County spending $10M for rural internet development

Madison County supervisors have allocated $10 million in federal COVID monies and are asking the state Legislature to chip in another $25 million to fund broadband development in the northeastern part of the county to potentially reach less than 3,000 households. 

Supervisors voted last month to allocated half of the $20 million in American Rescue Plan Act (ARPA) funds awarded to the county for the broadband venture, something District 5 Supervisor Paul Griffin has labeled a top priority for years now. 

“Broadband is something we need all over the county and I am fortunate that most of this project will be in my district,” Griffin said.

Griffin said the monies will be used to put “fiber in the ground” that will make internet access available to roughly 2,900 residents.

Griffin said this was a start to getting “everyone in the county connected to the worldwide web.”

“Primarily this will allow children and teachers to be able to work and be taught at home,” Griffin said.  

Griffin said a “secondary” benefit would be the “future growth and development” that will open up to these areas.

An analysis of broadband presented to supervisors suggests that of the approximately 2,900 households in the rural part of the county, the number of future subscribers could be half that.

“Though broadband is essential to the residents in this area of rural Madison County, and local leadership has identified a strong market demand, the team has conservatively set the projected subscriber adoption (a.k.a. ‘take-rate’) at 51% of the current total number of 2,943 potential residential subscribers — for a total ultimate market number of 1,501 subscribers,” the analysis states. “This is an aggressive take rate in contrast to some other markets, but Madison County expects a very positive response from residents.”

The analysis used a rate of $70 per household to come to that conclusion which would represent $105,070 per month in revenue. That would put the overall investment of over $35 million being paid off in approximately 27 years. 

In addition to the broadband, supervisors voted to allocate $2.5 million for sewer upgrades, while asking the state for a matching $2.5 million. They allocated $2.5 for watershed upgrades, with a $2.5 million state match. And $5 million was allocated for Bozeman Road, with a $15 million state match. 

The state legislature has not decided yet which projects throughout the state they are matching.