A looming new bill by Republican Kentucky State Senator Gex Williams could undermine decades of broadband progress made in the state’s capital city by a popular locally-owned utility, Frankfort Plant Board (FPB).

Home to 28,000 Kentuckians, local residents and utility officials in Frankfort are incensed at the bill, which they believe will unnecessarily result in higher rates, fewer jobs, and less broadband competition overall.

Williams is circulating a bill in the Kentucky state legislature that, if passed, would force FPB to sell its broadband division to a private-sector company and subject it to more stringent oversight requirements. In guest editorials circulated in the local press, Williams insists his goal is to “rein in” the FPB, which he deems part of a “runaway” government that lacks accountability.

But there’s no evidence for Williams’ allegations of limited accountability, and locals and activists alike believe that the legislator is simply running interference for regional broadband monopolies upset by the added competition created by the popular, publicly-owned utility.

Another Community-Owned Solution Addressing Market Failure

Like many local U.S. communities, Frankfort sees a notable dearth of meaningful broadband competition, resulting in patchy broadband coverage, slow speeds, high prices, and abysmal customer service. Enter the Frankfort Plant Board, which has been deploying affordable fiber access across the community under the NEXTBAND brand.

Knoxville, Tennessee's Knoxville Utility Board (KUB) says it has completed the first phase of its ambitious broadband deployment, bringing affordable fiber access to more than 50,000 premises in this city of 192,000 – many for the very first time.

When we last wrote about KUB back in 2021, the city's utility had just received approval to build what will eventually be the biggest municipal broadband network in the U.S.

All told, the $702 million project, known as KUB Fiber, aims to deliver affordable fiber to 210,000 households across KUB’s 688-square-mile service area, taking between seven and ten years to complete.

KUB says that the first phase of fiber deployment involved the installation of more than 1,100 miles of fiber infrastructure. Upgraded users have the option of three tiers of service: symmetrical gigabit per second (Gbps) service for $65 a month; symmetrical 2.5 Gbps service for $150 a month; and symmetrical 10 Gbps service for $300 a month.

KUB’s service tiers do not come with usage caps or long-term contracts. Unlike many municipal operations, KUB is also offering locals the option of bundling television service.

KUB was driven to expand access after more than a decade of local frustration at the slow speeds, high prices, and spotty coverage caused by a notable lack of competition between regional telecom monopolies, AT&T and Comcast (Xfinity). Both companies have attempted to lock down customers via long-term contracts ahead of the network’s completion.

As one local resident said:

“Comcast thanked me for being a customer for 23 years, but it's not because I've had the option to go anywhere else. They have had 23 years to fix these problems and they haven't."

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.

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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.

Fort Worth, Texas, (est pop. 956,000) has struck a $7.5 million, 34-year contract with Dallas-based Sprocket Networks to construct a new 300-mile fiber optic backbone to shore up city municipal communications needs, expand affordable access to marginalized neighborhoods, and boost local economic development.

City officials say construction crews are expected to begin work sometime in the next three to six months, with the full network construction expected to cost $65 million and take three years to complete.

Services will first be made available to nine target neighborhoods (including Las Vegas Trail, Como, Marine Creek, Stop Six, Rosemont and Ash Crescent) on a rolling basis. Sprocket Networks will own the finished fiber network.  

“This partnership was entered into with Sprocket with the hopes of eventually getting to universal service in Fort Worth,” Fort Worth IT Solutions director Kevin Gunn told ILSR in a phone interview. “We want the gold standard fiber optic connectivity: 100 megabits symmetric and up available at every doorstep, whether that's a senior family, multifamily or commercial.”

Gunn told ILSR that the city’s initial payment of $7.5 million to Sprocket consists of $4.5 million in American Rescue Plan Act (ARPA) funds, and $3 million from the North Central Texas Council Of Governments, which has allocated some of its transportation budget to broadband improvements the agency will benefit from.

In response to COVID era broadband inequities, the city of Fort Worth last year expanded free Wi-Fi access to 40,000 largely underserved city residents. Gunn indicated that those connections will be slowly phased out as the city transitions to fiber.

In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

New England residents have been complaining about Verizon’s lack of meaningful fiber upgrades for the better part of the last two decades, prompting a steady parade of interest in community owned and operated fiber networks in states like Massachusetts.

But some of these community broadband efforts, such as West Springfield’s plan to deliver affordable fiber access to every city resident, are still being hampered by Verizon.

In 2021 the city (est. pop. 28,000) announced it would be partnering with Westfield Gas and Electric, the publicly owned utility in Westfield, Massachusetts, which has built and operates fiber networks in nearly two dozen communities in the Berkshires. The end result: Westfield Gas and Electric's broadband subsidiary Whip City Fiber plans to deliver West Springfield residents symmetrical gigabit fiber for $75 a month, without long term contracts or onerous hidden fees.

But efforts to launch a $1.8 million pilot project have been on hold thanks to ongoing delays by Verizon and Eversource to prepare local utility poles for fiber attachment, West Springfield Chief Technology Officer Stephanie Straitiff tells local news outlet The Reminder.

Memphis Mayor Jim Strickland has introduced an ambitious new plan to incentivize private telecom providers to deliver affordable fiber to 85 percent of the Tennessee city of 633,000. The project, part of the city’s Memphis 3.0 master plan, will spend more than $700 million to expand broadband in a city where less than a quarter of residents–most of them wealthy–have access to next-generation fiber.

On September 23, city leaders introduced a new city ordinance amendment establishing new, streamlined permitting and fee requirements. Their goal: to incentivize companies willing to expand fiber optic broadband to at least 60 percent of Memphis’ residential and business premises and 60 percent of all existing low-income premises.

Not long after, city leaders unveiled more details about their "Smart Memphis Fiber" effort. After issuing an RFP last year, Memphis officials say they’ve struck a partnership with Paris-based Meridiam and Blue Suede Network to build a $700 million fiber optic network with an eye on eventually reaching 85 percent of the total Memphis population.

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“City Government will incentivize any interested company by reducing our costs through reductions in permitting fees and right-of-way fees,” Strickland said in a recent presentation before the city council. “Additionally, we will streamline our process to allow a company to get to work faster. We are also putting our own skin in the game.”

With the Affordable Connectivity Program (ACP) poised to run out of funding in early Q2 next year, and no funding source lined up to keep the program alive, a recent U.S. News & World Report survey underscores the significance of the program in the face of rising prices from the nation’s major Internet Service Providers (ISPs).

The ACP offers a monthly benefit of $30 dollars for qualifying households and $75 for qualifying households on Tribal lands (as well as in some remote areas). Over 20 million Americans to date have enrolled in the program to help pay their Internet service bills, but with the $14.2 billion ACP program on track to run dry as soon as May of next year – even amid a historic national effort to establish “Internet For All” – the affordability crisis has become more worrisome for a growing number of Americans.  

U.S. News & World Report’s survey found that Internet prices are going up and that families are compromising other expenses to pay for connectivity, affirming the urgency among digital equity advocates to identify a source of continued funding for ACP, as well as push for more structural solutions that address the root causes of why Americans pay among the highest prices for broadband service in the developed world.

Cleveland, Ohio is putting the finishing touches on an ambitious plan to build a citywide open access fiber network–and deliver affordable fixed wireless service–at minimal cost to city residents. The double-edged proposal aims to bring both meaningful broadband competition–and lower rates–to the long neglected city of 1.7 million people.

Last month, the city announced it had awarded $20 million in ARPA (American Rescue Plan Act) funds to Cleveland-based digital equity non-profit DigitalC. Under the proposal, DigitalC will spend 18 months building a fixed wireless broadband network capable of providing locals with symmetrical 100 Megabit per second (Mbps) service for $18 a month.

DigitalC’s fixed wireless service, EmpowerCLE+, launched in 2018 and accelerated its deployment in 2020 to meet the needs of frustrated parents and workers during peak COVID.

Speaking at ILSR’s and the National Digital Inclusion Alliance (NDIA) Building for Digital Equity (B4DE) event last week, DigitalC CEO Joshua Edmonds noted that the EmpowerCLE+ network currently passes 23,500 households in Cleveland, with 2,300 current subscribers. The city’s new agreement with the city should expand the network’s potential reach to 99.9% of homes in Cleveland.

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“We're thankful for the opportunity and we're just really hoping that people use this as motivation to change things within their respective markets,” Edmonds told ILSR in a phone interview.