AN ACT relating to broadband services.
The bill is set to alter the Kentucky Revised Statutes to amend provisions concerning distribution cooperatives' abilities to offer broadband services. It allows these cooperatives to lease excess capacity from their distribution systems for broadband, issue securities to finance their efforts, and pledge their assets as collateral for loans specifically for broadband provisioning. These changes aim to minimize regulatory obstacles and promote wider adoption of broadband in areas lacking sufficient service.
SB168 is aimed at enhancing broadband services across the Commonwealth of Kentucky. The bill acknowledges the critical importance of broadband service for residential, commercial, and industrial users, especially in underserved and unserved areas. It allows distribution cooperatives to facilitate the provision of broadband services by leveraging federal funding and can extend their resources to improve internet access where necessary, thus promoting economic growth and social welfare.
The overall sentiment surrounding SB168 appears to be positive, particularly from lawmakers and advocates eager for increased broadband access in rural areas. Supporters view this bill as a necessary step towards bridging the digital divide. However, there may be concerns regarding local implementation and the potential limitations this could impose on existing service providers who contest new entries into the market.
One notable point of contention could arise if there are challenges to the cooperative's applications to provide broadband, especially from existing providers in the area claiming adequate service availability. The bill stipulates that such providers must prove full coverage within a year, which may create disputes over claims of service adequacy and lead to tensions in the broadband service marketplace.