*The following story by Broadband Breakfast Reporter Jake Neenan was originally published here.

States are moving ahead with their Broadband Equity, Access, and Deployment program processes after the Commerce Department extended for 90 days the deadlines for final spending plans.

“In Michigan, we are in the thick of reviewing, scoring, and deconflicting 392 applications that we received in our first grant round,” said Eric Frederick, head of the state’s High-Speed Internet Office. “It’s a very busy time for us.”

He spoke Wednesday on  a Fiber Broadband Association webinar.

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The state received 32 applications to serve more than 78 percent of its 248,000 eligible locations in its first round, which ended April 9 and was restricted to fiber projects. Frederick said the state is planning to start discussing grant agreements with successful round one applicants “within the next month or so.”

Michigan is also planning to release a draft of its BEAD grant agreement, the contract grant winners will ultimately sign with the state, this week for public comment, Frederick said. The state was allocated more than $1.5 billion from the $42.45 billion program.

The Trump administration on Tuesday gave all states a 90-day extension on their deadlines to submit their lists of selected projects for approval, documents that were originally due one year after a state’s initial BEAD implementation proposal was given the federal green light. The National Telecommunications Administration, the Commerce agency handling BEAD, said states could require additional time to submit those proposals in light of forthcoming rule changes.

Frustrated by years of substandard broadband service from regional telecom monopolies, Kendall County, Illinois residents have joined the growing chorus of Americans that are tackling the problem head on by building their own better, faster, more affordable fiber networks.

The Kendall County network, part of a public-private partnership (PPP or P3) with Pivot-Tech, is being funded by a tax-free revenue bond.

Kendall County officials tell ILSR that the full cost of the network, which will include private investment from Pivot-Tech, is expected to ultimately be $67 million, serving more than 13,000 locations county wide.

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The first phase of the network build will consist of a combination of fixed wireless and fiber last and middle middle connectivity, supported by $15 million in state broadband grants made possible by 2021 American Rescue Plan Act (ARPA) legislation. Construction is slated to begin this fall, and officials say the county will own the finished network.  

“The network is a combination of fiber and fixed wireless, with the goal to serve as many customers by fiber as possible,” Kendall County Administrator Christina Burns told ILSR. “The fixed wireless access count planned in phase one will be approximately 1,900. The remainder will be fiber to the premises.”

County officials are still finalizing the selection of a consumer-facing ISP.

“We have identified an ISP and are working through the details,” Burns said. “We do still plan for the network to be open access, hoping to bring more ISPs on in the future.”

Like so many communities we cover, the county’s foray into community broadband was forged by decades of local frustration with limited local broadband competition, high prices, and patchy service, which was painfully highlighted during COVID lockdowns.

Now that the fight over federal funding to expand broadband access has been largely settled with the passage of the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA), states and local communities are preparing to put those funds to work.

The Biden Administration had initially hoped to tip the scales in favor of building publicly-owned broadband networks as the best way to boost local (more affordable) Internet choice, and inject competition into a market dominated by monopoly incumbents. And while the Treasury rules on how Rescue Plan money can be spent does give states and local governments the ability to do just that, the rules for how the IIJA’s Broadband Equity, Access, and Deployment (BEAD) program can be spent have yet to be finalized by the National Telecommunications and Information Administration (NTIA), the agency in charge of allocating those funds to the states.

Predictably, the big monopoly incumbents are focusing their lobbying efforts on state lawmakers as states funnel those federal funds into state broadband grant programs. In some states, Big Telco is getting the desired result: the shunning of publicly-owned network proposals to shield monopoly providers from competition. Of course, we expected some states – especially those with preemption laws that either erect barriers to municipal broadband or outright ban such networks – to shovel most of their federal broadband funds to the big incumbents, even though they have a long track record of over-promising and under-delivering. 

But while we might expect Florida and Texas to favor the private sector and stealthily move to shut out projects that are publicly-owned, we’re surprised that the first place it’s happening is actually Illinois and New York.

Illinois Lawmakers Thumb Nose at Federal Law

Decatur, Illinois (pop. 71,000) is moving forward with an Institutional Network (I-Net) expansion that will connect 11 school districts and 3 firehouses to its growing fiber-optic backbone, connecting potential commercial and industry customers along the way. 

The city of Decatur has been expanding its fiber network since 2014, when it decided to deploy a backbone network connecting several of its facilities. This most recent expansion will extend the access to Franklin and Parsons schools, Stephen Decatur Middle School, Eisenhower and MacArthur high schools, American Dreamer STEM Academy, Dennis Lab School, Hope Academy, Johns Hill Magnet School and William Harris Learning Academy.

The expansion is the result of a 5-0 city council vote in April approving a $915,000 contract with Bodine Electric to purchase and hang 144 strand fiber-optic cable. 

A portion of the funding for the contract will come from a $800,000 grant from the Connect Illinois grant program, an initiative aimed at expanding broadband access. The program launched in 2019 with $420-million investment in broadband infrastructure. The first round of grants totaled $50 million with a combined $9.25 million going to monopoly ISPs CenturyLink, MediaCom, Spectrum, and Comcast and the rest going to local ISPs and city and county governments. 

The remaining $115,000 allocated in the contract will come from the state’s portion of the American Rescue Plan fund. 

While the city will fund the expansion of the backbone to pass by the schools and connect the firehouses, Decatur Public Schools (DPS) will also contribute $600,000 to connect the schools to the street fiber. The contribution is also from the Connect Illinois Grant Program.  

When the state grants came through, the city and DPS saw an opportunity to collaborate. 

Less than six months after its creation and a year after the city of Waukegan, Illinois (pop. 89,000) began exploring options to improve connectivity in response to the Covid-19 pandemic, a Request for Proposals (RFP) has been issued by the Waukegan Broadband Task Force in search of qualified applicants to assist in the creation of a broadband master plan. Applications are due June 30th, 2021.

Waukegan is situated about halfway between Chicago and Milwaukee, along the west coast of Lake Michigan. A 2020 initial broadband assessment showed challenges related to price, devices, digital skills for remote learning, and a lack of coordination to get income-qualified residents onto incumbent ISP's low-income plans. The city is served by a patchwork of ISPs, including cable from Comcast, DSL from AT&T and TDS, and fixed wireless from Rise Broadband with starting prices on plans ranging from $30/month to $60/month.

The Task Force website outlines the group's goals and stakes for the community:

There are few cities with the opportunities that exist within Waukegan. However, to truly become a ‘City of Progress’ , Waukegan must take the critical steps necessary to achieve its great potential. While 2020 brought challenges to communities around the globe, it also presented opportunities for innovation, collaboration, change and growth. The Waukegan Community Broadband Taskforce is an open, collective impact inititative of committed community stakeholders for all residents, businesses, institutions interested in working together to create a path to the future.

The RFP calls for solutions addressing access, adoption and utilization, sustainable funding, and communication and community engagement with a particular focus on remote learning, telehealth, and economic development.

The steering committee for the task force is made up of a collection of local nonprofits, the public library, the community center, city officials, and the school district. Funding for the master plan will come from private contributions.

Applicants can direct questions to wbctaskforce@gmail.com by 5pm on June 6th, with full RFPs due by June 30th.

In a part of the Prairie State referred to as “Little Egypt,” a small county in southeastern Illinois recently received a big infusion of federal funds to expand its broadband network into neighboring rural counties. 

In October of 2020, the USDA announced that the Hamilton County Telephone Cooperative was awarded a $20 million ReConnect grant and a $20 million ReConnect loan to bring broadband to over 19,000 residents, 462 businesses, 347 farms, 16 educational facilities, three post offices and four fire stations in Saline, Williamson, Franklin and White counties.

The $40 million in total Hamilton County received was a portion of the $600 million Congress appropriated to the USDA in 2018 to expand broadband infrastructure and services in rural America. In April of 2020, the USDA announced it had received 172 applications worth $1.57 billion in Round Two ReConnect requests. 

The funds awarded to Hamilton County in the fall came on top of the $3.4 million from the state-wide Connect Illinois program and ReConnect funds the co-op received in February of 2020 to build out its Fiber-To-The-Premises (FTTP) network to connect more than 600 homes in the rural county with a population just over 8,000 residents.

Decades of Service

All across the country, municipal networks, cooperatives, and cities have been putting in extra effort to make sure that Americans have the fast, affordable, reliable Internet access they need to conduct their lives in the midst of the COVID-19 pandemic. 

AT&T has decided to take another route. A USA Today report last week revealed that the company has stopped making connections to users subscribing to its ADSL Internet as of October 1st. Anyone calling the company to set up new service is being told that no new accounts are being accepted. 

The decision comes right as the National Digital Inclusion Alliance has released a report detailing that only 28% of AT&T’s territory can get fiber from the company. AT&T has deliberately focused investment in more urban areas of higher income. From the report:

The analysis of AT&T’s network reveals that the company is prioritizing network upgrades to wealthier areas, and leaving lower income communities with outdated technologies. Across the country, the median income for households with fiber available is 34 percent higher than in areas with DSL only — $60,969 compared to $45,500. 

The Deep South Hit Hardest

As of today, it looks like the most conservative number of those affected by the decision will be about 80,000 households that have no other option. Our analysis using the Federal Communication Commission’s (FCC) Form 477 data shows that the Deep South will be hit the hardest (see table at the bottom of the page). 

Collectively it means more than 207,000 Americans who, if disconnected, will have no option for Internet aside from their mobile devices or satellite service. The number of Americans affected by the decision but which have additional wireline options is higher: roughly 2.2 million American households nationwide subscribe to the service (see map, below).