Lawmakers in Ohio are slowly advancing a proposal to help fund rural broadband deployment. HB 378 has similarities to Minnesota’s Border-to-Border Broadband Program and will infuse $100 million in to broadband deployment ecosystem over the next two years. It’s a welcome lift for rural areas struggling to fend off economic dilemmas.

Companions

Last fall, State Senators Cliff Hite and Joe Schiavoni announced their intention to introduce a bill with the same effect. HB 378, however, appeared to pick up steam in March and, after strong bipartisan support in committee and on the floor of the House, the bill went on to the Senate on April 12th.

Back in October, Schiavoni said in a press release:

“This legislation is incredibly important to Ohio’s future. Without access to broadband internet service, businesses can’t reach their customers, students can’t do their homework and workers have difficulty searching for jobs.”

Democrat Ryan Smith and Republican Jack Cera introduced HB 378 with an eye toward economic development in their districts and other rural areas of the state facing the need to diversify their local economies. 

“With this bill, we have the opportunity to level the playing field for rural Ohioans when it comes to vital broadband infrastructure,” said Rep. Smith [in October]. “High speed broadband is the only way we can continue growing our economic base by attracting new commercial development and securing a strong labor force, our most valuable resource.”

Main Points

In Colorado last week, communities held spring elections if they needed to choose elected officials or ask voters to make decisions on local matters. In six rural communities, voters decided to join the almost 120 municipalities and counties around the state that have already voted to opt out of Colorado’s restrictive state law SB 152. Meanwhile, the General Assembly tried to help bring broadband to the state's most rural areas.

A Resounding Yes

In all six towns, the decision to reclaim local telecommunications authority far outpaced the number of voters who voted “no.” In keeping with similar measures we’ve followed during previous elections on this same question, voters want the opportunity to use their own infrastructure to improve connectivity either directly to the public or with a private sector partner. Most communities that put this issue to the voters don’t have a solid plan in place at the time it’s on the ballot, but they understand that opting out of the 2005 law is a necessary step, should they decide in the future to move ahead with a muni or public-private partnership.

The measure always passes and voters usually approve the opt out provision by a wide margin, as was the case on April 3rd. Here’s the tally:

Firestone : Yes 1568 - No 347

Frisco : Yes 634 - No 69

Lake City : Yes 222 - No 18

Limon : Yes 347 - No 92

Lyons : Yes 526 - No 139

Severence : Yes 621 - No 118

Colorado has been abuzz with activity in recent years as local communities reclaim their right to decide how they handle connectivity improvements. The developments have run into resistance from Comcast and other big national ISPs that feel their monopoly threatened. Last fall, Comcast spent close to a million dollars in a failed attempt to defeat a measure in Fort Collins as the city amended its charter to allow it to invest in a municipal network. Before it could take that step, however, the city held a referendum in the fall of 2015 to opt out of SB 152.

Electric cooperatives in Virginia are continuing to transform connectivity in the state’s rural communities. With funding assistance from state and local government, projects in Mecklenburg and Appomattox Counties will soon be moving forward.

Building Out Mecklenburg

The Virginia Tobacco Region Revitalization Commission (TRCC) was formed when the state, along with Florida, Minnesota, Mississippi, and Texas, chose to break off from a Master Settlement Agreement between the largest tobacco companies and the remaining 46 states. The proceeds from their separate settlement have been used for broadband and other projects to diversify the economy. The TRCC administers grants and a loan fund.

Last fall, the Mecklenburg Electric Cooperative (MEC) announced that they planned to upgrade their fiber optic network infrastructure to connect substations and district offices. The board of directors decided that the upgrade would give them the perfect opportunity to engage in a Fiber-to-the-Home (FTTH) pilot project. As part of the project, MEC entered into an agreement to use the Mid-Atlantic Broadband Communities Corporation (MBC) fiber backbone.

The cooperative applied for a grant from TRRC and recently learned that they've been awarded $2.6 million for the $5.2 million project. They've dubbed the initiative the EmPower Broadband Cooperative.

EmPower will begin by offering 50 Megabits per second (Mbps) symmetrical Internet service for approximately $65 - $75 per month; VoIP will also be available. Members within 1,000 feet of the backbone that MEC deploys will have the ability to sign up for the service. Like other pilot projects, MEC will use the opportunity to fine tune the service and gage interest before they decide whether or not to take EmPower to the rest of their electric service area and possibly beyond.

President of MEC John Lee:

Federal broadband grant programs start accepting applications in the spring. 2018 is an especially exciting year because the Connect America Fund (CAF) II Auction is finally open. This program has been years in the making, but it still has its flaws. Learn more about the federal grant opportunities and how we can improve federal broadband data below.

Due March 30th, 2018 -- CAF II Auction

At noon ET on March 19, 2018, the much anticipated CAF II Auction opened. Application are due by 6pm ET on March 30th, 2018.  

The Federal Communications Commission (FCC) will distribute $2 billion to Internet Service Providers (ISPs) to build new Internet infrastructure in rural areas. This auction is the latest program of the larger CAF program that started offering funds in 2012. In the past, most CAF funds have gone to the largest incumbent ISPs, such as Frontier or Verizon. This auction is a chance for small rural ISPs to win funding for their communities through innovative projects.

Watch the FCC’s Application Process Workshop Video and then explore the map of eligible grant areas.

Due May 14th, 2018 -- Community Connect Grants

The U.S. Department of Agriculture (USDA) also announced that the Community Connect Grant program is open. Webinar presentations on the process will be available on April 5th and April 10th. Applications are accepted through May 14th.

Community Connect Grants are each $100,000 to $3 million and focus on improving rural broadband infrastructure. Areas are eligible if they do not have access to speeds of 10 Mbps (download) and 1 Mbps (upload). Nonprofits, for-profits, federally-recognized tribes, state governments, and local governments can propose projects. Winners must match 15% of the grant and the program has a budget of about $30 million.

Sign up for a webinar on how to apply for the Community Connect Grants: 

In southern California, an electric cooperative provides high-speed Internet service and continues to expand, meeting the needs of its 4,000 rural members. With community support, Anza Electric has navigated paperwork, construction delays, and more challenges. In May 2018, the California Public Utilities Commission will decide whether or not to award a grant of $2.2 million for Anza Electric’s fiber network project, Connect Anza.

We spoke with Anza Electric’s General Manager Kevin Short to learn more about the grant proposal and the project timeline. In July 2017, we reported that Anza Electric had submitted the grant application for a rural area south of Mount Jacinto in Riverside County. Short provided us with an update and more information on why this area was not part of the co-op’s first Internet access project.

2018 Grant Application

This area in Riverside County follows scenic highway 74 and includes the communities of Pinyon Pines, Garner Valley, and Mountain Center. The project will provide Fiber-to-the-Home (FTTH) Internet service to the rural co-op members. The co-op will also provide free high-speed Internet access to local fire stations and the Ronald McDonald camp for children with cancer. 

When the folks in Kitsap County, Washington’s Lookout Lane neighborhood banded together and used a Local Utility District (LUD) to get better connectivity, they were thinking about their own homes, not about setting a precedent. A little over a year later, other groups of neighbors are following their lead.

Sick Of Slow Connections

The Lookout Lane community formed their LUD and worked with the Kitsap Public Utility District (KPUD) to expand its open access network to their neighborhood because they were stuck with slow CenturyLink DSL. Residents didn’t feel that they were getting what they were paying for at $60 per month and 1 Megabit per second (Mbps) on average download speed. Now they have options up to 1 gigabit symmetrical via the publicly owned open access network.

Forest Ridge Estates, which is adjacent to Lookout Lane, has formed an LUD and is already connected to fiber installed by KPUD, according to Angela Bennick from the Northwest Open Access Network (NoaNet). Bennick says that there are two other neighborhoods that are considering a similar approach. KPUD is a member of NoaNet, whose open access fiber infrastructure connects that of other public utility districts across the state so people, businesses, and institutions in Washington can have high-quality connectivity.

Property owners pay for the connections themselves, but can pay off the cost upfront, over a 20-year period, or a combination of the two. Connections were from $10,000 - $14,000 in Lookout Lane, but depend on a variety of factors; property owners usually consider the investment an added value to their home. In order to establish an LUD, a neighborhood needs a majority of homeowners to sign a petition to establish the LUD.

The city of Ammon, Idaho, has used its open access publicly owned network to create an environment that encourages competition for residents and businesses. In addition to giving them control over which services they use and which companies they patronize, the city is doing its best to share information. In this video, the Ammon Fiber Optic Utility explains information financing for those who decide to connect to the network.

Ammon is using a Local Improvement District (LID) approach to connect premises to the infrastructure. The city determines the boundaries of where the project will occur and property owners have the opportunity at the beginning of the process to pay for connecting to the network by attaching the cost over 20 years to their property. If property owners don’t take advantage of the opportunity during this window of time and decide later to connect, they must pay the estimated $3,000 - $5,000 out of pocket.

As the video explains, connecting one’s property to the network raises its value and makes it easier to sell. It also points out that the cost of connecting stays with the property, so if a homeowner moves before the 20-year period is over, the new owners continue the payments for connecting. The video also explains an estimated monthly cost breakdown for hooking up to Ammon’s network. 

Keeping the community informed about their options keeps residents and businesses engaged in the process and aware of developments related to their network. Check out this short video about the LID #2 options and learn more from this report from Harvard University’s Digital Access to Scholarship at Harvard (DASH).

The U.S. Department of Housing and Urban Development (HUD) provided Community Development Block Grant funds (CDBG) to West Virginia as in other states. This year, the Community Development Division of the West Virginia Development Office that distributes CDBG funds will provide $1.5 million to local broadband projects that include planning and infrastructure.

Big Demand

Last July, the state’s Development Office announced that it would accept applications for broadband projects. The decision was a departure from past practice of focusing only on water and sewer infrastructure. By the time the application period was closed, 12 potential projects had been submitted for consideration; those projects touch 27 counties and reach about 300,000 premises, many located in the southern part of the state.

All twelve projects will receive some amount of CDBG funding.

One of those applications was from the Region 4 council, in the hopes of obtaining $125,000 for planning to improve connectivity in Webster, Fayette, Greenbrier, Nicholas, and Pocahontas Counties. The state will provide the funding, which will potentially affect future planning for six more counties. Region 4 will collaborate with a similar initiative by Region 1, which will also receive $125,000.

Another multi-organizational application came from Clay County, which plans to work with Calhoun and Roane Counties on a feasibility and business plan on how best to move forward to improve connectivity. Fayette County wants to use its award to map out where best to place fiber for maximum effect and Gilmer County will focus on planning to involve a local industrial park along with exploring other funding strategies.