When school shut down past spring, Unit 4 schools in Champaign, Illinois scrambled to get students connected like everyone else. The district handed out Chromebooks and teachers went to work transitioning to online instruction so the school year could continue. But the district noticed that a large percentage of its students weren't logging on and the bulk of them came from Shadowwood mobile home park, where although fiber ran up and down every street in the neighborhood only one family subscribed to wireline Internet access. So Mark Toalson, the city’s IT Director, began making calls, and by the end of the summer a coalition came together to build Shadowwood’s students a free fixed wireless network which went online in August.

Fiber Just a Few Feet Away

Image

The mobile home park sits on the north side of the town of 90,000, and is largely populated by Hispanic residents. Roughly 250 students who attend the Unit 4 school district live there, and according to Toalson not a single one had Internet access beyond personal mobile phones before they began last spring. In late May Mayor Deborah Feinen asked the city manager what could be done, and Toalson was asked to take on the project. 

A year ago we wrote about Illinois’ $420 million commitment to broadband expansion, and now the first round of grant winners has been released. Together they total $50 million in state funds matched by $65 million in additional money for 28 projects by 18 different Internet Service Providers (ISPs) that will, ultimately, connect 26,000 homes, farms, community institutions, and businesses in the state. It represents the first milestone in what is a significant commitment to closing Illinois' broadband gap.

Lots of Winners, Some Caveats

The Broadband Grant Program offers applicants up to $5 million in funding for projects with the stipulation that they match it with an equal or greater amount of other, nonstate funds. First-round winners consist of both middle- and last-mile builds touching at least 27 counties throughout the state. For example, Cook County received a little under $2 million to expand its Chicago Southland Fiber Network (CSFN). CSFN provides backhaul services to many, including the Illinois Century Network — which serves over 3,400 public K-12 schools, universities, and libraries. Their application committed to focusing “on fiber paths that will provide distribution and host last mile service platforms addressing those communities with the greatest need, municipalities with no fiber assets . . and key regional education campus facilities.” 

Last week, Frontier Communications told the Federal Communications Commission (FCC) that there are 17,000 census blocks in which it is now offering 25 Megabits per second (Mbps) download and 3 Mbps upload. This means well over 400,000 Americans now live in areas no longer eligible for the FCC's Rural Digital Opportunity Fund, a $20.4 billion program to expand rural broadband. The first phase will auction off up to $16 billion in subsidies later this year.

In the filing, the company also identified census blocks where it believes other providers will deploy broadband access through state-funded programs, making those locations ineligible for the federal funds as well.

Frontier is Flailing

In June, Governor JB Pritzker signed the Rebuild Illinois capital plan, a $45 billion effort that will repair and improve all manner of infrastructure in the state. Within the plan, state leaders intend to dedicate $420 million to upgrade and expand broadband infrastructure. Such a significant investment can make a real difference in the state, as long as decision makers adopt smart policies and allow local communities to receive funding for broadband projects.

Gas Tax for Gigabits

An increase in the state’s motor fuel tax will fund most of the broadband initiative. The increase in gas prices at the pump, which took effect on July 1, jumped from 19 to 38 cents. Similarly, a special fuels tax on diesel, liquefied natural gas, and propane increased from 2.5 cents to 5 cents. State analysts anticipate the increase will garner an additional $1.24 billion to state coffers in 2020.

The Rebuild Plan also grants state bonding authority for infrastructure projects and Cook County municipalities are permitted to raise their gas taxes by an additional three cents per gallon. There are also title and registration fees that will contribute to the fund.

As part of the plan, Illinois created the Connect Illinois initiative, which is part of the Illinois Department of Commerce. One of the goals of the initiative's Broadband Office is to provide all K-12 students with high-speed Internet access at no charge. As part of the Rebuild Illinois plan, $20 million will be used to update and expand the Illinois Century Network, which serves K-12 schools, colleges and universities, public libraries, and Internet access providers.

Connect Illinois and the initiative’s Broadband Office will administer the grants made possible by the fuel tax increase. The office will also work to determine federal grants that are available and how best to access them to advance the state's goals.

Connectivity Council

When utilities, including broadband providers, need to cross railroad rights-of-way to serve customers, some railroad operators have been known to press their advantage. Several states have addressed utility complaints by establishing standardized rates and setting up processes to create a more reasonable and predictable system. Eliminating this obstacle to deployment is another step in bringing broadband to the communities that need it the most.

Party Concerns

Often railroads obtained title to real property during 19th century acquisitions as the infrastructure was being built. They want to preserve as much of their authority and title rights as possible and to ensure that they can receive the maximum value for their interest in the land.

For utilities, cost of deployment is a primary concern. When railroads demand unreasonable fees at crossings or drag out negotiations as a delay tactic, they also impinge on a utility’s ability to meet operational deadlines. Safety and engineering integrity can be negatively impacted by difficult negotiations, unreasonable demands, or exorbitant costs.

Different States, Different Stories

Few states have addressed the problem with statutes establishing standard utility fees for railroad right-of-way crossings. David L. Thomas, Managing Member of the strategic utility planning firm Eagle 1 Resources (E1R) has worked with telecommunications companies and other utilities to negotiate railroad crossing arrangements. He's seen that standard crossing fees set down in statute benefit deployment by ending delay and reducing costs and would like to see the trend pass to every state.

After finishing its first phase of broadband build out covering businesses and industrial parks, Rock Falls, Illinois, will begin focusing on residential customers in early 2019. While residents living close to business areas will have early access to the gigabit fiber network, the city of 9,000 will use the fiberhood approach to reach its remaining residential areas.

Growing a Gigabit City

The plan to invest in citywide Fiber-to-the-Home (FTTH) began taking shape when Rock Falls residents became increasingly frustrated with the incumbent cable provider Comcast. Mayor Bill Wescott called for support for the project during his 2017 State of the City address, saying “The time is now to advance Internet in Rock Falls.” Later in April, the City Council approved the use of a $5.3 million general obligation bond issuance to fund the first phase of the build out, and an overall cap of $13 million for the duration of the project. The estimated cost of the project ended up being significantly reduced because the Rock Falls Electric Department (RFED) had already installed extra fiber-optic cable to connect substations as early as 2004.

By using GO bonds to finance their infrastructure deployment, Rock Falls departs from the typical funding approach. Most municipalities issue revenue bonds or employ interdepartmental loans and money they've saved from avoided costs when ending expensive leased lines to telecommunications companies. In recent years, other methods of funding fiber optic build outs have become increasingly popular as broadband infrastructure has obtained utility status in local communities.

Last fall, the City Council in Aurora, Illinois, approved a grant to OnLight Aurora to help fund the publicly owned network expansion to more commercial facilities along South River Street. This year, community leaders plan to move north and bring fiber optic infrastructure to RiverEdge Park along the Fox River as they turn the location into a “smart park.”

RiverEdge Park hosts festivals and other events, including summer concerts at it’s pavilion. Public officials want to take advantage of the community’s publicly owned broadband infrastructure for better security and to control parking. The city’s CIO Michael Pegues says that with better parking monitor and control, the city will be able to provide quicker emergency response and more efficient energy use. OnLight Aurora at RiverEdge Park may also generate revenue with kiosks for advertising.

Pegues and other city officials want to continue to grow Aurora’s increasing reputation as a tech-savvy community and to possibly expand the network to serve the nearby communities of Naperville and North Aurora.

“Smart” Attraction

Community leaders, including Pegues and Mayor Richard Irvin, want to cultivate Aurora’s growing reputation as a “smart city.” They’ve already leveraged OnLight Aurora to attract high-tech jobs, such as luring wireless communications company Scientel Solutions from Lombard. Scientel leadership described OnLight Aurora as “a big attraction.” The company will build its new headquarters near CyrusOne, a data center that connects to the fiber network.

The addition of a “smart park” is another creative way to use the publicly owned infrastructure in ways that serve lifestyles of people in the community. Aurora hopes to soon be named a “smart city” by the D.C. Smart Cities Coalition. The Coalition's video describes what characteristics "smart cities" share:

I3 Broadband, the private sector partner working with Champaign-Urbana to deliver high-quality connectivity, continues to expand throughout the region and announced that it will aim to offer services to 3,000 more premises during 2018.

One Step At A Time

The company has mapped out the community into neighborhoods and decides order of deployment on several factors, including proximity to areas already being served and level of interest. Residents can indicate their interest online at the company’s website or request the company send them a form to fill out and mail back. I3 will consider bringing the network to a neighborhood when 30 - 45 percent of households express interest in signing up for the Fiber-to-the-Home (FTTH) service.

I3 serves premises in 24 neighborhoods in Champaign-Urbana, which includes neighborhoods that UC2B built out with fiber and areas where iTV-3 deployed fiber.

When the communities of Champaign and Urbana began looking for a partner to offer services via the publicly owned UC2B network, they first chose iTV-3 because the ISP was a local company with a community minded approach. In 2014, they began working with iTV-3, but within two years, iTV-3 decided to sell its assets to Countrywide Broadband. 

The UC2B leadership chose iTV-3 in part because the company had expressed a commitment to keep expanding the network to other neighborhoods. The sale raised concerns because Countrywide was a larger entity taking over a local interested provider, but the community hoped that Countrywide would be better able to expand the infrastructure because it held considerable assets. Champaign-Urbana chose not to exercise the right of first refusal to purchase fiber assets that had been deployed by iTV-3, but they retained ownership of original UC2B assets. Countrywide began serving customers under its subsidiary i3.