Broadband Expansion Story Archives - West Virginia Public Broadcasting

Putnam County Gets Low Scores In National Analysis Of Broadband Expansion

Putnam County received an overall low score, only six out of 20 points, on the Communication Workers of America’s “Report Card for Broadband Projects Funded by the American Rescue Plan”

One West Virginia county is being used as a case study in a report on broadband deployment across the country.

Putnam County received an overall low score, only six out of 20 points, on the Communications Workers of America’s (CWA) “Report Card for Broadband Projects Funded by the American Rescue Plan” (ARPA).

The county entered a contract in February 2023 with Mountain State Fiber to deploy a 57-mile fiber-optic network that will serve as a middle mile backbone available for lease to internet service providers. As of June 2024, the Putnam County broadband director confirmed to CWA that the project is approximately 15 percent complete and is targeted to be finished by the end of 2024.

Ceilidh Gao, strategic research associate for CWA, said that as ARPA funds for broadband are spent, it gives communities an idea of how incoming funds from the Infrastructure, Investment and Jobs Act will be spent.

“You know, the ARPA dollars really provide an educational example for us of what are best practices,” she said. “We all have an interest in seeing that this money fulfills its promise, connects all Americans, and also does so in a way that creates good jobs, in a way that’s publicly transparent and accountable and in a way that creates quality, long lasting infrastructure, which is really going to stand the test of time, and make sure that these funds are a good use of our public dollars.”

The report card evaluated fourteen county-level broadband projects on how well they incorporated transparency, equity, and labor standards within their selection process. Putnam County scored well for investing in fiber optics, for high wages and hiring local workers, but missed out on points for transparency and affordability.

“When things are publicly disclosed, or when contracts are made publicly available, the public and stakeholders can play a part in giving feedback on how a program runs and also holding companies accountable to the promises that they make,” Gao said. “So to us, we see transparency as a pretty key part of a program that functions well.”

Putnam County received no points in the CWA’s transparency category. The report states the contract was not available to the public, reducing possible public participation, and information on funding for the project was only available in an audio recording of a meeting. There was also no map or timeline of the project.

On affordability, Gao said that as a middle-mile project Putnam’s network build has not committed to participation in the Affordable Connectivity Program. (ACP)

“ACP renewal is a big priority for CWA, and finding a path to have low income families have a broadband subsidy, because one of the big issues is, once the network is built, that’s great, but are the people in the area able to afford that service?” she said.

Broadband Funding Theft Case Sparks Fraud Alert

As the state embarks on a massive, federally-funded broadband project, a Morgantown internet service provider is facing federal broadband fund theft charges.

The criminal case alleges that Timothy Chad Henson, owner of Monongalia County internet service provider Clearfiber, Inc., defrauded the federal government for more than a quarter million dollars.

William Ihlenfeld, U.S. Attorney for the Northern District of West Virginia, said according to court documents, the United States Department of Agriculture (USDA) Community Connect Program offered grants to eligible applicants providing broadband services to rural areas. On behalf of Clearfiber, Henson applied for, and was awarded, $1.96 million to offer high-speed internet services in Monongalia and Marion counties.

Henson is charged with submitting false invoices to receive more than $340,000 in reimbursement, then transferring $322,900 into another bank account for his personal use.

“The way it works is they don’t simply give you all of the money,” Ihlenfeld said. “The grant is awarded, and then you submit invoices, and then the USDA reimburses you for those invoices that you’ve submitted. What Mr. Henson is alleged to have submitted fabricated invoices, at least 30 of them, for a variety of cable and fiber and broadband companies that operate in and around West Virginia.”

Ihnelfeld said Henson extended his fraudulent schemes outside the state as well.

“He created a document that appeared to be an invoice from a company in North Carolina,” he said. “Hensen submitted it to the USDA and then he was reimbursed for what was indicated on that invoice. The reality of it was that he didn’t actually obtain fiber optic cable from that company. He didn’t obtain services from another company down the road. Instead he fabricated the invoices. He received reimbursement from the grant and then he kept the money for himself.”

Ihlenfeld said the schemes also included ordering thousands of dollars of fiber optic cable from one company.

“Then he turned around and very quickly sold it to another company,” Ihlenfled said. “He didn’t pay the first company for the cable, so they were left holding the bag. They didn’t receive the $209,000 they should have. Hensen turned around and sold it to someone else and pocketed the money that he gained from the sale.”

Ihelnfeld said it’s not just cable companies and taxpayers victimized here, but rural customers who never got intended internet service.

“We’re back to square one with some of these homeowners who don’t have access to broadband,” Ihlenfeld said. “This has been a problem for a long time in our state and there’s a lot of money that is coming in from the federal government to try to help and address this.”

He’s referring to the $1.2 billion federally funded “last mile” broadband project, involving numerous internet service providers. Last mile programs mean helping providers install cable to hook up rural customers, going the “last mile” from established service to their homes.

Del. Daniel Linvlle, R-Cabell, and chair of the House Committee on Technology and Infrastructure, said project fraud safeguards include multiple steps to insure that invoiced work has occurred.

“As we’re actually giving out any of these grants, that money is not transferred until services are actually performed,” Linville said. “So, we’re able to say, look, as you build these things, send us the invoices, and then we will make sure that, that has actually occurred, and then send out the grant dollars for only those portions which have actually happened. We actually have spot checks that are going on as we do these grants to make 100 percent sure that we’re actually getting what it is that we’ve paid for.”

Ihlenfeld hopes the Clearfiber case creates a red flag of fraud due diligence. But, with millions of dollars coming in, and remembering the massive fraud with COVID-19 federal funds, he said he fears the worst.

“With the enormous amounts of money that are going to be thrown at broadband in West Virginia and across the country, we will see more cases, like we have here with Timothy Hansen,” Ihlenfeld said. “I think we can take steps, and the holders of the money can take steps, to make it much more difficult for fraud to occur by engaging in very thorough due diligence and not trusting any invoice and verifying every invoice, and then following up and making sure that the work is actually being done, as it’s been promised.”

Ihlenfeld said there is a tentative plea agreement reached in the case including restitution and prison time.

“He has to face the United States District Court judge who is going to be asked by the government, by me, to impose a lengthy jail sentence,” Ihlenfeld said.

Henson is scheduled for an initial appearance on May 29 before U.S. Magistrate Judge Michael John Aloi. He faces up to 10 years in federal prison.

W.Va. Broadband’s Digital Equity Plan Ramping Up

Part of the $1.2 billion statewide broadband coverage project is the Digital Equity Plan, giving residents the skills and tools to make the most of their internet connection.

West Virginia is now in line to get about $9 million federal dollars to continue implementing its digital equity plan.

Derek Zelkowski is the Digital Equity Coordinator in the West Virginia Office of Broadband. He defines digital equity as anyone having reliable internet service and knowing how to use it.

“To have internet access, skills and tools, in order to use the internet to its fullest potential,” Zelkowski said. “Whether that be for economic reasons, for social reasons, medical, if you need to use telehealth, and so on and so forth.”

Zelkowski said 97 percent of West Virginia falls under a digital inclusion catagory, having many of the barriers and populations most historically considered underrepresented or underserved that call for internet access and training.

“It’s rural residents, what they call covered households, which are households earning at or below 150 percent of the poverty line,” Zelkowski said. “It’s aging residents, racial and ethnic minorities, those with disabilities, those that are either illiterate or speak English as a second language. It’s the incarcerated in non-federal facilities.”

He says digital equity programs will work in tandem with advancing broadband infrastructure development. The state has partnered with the Department of Education, community groups and the state Library Commission.

“Public libraries have been doing this work for the past 30 years,” Zelkowski said. “You can go to a library and get digital skills, resources, education resources, you can get a laptop on loan.”

Zelkowski said the first round of state digital equity programs will expand over the next five to seven years.

“The period of performance attached to this specific grant will be five years,” Zelkowski said. “Next year, NTIA, (National Information and Telecommunications Administration) will release the second of three tranches of this funding, the current one is a little bit over $700 million for the whole country. And the next one will be probably a little over $300 million, and then it’ll be the same the following year. So it’s three grants that will each have an overlapping five-year period of performance.”

Zelkowski reminds West Virginians that the Affordable Connectivity Program (ACP) will end very soon. April is the final month of the full $30 benefit, with a partial benefit in May. He encouraged all West Virginia households enrolled in the program to contact their internet service provider to confirm the status of their service and their monthly costs after the program ends.

State Broadband Plan Approved

According to the West Virginia Broadband Enhancement Council, more than a third of all West Virginians do not have access to high-speed internet.

West Virginia has taken another step to improving broadband access for all.

West Virginia is one of four states, as well as Puerto Rico, to have its Digital Equity Plan accepted by the Department of Commerce’s National Telecommunications and Information Administration (NTIA). Acceptance of the plan will allow the states to access the $1.44 billion Digital Equity Capacity Grant Program when it launches in the coming months.

According to the West Virginia Broadband Enhancement Council, more than a third of all West Virginians do not have access to high-speed internet, and many of those with access cannot afford the price of a connection or face other barriers to effectively use the internet.

The Digital Equity Plan proposes to realize affordable connectivity for all West Virginians, secure device access and affordability as well as improve the population’s digital skills.

Justice Discusses Business Debt, Project Financing And Babydog

A Virginia bank has moved to auction off the Greenbrier Sporting Club owned by the Justice family, but Gov. Jim Justice says it won’t happen.

Carter Bank and Trust, one of the Justice family’s biggest lenders, is moving to auction off the Greenbrier Sporting Club to satisfy millions in debt. In a regular briefing Wednesday afternoon, Justice said he did not believe a sale would happen.

“We want to protect the sporting club and all those members in every single way,” he said. “I want to tell you the track record through and through of exactly what’s happened. And I’ll be able to do it someday, but I can’t do it right now. All I would say is stay tuned. Watch what’s going to happen.”

In November, Justice and several of his companies, including the Greenbrier Resort, sued the Virginia-based bank for $1 billion. Justice said that at the time of the death of the bank’s founder, Worth Carter, in 2017, his companies owed the bank around $780 million but has paid down $480 million in the intervening years.

“I want Carter Bank to be paid off in full, but really and truly Carter Bank has got a real dilemma on your hand,” he said. “Because on one hand, we may very well owe Carter Bank $300 million. But on another hand, we feel like they owe us in excess of a billion, and so all this stuff is gonna come out.”

In a legal notice published in the Charleston Gazette-Mail Tuesday, Feb. 6, Carter Bank and Trust estimated the value of the Greenbrier Sporting Club to be $250 million.

Justice insisted his focus will continue to be on the duties of his office.

“My kids got it, they got it and they’re on it,” he said. “I’m way, way, way in the background, and there’s no way on earth that I’m going to take one second of focus off of what my job has been since day one. I put up with this nonsense the whole time I’ve been here and everything. But absolutely, there’s no way I’ve taken my eye off the ball.”

The governor is not directly involved in the day-to-day operation of his family’s business dealings, which are overseen by his children. Earlier this month, two other creditors agreed to sell a helicopter to help settle a debt from another Justice-owned business.

Other Business

Earlier in the briefing, the governor announced funding for several programs as well as the success of several others. He began with broadband, announcing $33 million in Line Extension Advancement and Development (LEAD) Grants awarded to 10 projects by the West Virginia Broadband Investment Plan.

“These awards will enhance the broadband access in nine counties impacting 5,200 families and businesses together that previously lacked significant connectivity,” Justice said.

Justice also gave an update on Operation R.I.P. Potholes. Announced last week, the initiative aims to take advantage of recent clear weather to conduct road repairs.

“In that time, our DOH road crews have patched approximately 1,600 miles of roadway and laid down 1,250 tons of asphalt,” he said.

The governor also highlighted the recent graduation of 53 new West Virginia Division of Corrections and Rehabilitation officers, as well as recognizing zero staff vacancies at the Southern Regional Jail in Raleigh County.

“This accomplishment is especially noteworthy considering the facility had a 30 percent vacancy rate in September of 2023,” Justice said.

The Southern Regional Jail has been a focal point for community activists calling for reforms following the indictment of six former correctional officers in the beating death of Quantez Burks and the death of an additional inmate. Addressing the staffing shortage across the state’s correctional system was a focal point of the governor’s State of State address this year when he proposed $21 million for the pay increases for correctional officers.

Babydog

At the end of the briefing, Justice gave Babydog’s, his pet bulldog, prediction for the upcoming Super Bowl Sunday. He also acknowledged Babydog will undergo two surgeries to address leg injuries and asked for prayers.

“She’s got some probably tough stuff ahead,” Justice said. “Only thing is a Bulldog getting put to sleep two different times on two fairly significant surgeries isn’t any fun. But we’re going to take care of that and hope and pray everything comes out great there.”

WVNS’ Jessica Farrish first reported that the governor mentioned the impending surgeries Monday during an event at Midland Trails High School. He previously mentioned Babydog’s injury to explain her absence from the announcement of LG Electronics’ investment in the state at the start of the year. At the time, Justice said Babydog was injured due to her weight after jumping down from a chair.

Babydog gained national attention as the mascot for the state’s vaccination efforts during the COVID-19 pandemic.

Informational Pickets Go Statewide As CWA, Frontier Contract Negotiations Continue

The picket lines at Frontier offices from Martinsburg to Huntington are informational pickets.

The picket lines at Frontier offices from Martinsburg to Huntington are informational pickets. CWA Local 2001 President J.D. Thompson said reasons for the pickets were threefold.

“We’re letting the company know, hey, we’re still here and we’re not going away because we want a fair contract,” Thompson said. “It’s, of course, informational for the public, letting everybody know that we’re fighting right now. And last, it’s showing support for our bargaining committee that they’ve been putting in some long, hard days negotiating.”

About 1,400 Communications Workers of America union members, largely from West Virginia, are currently working without a contract. The contract extension reached during bargaining expired last Saturday. A status quo on work, wages and benefits is in effect while negotiations continue on a new agreement.

When the original contract between the CWA and Frontier Communications expired on Aug. 6, the union said that major bargaining issues included job security provisions that kept jobs local and limited the use of subcontractors in expanding broadband in West Virginia.

A Frontier spokesperson said on Tuesday that job security concerns and what was termed “build exclusivity,” meaning that jobs from the $1.2 billion in broadband money would be only given to union workers, are not on the negotiating table, and “union employees will do the lion’s share of the new broadband connectivity work.”

Frontier issued the following statement:

“We have been bargaining in good faith with CWA since June and are working with urgency to reach an agreement that continues to provide our employees with some of the best jobs in West Virginia. We provide a critical service to the state and will continue to rely heavily on our union employees to build out our high-speed, fiber infrastructure. We will continue to meet with CWA bargaining officials to come to an agreement that is good for our employees, our customers and our company.”

Both sides say medical benefits for active and retired employees remain in contention.

Thompson said he is not part of the bargaining team and not sure just where issues stand, but he remains concerned over the broadband work Frontier may issue to subcontractors.

“We want our CWA members to be the ones that are actually installing and maintaining the network indefinitely with the infrastructure bill that was passed,” Thompson said.

The CWA Local 2001 website noted on Sunday, Aug. 20 that “The Committees made significant progress on Work at Home, progress on Jobs, continued progress on Active Benefits and are still actively engaged in bargaining on Wages and Retiree Benefits.”

The Communications Workers of America issued the following statement on Sunday, Aug. 20, 2023:

“CWA members at Frontier care deeply about the communities they serve, and will continue to work without a contract as long as we see meaningful progress at the bargaining table towards the contract we have earned and deserve. The contract between CWA and Frontier Communications has expired as of 11:59 pm, Saturday, Aug. 19, 2023. Because there has been progress made in bargaining, we have agreed to continue to report to work and maintain the status quo while negotiations continue. More than ever, our customers rely on us to deliver quality services and solve problems to connect them to telehealth appointments, work-at-home capabilities and even online learning opportunities. A union contract protects both the rights of dedicated workers on the job, and the quality service that our customers rely on. As talks continue, we will evaluate the progress on a regular basis and take necessary action if negotiations are not productive.”