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.

As the municipal broadband movement continues to gain momentum, we created a new fact sheet to highlight the dramatic surge in the number of communities building publicly-owned, locally controlled high-speed Internet infrastructure over the last three years.

In January, we announced our updated tally of municipal broadband networks across the U.S., which showed that between January 2021 and January 2024 at least 47 new municipal networks had been lit up for service.

Our census of new municipal broadband networks comes while dozens of other projects are still in the planning or pre-construction phase, which includes the possibility of building 40 new municipal networks in California alone.

The new fact sheet not only contains pertinent numbers to illustrate the rising tide of municipal broadband networks, it also includes snapshots of four recently launched networks now providing service to communities hungry for high-quality Internet connectivity and competitive choice.

You can find the new Rising Tide of Municipal Broadband fact sheet here.

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Community Broadband Resource Pairing

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.

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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

More cities and towns across the U.S. are exploring municipal broadband as an increasingly attractive and effective approach to bring ubiquitous, and affordable, high-speed Internet to its residents and businesses.

Now, a new handbook has been published that is tailored to guide local officials in navigating the logistical, technical, financial, and political challenges along the way.

Hot off the presses this week comes “Own Your Internet: How To Build A Public Broadband Network” – a project of the American Association for Public Broadband (AAPB), published in partnership with the Benton Institute for Broadband & Society.

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“This handbook is a key part of AAPB's strategy to double the number of public networks in the next five years, supporting communities in leveraging these networks for economic development, smart city initiatives, and attracting new residents," AAPB Executive Director Gigi Sohn said in announcing the handbook release.

Benton Executive Director Adrianne B. Furniss said the collaboration in publishing the guide made sense because “every community has a stake in this broadband moment—and they must have the tools they need to decide how they will meet their connectivity needs. We trust that this handbook is one of many tools communities will use to assess their situation and plan for a connected future.”

The National Telecommunications and Information Administration (NTIA) recently announced it has created a “programmatic waiver” that offers alternatives to the much-criticized letter-of-credit (LOC) requirement buried in the BEAD program.

The announcement comes after hearing from a coalition of public interest groups and a chorus of broadband experts that the LOC requirement would effectively shut out smaller ISPs from participating in the national effort to expand high-speed Internet access.

When the bipartisan infrastructure law was passed in 2021, establishing the $42.5 billion BEAD program, the NTIA issued a Notice of Funding Opportunity (NOFO) that detailed the spending rules for BEAD grants. Designed to ensure Internet service providers (ISPs) did not take federal grant dollars and leave a project incomplete, the LOC requires BEAD grant applicants to provide a letter-of-credit from a bank that verifies the applicant has at least 25% of the grant dollar amount in cash reserves held in a bank account for the entire time it takes to complete a network build.

A massive coalition of more than 300 broadband policy experts and organizations have written a letter to the U.S. government, warning that smaller broadband providers, nonprofits, and municipalities will be elbowed out of an historic $42.45 billion broadband grant program without some notable changes to program rules.

At the heart of their concerns sits the Broadband Equity Access and Deployment (BEAD) program, made possible by the recently passed infrastructure bill, and administered by the National Telecommunications and Information Administration (NTIA). The grant program is a once-in-a-lifetime opportunity to put a significant dent in America’s longstanding digital divide.

But BEAD program rules currently require grant recipients to obtain a letter of credit (LOC) from a bank, collateralized by cash or cash-equivalent. They also require grant winners to provide "matching funds of not less than 25 percent of project costs," though the latter restriction can be waived in some high deployment cost areas.

While the restrictions were intended to reduce the risk of project failure (a touchy subject for the government in the wake of problems with the FCC’s RDOF program), they require grant recipients to lock away vast and untouchable sums of capital for the duration of any broadband build, most of which last several years.

*In partnership with Broadband Breakfast, we occasionally republish each other's content. The following Broadband Breakfast report was originally published here.

The American Association for Public Broadband is calling for industry help in creating a handbook that helps communities examine their option to create and maintain public broadband networks.

The handbook will be a “hands-on, high-level resource for moving through the entire process including getting started, building community support, technology and business case analysis, role of partners and finance,” said Gigi Sohn, executive director at AAPB.

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Sohn asked for leaders for public broadband networks, including both government-owned and cooperatives to complete a public broadband inventory. AAPB will sort through the submissions and select folks to interview for more details.

The inventory asks for network elements, public benefits of the network, what financing has been used to build and operate the network, among other questions. Respondents can indicate whether the data in the survey is available to be publicly released or not.

The AAPB will consider how it can fully capture value from this inventory and may decide to include all or much of it online in a database.

Responses are required by Friday, September 8, 2023.

Vendors, consultants, and other leaders in public broadband are invited to share the survey with those that are eligible to respond.

In the Salt Lake City suburb some call “the garden spot of Utah,” Bountiful, Utah officials have settled on a plan to bring Bountiful Fiber and affordable connectivity to its residents and businesses.

By unanimous vote of the city council, the issuance of $48 million in bonds was authorized on May 26 to fund construction of what will be a city-owned open access fiber network.

The city will own the network and lease it out to multiple private Internet service providers (ISPs) – a model that city manager Gary Hill described as a way to create “a competitive marketplace for Internet service providers."

In a letter to city councilors before the bond issuance was authorized, Hill wrote: "Resident requests and sentiment ... demonstrate a need for city involvement to provide adequate, competitive, reliable broadband services.”

After issuing an RFP in November of last year, the city contracted with the nation’s largest open access network – UTOPIA Fiber – to build, operate, and maintain the network. It is expected that construction will take about 2 to 3 years to complete, though some subscribers will likely be lit up for service within 18 months of the start of construction, scheduled to begin this month.

Dark Money Looks to Torpedo Project

A dark money campaign spearheaded by the Utah Taxpayers Association (UTA), however, is threatening to derail the project. The group, whose annual conference is sponsored by Comcast and CenturyLink/Lumen, is backing a “Gather Utah” initiative to obtain signatures for a petition that would stop the city from building the network.

Concerns are mounting that over $2.8 billion in potential broadband grants doled out by the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund (RDOF) could be wasted, further eroding the already well-criticized program’s disjointed effort to expand broadband access across rural America.

In 2019, the Ajit Pai FCC created the $20.4 billion RDOF with an eye on shoring 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 often declared 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 of the $9.2 billion in winners, over $2.8 billion has gone into default, meaning the bidder couldn’t actually deliver on promised projects. 

We've tracked the RDOF awards since the auction concluded, including for the providers that defaulted on their wins.

These issues have not only imperiled RDOF program funding, but have thrown a wrench in the works of numerous additional government efforts to shore up broadband access, from the FCC’s long-criticized quest to accurately map U.S. broadband access, to the implementation of newer grant programs overseen by other agencies.

Two months after President Biden’s belated and long-stalled Federal Communications Commission (FCC) nominee withdrew her nomination after a year-long attack campaign against her, today at the Broadband Communities Summit in Houston, Texas, Gigi Sohn announced her next move: Sohn will serve as the first Executive Director for the American Association of Public Broadband (AAPB).

A non-profit organization formed by a group of municipal officials, AAPB’s mission is to advance advocacy efforts on behalf of publicly-owned, locally-controlled broadband networks. Since the organization first announced its formation at the Broadband Communities Summit in May of 2022, it has been working to educate federal and state policymakers who “have turned to the telecom lobby for help and are receiving biased guidance” on the community broadband networks approach, just as $42.5 billion from the Infrastructure Investment and Jobs Act (IIJA) is set to flow to state governments to expand high-speed Internet access this summer.

During a keynote luncheon at the summit, Sohn was joined by AAPB founding board members Bob Knight and Kimberly McKinley on the main stage for a candid discussion in which she reflected on the state of Internet access in the U.S. and her experience that led to her to withdraw her nomination to the FCC. Near the end of the luncheon she announced her new role with AAPB, which was greeted by a standing ovation from the hundreds of attendees in the audience.

Freedom to Choose Community Broadband Future

The announcement was followed by a press briefing where she elaborated on her vision for AAPB.

“I will be the first Executive Director of the American Association of Public Broadband. Until now, there has not been a membership-based advocacy organization that works to ensure that public broadband can grow unimpeded by anti-competitive barriers. That’s despite the success of public broadband to help places like Chattanooga and the Massachusetts Berkshires transform from sleepy hamlets to vibrant centers of economic opportunity, education and culture,” she said at the press briefing.