In 1999, Yakutat became home to one of Alaska’s first surf shops. Now, two decades later, the coastal community of 600 people is looking at another first for the community — high-speed Internet access.

Cordova Telecom Cooperative (CTC) will be expanding its broadband network to Yakutat from the co-op’s headquarters 220 miles away in Cordova, Alaska. Already, CTC offers wireline and mobile connectivity in and around Cordova. The new project, codenamed NICEY or New Internet Communications for Everyone in Yakutat, will bring high-quality Fiber-to-the-Home (FTTH) Internet access to the village, which has a large Native Alaskan population.

NICEY will be financed in large part by a U.S. Department of Agriculture (USDA) ReConnect grant of nearly $19 million awarded to CTC in December. This money will help fund not only the deployment of the fiber network in Yakutat but also the construction of several remote wireless towers to connect the village to the broader Internet. “I don’t know how many grants of this size local groups have gotten,” CTC general manager and CEO Jeremiah Beckett told the Cordova Times. “It’s pretty big for Cordova.”

Neighbors Partner for Grant

Locals and visitors alike can only reach Yakutat by air or sea — there are no roads to the southeastern Alaskan community. The Internet is similarly hard to access for village residents.

Yakutat’s poor connectivity forces the school to limit student access to online materials and courses; businesses sometimes struggle to run card transactions. Households’ only available option for Internet access is satellite, typically hampered by low speeds, frequent service interruptions, and restrictive data caps.

Central Virginia Electric Cooperative (CVEC), has been working on their plan to deploy Fiber-to-the Home (FTTH) to members and surrounding premises since 2017. The rural cooperative received a financial boost when they recently received a grant and loan award from the USDA's ReConnect Program.

Welcome Funding for Fiber 

With $28 million - part loan and part grant - CVEC plans to fund the first three years of their project. The USDA funding will allow CVEC to connect more than 17,000 households, six health care centers, 15 educational facilities, and 15 other community facilities. When the entire five-year plan is complete, approximately 37,000 premises will have access to FTTH. 

In Buckingham County, CVEC officials announced the award to about 200 people, including local resident Virginia Jackson. She and her family rely on their mobile phones' hotspots for Internet access, which is unreliable and can be expensive. She and her husband were interested in the project and how it would improve connectivity for them and left "excited to see what the project brings to our community."

Early in the planning process, CVEC sought funding from local governments where they plan to deploy infrastructure. They did obtain support, but still sought grants and loans elsewhere to help pay for construction of the project, which they estimated to cost between $110 and $120 million. CVEC has received grants from the Virginia Telecommunications Initiative (VATI), FCC Connect American Fund, Tobacco Region Revitalization Commission (TRRC), and a loan from the Rural Utility Service (RUS) for smart grid upgrades. 

There is a festive air in Arrowsic, Maine, after Governor Janet Mills announced on January 30th that the community will develop a publicly owned broadband network for fast, affordable, reliable connectivity. The community will receive $1.2 million in combined grant and loan funding from the USDA's ReConnect Pilot Program to connect 237 households, 20 businesses, and four farms with symmetrical fiber optic service of up to 100 Mbps.

This will be a substantial upgrade because Arrowsic currently contends with patchy DSL connections that top out at 10 Mbps download through Consolidated, with upload speeds much slower. Poor connectivity has been affecting the economy at the local level because it's a strike against Arrowsic when people are looking to relocate to the region. Community leaders approached incumbent providers, including Consolidated and Spectrum, but the national companies rejected requests to serve the rural community with a small population of only around 450. Rather than settle for antiquated, poor serve, Arrowsic decided to pursue a community broadband network.

Multi-Community Effort

The 3 Bridged Islands Broadband Initiative (3BIB) is a nonprofit created by the towns of Arrowsic, Georgetown, and Southport. The organization first initiated a feasibility study, explored funding opportunities, and submitted the application for USDA grant to develop the network in Arrowsic. They've worked with Axiom to develop the design for the infrastructure and, according to the 3BIB website, intend work with private sector partners to offer services via the fiber optic infrastructure.

After the approval of USDA grant, the town of Arrowsic is now determined to close the digital divide and expects to do more to boost the local economy. The town is also looking forward to providing telehealth services to older people with chronic illness, increasing students’ ability to do research and complete assignments through better Internet connections. 

D.J. LaVoy, the USDA rural development deputy undersecretary said in his announcement on January 30th: 

As state lawmakers debate in committee rooms and Capitol chambers around the country, various broadband and Internet network infrastructure bills are appearing on agendas. Some are good news for local communities interested in developing publicly owned networks while other preemption bills make projects more difficult to plan, fund, and execute. We've gathered together some notable bills from several states that merit watching - good, bad, and possibly both.

New Hampshire

For years, local communities were not allowed to bond to develop publicly owned broadband infrastructure in New Hampshire. Last year, the state adopted SB 170, which opened the door a crack so that municipalities can bond to develop infrastructure for public-private partnerships (PPPs) in "unserved" areas. This year, the New Hampshire General Court has the opportunity to push open the door a bit wider with SB 459.

SB 459 allows local communities to potentially define "unserved" areas themselves by putting more responsibility on Internet access providers. Municipalities must currently engage in a request for information process in which they must reach out to all Internet service providers operating in the community. SB 459, if adopted, would allow a community to consider areas "unserved" if a provider does not respond to such a request to clarify which premises are unserved. With the "unserved" designation, municipalities can bond to develop infrastructure to serve those premises.

The bill has bipartisan support and is scheduled for a March 11th hearing in the Senate Election Law and Municipal Affairs Committee. Read the text of SB 459 here [PDF] and follow its progress here.

Pennsylvania

The open access network in Ammon, Idaho, has been celebrated as visionary and viewed as a potential model for other communities seeking competitive local Internet access markets. A bill in the state legislature, however, aims to restrict local communities' ability to reproduce the Ammon Model, or any other publicly owned network, by imposing new restrictions on local efforts.

Read the text of the bill here.

Removing a Local Funding Option

H 490, introduced by Rep. Ron Mendive from Coeur d'Alene, states specifically that local governments have the authority to take the necessary steps to develop Internet networks and to offer services to the general public. Provisions in the bill that dictate how projects are financed, operated, and managed, however, transform the bill into a "muni killer" says Bruce Patterson, Ammon's technology director.

In a recent Idaho Business Review article (subscription required), Patterson described the language of H 490:

“On its face, it claims to authorize cities to have the authority to finance, build, and operate a communications network and offer a communications service, but each of the restrictions that follow make it impossible for a city to actually do those things. It is like telling your child: ‘Sure, you can play outside, just don’t leave the house.'”

In 2012, the Medina County Fiber Network (MCFN) first began offering fiber optic connectivity to businesses and community anchor institutions in the county. Jump forward eight years later and the network is now proving the case that Ohioans also want fast, affordable, reliable connections in the small communities where national providers aren't willing to upgrade.

Meeting a Goal

When we spoke with CEO David Corrado from MCFN in December 2019 for episode 386 of the Community Broadband Bits podcast, we learned about the new partnership between MCFN, Lit Communities, and Peak Communications. CEO Brian Snider and Chief Marketing Officer Ben Lewis-Ramirez from Lit Communities also participated in the conversation and the three explained how the partners were employing a community based model to expand the open access fiber optic infrastructure with private capital. 

The entity they created for the project is Medina Fiber and focuses on expanding the benefits of the network to residents in Medina County.

In a February 11th press release from MCFN, Corrado announced that the project has reached a key milestone. Monthly revenue from the network now equals the MCFN $100,000 monthly bond payment.

From the press release:

“This is a key metric that we’re pleased to reach as Medina County Fiber Network begins expanding our trusted network to homes throughout Medina County. It’s proof that the county’s investment in fiber infrastructure works well now, and positions our community for even more economic success and better quality-of-life.”

At the end of 2019, Congress passed the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act, fixing a tax law change that threatened to raise rates and delay the expansion of broadband for rural cooperative members across the country.

Passage of the RURAL Act ensures that cooperatives can accept federal funds for broadband deployment, disaster relief, and other efforts without risking their nonprofit tax exempt status. A change in the 2017 tax law would have labeled these funds as revenue for the first time, potentially causing co-ops to exceed the allowable percentage of non-member income they must maintain to remain tax exempt.

After Senators Tina Smith (D-Minn.) and Rob Portman(R-Ohio) and Representatives Adrian Smith (R-) and Terri Sewell (D-Ala.) introduced the bipartisan bill in April, it attracted 55 additional cosponsors in the Senate and more than 300 in the House. It was eventually incorporated into the consolidated appropriations act and signed into law in December.

“Obstacles From the Federal Government”

We described the possible impact of the 2017 tax law change on rural cooperatives over a year ago, when Senator Smith first brought the issue to our attention.

Failure to remedy it would have forced some co-ops to choose between continuing with desperately needed broadband and disaster recovery projects and increasing their members’ rates. Northwestern Electric Cooperative CEO Tyson Littau described the difficulty of that decision to the National Rural Electric Cooperative Association (NRECA):

Do we rebuild and try to strengthen our distribution system and pay the taxes, or do we delay the mitigation project that would improve 1,200 miles of line throughout our territory? I think we have a responsibility to the membership to improve the system for the future.

Despite state laws requiring referenda and public reporting, Iowa is home to successful municipal networks, which have been undeterred by these potential stumbling blocks. A bill in the Iowa Senate, however, may present a new barrier discouraging new networks in places where Iowans need it the most. In communities where Internet access companies aren't offering the caliber of services residents and businesses need, the proposal would restrict the possibility of competition.

Sweeping Impact

Earlier this month, State Senator Dan Dawson, R-Council Bluffs, introduced Senate Study Bill 3009, which is supported by Mediacom, a national cable company that offers connectivity to nearly two-thirds of Iowans. The bill threatens cities’ access to financing for municipal broadband networks and challenges their ability to set competitive prices. This would impact cities with long established networks, like Cedar Falls and Coon Rapids, as well as communities that have recently decided to move forward with broadband plans, like Fort Dodge, Vinton, and Waterloo.

Tim Whipple, General Counsel for the Iowa Association of Municipal Utilities, which opposes SSB 3009, wrote in an email:

While community-owned broadband may not work for all communities, cities should have the opportunity to begin providing these services without having undue restrictions placed on them . . . especially in areas where incumbent providers aren’t properly investing.

Bill Brings New Barriers

Senator Dawson chairs the state Commerce Committee and introduced SSB 3009 as a proposed committee bill.

Grays Harbor Public Utility District (PUD) recently received a $50,000 Washington state grant to conduct a feasibility study in order to determine the best route for expansion of their open access broadband infrastructure into Oakville and the Chehalis Indian Reservation. Both areas are considered underserved and some areas in the region have no Internet service available to residents or businesses.

The Reasons Are There

The Commerce Department’s Public Works Board awarded the $50,000 grant and eight other grants for eight other feasibility studies around the state. The funds will likely pay for the entire study and, according to director of PUD Core Service Rod Hanny, will determine the best route for a fiber line and identify "right-of-way issues, permitting requirements, construction costs, and whether the project would fit the needs of the communities and the utility itself."

Officials at the PUD say that they've received many requests from residents and businesses in the area to establish fiber infrastructure for Internet access. The PUD also wants to put fiber in place in order to improve other utility operations. Currently a substation in the area is monitored via satellite and a fiber connection would be create a more reliable method of communication. If the feasibility study reveals that a project would be a beneficial investment for the region, the project would take roughly a year to complete.