While cooperatives, utilities, and municipalities are seeing a welcome portion of Covid relief and infrastructure bill funding, the nation’s two biggest cable broadband monopolies continue to hoover up the lion’s share of most new broadband infrastructure grants. 

All told, the American Rescue Plan Act and Infrastructure Investment and Jobs Act will deliver more than $50 billion in new funding for broadband infrastructure. And while cooperatives and utilities have been big winners in states like Tennessee, a recent breakdown by Fierce Telecom of money awarded so far shows that cable monopolies have been the biggest winners by far. 

As of September, Charter (which sells service under the Spectrum brand) had won more than $170.8 million in grants across Ohio ($51 million), Kentucky ($49.9 million) Indiana ($27 million), Georgia ($12.2 million), Maryland ($8.5 million), Louisiana ($7.88 million), Alabama ($7.26 million), Wisconsin ($5.9 million) and Pennsylvania ($1.2 million).

Charter is also poised to...

One way or another, Grafton County, New Hampshire is lining up funding to build a massive new middle-mile network county officials hope will drive broadband competition—and more affordable fiber—into long underserved New Hampshire communities. 

Grafton was one of 230 U.S. communities that applied for a National Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program grant. Grafton’s specific application asked for $26.2 million to help fund the creation of the 353 mile broadband middle mile network they’re calling Grafton County Broadband Now.

Costly Challenge from National Incumbent Providers

Charter Communications filed costly challenges with the NTIA challenging the application, falsely claiming that the county’s proposal was “duplicative” and Charter already provided broadband to the region. Most of the claims were based on older, unreliable data provided to the FCC by Charter dramatically overstating broadband availability.

Grafton County surveys actually indicate the majority of county residents still can’t get access to the FCC’s base definition for broadband, 25 Megabits (Mbps) per second downstream, 3 Megabits per second upstream. Availability data across the county will likely look even worse should the FCC pass a new proposal to boost the definition of broadband to 100 Mbps.

Between Comcast and Charter, incumbent cable giants challenged 3,000 of the 4,000 census blocks covered in the NTIA application, even in areas that didn’t make much sense. Regional leaders previously told us the challenges were an attempt to bog long-needed local broadband improvement efforts down in bureaucracy.

Devil in the Details

Grafton’s grant application was rejected by the NTIA, though officials told the...

Comcast announced at the end of January that it will be expanding its stock repurchasing program to $10 billion for 2022. It’s a reminder that local governments need to be wary about the huge cable and telephone monopolies stopping by their offices and offering generously to solve the digital divide once and for all, if only we give them more taxpayer money.

Doing so has largely been a failed policy, and does a better job of transforming public tax dollars into private wealth than it does in efficiently extending Internet infrastructure to communities that need it most. With all the federal funding on the horizon, and some states already looking like they’re going to listen to monopoly lobbyists rather than their constituents, cities and states would do well to follow along closely.

Business is Good

Stock buybacks by publicly traded companies like Comcast are a commonly used mechanism to transfer wealth from the cash a firm has on hand to the pockets of its shareholders, while also driving up its value. The program expansion from Comcast announces as clear as day that the company’s top priority isn’t connecting Americans; it’s to return the most money for the least investment for its shareholders. 

This is far from the first time the company has announced a buyback. In 2013, the provider repurchased $5 billion in shares. It followed that up with $3 billion more in 2014. In 2015 it bought back $4.25 billion, and in 2016 and...

While it’s been somewhat of a rarity in larger metropolitan areas, the city of Alexandria, Virginia (pop. 158,000) is hoping to bring residents fast, reliable Internet access by building out an institutional network (I-Net) in the state’s seventh largest city.

Construction of the I-Net, which is expected to be completed by February 2025, will connect the city’s schools, public safety buildings and other facilities, and lay the foundation for a city-wide fiber-to-the-home network.

Instead of waiting for Comcast to give residents the service they need, in August the city broke ground on the project that was long in the works. The main aim is to connect government facilities with the hope that the city will lease out the conduit to a private Internet Service Provider (ISP) as a way to incent more broadband competition.

According to the city’s broadband webpage: the “Municipal Fiber project will create potential partnership opportunities to expand consumer choice and increase available speeds for broadband services.” If the city moves forward with a public-private partnership, it could make the municipal network one of the largest in the country.  

City officials have created a Request for Proposals (RFP) process, in which they will be looking for ISPs that have a track record of connecting other communities in the state. The winning bidder would then be given a contract to build a fiber network that best serves the public interest, working closely with the city in deploying network infrastructure.

Broadband In the Works

Virginia is one of the 17 states that puts restrictions on municipal networks, mandating that “municipal networks impute private sector costs, pay additional taxes, set excessively high prices, and/or refrain from subsidizing affordable service, in the name of protecting private ‘competition.’” But that hasn’t stopped city officials from finding solutions to the lack of high-speed connectivity in the community.

The most recent development in Alexandria is ...