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Two Alabama Cooperatives Win Grant Funding to Expand Fiber Service
Alabama Governor Kay Ivey's office has unveiled a new round of broadband grants that will expand fiber access to unserved homes and businesses across 23 Alabama counties. This latest round of grants should help fund 2,347 miles of new fiber deployment, bringing broadband availability to more than 15,000 locations scattered across the Yellowhammer state.
The funding – made largely possible by 2021 American Rescue Plan Act (ARPA) money that both of the state’s Senators voted against – comes on the heels of another $150 million broadband funding round announced back in February.
“With these latest grants, Alabama takes another all-important step to supplying high-speed Internet availability to more rural Alabama communities and neighborhoods,” Ivey said in a statement. “Upon completion of these projects, more children will have better learning opportunities, more businesses will have greater opportunities to compete worldwide, and emergency response departments and medical clinics will be able to offer improved services.”
Both funding rounds were heavily dominated by large private telecoms like AT&T, Charter, and Brightspeed. But the state has also been doling out some sizable awards to local cooperatives in a bid to shore up rural fiber access.
Caution Ahead: RDOF and BEAD Collision Course
The Rural Digital Opportunity Fund (RDOF) was supposed to drive affordable fiber into vast swaths of long-underserved parts of rural America. And while the FCC administered program accomplished some of that goal, a multitude of problems have plagued the program since its inception, putting both current and future broadband funding opportunities at risk.
The $20.4 billion RDOF program was created in 2019 by the Trump FCC as a way to shore up affordable broadband access in traditionally unserved rural U.S. markets.
The money was to be doled out via reverse auction in several phases, with winners chosen based on having the maximum impact for minimum projected cost.
During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands.
But, according to ILSR data, roughly 34 percent of census blocks that won RDOF funding–more than $3 billion in awards – are now in default. All told, 287,322 census blocks were defaulted on by more than 121 providers as of December 2023.
The defaults are only one part of a larger problem: namely that many communities bogged down in RDOF program dysfunction may risk losing out on the historic amount of federal funding to build modern broadband networks (BEAD) made possible by the 2021 bipartisan infrastructure law.
One Big Giant Mess
Selma, 17 Other Alabama Communities Will See Construction of $230 Million Open Access Fiber Network
Selma, Alabama – and parts of 16 other communities in eight different counties – will soon be connected to a new, $230 million open access fiber network that aims to bring affordable broadband to historically marginalized sections of the Yellowhammer State.
The deployment comes courtesy of a public private partnership (PPP) the city has struck with Meridiam Infrastructure and Meridiam-owned YellowHammer IT, an agreement that will expand fiber access across Alabama’s Black Belt region on the back of a $5.1 million Capital Projects Fund (CPF) grant.
At a March 2 press conference, Selma Mayor James Perkins Jr. said the partnership with Meridiam and Yellowhammer should result in fiber access being deployed to 85 percent of city homes and businesses, regardless of residents’ income levels, with $45 million of the $230 million investment dedicated to bring fiber service to Selma, the “Queen City of the Black Belt.”
“High-speed reliable broadband is no longer nice to have. Today, it’s as important as gas, water, and electricity,” Perkins stated at the event. “In our increasingly digital society, cities without access to fiber broadband risk falling behind. It’s critical that the City of Selma makes fiber broadband accessible citywide by building utility-like infrastructure that serves our residents’ needs today and for generations to come.”
Alabama Electric Cooperatives Power Ahead With $35 Million In New State Broadband Grants
Alabama has announced the release of $148.3 million in new broadband grants via the state’s Capital Projects Fund (CPF), made possible by the 2021 American Rescue Plan Act (ARPA). While regional monopolies like Charter nabbed the lion’s share of state funding (once again), cooperatives also secured significant funding to tackle the rural digital divide.
“High-speed internet service continues to strengthen and expand across the state, and we are taking the necessary strides on this journey to achieve full broadband access for Alabama,” Alabama Governor Kay Ivey said in a prepared statement. “This has been a monumental task, but it is one that will pay multiple dividends for our state and its residents. Today is an exciting day as we announce these latest projects.”
Cable giant Charter Communications (Spectrum) was the biggest winner of state funds, awarded 23 grants totaling $44.8 million to shore up access to 22,000 underserved homes across 25 Alabama counties. The next biggest award recipient was Mediacom, which received $22.8 million in grants to fund deployment to 8,000 homes across six Alabama counties.
All told, 16 providers were awarded grants to expand access to 48 different Alabama counties. While regional monopolies were heavily represented in the awards, four different Alabama cooperatives received $34.8 million in grant funding to expand fiber access to more than 11,092 rural Alabama homes and businesses.
Cullman Electric Cooperative Launches Next Phase Of Fiber Expansion
Cullman, Alabama-based Cullman Electric Cooperative says it is launching a new phase of fiber deployment after receiving a $7 million grant to bring affordable fiber access to long-neglected Cullman and Winston counties.
The financing was made possible by the Alabama Broadband Accessibility Fund (ABAF), funded by the 2021 American Rescue Plan Act (ARPA). The state has already dedicated more than $82 million in funding for Alabama broadband deployments, bringing broadband access to 72,000 currently unserved residents.
Cullman’s $7 million portion will bring affordable fiber access to 1,300 families. Known as Sprout Fiber Internet, Cullman currently offers residential customers symmetrical 300 Mbps (megabit per second) service for $60 a month; symmetrical 1 Gbps (gigabit per second) service for $80 a month, and symmetrical 2 Gbps service for $120 a month.
That’s significantly faster and cheaper service than is currently offered by any of the dominant private telecom monopolies in Cullman (predominantly AT&T or Charter/Spectrum), without usage caps, hidden fees, or long-term contracts.
Increased Wellness and Economic Return of Universal Broadband Infrastructure: A Telehealth Case Study of Ten Southern Rural Counties
In a new report, published in partnership with the Southern Rural Black Women’s Initiative (SRBWI), the Institute for Local Self-Reliance (ILSR) Community Broadband Networks Initiative examines the link between high-speed Internet infrastructure, access to healthcare, and the economic implications involved.
The report –“Increased Wellness and Economic Return of Universal Broadband Infrastructure: A Telehealth Case Study of Ten Southern Rural Counties” has particular relevance for those living in rural broadband deserts as it details how universal, affordable, broadband infrastructure would return $43 million per year using telehealth across 10 counties in the Black Belt of Alabama, Georgia, and Mississippi. Read Increased Wellness and Economic Return of Universal Broadband Infrastructure: A Telehealth Case Study of Ten Southern Rural Counties [pdf].
It explains how robust broadband infrastructure could pay for itself in short order and open up untold access to healthcare, educational opportunities, economic development, community engagement, and other benefits along the way. This issue is particularly relevant today, because the BEAD program represents a once-in-a-generation investment in broadband infrastructure, larger than any other federal grant program many times over. While it will solve the issue of access to infrastructure for most rural households, we have significant concerns about affordability - BEAD will lead to new connections, but states have wide latitude as to which ISPs get those funds to build new connections. The national monopolies have a long history of charging more to exactly the communities that can’t pay as much, leaving many households out. The report argues that electric cooperatives offer better and more locally accountable paths to universal, affordable service.
Drawing on academic scholarship and existing telehealth programs at hospitals around the country, the report focuses on an assortment of chronic health ailments plaguing those counties, such as diabetes, chronic respiratory disease (including asthma, chronic obstructive pulmonary disease, emphysema, heart disease, heart failure, cancer, obesity, and mental health and then demonstrates the benefits that could come from effective telehealth interventions for each
New Report: Universal Broadband Infrastructure Would Return $43 million Annually to Counties Across Rural Black Belt
In partnership with the Southern Rural Black Women’s Initiative (SRBWI), today ILSR is releasing a new report that examines the link between high-speed Internet infrastructure, access to healthcare, and the economic implications involved.
The report – “Increased Wellness and Economic Return of Universal Broadband Infrastructure: A Telehealth Case Study of Ten Southern Rural Counties” – has particular relevance for those living in rural broadband deserts as it details how universal, affordable, broadband infrastructure would return $43 million per year using telehealth across 10 counties in the Black Belt of Alabama, Georgia, and Mississippi.
At a virtual press briefing today, SRBWI leaders and organizers were joined by Dr. Sandra B. Reed of Emory Healthcare; as well as ILSR Senior Researcher and the report’s lead author, Ry Marcattilio, to explain how robust broadband infrastructure could pay for itself in short order and open up untold access to healthcare, educational opportunities, economic development, community engagement, and other benefits along the way.
“It’s easy to miss the connection, but hard to overlook what’s at stake as rural hospitals close and the cost of transportation to get to far-off healthcare facilities presents a real barrier. This is about access to healthcare and Black women being denied the opportunity to take advantage of telehealth. The broadband infrastructure that’s needed for that just isn’t there,” said Shirley Sherrod, SRBWI State Lead for Georgia and Director of the Southwest Georgia Project in Albany Georgia.
Broadband … to Access Longer, Healthier Lives
Aneta Lee, FUSE Corps Fellow in Birmingham, Alabama - Building for Digital Equity Podcast Episode 6
At the time of this interview at Net Inclusion, Aneta Lee was wrapping up her FUSE Corps Fellowship with the city of Birmingham in Alabama. We talk about the FUSE Corps Fellowship and her time at the city of Birmingham. Aneta discusses the ACP outreach campaign she put together and where she sees her future taking her - HINT, it could be to your community if you act fast!
This show is 15 minutes long and can be played on this page or using the podcast app of your choice with this feed.
Transcript below.
We want your feedback and suggestions for the show-please e-mail us or leave a comment below.
Listen to other episodes here or see other podcasts from the Institute for Local Self-Reliance here.
Thanks to Joseph McDade for the music. The song is On the Verge and is used per his Free-Use terms.
Election Day 2022: Broadband on the Ballot
As voters went to the polls yesterday, broadband-focused initiatives and candidates could be found up and down the ballot all across the country.
Alabama
Alabama voters cast their ballots to decide on a state Constitutional amendment known as the Broadband Internet Infrastructure Funding Amendment. The measure sought to amend the state's constitution "to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities."
That measure passed, garnering a “Yes” vote from nearly 80 percent of Alabama voters. With 73 percent of the vote counted late last night, 922,145 “Yes” votes had been tallied with 251,441 “No” votes.
Also in Alabama, Democratic U.S. Rep. Terri Sewell won her re-election bid to represent Alabama’s 7th congressional district. Sewell, whose district covers a large swath of the Alabama Black Belt, “spent much of her past two years in office bringing American Rescue Plan Act funds to rural Alabama, dedicated to healthcare, broadband access and infrastructure building,” as noted by The Montgomery Advertiser.
Colorado
The Centennial State is not listed as one of 17 states in the nation with preemption laws that erect barriers to municipal broadband because nearly every community that had a vote has passed it to nullify it. But more communities had to go through that unnecessary process yesterday due to the law known as SB-152 that bans local governments in the state from establishing municipal broadband service absent a referendum.
Alabama, New Mexico Voters Eye Constitutional Amendments for Broadband Funding
Alabama and New Mexico voters will soon be given the midterm option of changing their state constitutions to help boost broadband funding and deployment, albeit in notably different ways.
In Alabama, voters will head to the polls on November 8th to vote on a Broadband Internet Infrastructure Funding Amendment that would amend the state's constitution "to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities."
County leaders have spent much of this year warning that Section 94 of the Alabama Constitution bans the state from granting public money or “things of value” to local governments for public and private use. That’s a significant problem when it comes to the $276 million in ARPA funds Alabama Governor Kay Ivey earmarked for broadband expansion last March.
Programs such as the USDA’s ReConnect and the FCC’s Rural Digital Opportunity Fund (RDOF) haven’t run afoul of the Alabama Constitution because they both involve the federal government directly doling out funds for broadband expansion. But ARPA funding allows local municipalities to distribute a portion of state-allocated funds.