The reasons why municipalities and cooperatives build community-owned broadband networks are numerous, often fueled by years of frustration with the spotty, expensive service offered by the big monopoly incumbents.

In northern Minnesota earlier this month, we came across yet another example of why an increasing number of localities are finding publicly-owned, locally-controlled telecommunication infrastructure so appealing: the “profits” don’t get funneled into the pockets of distant shareholders but are instead reinvested back into the local economy.

Image

In the case of Paul Bunyan Communications, the “profits” are shared with its members.

Earlier this month, the Bemidji-based telephone cooperative – which serves 30,000 members spread across its 6,000-square-mile service area – announced it is returning over $3 million to its members this year.

Capital Credit Retirements

As the cooperative explained in a recent press release:

“Paul Bunyan Communications is a not-for-profit company that strives to provide the highest quality service at the most affordable rates. As a cooperative, membership in Paul Bunyan Communications includes the opportunity to share in the financial success of the company.”

The New Mexico Office of Broadband Access and Expansion (OBAE) has awarded $1.4 million in grants to 15 counties, tribal communities, cooperatives, and municipalities for planning, engineering and grant writing to expand broadband access in long-underserved communities.

The funding not only allows these communities to begin analyzing their local connectivity needs in more detail, it potentially opens the door to helping them apply for more than $675 million in BEAD grants the state of New Mexico is poised to receive courtesy of 2021 infrastructure legislation.

The New Mexico Grant Writing, Engineering and Planning Program (GWEP) awards must be used for grant writing, engineering and planning for broadband expansion projects and the development of infrastructure projects. Traditional private ISPs were not eligible.

The first round of awards were announced in June, with a second batch announced in July.

Image

Round one awardees included $100,000 grants to the Village of Pecos, Valencia County, Pueblo of Isleta, Pueblo of San Ildefonso, Pueblo of Laguna, Pueblo of Jemez, and Otero County, and a $90,000 grant to Luna County.

Central Virginia Electric Cooperative’s (CVEC) Firefly Broadband subsidiary has been awarded a new $12.2 million grant from the state of Virginia. The award will help fund a major update to an already massive effort to extend affordable broadband to vast swaths of rural Virginia.

According to a cooperative announcement, the $12.2 million in Virginia Telecommunication Initiative (VATI) grant funding will be used to help fund a broader $48.6 million partnership with Rappahannock Electric Cooperative, Dominion Energy, and county governments.

These current VATI funds were largely made possible by federal COVID relief legislation passed in 2021. Such ARPA (American Rescue Plan Act) funding saw fewer overall restrictions and greater flexibility than infrastructure bill funding (BEAD) authorized the same year, resulting in states more quickly doling out funding for emerging broadband deployments.

“The fiber construction project will span approximately two years, covering 603 miles and reaching nearly 6,000 additional eligible locations in the counties of Amherst, Appomattox, Buckingham, Campbell, Fluvanna, Goochland, Greene, Louisa, Madison, and Powhatan,” CVEC said of the plan.

Image

CVEC and Firefly’s expansion into unserved Virginia comes after the cooperative first finished an ambitious, $130 million plan to install over 4,500 miles of fiber-optic cable across 14 counties, providing broadband internet access to all of its 39,000 members.

Imperial, Lassen, and Plumas Counties are among the first recipients of California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA). The cities of Oakland, Fremont, and San Francisco have also been awarded significant state awards.

The FAA grants are part of California’s ambitious Broadband For All initiative, a $6 billion effort aimed at dramatically boosting broadband competition and access across the Golden State.

All told, the California Public Utilities Commission (CPUC) awarded 11 FFA grants totaling over $86.6 million. Prominent awardees from this first round include publicly-owned broadband projects: the Golden State Connect Authority (GSCA) – a joint-powers broadband authority comprising 40 rural California counties – and Plumas Sierra Telecommunications for projects across Imperial, Lassen, and Plumas Counties.

“These projects will build community-based, future-proof, and equity-focused broadband infrastructure across California,” said CPUC President Alice Reynolds. “The Federal Funding Account – and these projects – are a shining example of our state’s Broadband For All values and objectives.”

The Federal Communications Commission (FCC) says it won’t be providing broader relief for broadband operators that have defaulted on grant awards via the agency’s messy and controversial Rural Digital Opportunity Fund (RDOF) broadband subsidy program.

According to an FCC public notice, the FCC stated it found "no demonstrated need for broad relief" from provider penalties connected to either the RDOF or Connect America Fund II (CAF II) programs. It also shot down calls for a broader amnesty program for defaulters.

“Given the flexibility available under the existing default processes…we decline to provide a blanket amnesty,” the agency’s Wireline Competition Bureau said.

In a letter to the agency last February, a broad coalition of providers and consumer organizations suggested that either reduced penalties – or some sort of amnesty program – might speed up defaults, freeing areas for upcoming broadband infrastructure bill (Broadband Equity Access And Deployment, or BEAD) subsidies.

Image

The group was quick to point out that areas where RDOF and CAF II money has been committed are considered “served” for purposes of BEAD deployments, potentially boxing out many desperate U.S. communities from billions in potential funding.

“Many of the RDOF and CAF II awardees who cannot or will not deploy their networks are located in states with the greatest connectivity needs, like Missouri and Mississippi,” the authors wrote. “The Commission should not permit these unserved rural communities to face this type of double whammy and be left behind once again.”

But in its statement, the FCC insisted that changes to its approach aren’t necessary because, it claims, its existing processes are working.

Cooperatives and Tennessee municipal broadband projects have nabbed a respectable chunk of Tennessee's latest round of middle and last mile broadband grants.

Tennessee’s Department of Economic and Community Development (TNECD) recently announced the state had awarded more than $162.7 million in broadband and digital opportunity grants, funded primarily via federal COVID relief legislation.

Image

TNECD indicates that $97.2 million is being earmarked for last mile and middle mile connectivity programs, with $65.5 million set aside for digital opportunity programs. The grants should extend broadband to an additional 236,000 Tennessee residents across 92 counties. Winners will provide $48 million in matching funds and must complete all projects by the end of 2026.

As is often the case, the regional telecom monopoly nabbed the lion’s share of the grants and awards, with Charter (Spectrum) being awarded more than $11.7 million for projects across Polk, Hardin, and Wayne counties. Charter was the top winner in the TNECD’s 2022 grant awards as well, nabbing $20.4 million to fund expansion across six counties.

At the same time, municipalities and cooperatives have been fairly well represented in both the 2022 and this year’s awards.

Recent federal government efforts to expand use of public Citizens Broadband Radio Service (CBRS) spectrum could be of significant help to municipalities and local communities looking to bridge the digital divide with the increasingly popular wireless technology.

CBRS spectrum refers to 150 MHz of spectrum in the 3.5 GHz band. In 2015, the FCC adopted rules for shared commercial use of the band, creating a three-tiered structure to avoid interference with military radar during collaborative use of the spectrum.

For municipalities, the spectrum has already proven to be a valuable way to deploy wireless access to the public. In Syracuse, New York, the city last fall launched a new public wireless network on the back of CRBS. In Longmont, Colorado, the St. Vrain Valley School District used CBRS to build a private LTE network connecting 4,000 students in partnership with NextLight, which operates Longmont's city-owned municipal fiber network.

Not all community deployments of CRBS have delivered satisfactory results for municipalities, however. The STEM Alliance in Westchester County, New York retired their efforts to deploy a CBRS network in Yonkers after they struggled with urban capacity constraints and low usage.

The nonprofit digital equity organization Connect Humanity has struck a new partnership with Microsoft to fund the deployment of affordable broadband access to long neglected residents of Appalachia.

The new partnership, outlined in a recent announcement, will leverage the Connect Humanity’s IDEA Fund (Investing in Digital Equity Appalachia) to help finance community-focused Internet Service Providers (ISPs) “best placed to meet the digital needs of residents and businesses in Appalachia’s unserved areas.”

Appalachia – which technically stretches from the Catskill Mountains in New York State to the hills of Mississippi – continues to be among the least connected areas in the nation. Appalachian residents are 31 percent more likely than the national population to lack a broadband subscription, and fewer than 20 percent of households use the internet at broadband speeds.

Image

Only 25 of the existing 423 Appalachian counties meet or exceed the national average for broadband speeds – and all were in metropolitan areas. Given the unreliable nature of FCC broadband maps, Appalachia’s digital divide is likely worse than measurements indicate.

When a $25 million broadband funding award for the Colorado River Indian Tribe (CRIT) was announced in July 2023, CRIT Chairwoman Amelia Flores celebrated it as a “game changer.”

“Broadband access is essential,” Flores’s statement read, making “remote learning, telecommuting, conducting business, and simplifying staying connected” possible.

Coming amid a rolling series of announcements from the Tribal Broadband Connectivity Program – each lauding millions of dollars in broadband funding for Tribes – it would have been easy to file away CRIT’s award as another from that pathbreaking broadband funding program for Tribes.

But this was not the TBCP. Rather, CRIT was among a handful of Tribes that received substantial funding awards from another federal source that has recently stepped up their grantmaking to Tribes – the U.S. Department of Agriculture’s (USDA) ReConnect Grant Program, administered by the department’s Rural Utilities Service (RUS).

Image

CRIT’s award is a helpful reminder that TBCP is not the be-all-end-all of funding for Tribal broadband. With an award cycle now open, ReConnect offers powerful tools and incentives –  including dedicated Tribal funding, 100 percent grants, and consent for any new infrastructure on sovereign lands – for Tribes looking to expand or launch broadband service.

TBCP, ReConnect, and Federal Funding for Tribal Broadband Infrastructure