, but hasn't committed to the kind of large-scale installation that she envisions.

"VEC hasn't made any decision about whether we would or wouldn’t get into building out fiber or broadband," said Andrea Cohen, manager of government affairs and member relations at VEC. "It’s an important issue, it's an important topic for our membership, but also our primary responsibility is to our electric ratepayers."

Green Mountain Power has not looked into the possibility of building fiber to the public, said spokeswoman Kristin Carlson. She said the utility would want answers on how much such a project would cost. Green Mountain Power is by far Vermont's largest electric company, serving about 71 percent of all customers.

What will it cost?

Hallquist has not offered any cost estimates. Her plan would call on utilities to build fiber to every home and business in their service territory, except that it would not duplicate existing fiber lines. Hallquist's campaign spokesman, David Glidden, said in response to follow-up questions that "places that have adequate internet" might also be exempt.

Hallquist estimates that the new fiber network could materialize within the next decade: two years to pass the legislation, then three to seven years for installation.

It would be up to the Legislature to decide on an enforcement mechanism if utilities were unwilling or unable to comply, Glidden said.

Chambers, the national consultant, suggested that Vermont co-ops could build a fiber network without waiting for a government directive.

"It can be done without the government forcing it, but that means that people have to step up," Chambers said. "This isn't magic. It's not a wave of the wand kind of stuff, and nor is it the stroke of a pen from a government agency. This is really hard work."

Contact April McCullum at 802-660-1863 or amccullum@freepressmedia.com. Follow her on Twitter at @April_McCullum.