The Electric Cooperatives of Arkansas say they recently finished delivering fiber broadband capability to more than one million Arkansans as part of a $4.66 billion expansion.

More than 40,000 miles of fiber have been installed by 17 cooperative broadband providers, including 15 local broadband providers, one wholesale broadband provider, and one middle-mile fiber company.

In a prepared statement, Arkansas cooperatives indicate they have $2.2 billion in additional projects lined up connecting an additional 13,000 residents in the “Natural State.” Once completed, Arkansas cooperatives will have deployed 53,000 miles of fiber and connected 1.2 million state residents to fiber.

Informed by their efforts at rural electrification nearly a century earlier, U.S. electrical cooperatives have increasingly been pushing into fiber broadband deployment. Initially as a way to better monitor and manage complex modern electrical grids, then ultimately as a way to extend access to predominately rural customers trapped on the wrong side of the digital divide.

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Nearly 80 percent of the state cooperatives’ investment in fiber infrastructure has been self-funded without grant subsidies, the coalition notes. Many of the markets they’ve targeted have long been neglected by regional cable and phone giants that believe the investment into rural counties isn’t worth the time and resources, or won’t be profitable enough, quickly enough for Wall Street.  

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 …

Construction on a new city-owned fiber network in Cabot, Arkansas will soon bring affordable broadband access to every city resident and business in the state’s “Strawberry Capital.”

The network comes courtesy of a partnership with Connect2First, the broadband subsidiary of local power company First Electric Cooperative Corporation, which continues to build on its significant presence across Arkansas.

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According to a city announcement, the $20 million network will deliver fiber access at symmetrical speeds of up to 10 gigabit per second (Gbps) via an XGS-PON network passing all 26,000 residents and businesses of Cabot using 220 miles of fiber.

The network, which is expected to take several years to complete, will be built on the back of resident-approved bonds, and won’t utilize state or federal funding.

Construction has already begun in this suburb of Little Rock where city officials say hundreds of residents have already been connected.

In announcing the beginning of construction, Cabot Mayor Ken Kincade said:

“This unique project is the first of its kind in the state of Arkansas where a municipality has built its own fiber network and partnered with a local ISP to provide high speed fiber optic internet services to its constituents. The City of Cabot is thrilled to be able to leverage the proven expertise of Connect2First, who already had a presence in the city and was currently serving surrounding areas.”

First Electric Cooperative – and its broadband subsidiary Connect2First – are making major inroads on their quest to deliver affordable fiber Internet service to long-neglected portions of Arkansas.

Buoyed by an historic stretch of federal funding, the cooperative says it’s on target to deliver up to 2.5 gigabit per second service to 72,000 locations by the end of 2024.

Connect2First officials say they’ve deployed 4,371 miles of fiber across 18 counties in the southeastern part of the state, just outside of the state capital in Little Rock, delivering speeds significantly higher than seen in more urban, populous areas. The resulting service is also a notable step up in speed from regional monopolies like AT&T and Optimum, which see little market incentive to upgrade lagging networks or compete on price.

Connect2First residential customers have the choice of three tiers of service: a symmetrical 200 megabit per second (Mbps) connection for $60 a month; a symmetrical 700 Mbps connection for $60 a month; or a symmetrical gigabit per second (Gbps) service tier for $100 a month. The company’s tiers feature no service caps, hidden fees, or long term contracts.

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First Electric Cooperative, headquartered in Jacksonville, Arkansas, began in 1938 with just 3 employees and 150 members. Now with 94,000 electricity customers, it’s one of the largest cooperatives in the country, and the second biggest cooperative in the state of Arkansas.

Colorado state leaders have voted to eliminate long-criticized state barriers to municipal broadband networks. Community broadband advocates hope it will be a beacon for other states eager to bring more reliable and affordable high-speed Internet service to a market long dominated by monopoly providers.

The Colorado decision, made after years of citizen backlash to the counterproductive restrictions, is the latest inflection point in a retreat away from monopoly-backed state laws stifling creative efforts to bridge the digital divide.

On May 1, Colorado Governor Jared Polis signed Senate Bill 23-183. The new law formally eliminates an older 2005 law backed by regional telecom monopolies, which imposed cumbersome and onerous restrictions on Colorado towns and cities looking to build better, more affordable community-owned and operated broadband networks.

“SB23-183 removes the biggest obstacle to achieving the Governor’s goal to connect 99% of Colorado households by the end of 2027,” Colorado Broadband Office Executive Director Brandy Reitter said of the decision. “Each local government is in a unique position or different phase of connecting residents to high-speed internet, and this bill allows them to establish broadband plans that meet the needs of their communities.”

Colorado state leaders say the repeal puts them in a prime position to capitalize on numerous digital equity programs designed to address Colorado’s digital divide, as well as the more than $42 billion in broadband subsidies soon to be distributed courtesy of the recently-passed Infrastructure Investment and Jobs Act (IIJA).

“With large amounts of federal funding coming from the IIJA bill, we wanted communities to be ready to receive this money,” Colorado Representative Brianna Titone told ILSR.

Last year, Governor Polis signed an executive order formally setting a goal of connecting 99% of Colorado households by the end of 2027. Colorado state leaders have previously stated they expect their share of IIJA/BEAD funding to be between $400 and $700 million; money that can now be used more broadly on a diverse array of creative broadband solutions.

In 2012 the residents of Siloam Springs, Arkansas voted against building their own fiber network after some misleading electioneering by the regional cable monopoly Cox Communications. A decade later and local residents are still frustrated by high prices and a lack of competition, as city leaders are still contemplating what exactly they should try to do about it. 

In June, the city released a new report by Finley Engineering and CCG Consulting showing the width and depth of the city’s broadband issues. That report was formally presented at an August city meeting before the city’s recently-formed Broadband Advisory Committee.

Survey Said … 

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The survey showed that 11 percent of Siloam Springs residents still lack access to broadband, 77 percent of city residents want greater broadband competition, and 88 percent say they’re paying way too much for broadband service. While residents also complained about sluggish upload speeds and outages, the biggest consistent complaint was high prices. 

“The number one issue that came through loud and clear in the surveys is broadband pricing – practically every resident we heard from thinks current broadband is too expensive,” the study authors noted. 

Siloam Springs is heavily dominated by a duopoly of just two providers: Centurylink and Cox Communications. But even calling it a duopoly is generous; the city’s survey found that Cox enjoys a 92 percent broadband market share within city limits. The lack of competitive threat reduces any real incentive for the cable giant to lower prices or expand service. 

Join us today, June 2, at 5pm ET in the chat for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) are joined by regular guests Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting). 

The panel will dig into recent news on the BEAD program (including Alan Davidson's remarks at the Mountain Connect conference last week) and what we're likely to see with states that continue to maintain restrictions on municipal solutions. They'll also talk about the New York City Master Broadband Plan, and end with thoughts on Arkansas and Indiana creating middle mile consortia with co-ops.

Subscribe to the show using this feed on YouTube Live or here on Facebook Live, on find it on the Connect This! page.

Email us [email protected] with feedback and ideas for the show.

Watch here on YouTube Live, here on Facebook live, or below.

Welcome to In Our View. From time to time, we use this space to explore new ideas and share our thoughts on recent events playing out across the digital landscape, as well as take the opportunity to draw attention to important but neglected broadband-related issues.

As federal funds to expand high-speed Internet access began to flow to states and local communities through the American Rescue Plan Act, and with billions more coming under the Infrastructure Investment and Jobs Act, Big Telecom is beginning to mount its expected opposition campaign designed to discourage federal (and state) decision-makers from prioritizing the building of publicly-owned networks.

Predictably, a centerpiece of this anti-municipal broadband campaign is the trotting out of well-worn - and thoroughly debunked - talking points, arguing that federal funding rules should not “encourage states to favor entities like non-profits and municipalities when choosing grant winners” because of their “well-documented propensity to fail at building and maintaining complex networks over time.” That’s what USTelecom, a trade organization representing big private Internet Service Providers (including the monopolies) wrote in a memo sent last week to President Biden, the FCC, cabinet secretaries, House and Senate members, Tribal leaders, as well as state broadband offices. 

With American Rescue Plan funds flowing into state government coffers, about a third of the nation’s 50 states have announced what portion of their Rescue Plan dollars are being devoted to expanding access to high-speed Internet connectivity.

The federal legislation included $350 billion for states to spend on water, sewer, and broadband infrastructure, though everything we have seen suggests that the vast majority of that will not go to broadband. There is also another $10 billion pot of rescue plan funds, called the Capital Projects Fund, that mostly must be used to expand access to broadband.

Laboratories of Broadband-ification 

As expected, each state is taking their own approach. California is making a gigantic investment in middle-mile infrastructure and support for local Internet solutions while Maryland is making one of the biggest investments in municipal broadband of any other state in the nation. And although Colorado does not prioritize community-driven initiatives, state lawmakers there have earmarked $20 million for Colorado’s two federally-recognized Indian tribes to deploy broadband infrastructure with another $15 million devoted to boosting telehealth services in the state.     

Undoubtedly, individual states’ funding priorities vary. Some states may be relying on previously allocated federal investments to boost broadband initiatives and/or have been persuaded the private sector alone will suffice in solving its connectivity challenges. And in some states, such as Illinois, Minnesota, and Maine, lawmakers have prioritized using state funds to support broadband expansion efforts while other states may be waiting on the infrastructure bill now making its way through Congress before making major broadband funding decisions.

As of this writing, 17 states have earmarked a portion of their Rescue Plan money (totaling about $7.6 billion) to address the digital divide within their borders. Those states are Arizona, Arkansas, California, Colorado, Delaware, Hawaii, Indiana, Kentucky, Maine, Maryland, Montana, Missouri, Virginia, Tennessee, Vermont, Washington, and Wisconsin.