Arizona Gov. Katie Hobbs [D] announced Dec. 3 that Arizona’s broadband expansion plan received final federal approval, securing $967 million statewide.
Yavapai County is set to receive $49.4 million in federal subsidies and $65.9 million in provider matching funds to connect rural Arizona households to high-speed internet, while Coconino County will receive $42.6 million in federal subsidies and $26 million in provider matching funds. This funding comes from the federal Broadband Equity, Access & Deployment Program.
“It means a lot,” Arizona Commerce Authority State Broadband Director Nick Capozzi said. “It means that every household who is eligible for BEAD funding and who didn’t have quality internet service across the state will now be connected. 160,000 households who lacked high-speed internet will now have that opportunity across the state, in the most rural areas. These locations were just not economically feasible for providers to build to. So this program unlocked a federal subsidy that would incentivize providers to build out to these rural areas and ultimately give these residents service.”
The state selected Wecom to provide internet service in Yavapai County. The state is awaiting final approval from the National Institute of Standards and Technology, the grants administration agency of the U.S. Department of Commerce, before finalizing agreements with providers. Construction is expected to begin in 2026.
Sedona Excluded
However, none of that money will be going to buildout within the city of Sedona, despite initial eligibility.
“Unfortunately, with the change in federal policy, the Sedona area was no longer eligible for that funding due to the change in the eligibility requirements,” City Manager Anette Spickard said during the Sedona City Council’s priority retreat on Dec. 16, when council laid out its main priorities for 2026.
Sedona initially qualified for BEAD funding because most homes had slow internet speeds. However, in June, the federal government introduced Reason Code 5, which disqualified areas that already have internet service that wasn’t built with government subsidies — even if service is not great.
A majority of Sedona was considered underserved, making the Sedona region eligible for BEAD.
Altice, which owns Optimum Communications, challenged those speeds. While Sedona individually rebutted each challenge, approximately 6,000 covering Sedona, the Village of Oak Creek and surrounding areas, the rebuttals were successful and most of Sedona was then excluded, according to city documents.
The study determining eligibility was conducted by KPMG, a state contractor,
Wecom is “planning to build out and provide internet service to Sedona, with or without BEAD funding,” according to the city, which is currently drafting an agreement to obtain Wecom permits.
Broadband is still poised to play a major role as a potential driver of economic diversification for the city of Sedona. The council’s major 2026 priorities are community; housing; mobility, transit and circulation; and economy and economic diversification.
Spickard added that city Information Technology Manager Chuck Hardy is working on identifying alternatives for the city’s fiber-to-the home project, and Hardy expressed confidence to the NEWS that they will find a provider.
Meanwhile, the city of Cottonwood unanimously approved a right-of-way use agreement with Wecom during the Cottonwood City Council meeting on Nov. 4.
To learn more about Arizona’s broadband initiative, visit ConnectAllAZ.com.
