The Taxpayers Protection Alliance (TPA), a Washington D.C.-based nonprofit, has released an updated version of its 2024 report, “Government Broadband Consultants – The Big Grift.” The report highlights the growing involvement of consultants working with local governments to promote taxpayer-funded government-owned networks (GONs) for broadband infrastructure.
According to TPA, the expansion of high-speed internet projects using federal and local funds has turned broadband consulting into a lucrative industry. TPA’s previous reports, including “GON with the Wind: The Failed Promise of Government Owned Networks Across the Country” and its sequel, claim that consultants often recommend building GONs regardless of whether it is in the best interest of communities.
Johnny Kampis, Director of Telecom Policy at TPA, commented on the update:
“Despite often being touted as a silver-bullet solution to close the digital divide for unserved Americans looking for broadband, GONs have consistently failed to fulfill their promises. It is unfortunate that with the proliferation of money through such initiatives as the $42.5 billion Broadband Equity, Access, and Deployment Program more consultants are coming out of the woodwork to push for GONs.”
This year’s updated report adds four new consultants to its review. Among them is Hometown Fiber, which is now working with Willmar, Minnesota on a proposed municipal network project. The plan involves constructing a $31 million network funded by general obligation bonds supported by local tax revenue. So far, Willmar has spent $675,000 in taxpayer money on planning and research for this project. The city council agreed with Hometown Fiber to operate an open-access model network intended to serve all homes and businesses in Willmar. According to TPA’s analysis, such models can face issues like duplicating existing fiber infrastructure and inefficient use of public funds if private companies choose not to lease access.
Kampis added:
“We will continue to monitor and report on some of the more egregious instances of taxpayer waste.”
The Taxpayers Protection Alliance Foundation was founded in 2011 and advocates for government transparency by educating the public through research and investigative reporting about taxation and government spending at all levels.
