Virginia Telecommunication Initiative Technical Performance Report (November 1, 2022)
Summary
Letter dated November 1, 2022 to Glenn Youngkin, Governor of the Commonwealth of Virginia, Caren D. Merrick, Secretary of Commerce and Trade and the chairs of the Senate Finance and Appropriations Committee, House Appropriations Committee and Broadband Advisory Committee, regarding the Virginia Telecommunication Initiative Technical Performance Report. It states that the Office of Broadband within the Virginia Department of Housing and Community Development prepared the report. The key takeaways state that VATI FY22 projects will provide access to broadband infrastructure to 280,834 passings, with $727.9 million in state and federal funding awarded and $1.019 billion in private and local match funding. It states that unserved was defined as 25/3 in the FY22 process and has been upgraded to 100/20.
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“Virginia Telecommunication Initiative Technical Performance Report (November 1, 2022).”
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November 1, 2022
The Honorable Glenn Youngkin
Governor of the Commonwealth of Virginia
Patrick Henry Building
Richmond, VA 23219
The Honorable Caren D. Merrick
Secretary of Commerce and Trade
Patrick Henry Building
Richmond, VA 23219
The Honorable Janet D. Howell
Chair, Senate Finance and Appropriations Committee
900 East Main Street
Pocahontas Building, Room E509
Richmond, VA 23219
The Honorable Barry D. Knight
Chair, House Appropriations Committee
900 E Main Street
Pocahontas Building, Room W1304
Richmond, VA 23219
The Honorable Jennifer B. Boysko
Chair, Broadband Advisory Committee
900 East Main Street
Pocahontas Building, Room E513
Richmond, VA 23219
Re: Virginia Telecommunication Initiative
Technical Performance Report
1
Dear Governor Youngkin, Secretary Merrick, Chair Howell and Chairman Knight, and
Chairman Boysko:
Executive Summary
Virginia funds broadband deployment within the Commonwealth through several
programs. The largest and main program is the Virginia Telecommunication Initiative (VATI).
VATI provides grants to localities partnered with internet service providers to finance the
deployment of high speed broadband to locations (called a “passing”) within the Commonwealth
that are determined to be “unserved.” Passings are places where the internet can be accessed –
thus it could be a business, community anchor, a home or an apartment complex. A passing is
unserved1 if it lacks access to internet speeds of 25 Megabits per second (Mbps) download and 3
Megabits (Mbps) upload (“25/3”).
This report is required by statute and has been prepared by the Office of Broadband
located within the Virginia Department of Housing and Community Development (DHCD). This
report tracks the technical performance of the VATI provider partners in their work to deploy
broadband. This report adheres to the factors that the General Assembly directed to be tracked
and presents them in the manner directed by the General Assembly.
Below are the key takeaways from the report:
● Total passings: VATI FY22 projects will provide access to broadband infrastructure
to 280,834 passings across Virginia.
● Leveraged local and private funding: In addition to $727.9 million in state and
federal funding awarded, FY22 projects leverage a total of $1.019 billion in private
and local match funding, of which over $17.7 million has been expended to-date.
● Maximum Speeds Available: Over 85% of projects funded in FY22 offer gigabit
(1,000 Mbps) download speeds, and over 66% offer gigabit upload speeds, with an
average download speed across all projects of 911 Mbps and average upload speed of
727 Mbps.
In conclusion, 33 out of 36 projects funded from the American Rescue Plan Act of 2021
(ARPA) and General Funds from FY22 are on track to being completed on time as of the time of
this report’s submission. The other three projects are getting under agreement at the time of this
report. Three projects, out of 36 total awards, do not have agreements executed between DHCD
and the grantee. DHCD is awaiting additional information from the grantee prior to issuing the
agreement and expects these agreements to be entered into by November 30, 2022. Looking
forward, DHCD will continue to monitor global supply chain issues that could affect the
expansion of broadband infrastructure in Virginia.
1
In the FY22 VATI process, the definition of unserved was set at 25/3. This definition of unserved has been upgraded
to those passings lacking access to broadband at speeds of 100/20.
2
Formal Report
Pursuant to Chapter 1 of the Virginia Acts of Assembly of Special Session II of 2021 and
continued forward in the 2022 Special Session 1 under Chapter 2 of the Virginia Acts of
Assembly, enclosed is the Annual Performance Report of the Virginia Telecommunication
Initiative (VATI). This report was established by the General Assembly and Governor under
Chapter 1 of the Virginia Acts of Assembly of Special Session II of 2021 and continued forward
in the 2022 Special Session 1 under Chapter 2 of the Virginia Acts of Assembly.
Item 115 L.6. of the 2022 Acts of Assembly Special Session I requires that DHCD deliver
an annual performance report on funds awarded through the 2021 Acts of Assembly Special
Session I (also known as the budget bill) of allocated ARPA funds and Item 114, Paragraph L. of
Chapter 552, 2021 Acts of Assembly, Special Session I (General funds allocated to VATI through
the budget bill).
Administered by the Virginia Department of Housing and Community Development
(DHCD), VATI enhances the sustainability and growth of communities throughout the
Commonwealth by preparing those communities to build, utilize, and capitalize on broadband
infrastructure. The primary objective of VATI is to provide financial assistance to supplement
construction costs by private sector broadband service providers to extend service to areas that
presently are unserved by any broadband provider. This program requires a public-private
partnership.
The directive to form this annual performance report establishes that:
The annual performance report shall contain information by grant recipient and
year on the following metrics: (1) Number of passings; (2) Grant dollars expended by
fund source (State and Local Recovery Fund, Capital Project Fund, general fund state
grants and match); (3) Contract performance period, and on-time progress towards
project delivery; (4) Maximum advertised project speeds available; and, (5) Achievement
of key project milestones. The annual performance report shall include an evaluation of
any projects under risk of incompletion or underperformance.
In accordance with this structure, DHCD has included information in this report of the
projects that were awarded funds since December, 2021, and includes the projects announced in
the FY2022 cycle, including those projects funded under the Coronavirus State and Local Fiscal
Recovery Fund and Coronavirus Capital Projects Funds allocations under the American Rescue
Plan Act of 2021. Project information displayed in this report reflects monthly report data from
September and October 2022.
While no projects are currently at risk of incompletion or underperformance, DHCD staff
are closely monitoring the impact that the COVID-19 pandemic is having on supply chain and
labor markets. DHCD mitigated these impacts by allowing 2022 VATI co-applicants to utilize
match funding to purchase material and supplies post-contract negotiations, before agreements
were executed between DHCD and the grantee. Specifically, telecommunication supplies to
build broadband networks, including handholes and cabinets, two key components of last mile
broadband networks are often manufactured overseas, including in Ukraine. Global supply chain
constraints have been cited by ISPs as having the potential to slow network deployment. The
3
current, and even larger forthcoming, national investment in broadband expansion has placed a
strain on the labor force needed to build these networks. The supply of labor may be further
strained in the near term by the residual effects of Hurricane Ian, as construction crews leave
Virginia to repair damaged electrical grids, potentially slowing broadband expansion projects in
Virginia.
Please let us know if you would like further information or require additional copies of
this report. The project summaries included in this report are updated quarterly on the VATI
Project Dashboard, accessible through dhcd.virginia.gov/vati.
Sincerely,
Bryan W. Horn
Director, DHCD
Attachment
4
2022 Annual Performance Report for the Virginia Telecommunication Initiative
Award Funding Source Percent Percent Maximum
Total Passings Percent Complete, GF, General Fund
Passings in Awarded Expended, Out Expended, Advertised Project
Internet Service Provided Passings Provided Agreement Agreement SLFRF, Coronavirus State and Total Match Match Funding
Grantee Project Status Award Amount Funding of Total Out of Total Apeeds Available
Provider Partner Broadband Broadband Access Start Date End Date Local Fiscal Recovery Fund Funding Expended
Area CPF, Coronavirus Capital Expended Awarded Match (Download/
Access to Date to Date
Projects Fund Funding Funding Upload Mbps)
Bedford ZiTEL 4,114 97 2% 15-Jun-2022 15-Dec-2023 On time $8,523,908.31 SLFRF $0 0% $10,208,347 $2,881,724 28% 1000/1000
Bedford Shentel 4,734 0 0% 9-Sep-2022 9-Sep-2024 On time $9,148,553.00 GF, SLFRF $0 0% $14,513,728 $0 0% 1000/1000
Not yet under Not yet under Not yet under
Botetourt Lumos Networks 1,901 0 0% agreement agreement agreement $3,084,796.00 CPF $0 0% $4,824,937 $0 0% 1000/1000
Campbell Shentel 3,509 0 0% 21-Sep-2022 21-Sep-2024 On time $6,443,000.00 GF, SLFRF $0 0% $10,107,617 $0 0% 1000/1000
Central Shenandoah PDC MGW 2,470 88 4% 1-Jun-2022 1-Jun-2024 On time $7,876,800.00 SLFRF $297,108 4% $3,118,706 $274,512 9% 1000/50
Chesapeake Cox 279 0 0% 1-Jun-2022 30-Dec-2023 On time $580,435.00 SLFRF $0 0% $434,599 $405,302 93% 940/35
Commonwealth RC Kinex 11,397 1,000 9% 14-Jun-2022 14-Jun-2025 On time $15,000,000.00 GF $0 0% $13,426,482 $2,060,770 15% 200/10
Culpeper All Points Broadband 4,269 0 0% 3-Aug-2022 3-Feb-2024 On time $8,600,000.00 GF $0 0% $21,914,454 $0 0% 1000/1000
Cumberland Plateau PDC Point Broadband 5,659 0 0% 6-Sep-2022 6-Sep-2024 On time $23,478,429.00 CPF $0 0% $6,459,000 $0 0% 1000/500
Dinwiddie RuralBand 1,622 0 0% 14-Jul-2022 31-Dec-2024 On time $7,532,055.00 SLFRF $0 0% $12,466,640 $0 0% 1000/1000
Eastern Shore of
Eastern Shore of Virginia Virginia Broadband
Broadband Authority Authority 11,091 2,043 18% 1-Jun-2022 31-May-2024 On time $12,310,777.25 SLFRF $0 0% $3,314,856 $895,272 27% 200/200
Floyd Citizens 723 108 15% 1-Jun-2022 1-Dec-2023 On time $1,310,267.00 SLFRF $0 0% $1,111,725 $100,742 9% 1000/500
Franklin Shentel 3,508 0 0% 17-Oct-2022 17-Oct-2024 On time $11,832,456.00 GF, SLFRF $0 0% $18,646,520 $0 0% 1000/1000
Charter
Hampton Roads PDC Communications 12,223 25 0% 8-Jul-2022 8-Jul-2025 On time $21,120,053.50 SLFRF $0 0% $13,839,523 $0 0% 1000/500
Hanover All Points Broadband 6,198 0 0% 1-Aug-2022 1-Aug-2024 On time $13,970,000.00 SLFRF $0 0% $41,469,332 $0 0% 1000/1000
King William All Points Broadband 2,236 0 0% 24-Jan-2022 3-Aug-2023 On time $5,400,000.00 SLFRF $0 0% $12,330,632 $0 0% 1000/1000
Scott County
Telephone
LENOWISCO PDC Cooperative 10,982 750 7% 13-Jun-2022 13-Dec-2023 On time $22,190,500.00 SLFRF, CPF $0 0% $3,691,701 $1,400,000 38% 1000/1000
Loudoun All Points Broadband 8,629 0 0% 1-Jul-2022 1-Jul-2024 On time $17,524,000.00 SLFRF $0 0% $42,376,126 $0 0% 1000/1000
Middlesex All Points Broadband 970 0 0% 22-Jul-2022 22-Jan-2024 On time $2,050,000.00 SLFRF $0 0% $8,453,887 $0 0% 1000/1000
Mount Rogers PDC Point Broadband 27,450 3,181 12% 1-Jun-2022 31-May-2024 On time $65,883,228.00 CPF $0 0% $33,082,600 $2,933,686 9% 1000/500
New River Valley Regional
Commission Bland and Not yet under Not yet under Not yet under
Montgomery Gigabeam 12,094 0 0% agreement agreement agreement $39,352,686.00 CPF $0 0% $37,247,339 $0 0% 1000/1000
New River Valley Regional Not yet under Not yet under Not yet under
Commission Pulaski All Points Broadband 7,872 0 0% agreement agreement agreement $29,850,000.00 CPF $0 0% $28,395,338 $0 0% 1000/1000
Northern Neck PDC All Points Broadband 3,411 0 0% 22-Sep-2022 22-Mar-2024 On time $3,190,500.00 SLFRF $0 0% $20,477,692 $0 0% 1000/1000
Northern Shenandoah Valley
RC All Points Broadband 41,690 0 0% 22-Jul-2022 22-Jul-2025 On time $96,873,500.00 SLFRF $0 0% $206,243,317 $0 0% 1000/1000
Roanoke Bee Online 495 0 0% 9-Sep-2022 9-Sep-2023 On time $1,581,584.00 SLFRF $0 0% $1,646,138 $0 0% 300/300
Roanoke Cox 396 0 0% 1-Sep-2022 1-Mar-2024 On time $1,535,264.00 SLFRF $0 0% $1,597,927 $0 0% 940/35
Roanoke B2X 520 0 0% 22-Sep-2022 22-Sep-2023 On time $170,609.00 GF $0 0% $177,572 $0 0% 25/4
Roanoke Shentel 213 0 0% 3-Oct-2022 3-Oct-2024 On time $490,000.00 SLFRF $0 0% $510,000 $0 0% 1000/1000
Shenandoah Shentel 4,139 0 0% 1-Aug-2022 1-Aug-2024 On time $12,176,662.00 SLFRF $0 0% $20,733,235 $0 0% 1000/1000
EMPOWER
Southside PDC Broadband 11,527 72 1% 22-Jul-2022 22-Jul-2025 On time $69,431,635.00 SLFRF $0 0% $84,677,555 $959,242 1% 1000/1000
Stafford Comcast 634 0 0% 6-Sep-2022 6-Mar-2024 On time $3,398,155.60 SLFRF $0 0% $2,364,383 $462,598 20% 1200/35
Sussex RuralBand 2,267 812 36% 13-Jun-2022 13-Dec-2023 On time $4,896,892.00 SLFRF $0 0% $1,678,571 $185,303 11% 1000/1000
Thomas Jefferson PDC Firefly Broadband 36,225 0 0% 15-Aug-2022 15-Aug-2025 On time $79,027,930.00 SLFRF $0 0% $208,969,670 $5,069,007 2% 1000/1000
Charter
West Piedmont PDC Communications 690 0 0% 1-Aug-2022 1-Aug-2025 On time $1,557,385.00 CPF $0 0% $1,450,145 $0 0% 1000/500
West Piedmont PDC RiverStreet Networks 24,641 0 0% 3-Aug-2022 3-Aug-2025 On time $87,003,888.00 SLFRF $0 0% $65,421,341 $95,248 0% 1000/1000
West Piedmont PDC RiverStreet Networks 10,056 0 0% 30-Sep-2022 30-Sep-2025 On time $33,571,073.00 CPF $0 0% $61,794,113 $0 0% 1000/1000
*Data as of September and October 2022 Monthly Project Reports
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