Arctic Economic Council Wants Private Sector to Spur Broadband Deployment

The Arctic Economic Council pressed for more broadband deployment in the Arctic parts of the U.S., Canada, Denmark, Finland, Iceland, Norway, Russia and Sweden. AEC's Tuesday report highlighted issues posed by reaching some of the most difficult areas to serve. “There is currently no comprehensive strategy for connecting all Arctic communities to one another and the rest of the world,” the report said: Arctic nations “tend to work in isolation from one another when attempting to address their internal user needs.” The study urges mainly private sector solutions. AEC released the report during a conference in Tromsø, Norway, above the Arctic Circle.

Population density is a problem, the document said. “Approximately 120 Alaskan villages have fewer than 1,000 residents, and many have fewer than 100 residents,” the report said. “Communities such as these are highly dispersed and are often not connected to any road system.”

The vastness of the Arctic and harsh weather conditions are challenges, as is the high cost of deploying service, the report said. The Arctic also has “an insufficient network of specialized contractors to install equipment necessary for broadband deployment,” the report said. “The number of IT professionals qualified to maintain technology and deal with equipment failures in the Arctic is small.” Inadequate satellite coverage, the lack of transportation infrastructure and low adoption rates are among other problems cited.

Recommendations for making broadband coverage more ubiquitous: “Modernize tax structures to incentivize private entities to put forth risk capital in the remote and insular areas of the Arctic.” Governments "could offer tax incentives tailored to stimulate Arctic broadband investment such as: accelerated depreciation schedules for enumerated technologies; allowing some capital expenditures to be treated as expenses; exempting specific technologies and expenditures from sales and use taxes; tax credits; and others.”

Streamlining of local zoning and permitting laws would “allow for faster and easier construction of new broadband facilities,” the report said. Collaboration among the international partners is key as is coordination with environmental protection and land management agencies and nongovernment organizations, AEC said. Spectrum is critical, the report said. “Make available more usable and appropriate spectrum in Arctic regions, whether on a licensed, unlicensed and/or shared basis. Additionally, streamline spectrum allocation processes.” When a “realistic business case” can't be made for private investments, AEC said, “governments should work in collaboration with the private sector to identify and implement policies to support efficient and mutually beneficial public-private partnerships designed to support broadband deployment and adoption."

The recommendations result from "a true collaborative effort among the business community within the eight Arctic states,” said former FCC Commissioner Robert McDowell, chairman of the AEC Infrastructure: Telecommunications Working Group and also at Cooley. “Arctic residents and expert broadband advisors have combined their knowledge to establish a comprehensive strategy for the deployment and adoption of broadband in the far north -- a first of its kind."