In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

The Otter Creek Communications Union District (CUD) has been awarded a $9.9 million grant by the Vermont Community Broadband Board (VCBB). It’s the latest effort by the state to use CUDs to deliver affordable fiber broadband access to the long-neglected rural corners of Vermont.

According to the CUD’s announcement, the funding will help deploy affordable fiber access to roughly 4,100 homes and businesses by 2025. The fiber deployment will be done in partnership with Consolidated Communications, which says it has deployed fiber to 110,000 Vermont homes and businesses since 2021.

The deployment should ultimately bring broadband access to 85 percent of homes and businesses in the Otter Creek CUD area, which covers 17 towns and one city in and near Rutland, Vermont in the southwestern part of the state as 2,300 of the locations targeted by this latest round of funding currently have no access to any broadband service whatsoever.

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“We’re excited to work collaboratively with Consolidated to bring future-proof Internet to the 18 communities within our CUD,” Otter Creek CUD Chair Laura Black said in a statement. “This funding will put us well on our way to meeting the goal of universal service in the Rutland region, bringing all the opportunities that come with reliable, high-speed internet. The Otter Creek CUD board is proud to be on the way to bringing the broadband infrastructure this community needs to participate in the global economy.”

With the $14.2 billion Affordable Connectivity Program (ACP) on track to run out of funds by spring/early summer 2024, finally there is a request from the White House to extend funding for the program that over 21 million housholds now rely on to help pay for high-speed Internet service.

Last week, the Biden administration formally asked Congress for another $6 billion to extend the program through November 2024, joining a chorus of public interest groups (including AARP) calling on Congress to replenish the rapidly depleting fund.

(According to our calculations, an additional $6 billion would not fund the program through December 2024 as the White House said. It would fund the program through the end of November 2024. It would take $6.9B to get through the end of December).

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First established with the passage of the Infrastructure Investment and Jobs Act (IIJA) in 2021 as part of the Biden administration’s “Internet for All” initiative, the ACP – currently administered by the Federal Communications Commission (FCC) – provides income-eligible households with a $30 monthly subsidy ($75 per month for those living on Tribal lands) to pay for their Internet service bill. The program also provides a one-time $100 benefit to go towards the purchase of an Internet-connected device such as a laptop or tablet.

Butler Electric Cooperative and its Velocity broadband subsidiary say they’re making meaningful progress in bringing fixed wireless access (FWA) — and ultimately fiber optic broadband — to long-neglected sections of rural south-central Kansas. It’s the latest example of electrical cooperatives playing a leading role in the longstanding quest to bridge the digital divide.

Butler Electric Cooperative, which provides electrical service to 7,000 meters via 1,850 miles of transmission and distribution lines, created Velocity in 2018 as part of the cooperative’s expansion into broadband access.

The service currently provides fixed wireless access to roughly 5,500 rural Kansas residents, long left out of reach of traditional cable, fiber, or DSL due to the logistical challenges and high cost of rural deployment.

The company’s current service tiers range from a 15 megabit per second (Mbps) downstream and 3 Mbps upstream tier for $60 a month, to a 100 Mbps downstream, 10 Mbps upstream tier for $84 a month. Both tiers feature a one-time installation fee of $200. The higher pricing generally reflects the higher prices of deployment to remote, rural areas.

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Velocity CEO Kevin Brownless tells Telecompetitor that the company tries to keep consumer-facing pricing as close to cost as possible, and that Velocity and Butler plan to drive fiber into these markets over the coming years thanks to federal subsidies.

Vermont’s nascent Communication Union Districts (CUD) are pioneering creative efforts to deploy affordable broadband to the rural parts of the Green Mountain State. That includes the Lamoille FiberNet CUD, which has greenlit a major new plan to expand affordable access to fiber in the most neglected parts of rural Vermont.

At an Aug. 14th meeting, the Vermont Community Broadband Board (VCBB) approved Lamoille FiberNet’s $1.3 million pre-construction grant, followed by a mid-September approval of the CUD’s $13.6 million construction grant.

“This grant means that, by the end of 2024, we can bring high-speed internet to almost all the homes and businesses in our CUD that are unserved or underserved,” Lamoille FiberNet Communications CUD Chair Jeff Tilton said in a statement.

With the Lamoille CUD covering 10 towns in the north central part of the state (Belvidere, Cambridge, Eden, Elmore, Hyde Park, Johnson, Morristown, Stowe, Waterville and Wolcott), Lamoille plans to have Fidium Fiber and Consolidated Communications deploy and manage 630 miles of new fiber connecting more than 4,800 unserved and underserved Lamoille County homes and businesses. The network will be deployed in two phases.

Lancaster, Pennsylvania has revitalized the city’s long percolating plan for a municipal broadband network, this time via a public-private partnership (PPP) with Shenandoah Telecommunications Company (Shentel). The city’s quest for more affordable, reliable broadband is a quest that’s taken the better part of a decade to finally come to fruition.

Lancaster city officials recently announced that they’d selected Shentel with an eye on ensuring uniform broadband availability to the city of 57,000.

“In 2022, the City issued an RFP for a partner to achieve stated goals, which received five responses, and led to the selection of Shentel,” the city said. “The contract will result in Shentel installing fiber at its sole cost to provide service to 100% of the city’s residents. Shentel plans to commence design and construction immediately upon execution of the final agreement.”

According to Lancaster officials, the city hired CTC Technology & Energy Engineering & Business Consulting to evaluate the city’s needs. The determination to proceed with a PPP with Shental was driven, in part, by the historic broadband grant opportunities being created thanks to the 2021 Infrastructure Investment and Jobs Act (IIJA), and the American Rescue Plan Act, the latter of which provided $39.5 million to the city.

As the National Telecommunications and Information Administration (NTIA) continues to move forward in administering the single biggest federal investment to expand high-speed Internet access in U.S. history, each state and U.S. territory is wrestling with how to best spend the windfall as they lay out their Five Year Action Plans and Initial Proposals necessary to claim their portion of the $42.5 billion BEAD program.

One major barrier to providing universal access to fast, reliable and affordable Internet service–long recognized by ILSR, telecom experts, and a growing number of ordinary citizens–are the monopoly-friendly preemption laws that either outright ban or erect insurmountable barriers to building publicly-owned, locally-controlled broadband networks, aka municipal broadband.

Preemption in the BEAD Era

Currently, 17 states have such preemption laws, most of which have filed their Five Year Action Plans and/or their Initial Proposals. In each of those states, at the behest of Big Cable and Telecom incumbents, state lawmakers have erected legislative barriers to municipal broadband to protect the monopoly players from competition, which is at the very heart of why the digital divide exists in the first place and why tens of millions of Americans suffer from the slower speeds and higher costs that go hand in hand with monopoly service.

The key for states to unlock their portion of the $42.5 billion in federal BEAD funds is the submission and approval of their Five Year Action Plans and Final Proposal. The infrastructure law requires states to first file an action plan, and then prepare more detailed Initial Proposals, allowing residents and stakeholders to submit public comments.

So far, 14 states have filed their Five Year Action Plans with the National Telecommunications and Information Administration (NTIA), the Treasury Department agency in charge of allocating the funds to each state and U.S. territory. According to the NTIA’s website, Maine, Louisiana, Delaware, Georgia, Hawaii, Idaho, Kansas, Montana, North Carolina, Ohio, Oregon, Pennsylvania, Utah, and Vermont have all filed their draft Five Year Action Plans.

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The states that are now in the process of completing their Initial Proposals include: Delaware, Kansas, Louisiana, Montana, Ohio, Tennessee, Vermont, Virginia and Wyoming.

Today, we will look at two states (Maine and Louisiana) and follow up with the others as we are getting a clearer picture of how each state intends to put this historic infusion of federal funds to use.

Maine

Data unsurprisingly ranks remote Alaska dead last when it comes to the availability of affordable broadband. That’s particularly true in areas like Bristol Bay, an area the FCC’s updated broadband maps suggests lacks access almost entirely. But as with most underserved regions, local cooperatives are at the forefront of efforts to finally address the problem.

Launched in 1975, the member-owned Nushagak Electric & Telephone Cooperative, based in Dillingham, Alaska, offers locals broadband access through microwave towers; often the only way to provide service across Alaska’s rugged landscape. But the co-op, which also offers a electric, telephone, and cable TV service, says it’s on the cusp of new fiber deployments that should finally bring next-generation speeds to a chunk of the co-op’s members.

The co-op has been working since 2021 on a $22.4 million plan to expand more reliable fiber to the region. The project is partially funded by the USDA ReConnect program as well as $6.5 million in term loan money from the National Rural Utilities Cooperative Finance Corporation. The cooperative will also use $784,000 of its own money to get the project underway.

It may not generate a lot of headlines in a national press obsessed with AI and billionaire fist fights, but the debate over the final version of the looming farm bill remains important all the same. Especially when it comes to the future of affordable broadband.

The farm bill, generally renewed every five years, provides U.S. policymakers the occasional opportunity to address agricultural and infrastructure issues essential to not only the basic functioning of the country, but the very survival of marginalized Americans.

That includes programs like the Supplemental Nutrition Assistance Program (SNAP, or “food stamps”), which provides affordable food to an estimated 41.9 million Americans–or roughly 12.5 percent of the U.S. population.

The bill has also proven essential to the ongoing maintenance and equitable distribution of modern infrastructure, including affordable broadband access. That includes the funding of essential programs such as the U.S Department of Agriculture’s ReConnect broadband grant program, and the Community Connect Grants program.

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The farm bill may also soon play a key role in maintaining another key government program: the $14 billion Affordable Connectivity Program (ACP) currently overseen by the Federal Communications Commission (FCC).

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