People and businesses in the small town of Hermann, Missouri, primarily rely on slow DSL for Internet access. There are also a few areas with cable connections available, and even a few parts of town where no ISPs offer service. This month, community leaders took decisive action to bring another option to town — they adopted a resolution to pursue federal funding for a publicly owned fiber optic network.

Let the People Decide

Late last year, Mayor Robert Koerber proposed a spring non-binding referendum to determine how strongly Hermann voters wanted to invest in the project. At the time, the Board of Alderman were considering a bond issue to cover the cost of deployment, which they estimated at $2.6 million. 

Koerber thought that a strong outcome in support of the project would help attract financing when it was time to begin the project. He also considered the issue something voters should weigh in on, due to the bonding question.

The Board of Alderman supported the idea, but other town matters, including finding a new tourism and economic development director, required immediate attention. Town leaders also decided to look for some one who could help educate the community about the pros and cons of the fiber optic project. Rather than move forward with the referendum town leaders decided in January to put off any vote for the time being.

Pursuing Funding

Prior to their mid-August Board meeting, Alderman in Hermann had the opportunity to meet with representatives from the USDA to discuss other funding possibilities. They determined during those conversations that they could apply for funding from the Rural Utilities Service, which us under the purview of the USDA, for loans to deploy the network. Deadline for their loan application is September 30th.

One of the many states where legislators introduced broadband bills in 2018 was Ohio, where HB 378 appeared to offer a promising answer to funding rural broadband deployment. The bill obtained bipartisan support as it passed through several committees, but prior to the legislature's summer break, enthusiasm cooled.

Looking at Minnesota

HB 378 draws from the Minnesota Border-to-Border Broadband Program by allocating specific funding for deployment. The bill also creates an entity to manage the funding awards. In Ohio, lawmakers anticipated funding would draw from the state’s Ohio Third Frontier Program, which was originally established to assist tech start-ups. In April, HB 378 passed the House with support from both Democrats and Republicans and seemed on a positive track. Two Senate committees also heard SB 225, a companion bill to HB 378.

A second broadband bill, HB 281, addresses only rural last mile connectivity and came before one committee. HB 281 also appeared to have support, but leadership never fast tracked the legislation. HB 281 allocated only $2 million, a fraction of the $100 million required over two years for HB 378. With one generous broadband bill and one much smaller to choose from, experts were left scratching their heads as to why both bills seemed to stop dead in their tracks.

What’s the Hold-up?

Speculation as to why neither of the bills have been advanced further by House and Senate leadership swirls around Governor Kasich’s administration. Democrat Jack Cera believes that the plans for the Third Frontier Fund has held up the process. Cera and other suggest that Governor Kasich wants to focus Third Frontier Funds in other directions, such as smart highways and autonomous vehicles. As far as Cera and others are concerned, broadband for rural Ohio is the priority:

Lobbyists from the cable and telecom industry succeeded in using the legislature to firm up their rural Massachusetts monopolies this session. Communities that rely on state funds for local publicly owned broadband infrastructure projects now face restrictions on the reach of their high-speed networks.

A Long Trip Through the Legislature

Governor Charlie Baker’s economic development bill includes a provision designating funding for the Massachusetts Broadband Institute (MBI) and the Executive Office of Housing & Economic Development for broadband deployment. The agencies distribute the funds to various communities where residents and businesses plan to improve their local connectivity. Approximately 20 towns have decided to invest in publicly owned Internet infrastructure, including Alford, Otis, and Mount Washington, to name a few. Others are taking offers from Comcast and Charter, which will build out networks to more premises with state funding. 

Many of the rural communities who are going with the publicly owned option want to connect households and establishments within the town proper, but also what they describe as “edge” properties — those beyond town limits but have no other choice for broadband. Edge properties in western Massachusetts typically don’t have access to anything better than expensive and unreliable satellite or dial-up. Often, there are only a few “edge” properties in each community, but neighbors don’t want to leave anyone behind. 

In his recent article written for NBC News, journalist Phil McCausland examines the impacts broadband access can have on rural communities and the challenges that persist in bringing coverage to these isolated areas. Reliable high-speed internet access can spark economic development in some of the United State’s most cash-strapped areas, but a lack of dependable data makes acquiring funding difficult.

McCausland explores how high-speed Internet access is becoming increasingly essential for communities’ economic growth. He spoke with Roberto Gallardo, the assistant director of the Purdue Center for Regional Development, who explained how having broadband access today “is analogous to the installation of a railroad 100 years ago or a highway 50 years ago.”

Bringing Broadband to Rural Areas

McCausland investigates the specific case of Lake County, Minnesota, an area home to 10,000 people that spans 3,000 square miles in the far northeast part of the state. Our 2014 report, All Hands on Deck: Minnesota Local Government Models for Fiber Internet Access, describes how the Minnesota legislature set a goal in 2010 to achieve universal access to high speed broadband throughout the state by 2015, including in Lake County. Many of Minnesota’s local governments stepped up to try to accomplish the goal. Local leaders in Lake County decided that they needed high-speed internet in order to take part in the growing digital economy. McCausland found that after nearly eight years of planning and an investment of over $80 million dollars, the area is seeing the economic benefits of high-speed Internet access. Coverage has boosted tourism and allowed for lifestyles that involve working remotely, as well as becoming essential to the growth of local businesses. 

The City of Sanford, Maine, is putting the final pieces of funding in place to move forward with its ambitious 45-mile fiber optic build, SandfordNet, the largest fiber infrastructure build proposed in Maine to date. 

Along with two other funding sources, the project will be financed by an existing Tax Increment Financing (TIF) district in downtown Sanford. According to the Journal Tribune, the project will cost $2.02 million in total to complete; that figure is higher than initially projected, due in part to fees to access utility poles. 

The SanfordNet project involves building what the city describes as a “fourth redundant ring” that will attach to the statewide fiber loop known as the “Three Ring Binder.” Sanford’s building out the 45 miles of fiber and then connecting it to the Binder, which is about nine miles beyond city limits. The fiber will connect nearly 90 Community Anchor Institutions (CAIs), such as libraries and hospitals, to the infrastructure that will offer 10 Gigabit per second symmetrical upload and download capacity. The city is utilizing an open access model, leasing out its fiber to ISPs in a non-discriminatory approach that promotes competition.

GWI of Biddeford, Maine, will operate the network for Sanford and intends to offer Fiber-to-the-Home (FTTH) to residential premises along the fiber route in areas where there's sufficient demand. The open access model will create the opportunity for competition, creating better rates and better services for Mainers in the region. For more on what has become known as the "Maine Model," check out Christopher's conversation with GWI's CEO Fletcher Kittredge, episode 214 of the Community Broadband Bits podcast.

Where the Project Stands

In response to the FCC’s decision to end federal network neutrality protections, California and other states have introduced bills to fill the gap left by the Commission. Local communities who had flirted with the idea of publicly owned Internet infrastructure in the past have now taken a second and more serious look to counteract the FCC’s harmful policy shift. Assembly Member Ed Chau’s AB 1999, making its way through the legislative process, is opening possibilities for local communities to invest in their own Internet infrastructure. Chau recognizes that publicly owned networks are an option for more than network neutrality protections, especially in rural communities.

Attitude Adjustment

Our Christopher Mitchell travelled to California in May to testify about the bill as it worked its way through the committee process. AB 1999 could indicate that big telephone and cable companies now have less influence in state Capitols around the U.S. than in past years. We recently wrote about a New Hampshire bill that gives us similar hope — a piece of legislation signed by the Governor there that removed restrictions on local investment in broadband networks.

Like New Hampshire's SB 170, AB 1999 allows communities where big national providers don’t want to invest have more control over how they improve local connectivity. If passed, the bill will give California's community service districts the ability to develop public broadband networks and offer services. The language of the bill also requires that any networks developed by community service districts adhere to network neutrality rules.

Rural Communities Serving Themselves

On May 30th, New Hampshire Governor Chris Sununu signed SB 170, a bill local community leaders had watched for more than a year. The measure will allow municipalities to bond for publicly owned Internet network infrastructure. Advocates, local elected officials, and citizens have been seeking the authority for years. SB 170 may raise some questions as it's implemented, but the bill is significant because it symbolizes this state's decision to expand local authority for broadband investment, rather than limit the power of local communities.

Read the final version of SB 170 here.

A Better Measurement

As we reported more than a year ago, SB 170 sought to make changes in existing law by allowing local communities to bond for Internet infrastructure. The bill sat in committee until last November, when it was amended and picked up again. The final version of SB 170 allows communities to bond for projects that will connect premises that don’t have access to broadband as defined by the FCC — 25 Mbps download and 3 Mbps upload.

It took an extra year for a community in Minnesota to finally see high-quality Internet service. Balaton spent an extra year in connectivity purgatory while Frontier delayed a much-needed project. To learn more, we connected with the Balaton and Marshall Economic Development Director Tara Onken and Woodstock Communications Vice President and General Manager Terry Nelson.

Balaton: An Underserved Community

Balaton, is a small town of 600 people in Lyon County, located in the southwest area of the state. Balaton’s Internet service is dismal; residents have access to satellite, fixed wireless, or DSL. Satellite is unreliable, and the fixed wireless services’ max speed is 5 - 10 Mbps. DSL service varies based on how far the home is from the central office. In some places in town, DSL should be able to reach broadband speed -- 25 Mbps (download) / 3 Mbps (upload), but in reality, DSL is slow and unreliable because it is based on old copper lines. 

In 2016, the small private company Woodstock Communications decided to improve connectivity in Balaton. Woodstock already had service to a few local businesses and other members of the community were asking for service. When the Minnesota Border-to-Border Broadband Program grant applications opened, the company requested a grant of about $413,000. 

The goal was to bring Fiber-to-the-Home (FTTH) service of 1 Gigabit-per-second (Gbps), upload and download, to the underserved residents -- 40 times faster than broadband. FTTH is the fastest, most reliable technology available but also most capital-intensive. It’s available to only about 25 percent of the U.S. population.