We’ve written about the Connect America Fund (CAF) on multiple occasions and recently alerted interested MuniNetworks.org readers to the FCC’s ongoing efforts to re-examine the CAF Phase II Auction procedures. On October 26th, the Schools, Health & Libraries Broadband Coalition (SHLB) is presenting a free webinar on CAF as part of their Grow2Gig+ Webinar Series.

SHLB will be offering a Universal Service Symposium in Washington, DC, on November 2nd and the information presenting in the webinar will help attendees prepare. Even if you’re not planning to attend the workshop, the webinar will offer information that will be useful if you have any interest in applying for CAF funds or if you are monitoring the FCC’s policies moving forward.

The webinar speakers are Carol Mattey and Rebekah Goodheart; John Windhausen will moderate. SHLB describes the event as:

The Connect America Fund (CAF) is a federal program that provides funding to defray the cost of operating and extending both fixed and mobile broadband networks to serve consumers and small businesses in rural, high-cost areas in the United States. CAF was created by the Federal Communications Commission (FCC) to fulfill the statutory mandate that all Americans have access to communications service that is reasonably comparable to what’s available in urban areas.

Join two former senior FCC officials as they discuss the History of the Connect America Fund, the Phase II  Auction (Performance Standards, Application Process, and Auction Mechanics), as well as Reporting Requirements. 

You can register online at the SHLB website and also review past webinars and check out other events on the calendar. 

Next week’s Border to Border Broadband Conference from the Blandin Foundation promises to be a great opportunity to meet like-minded people with an eye on infrastructure. This year, the event is titled “Bridging the Gaps - Expanding the Impact” and will take place at Madden’s on Gull Lake. If you haven’t already made your plans, now is an excellent time to plan on heading up north to enjoy some fall weather, Minnesota style. 

The folks at Blandin shared more information about the event and we want to pass it on to you:

Minnesota is hosting its annual Border to Border Broadband Conference October 25-26 in beautiful Brainerd Minnesota on Gull Lake.  Come learn about Minnesota's broadband innovative broadband infrastructure grant program that has had a significant impact on broadband deployment in some of the most rural places in Minnesota. 

Blandin Foundation will present new research demonstrating the impact of investment in broadband infrastructure and adoption on five rural Minnesota communities where world-class broadband is meeting smart economic development strategies.

Providers and communities will host eight interactive learning stations showcasing successful rural projects funded through Minnesota’s Border-to-Border grant program.

Pre-conference sessions will include a Broadband 101 Workshop and a Digital Inclusion Showcase:

Laura Withers, Director of Communications, NTCA – The Rural Broadband Association; Roberto Gallardo, Assistant Director, Purdue Center for Regional Development; and Aaron Brown, Iron Range storyteller, blogger (http://minnesotabrown.com/)  and broadband advocate; are among the conference’s featured speakers.

Learn more at the conference website.

In Detroit, AT&T is facing a formal FCC complaint accusing the telecom giant of deploying discriminatory “digital redlining” tactics. This is the second such complaint filed against the telecommunications giant since the first of the year.

Demanding Equality in Connectivity

The complaint filed by civil rights attorney Daryl Parks says the FCC violated the Communications Act which forbids unjust and unreasonable discrimination. A month earlier, Parks filed a similar complaint on behalf of three Cleveland residents. In both instances, Parks and community members maintain that AT&T is withholding high-speed Internet from minority neighborhoods that have higher poverty rates.

These complaints fall under Title II of the Communications Act, which contains not only net neutrality rules but important consumer protections regarding discrimination. Title II SEC. 202. [47 U.S.C. 202] (a) clearly specifies:

It shall be unlawful for any common carrier to make any unjust or unreasonable discrimination in charges, practices, classifications, regulations, facilities, or services for or in connection with like communication service, directly or indirectly, by any means or device, or to make or give any undue or unreasonable preference or advantage to any particular person, class of persons, or locality, or to subject any particular person, class of persons, or locality to any undue or unreasonable prejudice or disadvantage.

On August 1, 2017, the Franklin County Infrastructure Bank awarded Grove City, Ohio a $2 million loan to support their construction of a municipal fiber optic network. 

The Grove City Plan

According to the city’s Request for Proposal (RFP), the city is focused on first establishing an institutional network (I-Net) and plan to expand it to serve local businesses over time. The initial fiber optic network will connect Grove City to the South-Western City Schools, the townships of Jackson, Prairie, Pleasant, and the Solid Waste Authority of Central Ohio (SWACO). The goal is to create a network with a baseline of ten gigabits symmetric service, ten times the speed of current connections provided by Spectrum (formerly Time Warner Cable).

According to Mayor Richard “Ike” Stage, the increase in network speed will attract businesses and will generate a 100 new jobs for the city. Josh Roth, Senior Program Coordinator for Economic Development and Planning, has said “that Grove City has committed to one hundred jobs over the next three years.”

During the August 1, 2017 general session, the Franklin County Board of Commissioners  passed the resolution to authorize the loan to the city of Grove City. 

Franklin County Commissioner Kevin L. Boyce celebrated the project:

“[T]he fiber optics really makes a difference because companies will look at whether to expand or move there [Grove City]. It could be a deciding factor. Those are jobs that are retained that you may not see."

OnLight Aurora, the nonprofit ISP serving Aurora, Illinois via publicly owned infrastructure, is bringing more companies to the second largest city in the state.

"One Of The Reasons We're Here"

Scientel Solutions, a wireless communications company with headquarters in Lombard, Illinois, is making a move to Aurora. The company plans to build its own 12,000 square foot office building and an accompanying warehouse in the community where they will be near a local data center.

The data Cyrus One data center was only one reason Scientel chose Aurora, according to the company’s attorney Richard Williams:

“In addition to being near Cyrus One, Williams told aldermen the company also was lured by OnLight Aurora, the city's fiber optic network.” 

"Fiber was a big attraction to us," Williams said. "That's one of the reasons we're here."

Rather than continue to lease its Lombard location, the company has decided to invest in its own property. In addition to constructing the facilities, Scientel will erect a communications tower on its new site. Lombard is approximately 25 miles east of Aurora, closer to downtown Chicago.

Scientel will bring 30 Lombard employees to Aurora and hire 20 more employees to work at the new headquarters.

Unexpected Benefits

Back in 1995, city leadership decided to invest in publicly owned infrastructure to reduce telecommunications costs, upgrade to a faster network, and obtain the reliability they couldn’t get from incumbents. At the time, the city used patchwork of different connections and while some facilities obtained adequate connectivity, others in the more far-reaching areas of the community depended on old leased lines that weren’t up to task. Employees in some offices traveled to offices where connectivity was better in order to complete specific tasks that required better connections.

Two Ohio State Senators are taking a page from Minnesota’s playbook to expand rural broadband connectivity. Democratic Sen. Joe Schiavoni and Republican Sen. Cliff Hite recently announced that they would be introducing legislation to create a grant program modeled after the Minnesota Border-to-Border Broadband Grant Program.

Putting Money Into It

The program is expected to expand broadband Internet access to approximately 14,000 rural Ohio households per year. State officials estimate that 300,000 homes and 88,500 businesses in rural areas of the state do not have access to broadband connectivity.

In Minnesota, the Department of Employment and Economic Development hosts the Office of Broadband Development, which administrates grant awards and management. The Ohio bill will place the responsibility for the program in the hands of their Development Services Agency (DSA).

Grants will be awarded of up to $5 million for infrastructure projects in unserved and underserved areas; the grants cannot fund more than half the total cost of each project. Recipients can be businesses, non-profits, co-ops or political subdivisions. The bill allocates $50 million per year for broadband development from the state’s Ohio Third Frontier bond revenues.

The Ohio Third Frontier is a state economic development initiative aimed at boosting tech companies that are in early stages and helping diverse startups. The Ohio General Assembly appropriates funds to the program, much like the Office of Broadband Development in Minnesota.

Minnesota Setting The Trend

This isn’t the first time politicians have looked longingly at Minnesota’s plan to build more network infrastructure in rural areas. Ralph Northam, Virginia’s Lieutenant Governor, released an economic plan for his state this summer and addressed the need to improve connectivity in rural areas. In his plan, he suggested that the state adopt clear goals “[s]imilar to the legislation Minnesota has passed.”

Last year, Madison’s CIO Paul Kronberger spoke with Christopher about the city’s pilot project to bring better connectivity to several lower-income areas. They also discussed the community’s separate plan to deploy dark fiber infrastructure across the city. The city recently released its Request for Proposals as they seek a partner for deployment for a Fiber-to-the-Premise (FTTP) network. Final proposals are due October 20th.

The RFP comes about a year after the community finished a feasibility study to examine costs, interest, and business models for a city-wide municipal network.

Publicly Owned With Help From A Partner

Madison has a specific business model in mind. They are looking for a partner willing to emulate Huntsville’s approach, in which the city designs, builds, and owns a dark fiber network. A private sector partner constructs fiber drop cables from the public rights-of-way to the subscribers’ premises. The partner handles lit services responsibilities and the city takes care of all dark fiber concerns. Madison also wants its partner to take on the task of obtaining access to necessary private easements. The community is looking for a firm that is willing to establish a long-term relationship.

The city has determined that the project will consist of 114,680 residential passings, which includes both single-family and multi-family dwellings. The number of business passings has been calculated to 10,331. All community anchor institutions (CAIs) will also be connected.

The Vision For Madison

Approximately 247,000 people live in the state's capital city, having seen an increase of 8.6 percent since 2010. Madison is considered a town with an exceptional quality of life, in part because the city has established a set of Racial Equity & Justice (RESJ) goals. Their desire to invest in the infrastructure to bring equitable service to all of the community is an extension of those goals.

Large, corporate providers like AT&T have to make shareholders happy, which is why they shy way from investing in regions where they don’t expect much profit. Routinely, those areas include sparsely populated rural communities and urban neighborhoods traditionally considered low-income. Often low-income neighborhoods also include a high percentage of people of color. Attorney Daryl Parks of ParksCrump, LLC, recently filed suit with the FCC on behalf of three residents in Cleveland who are victims of AT&T's "digital redlining."

The Data Tells The Story

In March, the National Digital Inclusion Alliance (NDIA) and Connect Your Community (CYC) released a report on digital redlining in low-income neighborhoods in Cleveland. “Digital redlining” refers to AT&T’s investments in infrastructure, which improve connectivity in areas where they serve, except for neighborhoods with high poverty rates. CYC and NDIA analyzed form 477 data submitted by the telecommunications company and noticed a pattern. The revelations in that report helped the plaintiffs understand their situation and choose to ask the FCC to look deeper into AT&T's questionable business practices.

The event that inspired the analysis was the AT&T DirecTV merger. As part of the merger, AT&T agreed to create a low-cost Internet access program for customers under a certain income level. The speed tier was only 3 Megabits per second (Mbps) download, but AT&T infrastructure investment in Cleveland lower income neighborhoods was so outdated, residents could not obtain those minimal speeds. As a result, they were deemed ineligible for the program.

The Case

The complainants are three African-American residents in Cleveland’s lower income neighborhoods who can’t take advantage of the affordable program mandated by the merger because they can only access speeds of up to 1.5 Mbps download or less. Without the infrastructure to connect at higher capacity, they’ve ended up paying higher rates for slower Internet access.

In a press release on the complaint, Parks stated: