Spurred to action by inadequate high-speed Internet service as the pandemic besieged their communities, local officials and citizen volunteers in five rural Maine towns formed the Southwestern Waldo County Broadband Coalition (SWCBC) in an effort to bring ubiquitous and affordable broadband to its portion of Waldo County.

Two years later, the SWCBC is close to securing a major victory for local Internet choice in the face of a well-funded opposition campaign sweeping the Pine Tree State as the Big Telecom lobby and its allies try to undermine the very idea of publicly-owned, locally-controlled broadband networks in Maine and elsewhere.

The five SWCBC towns clustered about 30 miles east of Augusta – home to approximately 5,600 Mainers – are looking to create what is known as a Broadband Utility District (BUD). Four of those towns (Freedom, Liberty, Palermo, and Searsmont) recently voted in favor of establishing a BUD. Montville will be the last of the five towns to vote on whether to BUDdy up with the neighboring municipalities via an Interlocal Agreement (ILA). That vote is slated for August 23.

Similar to Communication Union Districts (CUDs) that the neighboring state of Vermont is relying on to deliver reliable and affordable broadband to its residents and businesses, Maine state law “allows towns to band together to form a community-owned organization, controlled by the municipality members but a legally separate organization - a regional non-profit utility. The BUD is allowed to incur debt that is separate from and not guaranteed by the municipalities.”

Join us live on Thursday, July 28th, at 4pm ET for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) will be joined by Peggy Schaffer (Director, ConnectME), Andrew Butcher (President, Maine Connectivity Authority), and Christa Thorpe (Community Development Officer, Island Institute).

The panel will dig into recent anti-municipal propaganda in the New England area, with an emphasis on Maine. They'll talk about the astroturf campaign being waged by groups like the Alliance for Quality Broadband (a front organization for Charter Spectrum) and recent blows to municipal broadband they've fueled in places like Southport and Readfield. The panel will talk who really loses out when the monopoly providers persuade voters and local officials to defer leadership on imrpoving community connectivity. Christa Thorpe will join halfway through the show to share her experiences and perspective.

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

Email us broadband@muninetworks.org with feedback and ideas for the show.

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In the 1980s, Rancho Cucamonga proclaimed itself “The City with a Plan.” Back then, the plan was to remake this once rural enclave known for its vineyards into more than just one of the many sunny suburbs of Los Angeles. The vision was to leverage its stretch of the famed Route 66 highway as a branding and economic development tool and transform the city into a premier destination within the Inland Empire metropolitan area along the foothills of the San Gabriel Mountains.

That forward-looking spirit was revived again 30 years later as city leaders looked to cultivate a digital vineyard with the creation of a “Fiber Optic Master Plan” – a six-year $13 million investment plan that targets the city’s new development.

Today, Rancho Cucamonga (its name was derived from a Native American word meaning “sandy place”) owns and operates Rancho Cucamonga Municipal Broadband in partnership with Onward, a local private Internet service provider.

The city built, owns, and maintains the physical infrastructure, which is managed by the Rancho Cucamonga Municipal Utility (RCMU). Onward, which is based in the city, provides gigabit speed Internet access to the network’s 525 mostly residential subscribers as the network slowly expands to reach yet-to-be-built residential developments.

Targeting Greenfield Projects and Businesses

The move toward municipal broadband began in earnest in 2016 when the city hired Magellan Advisors to develop a plan that would leverage the city’s existing fiber assets and expand its municipal utility fiber network to “greenfield projects” and the city’s business parks (see the map below that shows blue areas where service exists and orange areas where service is coming).  

Two recent victories in digital equity work out of California give cause for celebration this week. AB 2748 Telecommunications: Digital Equity in Video Franchising Act and AB 2751 Affordable Internet and Net Equality Act both passed the Communications and Conveyance Committees this week; the former by a margin of 10-3 and the latter 7-3.

Sponsored by Assemblyman Chris Holden, AB 2748 would have a range of impacts if passed, including  giving the state CPUC and local governments more power in negoitating with providers to ensure that there is no discimination based on neighborhood household income that leads to inequitable access to service. It also revises franchise fee agreements at the local level. Read the full bill analysis for more.

From the press release:

"Although DIVCA originally intended to address inequitable broadband access, it remains pronounced across California cities," says Shayna Englin, Director of the California Community Foundation Digital Equity Initiative. "AB 2748 modernizes DIVCA by establishing equal access requirements as policy, and makes them enforceable through a reasonable application process for franchise renewals. We are pleased to co-sponsor Assemblymember Holden's bill, as the legislation will bring us one step closer to ensuring every Californian has access to fast, reliable, and affordable Internet [access]."

AB 2751 would create a Net Equality Program which would require that most state agencies only do business with Internet Service Providers (ISPs) that have a low-income plan offering of $40/month for 25/3 Megabits per second (Mbps). Read the full bill analysis for more.

Public testimony for AB 2751 highlighted the significant disparity in service speeds and prices that disadvantage low-income Californians by the state's two monopoly providers: Charter Spectrum and AT&T:

Comcast announced at the end of January that it will be expanding its stock repurchasing program to $10 billion for 2022. It’s a reminder that local governments need to be wary about the huge cable and telephone monopolies stopping by their offices and offering generously to solve the digital divide once and for all, if only we give them more taxpayer money.

Doing so has largely been a failed policy, and does a better job of transforming public tax dollars into private wealth than it does in efficiently extending Internet infrastructure to communities that need it most. With all the federal funding on the horizon, and some states already looking like they’re going to listen to monopoly lobbyists rather than their constituents, cities and states would do well to follow along closely.

Business is Good

Stock buybacks by publicly traded companies like Comcast are a commonly used mechanism to transfer wealth from the cash a firm has on hand to the pockets of its shareholders, while also driving up its value. The program expansion from Comcast announces as clear as day that the company’s top priority isn’t connecting Americans; it’s to return the most money for the least investment for its shareholders. 

In November, a majority of voters in China (not the country, but a small town in Maine) cast their ballots in opposition to a $6.4 million proposal for a municipal broadband network that, if built, would have provided high-speed Internet access to every household and business in this central Maine town of 4,300.

In recent weeks, China residents learned that Consolidated Communications would not be coming to the rescue. As reported by The Town Line, two representatives from Consolidated Communications attended China’s Broadband Committee (CBC) meeting in late January and the company reps “did not encourage (China) to expect an offer from the company to expand [I]nternet service to town residents.”

The CBC estimates that Consolidated currently serves about 20 percent of the town, while Spectrum serves about 70 percent of China’s households. But for the remaining 10 percent of China households without access to high-speed Internet service, the CBC meeting was a disappointing dose of post-election news.

Consolidated representatives Simon Thorne and Sarah Davis told the CBC that China is nowhere close to the top of their expansion plans, as the company bases its decisions on a combination of four primary factors: projected cost to build, number of potential customers, expected take rates, and whether a competitor also serves that market.

China’s population density is too low to offer enough profit to attract investors.

And just to be clear, when CBC member Tod Detre suggested the company is focused on “more profitable areas,” Davis replied, “You nailed it.”

‘Spirited Discussion’ About November Election

That, of course, led to a “spirited discussion” about last November’s election results. Ronald Breton, chairman of the select board and a guest at the CBC meeting, was emphatic in saying that town officials were still interested in facilitating town-wide connectivity, noting how even after the November ballot question failed the town select board unanimously voted that the CBC remain intact.

The FCC’s Rural Digital Opportunity Fund (RDOF) Reverse Auction was completed a little more than a year ago to much fanfare and spilled ink, and though we’ve seen irregular updates over the last twelve months, we thought it worth the time to round up what we know so far in an effort to see where we’re at and determine what is likely to come.

The RDOF was built to award up to $20.4 billion in grants over 10 years using competitive reverse auctions generally won by the lowest bidder. The money comes from the Universal Service Fund fees affixed to consumers’ monthly telecom bills. The previous FCC announced $9.2 billion in auction winners in December of 2020. 

To date the FCC has announced five rounds of Authorized funding released, six rounds of applicants whose bids they have decided are Ready-to-Authorize, and three rounds of Default bids. In total, a little more than half of the $9.2 billion won during the auction has been handed out as of January 14th, 2022, with another $1.3 billion announced on January 28th as ready to be disbursed shortly.

It’s clear that the final picture is still taking shape, but looking at things a year later leaves us feeling a little better than we were immediately after the auction closed. To date, it appears the FCC is closely scrutinizing many of the bidders that most worried industry veterans and broadband advocates, while releasing funds for projects that will bring future-proof connectivity to hundreds of thousands of homes over the next ten years.

Moving Slowly on Problematic Awards

The biggest news so far is that of the top ten winners, seven look to have received no funds at all (see table below or high-resolution version here). That’s $4.1 billion worth of bids for almost 1.9 million locations, and includes LTD Broadband, SpaceX’s Starlink, AMG Technologies (NextLink), Frontier, Resound Networks, Starry (Connect Everyone), and CenturyLink. This is a big deal.

Insidious misinformation, false promises, and a fear of government-operated anything can be major barriers to getting a municipal broadband network off (or in) the ground. There is no clear playbook for how to disable these land mines, no clear path to success because every community is different: the people, the geography, and the incumbent Internet Service Providers (ISPs). But this past November, two communities in Maine facing similar access issues and similar political environments had two very different outcomes when municipal broadband was up for vote.

Just over 90 miles apart, Leeds (pop. 2,300) and Hampden, Maine (pop. 7,200), have had motivated people in the community and in leadership advocating for better Internet access for years. In November 2021, the work of both these community initiatives was tested as voters were asked to decide whether or not to move forward with their respective municipal broadband plans.

One ended in victory and the other in defeat shrouded in a haze created by big cable and telephone monopolies among a fog of misinformation.

In Leeds, residents voted at a special town meeting to move forward with a $2.2 million bond to help build a municipally-owned fiber optic network to underserved areas with the help of Axiom, a small, local Internet Service Providers (ISP). In nearby Hampden residents voted against a $4.5 million revenue bond to build a community network and are stuck waiting for TDS and Charter-Spectrum to bridge the gap in access. How did these two communities have such divergent outcomes?

Campaigning for Broadband

Peggy Schaffer, Director of the ConnectMaine Authority, has been watching the battle for better broadband play out in Leeds and Hampden, and while she admits there are a lot of factors in making something like a municipal broadband service stick, conversations and education are fundamental.

Earlier this month, a plan to bring fiber connectivity to four towns in Knox County, Maine (pop. 39,500) spearheaded by the MidCoast Internet Development Corporation (MIDC) was dealt a major blow when Knox County Commissioners denied MIDC’s request to use the county's American Rescue Plan funds to pay for network construction.

During a Knox County Commission meeting on Tuesday, October 12, after County Commissioners repeatedly barred local municipal leaders from commenting on broadband-related issues, they voted unanimously against awarding any of the county’s $7.7 million in American Rescue Plan (ARPA) funds to municipal broadband projects or any project benefiting an individual municipality.

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County Commissioners assembled to consider 58 ARPA project applications submitted by nonprofit and municipal entities, all vying for a portion of the county’s Rescue Plan funds. But, the meeting took an unexpected turn when one Knox County Commissioner accused representatives from the MIDC, a regional broadband utility formed by four Knox County towns, of “bullying” the Commissioners into spending the county’s Rescue Plan funds on regional and municipal broadband projects. 

After County Commissioner Dorothy Meriwether voiced her displeasure for how local community broadband advocates pursued the funding, three local Select Board members were not permitted to speak in support of MIDC. Adding insult to injury, the Commissioners then welcomed a representative from Charter Spectrum to talk for nearly 30 minutes.