Rural broadband provider warns tariffs could raise equipment costs and slow fiber build‑out

Kirk Grundling, speaking for Waitsfield & Champlain Valley Telecom, told the joint hearing that federal tariffs risk increasing the cost of specialized telecom electronics used in rural fiber networks and could impede planned construction in high‑cost, low‑density areas.

Grundling described the provider as a fourth‑generation, family‑owned company focused on deploying fiber to remote Vermont communities. He said much of the equipment used in fiber networks — optical line terminals (OLTs), optical network terminals, Wi‑Fi routers and diagnostic test tools — depends on semiconductors and components sourced internationally. He warned that even a 10%–15% tariff on a single OLT port or router could substantially increase per‑installation costs across thousands of ports.

To blunt short‑term effects, Grundling said the company is maintaining higher inventory levels, accepting cash‑flow strain to avoid immediate price spikes for consumers. He told legislators rural providers have limited alternate suppliers and face higher construction and operating costs already, including wages, contract labor and materials.

Grundling also raised concern about proposed policies that would require providers to offer service at mandated rates such as $15 a month. He said mandatory below‑cost pricing would worsen the financial pressure on rural providers and could slow network deployment where grant funds and buy‑American provisions already elevate equipment costs.

Committee members pressed for details about grant rules and Buy America/Build America clauses; Grundling said some manufacturers are producing equipment to meet domestic content rules, producing a cost premium. Lawmakers asked the agency and trade staff to prioritize outreach to broadband providers and to include telecom procurement details on the state resource page.