Internet connectivity in Vermont’s Northeast Kingdom is, well, downright medieval by modern telecommunication standards. With the exception of a handful of homes in the more densely populated communities of St. Johnsbury and Newport, the only choice for most folks living in the rural environs of the Northeast Kingdom is between DSL and satellite.

That’s all changing now thanks to one of the state’s nascent Communication Union Districts (CUD), enabled by a 2015 Vermont law that allows two or more towns to join together as a municipal entity to build communication infrastructure. These local governmental bodies were formed to help the state reach its goal of having universal access to broadband by 2024.

In the Realm of Broadband, Fiber is King 

Formed in March of 2020, the NEK CUD has already raised $743,000 through a variety of grant programs, and, over the past year, has forged a partnership with Kingdom Fiber using COVID-relief funding to connect nearly 100 homes in the towns of Albany, Craftsbury, Greensboro, Hardwick, and Irasburg.

Now, the NEK CUD, known as NEK Community Broadband, has taken another major step on the path to bringing fiber connectivity to all residents and businesses in the 55 towns that comprise the district. Last week, the NEK CUD approved a $120 million business plan that will deploy about 2,800 miles of fiber across the region, passing 33,000 premises, according to NEK Community Broadband Chairman Evan Carlson.

“It’s mostly DSL here with 49 percent of addresses (in the Northeast Kingdom) not having access to anything 25/3 Mbps (Megabits per second) or above,” Carlson told us in a recent interview.

“I had HughesNet at one point and I was paying $150 a month. But now I have StarLink. It’s not perfect but…,” Carlson began to say, as his connection froze for about 10 seconds.

Hark! FTTH Cometh to the REAP Zone

Today, the U.S. Treasury Department released an updated FAQ clarifying many of the concerns and questions raised by numerous community broadband advocates and members of Congress about the Interim Final Rules (IFR) on how Coronavirus relief funds in the American Rescue Plan Act (ARPA) could be spent on broadband infrastructure.

The day after the rules were first released in May we wrote about how it appeared the IFR, if finalized as is, would significantly limit local communities’ ability to invest in needed broadband infrastructure as the rules initially suggested communities were expected to focus on areas that do not have 25/3 Megabits per second (Mbps) wireline service “reliably available.” While broadband experts might have felt comfortable with that language, it would almost certainly confuse lawsuit-leery city attorneys that have to sign-off on projects in areas with widespread gigabit cable broadband access.

Clarification to Make Community Broadband Advocates Clap

What does the requirement that infrastructure “be designed to” provide service to unserved or underserved households and businesses mean?

The updated FAQ sticks to the 25/3 benchmark, stating: “Designing infrastructure investments to provide service to unserved or underserved households or businesses means prioritizing deployment of infrastructure that will bring service to households or businesses that are not currently serviced by a wireline connection that reliably delivers at least 25 Mbps download speed and 3 Mbps of upload speed.”

However, the FAQ goes on to say, “to meet this requirement, states and localities should use funds to deploy broadband infrastructure projects whose objective is to provide service to unserved or underserved households or businesses. These unserved or underserved households or businesses do not need to be the only ones in the service area funded by the project (emphasis added).”

Last Tuesday, residents of three coastal Maine communities - Camden, Rockport, and Thomaston - voted to support Town Meeting articles authorizing each town's Select Boards to enter an interlocal agreement establishing the MidCoast Internet Development Corporation (MIDC), a nonprofit regional broadband utility in the Penobscot Bay Region of MidCoast Maine.

The type of regional utility the communities are seeking to establish is a broadband network utilizing an open-access model, in which the fiber infrastructure is municipally-owned, the maintenance of the network is managed by an outside firm, and private Internet Service Providers (ISPs) provide retail service to end-users. The ultimate goal of MIDC is to build an open-access, Fiber-to-the-Home (FTTH) network to provide universal Internet access across any towns which vote to sign onto MIDC’s interlocal agreement.

More than nine communities located in Knox and Waldo County formed the MidCoast Internet Coalition earlier this year, to indicate their support of establishing the MIDC regional utility district. Now, the towns which form the MidCoast Internet Coalition (Northport, Lincolnville, Hope, Camden, Rockport, Rockland, Thomaston, South Thomaston, Union, and Owls Head) are voting in phases to sign onto an interlocal agreement, legally recognizing the public utility under Maine law.

Faced with aging populations, a need to consider their economic futures, and no hope of investment from the monopoly ISPs, many cities across Maine have joined forces to develop their own publicly-owned broadband utilities. MIDC is one of three regional broadband utilities in Maine, alongside the Katahdin Region Broadband Utility and the Downeast Broadband Utility (DBU). MIDC will follow the same regional approach as DBU, a utility which found deploying a fiber network and allowing local ISPs to offer services over the infrastructure was the most feasible approach to ensure high-speed, reliable

Well, they did it. The Ohio Senate passed its two-year $75-billion budget bill yesterday, which included an amendment that effectively bans the creation of municipal broadband networks without much in the way of public debate.

If the amendment contained in the Senate’s budget survives the budget process, it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks.

The vote was along party lines, with 25 GOP State Senators voting in favor of the Senate budget bill and the chamber’s eight Democrats voting against it. With the House having passed its budget bill in April, now the two legislative bodies have until June 30 to negotiate the differences.

According to the Columbus Dispatch, the House and Senate budget bills agree on about 60 percent of what’s contained in the Senate spending proposal. Where the House and Senate disagree is on the size of a state income tax cut, school funding, access to subsidized childcare, and broadband.

Ohio on Cusp of Municipal Broadband Ban

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendment that saddles community-owned projects with an array of conditions designed to prevent, stifle, and discourage political subdivisions from building and operating networks that meet the connectivity challenges of its residents. It also takes aim at existing projects which enhance the resiliency of regional communications, telehealth, and public safety operations.

Among the most pernicious consequences would be that it only allows for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

The Ohio State Senate is set to vote today on the state budget bill that includes an amendment which, if signed into law, would be a major setback for municipal broadband projects in the Buckeye State and protect the big incumbent Internet Service Providers from competition. 

If passed and signed into law it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks. This is a surprising and disappointing move, especially for families who have spent the last year experiencing firsthand the poor Internet connectivity that comes with a broadband market dominated by monopoly providers with no incentive to put the interests of the public ahead of shareholder returns.

Erecting Barriers

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendement with an array of conditions designed to prevent, stifle, and discourage cities from following through with any plan for a city-run network to meet the connectivity challenges of its residents.

The first is a provision that would only allow for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

But a recent Ohio Broadband Strategy report released in 2019 under the direction of Ohio Lt. Gov. Jon Husted pegged the number of Ohioans without access to broadband at just around 1 million. According to the independent broadband tracking firm BroadbandNow, which ranks Ohio 24th in the nation on the broadband access scale, as of June 2021 there were 618,000 Ohio residents who did not have access to broadband with speeds of 25/3 or faster, which means that approximately 94 percent of Ohioans have access to wired broadband with speeds of 25/3 or faster. Restricting municipal networks to only those households with no service whatsoever would effectively preclude new networks in large parts of the state.

The day after the U.S. Treasury published the Interim Final Rules on how Coronavirus relief funds in the American Rescue Plan Act can be spent, we sounded the alarm because it appears the rules, if finalized as is, would significantly limit local communities’ ability to invest in needed broadband infrastructure.

Last week, Sen. Ron Wyden (D-Oregon) and eight other members of Congress joined the growing number of community broadband advocates who share those concerns.

On Tuesday, May 25, Sen. Wyden sent a letter to Treasury Secretary Janet Yellen urging her “to ensure any community with service that falls below (the Treasury’s) own standard of 100 (Megabits per second) Mbps upload and download speeds is eligible for funding.”

Two days later, U.S. Rep. Anna G. Eshoo (D-California) and Sen. Cory Booker (D-New Jersey) penned a similar letter that was also signed by Wyden and six other members of Congress (U.S. Reps. Raúl M. Grijalva, Mike Thompson, Jerry McNerney, Lori Trahan, Peter Welch, and Debbie Dingell). Eshoo and Booker have long led efforts to support local initiatives to expand Internet access with community solutions.

25/3 Not Sufficient  

Even as the Treasury acknowledges that families really need 100/100 Mbps service, as the Interim Rules are currently written it suggests communities are expected to focus on areas that do not have 25/3 Megabits per second (Mbps) wireline service “reliably available.” About 90 percent of Americans have 25/3 “available” to them by flawed federal estimates, although millions lack service because it is unaffordable or effectively unreliable. And there is no standard for reliability that communities can measure against.

The Eshoo/Booker letter is particularly salient on this point: 

Closing the homework gap has been a top priority for Federal Communications Commission (FCC) acting Chair Jessica Rosenworcel. She has a long track record advocating for Wi-Fi-enabled school buses, lamenting viral images of school children completing homework in fast food parking lots, and making the case that no child should be left offline. At the onset of the pandemic, she pledged to use her influence at the agency to fight to increase the flexibility of the E-Rate program, saying “every option needs to be on the table.”

When the American Rescue Plan Act established the Emergency Connectivity Fund (ECF) in March, a $7 billion program to connect students and library patrons to the Internet at off-campus locations, Rosenworcel had an opportunity to follow through on those promises. She could have seized the moment to steer the program in the direction of allowing schools and libraries to build, own, and operate their own school and community networks (what the federal government refers to as self-provisioned networks). Many schools serving areas with poorly connected students already do this, but without much help from the E-rate program.

But when the rules on how to spend the money were finalized on May 10th, the FCC’s Report and Order declared that schools and libraries could not use Connectivity Funds to build self-provisioned networks, but instead could only use the funds to purchase Wi-Fi hotspots, modems, routers, and connected devices, such as laptop computers and tablets. The one exception in which schools and libraries can use Connectivity Funds to build self-provisioned networks is in “areas where no service is available for purchase,” based on data self-reported by private ISPs. 

Snapshot

North Carolina Governor budgets $1.2 billion of Rescue Plan funds towards closing the digital divide

Vermont Senate includes private ISPs in what was a community-based solution to universal access

Alabama Governor approves $17 million in broadband grants, some to Comcast and Charter Spectrum

The State Scene

North Carolina 

North Carolina Gov. Roy Cooper released a budget proposal last Wednesday that anticipates using $1.2 billion of incoming federal COVID-19 relief funds towards broadband infrastructure, affordability initiatives, and expanding digital literacy. With North Carolina set to receive a total of $5.7 billion in federal American Rescue Plan funds, Gov. Cooper is dedicating nearly one-fifth of the incoming relief to closing the digital divide. 

Next, the State House, Senate, and the North Carolina General Assembly will create their proposals for how to spend the relief funding. Then, they'll have to rectify any differences. Each chamber's plans could look similar to the governor's or vastly different. 

Gov. Cooper’s proposal specifically allocates [pdf]:

• $600 million towards expanding broadband infrastructure, including: $350 million for the state’s existing last-mile grant program (GREAT grants), $150 million for competitive bidding which will allow county governments to leverage the funds for public-private partnerships, and $100 million towards stop gap solutions “to address local infrastructure needs and connect underserved households not likely to get fiber for three to four years.”

• $420 million towards affordability initiatives which will subsidize low-income service plans.

• $165 million for digital literacy, including: $40 million towards device support to provide computers to 96,000 households which currently lack them; $30 million towards break/fix services to replace devices for over 275,000 North Carolinians; and $95 million towards community-based digital literacy campaigns.

The plan aims to connect 100 percent of North Carolina households with children to high-speed Internet access by 2025, and anticipates the affordability initiatives in the proposed budget will provide 380,000 individuals with a $50/month subsidy for four years. 

With $3.9 billion from the American Rescue Plan Act on its way to Maryland, Gov. Larry Hogan and state legislative leaders have agreed to seize the moment, allocating $300 million of federal COVID-19 relief funds to expand broadband infrastructure and digital inclusion initiatives across the state.

The biggest bulk of the money – $97 million – will go towards funding the building of physical infrastructure with $45 million earmarked specifically for municipal broadband grants.

“The question isn’t how much it’ll cost to bridge the digital divide, the question is how much will it cost if we don’t act right now,” State Senate President Bill Ferguson said at a press conference when the funding was announced.

The bipartisan budget agreement was hailed by Gov. Hogan, a Republican, as an example for the nation demonstrating how “people from different parties can still come together, that we can put the people’s priorities first, and that we can deliver real, bipartisan, common sense solutions to the serious problems that face us.”

One “serious problem” in Maryland, according to a recent Abell Foundation report, is that 23 percent of Maryland households (520,000) do not have a wireline home Internet connection, 40 percent (or 206,000) of which are Black households.

Much of that comes from a lack of affordability and other barriers to adoption. To deal with those challenges, the budget agreement also includes $45 million to subsidize monthly Internet service costs for qualifying families and $30 million to pay for Internet-connected devices for financially eligible households. It also includes an additional $4 million for a new University System of Maryland program to support training and developing curriculum to bridge the digital divide as well as $2 million for digital navigator programs.

Snapshot

Florida Legislature rewrites utility pole bill to include language backed by municipal electric utilities

North Carolina’s County Broadband Authority Act includes clause drawing criticism from electric co-ops

Oklahoma Governor signs mapping bill, vetoes measure adding Tribal representation to state broadband council

The State Scene

Florida

A Florida bill, which included provisions that would have forced Florida’s municipal electric utilities and their ratepayers to pay private Internet Service Providers’ utility pole make-ready costs, was significantly revised before passing the State House by a unanimous vote of 115-0 on April 28.

H.B. 1239, which no longer includes the make-ready costs provisions, initially read like a regulatory wishlist for incumbent cable monopolies until it was redrafted to become a legislative package aimed at improving broadband deployment across the state. The revised bill now heads to the State Gov. Ron DeSantis for approval.

The final version of the bill establishes additional duties for Florida’s Office of Broadband, creates a state broadband grant program, and requires the Office to conduct mapping of unserved and underserved areas of the state -- a significant deviation from the version that was first introduced in February.