Expanding Broadband Access in New Mexico: State Funds Allocated Despite High Costs

LINCOLN — Broadband internet and Billy the Kid may seem like an unlikely pair. But both are responsible for bringing excitement to this rural town between Ruidoso and Roswell.

Lincoln is a community steeped in its own history. One recent Sunday morning, dozens of locals mounted horses, climbed aboard floats and set out — with a call of “Wagons ho!” — in honor of the town’s annual Old Lincoln Days celebration.

A historic courthouse — home of the lockup where Billy the Kid, sentenced to hang, famously broke free after killing the deputies charged with guarding him — still stands at one end of town.

The central street, now dotted with historical markers rather than outlaws, still features the trappings of the Old West: thick adobe walls, false-front façades, a distinct lack of cell service.

However, there is high-speed internet.

In the past few years, Lincoln has benefited from New Mexico investments bringing speedy, reliable internet access to remote corners of the state. Its newfound — and expanding — broadband internet access is set to transform local emergency communications, ways of doing business and cultural events, in addition to expanding opportunities for telehealth services, remote work and online education.

From left, pageant cast members Arya Nowell, Kristy Silva, Dusty Rushing, Shana Nowell and Laura Wilson help each other with corset adjustments before the start of the Old Lincoln Days parade Aug. 3 in Lincoln. With a population around 200, Lincoln is one of the recent beneficiaries of New Mexico’s efforts to expand broadband internet access in rural communities.

Jim Weber/The New Mexican

But broadband infrastructure comes with a hefty price tag as internet providers — subsidized by government grants — install new equipment to reach New Mexico’s often rugged and rural locations. The cost-per-premise covered by the 2024 Connect New Mexico broadband grantees ranges from a few thousand dollars to more than $2 million per premise, a New Mexican analysis found.

With federal broadband investments slow to arrive in New Mexico and other states, balancing expanded access with the cost of connection represents a challenging choice for state leaders.

“The cost to connect 500 houses in northeast or -west side of Albuquerque is much lower per household than to connect a rural area outside of Raton or Columbus, N.M., where there isn’t the existing infrastructure,” said Jeff Lopez, director of the state Office of Broadband Access and Expansion.

Russ Warwick takes a selfie with the parade in the background during the Old Lincoln Days town celebration.

Jim Weber/The New Mexican

“It is a tough public policy decision on how to prioritize funding individual households, whether they’re in rural areas of New Mexico or otherwise,” he said.

What is broadband?

Put simply, broadband is high-speed, reliable internet.

The Federal Communications Commission’s current broadband speed benchmarks are a download speed of 100 megabits per second and an upload speed of 20 megabits per second — roughly enough to stream Netflix or send a video.

But these days, broadband isn’t just about entertainment, Lopez said; it’s a gateway to “all the modern necessities of life.”

“Broadband means access to health care through things like telehealth and telemedicine, connecting with doctors who might not be in your particular area but have the expertise you need to make sure that you’re well enough to get the care that you deserve,” he said. “Broadband means access to educational resources for school and at-home learning as well as jobs.”

Lilibeth Ramirez, 7, reacts after finding her own flake of “gold” at a panning for gold demonstration Aug. 3 during the Old Lincoln Days town celebration. It also features a Billy the Kid-themed parade and shoot-’em-up-show.

Jim Weber/The New Mexican

And yet, broadband remains relatively sparse outside New Mexico cities. About 10% of addresses in the state were considered underserved or unserved by the Federal Communications Commission in 2024.

Those unserved areas include the state’s especially rural communities — most of Catron County, for instance, falls into the category — but also places on the outskirts of larger cities, like neighborhoods north of Las Cruces and parts of Santa Fe and San Miguel counties east of Glorieta Pass.

Despite San Felipe Pueblo’s location between Santa Fe and Albuquerque, nearly all of its addresses are considered unserved.

The COVID-19 pandemic demonstrated the broader need for broadband access, Lopez said. Students and remote workers flocked to parking lots outside fast-food restaurants or public libraries, hoping to connect to public Wi-Fi networks. Siblings gathered around a single internet hot spot to slowly complete schoolwork.

Legislation from the pandemic era jump-started federal investments in broadband.

The American Rescue Plan Act, signed into law in March 2021, provided New Mexico with an initial cache of about $120 million for broadband infrastructure projects, plus hundreds of millions more to bolster the state’s health care, education and transportation systems.

That money has since been disbursed throughout the state, with several funded networks — which stretch from Doña Ana to Rio Arriba counties — set to come online this year, according to documents from the state broadband office.

Also in 2021, Congress followed up with the Bipartisan Infrastructure Law, setting aside $42.5 billion for broadband investments, with New Mexico set to receive a $675 million chunk. Nearly four years later, though, that money hasn’t moved much.

Braxtin Carrizal, left, battles with his brother Arlo Carrizal for candy during the Old Lincoln Days town celebration in Lincoln on Aug. 3.

Jim Weber/The New Mexican

In the intervening years, New Mexico lawmakers have set aside money to fund broadband infrastructure projects.

State broadband investments

As Congress passed laws making massive investments in broadband infrastructure, so too did the New Mexico Legislature.

In 2021, state lawmakers set aside $70 million as an initial investment in the Connect New Mexico Fund, with the money designated to plan, design and construct broadband networks in unserved and underserved areas statewide. Related legislation established the state broadband office and required a statewide broadband plan.

The Legislature doubled down in 2023, adding another $124 million to the fund.

Where is that money going? The New Mexico Office of Broadband Access and Expansion announced the launch of the Connect New Mexico Fund in December 2023, offering up $70 million in grants.

Billy the Kid Pageant cast members ambush the sheriff and his posse Aug. 3 during the Old Lincoln Days celebration.

Jim Weber/The New Mexican

The state executed 22 such grants in 2024 totaling nearly $57 million in state money, with internet service providers ranging from giants like Comcast to local cooperatives. Progress reports from the state broadband office show those projects are now underway in various stages of planning, approval, design and construction across a dozen counties and five pueblos.

The projects are set to connect more than 17,000 homes, businesses, farms and community institutions.

Broken down by cost-per-connected-premise, however, the price tag on these projects can be eye-popping. For most projects, the cost per connection ranges from $1,000 to $7,000. Those costs grow closer to $20,000 per premise for some projects in Lincoln, Otero, Hidalgo and Grant counties.

In some of the state’s most rural areas, the costs balloon further. The awards max out with a nearly $5.5 million project in San Ildefonso Pueblo to connect just two businesses.

But the state isn’t just giving away money, said Mitch Hibbard, chief operating officer at the Artesia-based internet provider Peñasco Valley Telephone Cooperative. Internet service providers are offering matching funds totaling more than $35 million for the projects.

“There is no free money; there is an investment. We got skin in the game,” Hibbard said.

Nonetheless, providers admit the costs are steep, at least in part because of the unique challenges posed by New Mexico’s landscape. Lopez gave this example: Imagine trying to install a piece of equipment that reaches both the peaks of the Sangre de Cristo Mountains and the floor of the Rio Grande Gorge.

And then there’s the matter of ownership. New Mexico is a patchwork with a lot of public and tribal lands. Whether it’s installing fiber-optic cables or a new wireless tower, building in and around those areas requires extensive permitting processes, Hibbard said.

Essentially, the same things that make New Mexico unique also make broadband installation especially tough.

“What has been a draw to many tourists and visitors from out of state to come visit our New Mexico national parks and national monuments can also be a impediment to broadband infrastructure,” Lopez said.

Elias Matta tries his hand with a lasso in front of the museum at the Lincoln Historic Site during the Old Lincoln Days town celebration Aug. 3.

Jim Weber/The New Mexican

Not everyone agrees broadband is a worthwhile investment for some parts of the state’s most rural communities.

With its history of gunslingers and well-traveled sites, Lincoln makes sense as a hub for internet access in the area, said Lincoln County Commissioner Mark Fischer, who represents Lincoln and surrounding areas on the County Commission.

But he urged fiscal responsibility in the state’s broadband spending, arguing some ultra-rural residents can rely on satellite internet if fiber-optic options aren’t economically viable.

“Some want to turn it into a civil right. No, it’s not, actually,” Fischer said of broadband.

“If you have a reasonable concentration of the populace in an area where it is cost-effective, that makes a lot of sense,” he said. “But if you’re out where I am in a ranch area — you might have one person per square mile or less — it makes no sense. We should be spending our money on other things.”

In fact, Fischer argued broadband isn’t the major issue of the day in New Mexico, not compared to crime, a lack of educational and economic opportunities, or a dearth of health care professionals.

Telehealth appointments and online education won’t fix that either, he said. “Those are not real answers to those problems.”

But access to reliable internet can bring about some real change. Just look at Lincoln.

As staff from Peñasco Valley Telephone Cooperative — funded by a mix of grants and matching money — set about expanding broadband access in the unincorporated community, residents responded with enthusiasm, Hibbard said.

Connectivity is slated to make a range of tasks easier — from paying with a credit card to finding work to putting out fires.

As one resident told Hibbard during the broadband expansion, “This is the most excitement since Billy the Kid was here.”

What specific strategies does New Mexico employ to ensure long-term financial commitments for broadband projects?

The Digital Divide in the Land of Enchantment

New Mexico, a state known for its stunning landscapes and rich culture, faces a significant challenge: the digital divide.This disparity in internet access disproportionately impacts rural communities, hindering economic prospect, access to education, and healthcare. To address this critical issue, the state government has been actively investing in broadband expansion projects. However, the allocated state funds face a considerable hurdle: the high costs associated with bringing reliable internet to remote areas. This article delves into the complexities of broadband in New Mexico, examining the funding strategies, the challenges, and the potential solutions.

State Funding Initiatives: Bridging the Broadband Gap

The New Mexico state government has recognized the urgency of expanding broadband infrastructure and has implemented several funding initiatives. These programs aim to provide financial assistance to internet service providers (ISPs) and other entities involved in broadband deployment. Key initiatives include:

The Broadband Equity, Access, and Deployment (BEAD) Program: This federal program, administered through the state, provides significant funding for broadband infrastructure projects across New Mexico.

State Broadband Grants: The New Mexico State government allocates grants to ISPs to support broadband projects specifically targeting underserved and unserved areas. This includes funding for last-mile connectivity and middle-mile infrastructure.

Public-Private Partnerships: The state encourages public-private partnerships to leverage private investment and expertise in broadband expansion, aiming to share the financial load and reduce risk.

Addressing the High Costs of Broadband deployment

One of the biggest obstacles to expanding broadband access in New Mexico is the high cost of deploying infrastructure, especially in the state’s geographically challenging and sparsely populated areas. Several factors contribute to these inflated costs:

Geographic challenges: Mountainous terrain, vast distances, and remote locations make it tough and expensive to build broadband networks.

Low Population density: The cost per household is significantly higher in rural areas, making it harder for ISPs to recoup their investments.

Permitting and Right-of-Way Issues: Securing permits and navigating right-of-way regulations can delay projects and increase costs.

Supply Chain Challenges: Procurement of equipment, especially fiber optic cables and associated hardware, can be expensive, further impacting expenses.

Exploring Solutions and Strategies

Addressing the high costs of broadband requires a multi-pronged approach involving innovative technologies and strategic planning.

Leveraging Federal Funding: Maximizing the utilization of federal funding sources, such as the BEAD program and the Affordable Connectivity Program (ACP), is critical.

Promoting technological Innovation: Encourage investments in choice broadband technologies, like fixed wireless access (FWA), satellite internet, and 5G wireless, which may offer cost-effective solutions to remote areas.

Streamlining Permitting Processes: Expediting permitting and right-of-way procedures can help reduce costs and speed up deployment.

Community Collaboration: Foster collaboration between state agencies, local governments, and community organizations to identify underserved areas and develop targeted solutions.

Public Awareness Campaigns: Education campaigns aimed to inform residents about available programs, subsidies, and eligibility in order to boost adoption rates.

Case Studies: Success Stories in new Mexico

While the challenges are significant, there are also success stories highlighting effective strategies for expanding broadband across the state. For example:

Project in Name of County,New Mexico: A local ISP partnered with the state government to deploy fiber optic cable to specific locations/communities,significantly improving internet speeds and access to residents and businesses.

Wireless Broadband Initiative: The adoption of fixed wireless access enabled fast deployment and provided an affordable solution to connect the hardest-to-reach homes.

Community-based Broadband: local-based organizations created sustainable initiatives to help residents.

Benefits of Expanded Broadband Access

The benefits of expanding broadband access in New Mexico extend far beyond faster internet speeds. Reliable broadband can:

Boost Economic Growth: Create new job opportunities, support small businesses, and encourage investment in technology-driven industries.

Improve Education: Enable online learning, access to educational resources, and support remote learning opportunities.

Enhance Healthcare: Facilitate telehealth appointments, remote monitoring, and access to specialist care.

Empower Citizen: Enable access to online government services to reduce the distance people endure to pay their taxes or other governmental services.

Looking Ahead: Sustainability and the Future of Broadband

The future of broadband in New Mexico depends on the creation and implementation of sustainable strategies. This includes:

Long-Term Funding Models: Ensure long-term financial commitments and diversified funding sources.

Skills Development: Establish training programs to develop the skilled workforce needed to build and maintain broadband infrastructure.

Digital Literacy Training: Providing digital literacy skills training to empower residents to use their new broadband connections effectively.

* Monitoring and Evaluation: Regularly assess the effectiveness of broadband projects and adjust strategies as needed to ensure lasting impact.