New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

Here at ILSR we’re no stranger to telecom monopoly-backed efforts to mislead the public about the significant benefits of community owned broadband access.

That’s why a new “study” by the industry-backed Information Technology and Innovation Foundation (ITIF) maligning municipal broadband doesn’t come as much of a surprise.

The study professes to take a look at a very small number of municipal broadband networks, then makes sweeping and patently false claims about the entire sector.

“In most cases, local governments have neither the competence nor the economies of scale to deliver broadband as well as private ISPs,” the study concludes. “So, favoring government-owned networks wastes societal resources, creates unfair competition, and is frequently unsustainable in the long run.”

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There’s numerous problems here. One being that the survey only looked at 20 municipal broadband networks in a country where more than 450 community broadband networks – serving close to 800 different communities – now pepper the American landscape.

The study author acknowledges the study’s sample size was “too small for the data to represent all U.S. [government-owned broadband networks] reliably,” then proceeds to make broad sweeping assumptions unsupported by any actual evidence.

As the federal government makes unprecedented investments to expand high-speed access to the Internet, unbeknownst to most outside the broadband industry is that nearly a third of the states in the U.S. have preemption laws in place that either prevent or restrict local municipalities from building and operating publicly-owned, locally-controlled networks.

Currently, there are 16 states across the U.S. (listed below) with these monopoly-protecting, anti-competition preemption laws in place.

These states maintain these laws, despite the fact that wherever municipal broadband networks or other forms of community-owned networks operate, the service they deliver residents and businesses almost always offers faster connection speeds, more reliable service, and lower prices.

In numerous cases, municipal broadband networks are able to provide low-cost or free service to low-income households even in the absence of the now expired federal Affordable Connectivity Program (ACP). And for several years in a row now, municipal networks consistently rank higher in terms of consumer satisfaction and performance in comparison to the big monopoly Internet service providers, as PCMag and Consumer Reports have documented time and time again.

Nevertheless, these preemption laws remain in 16 states, enacted at the behest of Big Cable and Telecom lobbyists, many of whom have ghost written the statutes, in an effort to protect ISP monopolies from competition.

The Infrastructure Law Was Supposed to Move the Preemption Needle But …

As states gear up to administer federal BEAD funds from the bipartisan infrastructure law, a handful of states are already making significant investments in municipal broadband using federal Rescue Plan dollars.

California, Maine, Vermont, and New York have each established grant programs that center municipal broadband projects (mostly fiber builds) – with New York being the most recent state to announce more than $70 million in grant awards through its ConnectALL Municipal Infrastructure Grant Program (MIP).

Courtesy of the U.S. Treasury’s Capital Projects Fund, the awards are part of a $228 million initiative to bring high-quality Internet connectivity and consumer-friendly choice to New York communities long-stranded on the wrong side of the digital divide.

In March, Charter Communications tried (and failed) to include a poison bill in New York State’s budget bill that would have hamstrung community broadband. In stark contrast, a New York legislator this month introduced new legislation he says would make it easier than ever for New York state municipal broadband projects to thrive.

State Senator Jeremy Cooney of Rochester has introduced the Broadband Deployment Assistance Act of 2024 (S9134), which would streamline the permitting process for municipal broadband projects by "amending the general municipal law, in relation to requiring substantially similar permits for broadband deployment to be processed together at the same time and on an expedited basis."

“With a quicker timeline and more efficient process for local governments, we can create affordable options for New Yorkers that empower them to take control of their digital destiny,” Cooney wrote in an editorial published at Syracuse.com.

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Cooney says he was motivated by a lack of broadband competition in New York State. New York is dominated by Charter Communications, which was almost kicked out of the state in 2019 for poor service and  misleading regulators about broadband deployment conditions affixed to its 2016 purchase of Time Warner Cable.

Community broadband advocates have scored a major victory in Minnesota as state lawmakers there have repealed the state’s preemption laws that prevented cities and towns in the Land of 10,000 Lakes from providing municipal broadband services.

The new legislation, signed into law yesterday by Gov. Tim Walz, took aim at two statutes that sought to protect large monopoly telecommunications providers from competition.

New Law Unwinds Antiquated Statutes

One antiquated law that had been on the books for over a century (Minn. Stat. Ann. § 237.19) allowed municipalities in Minnesota to buy or construct “telephone exchanges” only if they secured a supermajority vote in a local referendum election. Though intended to regulate telephone service, the way the law had been interpreted after the invention of the Internet was to lump broadband in with telephone service thereby imposing that super-majority threshold to the building of broadband networks.

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Another law (Minn. Stat. Ann. § 429.021(19)) gave municipalities the express authority to “improve, construct, extend, and maintain facilities for Internet access” but only if a private provider was not offering service in that municipality.

But this week, with a single omnibus bill (SF 4097), those old preemption laws were repealed by state legislators and signed into law by the Gov. Walz yesterday, officially paving the way for any municipality in the state to have the option of building networks to offer municipal broadband service or partner for the same.

Advocates for better Internet access are breathing a sigh of relief in New York as the State Assembly passed a budget bill yesterday that did not include an amendment that would have undermined the state’s municipal broadband grant program.

As we reported last month, buried in language near the bottom of the Assembly budget proposal was a Trojan horse legislative sources said was being pushed by lobbyists representing Charter Spectrum.

The amendment, which did not survive the budget reconciliation process, proposed to limit Municipal Infrastructure Program grants to projects that targeted “unserved and underserved locations only” – a restriction that would have made municipal broadband projects in the state less likely to become financially viable.

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Created as part of New York’s billion dollar ConnectALL Initiative, the MIP is specifically designed to support municipal broadband projects. Such projects are routinely targeted by lobbyists for the big monopoly providers intent on preventing any competition to their often spotty, high-cost service offerings.

Language added to a New York State budget bill is threatening to undermine a municipal broadband grant program established by Gov. Kathy Hochul’s office earlier this year.

Known as the Municipal Infrastructure Program, it was designed to provide grant funding for municipalities in the state eager to build publicly-owned, locally controlled broadband infrastructure as a way to ensure ubiquitous, affordable access to high-quality Internet after decades of frustration with expensive, spotty and uneven service from the regional monopolies.

Currently, New York state lawmakers are in the midst of budget proposal season in which the Governor’s office and both legislative chambers (the state Senate and Assembly) have until April 1 to reconcile and complete a final budget for the upcoming fiscal year.

Buried near the bottom of the Assembly budget proposal (A8805B) is a Trojan horse legislative sources say is being pushed by lobbyists representing Charter Spectrum, the regional cable monopoly and 2nd largest cable company in the U.S. that was nearly kicked out of New York by state officials in 2018 for atrocious service.

The rocky rural hills of West Virginia are a formidable foe when it comes to building high-speed Internet infrastructure that offers affordable high-quality service.

Nobody knows that better than Hardy Telecommunications (OneNet), a small community-owned cooperative that delivers affordable fiber to frustrated locals deemed too costly and cumbersome to be served by the incumbent telecom giants.

The cooperative serves parts of four counties (Hardy, Pendelton, Grant, and Hampshire). It connected its first fiber customer in 2013, after receiving $31.6 million in federal BTOP funding. Since then, the cooperative tells ILSR they’ve spent $20 million of their own funds to bring fiber to rural corners of the aptly-named Mountain State.

Derek Barr, Assistant General Manager at Hardy Telecommunications, says the cooperative currently delivers broadband service to 5,050 rural subscribers – 4,736 of which are on fiber lines that simply wouldn’t exist without federal funding programs. Hardy Telecommunications also provides 68 customers with fixed wireless access (FWA) broadband service.

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“Our focus is fiber, and we're trying to build out fiber as much as we can,” Barr tells ILSR. “But it's very tough in our serving region. It's all mountains and a lot of trees, and a big chunk of our area is either state park or national forest land. It's also very hard to do fixed wireless because even if it might work in the winter, it's not going to work in the summer” when tree leaves block line of sight, he noted.

So the cooperative slowly and consistently expands fiber as it can, often in partnership with Pendleton County. As a result, locals have the option of a variety of double and triple play phone, cable, and fiber options, starting with a symmetrical 100 Mbps (megabit per second) downstream, 50 Mbps upstream fiber and phone bundle for $79 a month.

As the new year begins, the Institute for Local Self-Reliance (ILSR) announced today its latest tally of municipal broadband networks which shows a dramatic surge in the number of communities building publicly-owned, locally controlled high-speed Internet infrastructure over the last three years.

Since January 1, 2021, at least 47 new municipal networks have come online with dozens of other projects still in the planning or pre-construction phase, which includes the possibility of building 40 new municipal networks in California alone.