Small independent phone companies tell committee rural fiber buildouts face cost, tax and policy hurdles

Kimberly Gates, general manager and controller of Franklin Telephone Company and a representative of the Independent Telephone Association of Vermont, told the House Energy and Digital Infrastructure Committee on April 1 that small, family-owned incumbent phone companies have largely converted to fiber but face persistent cost, tax and policy challenges that could affect future deployment.

Gates said Franklin Telephone has deployed fiber to nearly every road in its service area and has converted about 70 percent of its year‑round customers to fiber, serving fewer than 900 locations overall. "We're family owned and operated," she said, describing crews that must sometimes hand‑string lines through woods and work on remote poles to reach a single customer.

The testimony framed why the topic matters: the committee is weighing bills and reports that could affect prices and obligations for small providers, while federal programs and taxes shape company finances. Gates warned a fixed statutory price cap in H.121 could produce "unintended consequences" for small providers unless exemptions and administrative processes are streamlined.

Key facts and claims

- Franklin Telephone serves under 900 locations across portions of Franklin, Highgate and Sheldon, including seasonal addresses, and reports that 70 percent of year‑round customers are on fiber.

- Of Franklin's Internet customers, Gates said 48 percent take an "economy" package (10/1 Mbps) and 11 percent take a top package (about 200/200 Mbps). She stated the economy package is $70 a month for Internet‑only…