Municipal networks in the United States have proven that when dollars are invested in publicly owned information infrastructure, they often return value back to the community several times over. This new fact sheet [pdf] highlights municipal broadband success stories from across the country and some of the many benefits the networks have brought to the communities they serve. 

These networks are directly accountable to the community and have proved themselves for more than 20 years in some cases, bringing lower prices to households than the large private providers. Municipal networks and partnerships account for 9 of the top 10 fastest broadband networks in the nation.

Download Snapshots of Municipal Broadband: A Much-Needed Part of America's Digital Ecosystem [pdf] here.

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Since it was first introduced in Congress in March, the Community Broadband Act of 2021 has gained widespread support from over 45 organizations representing local governments, public utilities, racial equity groups, private industry, and citizen advocates. 

The legislation -- introduced by U.S. Representatives Anna Eshoo, Jared Golden, and U.S. Senator Cory Booker -- would authorize local communities to build and maintain their own Internet infrastructure by prohibiting laws in 17 states that ban or limit the ability of state, regional, and local governments to build broadband networks and provide Internet services. 

The Act also overturns state laws that restrict electric cooperatives' ability to provide Internet services, as well as laws that restrain public agencies from entering into public-private partnerships.

States have started to remove some long-standing barriers to public broadband on their own. In the last year, state lawmakers in both Arkansas and Washington removed significant barriers to municipal broadband networks, as high-quality Internet with upload speeds sufficient for remote work, distance learning, telehealth, and other online civic and cultural engagement has become essential. 

Community broadband networks offer a path to connect the unconnected to next-generation networks. State barriers have contributed to the lack of competition in the broadband market and most communities will not soon gain access without public investments or, at the very least, the plausible threat of community broadband.

The Many Benefits of Publicly-Owned Networks

For communities across the country considering whether to invest in building a municipal broadband network, a new study published last week on the economic value of the EPB fiber network in America’s first “gig city” is a must-read.

The independent study, conducted by Bento Lobo, Ph.D., head of the Department of Finance and Economics at the Rollins College of Business at the University of Tennessee at Chattanooga, found that the celebrated city-owned fiber network has delivered Chattanoogans a $2.69 billion return on investment in its first decade.

In 2010, EPB Fiber, a division of Chattanooga’s city-owned electric and telecommunications utility formerly known as the Electric Power Board of Chattanooga, became the first city in the United States to build a Fiber-To-The-Home (FTTH) network offering up to 1 Gig upload and download speeds. In 2015, EPB began offering up to 10 Gig speeds.

It cost approximately $220 million to build the network, however, “the true economic value of the fiber optic infrastructure for EPB’s customers is much greater than the cost of installing and maintaining the infrastructure,” Lobo said. “Our latest research findings show that Chattanooga’s fiber optic network provides additional value because it provides high speeds, with symmetrical uploads and downloads, and a high degree of network responsiveness which are necessary for the smart grid and other cutting-edge business, educational and research applications.”

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Among the study’s key findings:

Over the summer, Chicago Mayor Lori Lightfoot announced a new program to bring high-speed Internet service to the alarming number of households who do not have reliable access within the nation’s third-largest school district.

The initiative, referred to as Chicago Connected, aims to provide free high-speed Internet service to approximately 100,000 Chicago Public Schools (CPS) students. One of the ground-breaking features of the effort is that it includes funds to enlist the support of a number of Community Based Organizations to assist with enrollment in the program, digital literacy and skills development training.

At the end of September, during a virtual town hall meeting, Mayor Lightfoot said that while CPS was making progress connecting eligible families, they had not yet reached the goal.

“We’re not where we want it to be. And I think part of the difficulty is, even though it’s free, it’s about making sure that families feel safe in signing up,” Lightfoot said. “Currently, we have over 25,000 households that are signed up, and that is the equivalent of almost 38,000 students towards our goal of 60,000 households at 100,000 students.”

How It Works

Using a sponsored service model, Chicago Connected seeks to provide the high-speed connection for up to four years by directly paying for the service for eligible families. The program primarily relies on donations from philanthropic partners, CPS and city funds, with an additional $5 million from the CARES Act to fund the $50 million program. Donations, which includes a $750,000 commitment from former President Barack Obama and First Lady Michelle Obama, will cover the first two years, with CPS paying for the third and fourth years.

When Craig Eccher, CEO Tri-County Rural Electric Cooperative, joined Christopher on the podcast last fall, he had an exciting project to talk about: the electric cooperative, after strong calls from its membership asking their utility to deliver broadband, stepped up and committed to an $80 million, 3,250-mile fiber build across the rugged terrain of rural Pennsylvania, the first leg propelled by $52.6 million in federal and state grants. Tri-Co Connections, the subsidiary building the network and serving as provider, has begun connecting residents in an aggressive plan to serve 10,000 users in the next three years. The move makes Tri-County the first electric co-op in Pennsylvania to enter the fiber space, and it's doing so in dramatic fashion.

More Humble Beginnings

Yesterday in an announcement via livestream, the city of Chattanooga, Tennessee, Hamilton County Schools, and the fiber arm of municipal utility Electric Power Board (EPB) announced a partnership to provide free Internet access and hardware to the 17,700 homes with school children on free or reduced lunch programs in the county. Called HCS EdConnect, the initiative will be the first of its kind in the United States — a success story at using a city-wide network to bridge the digital divide for economically disadvantaged students, and a decisive move to respond to unequal Internet access during a worldwide public health crisis.

Creative Thinking and Public-Private Partnerships

This is a watershed moment for the city of Chattanooga and its residents. It’s the result of hard work by a coalition of public and private partners, including the city, the school district, EPB, area nonprofit The Enterprise Center, and a host of others. Once completed, the program will connect more than 32,000 students. Those households who already received EPB’s low-cost service (called NetBridge) will be eligible for the program as well, and the group is looking at ways to connect the hundred or so homes currently not in EPB’s service area. A goal of early January has been set.

In total, the connection effort will cost $8.2 million to complete, with $6 million already raised. $1 million each has been contributed by Hamilton County Schools, the Smart City Collaborative, and Blue Cross/Blue Shield of Tennessee. The county and the city of Chattanooga have likewise chipped in $1.5 million. 

"Thanks to support, all children in Hamilton County will have tools and the opportunity they need to engage in equitable learning," said Deb Socia, CEO, The Enterprise Center

This is the tenth year that PCMag has conducted its Fastest Internet Service Providers (ISPs) test, and it comes at a time when tens of millions more Americans across the country are working from home. This time, the results show two significant categories of winners — municipal networks and private-sector ISPs using publicly owned fiber or conduit — which  says a lot about the state of high-speed Internet. Like last year, municipal networks and their private-sector partners, along with locally-owned providers, dominated the rankings.

PCMag’s methodology doesn’t seem to have changed much in 2020. Using a customized tool, the outlet tests ping, jitter, and per-second data throughput on the download and upload side of things. The results are weighted 80% towards download and 20% towards upload. From June 1st to June 2nd, 443,940 tests were completed, with the magazine ruling out non-U.S. benchmarks for a final aggregation of 358,358 tests. The minimum threshold to earn a place on the list is 100 tests, and PCMag breaks down the results in two major categories: Fastest Major ISP (those with at least a million subscribers) and Fastest Overall ISP. Read the full report here.

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Cedar Falls Utilities Dominates

I have been tracking from afar local grassroots efforts in Cambridge, Massachusetts, to start a municipal broadband network for years. I've visited them locally and spoken to various people from citizens to elected officials about the different options. The following are my observations. I'm not trying to channel their thoughts on how to move forward.

Cambridge is a high-tech city with nearly ubiquitous coverage from Comcast, delivering more or less the same services they offer to millions of homes — which is too say mostly reliable and high-cost Internet access (that will be still higher cost next year and the next after that). In the case of Comcast, it comes with crippled upload speeds compared to fast download capacity. Customer service is . . . well, you do your best to never have to use it.

But with MIT and Harvard within its confines, many in Cambridge are well aware that Internet access can get so much better and not be mediated by a company willing to spend millions in D.C. to preserve its right to set up tollbooths for certain kinds of content if they so choose.

However, Cambridge is remarkably similar to Palo Alto, which is also home to high tech households that mostly use Comcast cable and sometimes have the option of AT&T fiber. And in both instances, there is a strong case for some kind of municipal network that would create more local Internet choice. Both appear to have significant support in the community for a public option. But both also have city staff that have decided to prevent any meaningful investment.

They have run into the challenge that Seattle also wrestled with. These high profile cities have refused to consider creative, incremental, and targeted efforts. Instead, they have focused almost entirely on the costs of duplicating Chattanooga or Wilson, where the community built the entire citywide at once with debt-financed capital.

In Cambridge, the city council is rebelling after having been stymied by a city manager that has successful resisted efforts to study municipal broadband for years.