Massachusetts and New York officials hope to entice affordable housing property owners with new grant programs that would pay the retrofitting costs to expand high-speed Internet connectivity into decades-old affordable housing developments.

The programs aim to focus on the multitude of multi-dwelling units (MDUs) in those states, particularly housing developments built before the advent of the Internet.

With property owners and Internet service providers (ISPs) often reluctant to pay the costs of getting these buildings up to broadband speed, Massachusetts and New York have launched initiatives – using a portion of their federal broadband funds – to chip away at the digital divide in housing developments where a significant number of tenants live in buildings not wired to support reliable broadband or where the service is not affordable, thanks to agreements with monopoly providers.

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New York Bytes Into Broadband Affordability

In December, New York Governor Kathy Hochul’s office announced the state’s ConnectALL Office (CAO) was setting aside $100 million New York State received from the federal Capital Projects Fund (courtesy of the American Rescue Plan Act) to bring broadband connectivity to 100,000 affordable housing units across the Empire State.

In announcing New York's Affordable Housing Connectivity Program, Hochul said:

“With work, school, and essential government services going digital, affordable homes need affordable, reliable broadband, and this funding will help bolster our efforts to build housing equipped with the basic tools that New Yorkers need to succeed.”

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.”

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“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 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.

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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.

Colorado has long been home to some of the most innovative municipal broadband projects in the country. That trend has only accelerated with last year’s voter-approved elimination of municipal broadband restrictions, and it’s now being buoyed by a massive new wave of state grants that should further expand affordable broadband to long-neglected parts of the state.

Colorado Gov. Jared Polis recently announced the first of multiple broadband investments using stimulus funding from the U.S. Treasury’s Capital Projects Fund (CPF) program. The CPF is funded by $10 billion made possible by the American Rescue Plan Act (ARPA), and is a key part of the state’s goal to bring affordable broadband to 99 percent of Colorado residents by 2027.

According to the Governor’s office, the state just authorized $113 million in CPF funds on 13 projects that will bring fiber service to nearly 19,000 homes and businesses across Colorado. State officials say the funding will be heavily focused on projects in the South and Southwest portion of the Centennial State, where connectivity needs are greatest.

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The Colorado Broadband Office says it received 112 applications asking for more than $642 million in broadband funding across the state–five times greater than the allotted awards.

Yesterday, New York Gov. Kathy Hochul announced a $228 million infusion of federal funds the Empire State will earmark for its recently established Municipal Infrastructure Program (MIP).

Created as part of New York’s billion dollar ConnectALL Initiative, the MIP is specifically designed to support municipal broadband projects, which have shown to be a viable, and increasingly popular, way to bring affordable, high-quality Internet service to an entire community.

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New York is a notable exception to what most other states are doing as those states prepare to funnel the lion’s share of its federal broadband funds to the big incumbent providers with scant, if any, support for publicly-owned broadband projects. In New York – similar to states like Maine, Vermont, and California – state leaders are devoting a significant chunk of federal funds, all $228 million of its recent disbursement of Capital Projects Funds, to build publicly-owned, open access networks.

“Broadband infrastructure in the Municipal Infrastructure Program will be owned by a public entity or publicly controlled, and Internet Service Providers will use the new broadband infrastructure to provide New Yorkers with affordable, high quality service options,” the press announcement said.

The Idaho Broadband Advisory Board (BAB) has greenlit $120 million in broadband grants from the Idaho Capital Projects Fund (CPF) to fund 18 different broadband projects across Idaho, delivering affordable fiber access to 30,000 homes and businesses, many for the first time.

It’s the latest round of funding made possible by the American Rescue Plan Act, passed in 2021 to help soften the impact of COVID. A breakdown of the finalized awards indicate 18 different providers received funding from BAB, including a $9.8 million award to Comcast and more than $11 million to Ziply Fiber.

“These awarded projects are another important step in furthering the Idaho Broadband Advisory Board’s mission of ensuring that all Idahoans have access to affordable and reliable internet,” Idaho Broadband Advisory Board Chair, Representative John Vander Woude said in a prepared statement. “These projects will connect homes and businesses across the entire State.”

Seven of the award recipients were individual counties pursuing varying options to shore up access to largely rural unserved and underserved residents.

Blue River, Colorado (est. pop. 882) is the latest Colorado municipality to explore building its own broadband network with an eye on affordable access. The town is part of a trend that’s only accelerated since the state eliminated industry-backed state level protections restricting community-owned broadband networks.

Just south of Breckenridge in the central part of the state, Blue River is nestled in one of the more rural parts of Summit County. Comcast (Xfinity) enjoys a broadband monopoly, resulting in spotty access, slow speeds, and high prices. Locals also routinely complain that cell phone service remains spotty in much of the mountainous area.  

In response, town leaders recently hired the consulting firm, NEO Connect, to explore the possibility of building a town-wide fiber network. According to a feasibility study presented to the Blue River Board of Trustees by Mayor Toby Babich, the construction of a fiber network serving every town resident will cost somewhere in the neighborhood of $13 million.

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While that “may seem out of reach,” Babich recently told the board, “we believe with the right funding and partnership we can move forward with this project.”

The estimates for network construction range somewhere between $7 million to $24 million, depending on how much underground trenching work is required.

Butler Electric Cooperative and its Velocity broadband subsidiary say they’re making meaningful progress in bringing fixed wireless access (FWA) — and ultimately fiber optic broadband — to long-neglected sections of rural south-central Kansas. It’s the latest example of electrical cooperatives playing a leading role in the longstanding quest to bridge the digital divide.

Butler Electric Cooperative, which provides electrical service to 7,000 meters via 1,850 miles of transmission and distribution lines, created Velocity in 2018 as part of the cooperative’s expansion into broadband access.

The service currently provides fixed wireless access to roughly 5,500 rural Kansas residents, long left out of reach of traditional cable, fiber, or DSL due to the logistical challenges and high cost of rural deployment.

The company’s current service tiers range from a 15 megabit per second (Mbps) downstream and 3 Mbps upstream tier for $60 a month, to a 100 Mbps downstream, 10 Mbps upstream tier for $84 a month. Both tiers feature a one-time installation fee of $200. The higher pricing generally reflects the higher prices of deployment to remote, rural areas.

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Velocity CEO Kevin Brownless tells Telecompetitor that the company tries to keep consumer-facing pricing as close to cost as possible, and that Velocity and Butler plan to drive fiber into these markets over the coming years thanks to federal subsidies.

The key for states to unlock their portion of the $42.5 billion in federal BEAD funds is the submission and approval of their Five Year Action Plans and Final Proposal. The infrastructure law requires states to first file an action plan, and then prepare more detailed Initial Proposals, allowing residents and stakeholders to submit public comments.

So far, 14 states have filed their Five Year Action Plans with the National Telecommunications and Information Administration (NTIA), the Treasury Department agency in charge of allocating the funds to each state and U.S. territory. According to the NTIA’s website, Maine, Louisiana, Delaware, Georgia, Hawaii, Idaho, Kansas, Montana, North Carolina, Ohio, Oregon, Pennsylvania, Utah, and Vermont have all filed their draft Five Year Action Plans.

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The states that are now in the process of completing their Initial Proposals include: Delaware, Kansas, Louisiana, Montana, Ohio, Tennessee, Vermont, Virginia and Wyoming.

Today, we will look at two states (Maine and Louisiana) and follow up with the others as we are getting a clearer picture of how each state intends to put this historic infusion of federal funds to use.

Maine

Allegan County, Michigan will soon receive a $30 million state grant to finalize the deployment of a new open access, carrier-neutral fiber network. The end result will bring overdue competition – and affordable multi-gigabit fiber access – to long neglected communities by 2025.

The $30 million award is part of Michigan’s $238 million Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) grant program, made possible by 2021’s American Rescue Plan Act (ARPA) and the resulting Capital Projects Fund.

123NET was chosen by Allegan County in late 2021 to help spearhead the Allegan County Broadband Project. The public-private partnership will bring access to more than 10,000 Allegan County residents either underserved or completely unserved by regional telecom giants, spread out across 1,000 square miles.

123NET and Allegan County had already committed to contributing $17.5 million for the construction of the network, with the county’s share coming from earlier ARPA awards.

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"We are pleased to be selected as a recipient of the Michigan ROBIN Grant Funding. This recognition validates the hard work and dedication that both we and Allegan County have put into this Project,” Dan Irvin, CEO of 123NET said of the award. “We look forward to partnering with additional communities throughout Michigan in a combined effort to make this state the best connected on the planet."