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Community Broadband Legislation Roundup - May 4, 2021

Snapshot

Nebraska Senate rejects amendment supporting municipal broadband in spending plan

Michigan Governor vetoes bill granting private ISPs property tax exemptions

Montana, Iowa and Maine channel Rescue Plan funds towards new broadband grant initiatives

 

The State Scene

Nebraska

The Nebraska Senate approved a plan to spend $40 million over the next two years on expanding rural access to high-speed Internet by a unanimous vote on Tuesday, but only after an amendment to L.B. 388 that would have allowed municipalities to offer retail broadband services was rejected.

State Sen. Justin Wayne introduced the amendment, saying that “broadband should be considered a critical infrastructure need and that private telecommunications companies have not stepped up to serve the whole state,” the Lincoln Journal Star reports.

Wayne urged Nebraska Senators “to look to Nebraska's history of public power as a model, as well as to the example of other states that are allowing cities to offer broadband.” The amendment ultimately failed by a vote of 20-24. Wayne assured fellow Senators that he will reintroduce the amendment in the future. 

The bill marked the first time the Nebraska Legislature has suggested using state tax dollars to fund broadband deployment. As it was submitted to Gov. Pete Ricketts for his signature, the bill would annually allocate, until funds run out, $20 million in grants to projects that increase access to high-speed broadband in unserved regions of Nebraska. It would prioritize projects in regions which lack access to Internet service with speeds of at least 25 Megabits per second (Mbps) download/3 Mbps upload. Grant recipients would be required to deploy networks capable of providing service of at least 100/100 Mbps within 18 months. 

 

Michigan

Community Broadband Legislation Roundup - March 15

This is the first in an ongoing series of state legislative roundups of bills that advance the prospects of success for community broadband networks. Feel free to reach out to Jericho Casper with tips or corrections.

High-Speed Hirings - Your Mission, Should You Choose To Accept It

Investments in broadband infrastructure at the municipal level are on the rise, creating more employment opportunities in the broadband industry. Advocates for municipal broadband who feel called to make a change in their communities should check out these job openings:

Dayton, TX

Applications are being accepted for a Broadband Manager/Head Network Engineer to oversee the business and technical operations of DayNet — a new Internet utility emerging in Dayton, Texas — in the process of constructing a citywide Fiber-to-the-Home (FTTH) network.

Whatcom County, Washington

Applications are being accepted for two positions currently open at Whatcom County PUD: Broadband Services Analyst and Electric Utility Analyst.

The State Scene

From coast to coast, state lawmakers are aiming to create centralized broadband clearinghouses and improve permitting processes. Here’s a snapshot: 

New Mexico Legislature Seeks Reforms to Craft State Broadband Plan

With merely five days remaining in the state's legislative session, New Mexico legislators are pushing to advance bills that would set up a centralized body within the state government tasked with improving Internet access.

Dive Deeper into Native Nations Networks with These Stories

Last week we published a new case study report on four Native Nations (the Coeur d’Alene, the Nez Perce, the Fond du Lac Band of Ojibwe, and the St. Regis Mohawk) who set out to build their own broadband networks after being left behind for decades by Internet Service Providers (ISPs) in the region. At the same time, we launched a new resource documenting existing Native Nations Networks with some key resources for others in Indian Country considering their own.

Read more from report author H. Trostle in a recent article in High Country News about the goals of the study, the connectivity challenges for tribes, the importance of Spectrum Sovereignty in getting those communities connected, and the creativity and persistence it has taken to get these networks off the ground so that those communities have opportunities to live, learn, and work online. 

Two recent pieces from American Public Media’s Marketplace Tech add welcome additional emphasis on the importance of these issues. The first, published Monday, profiles the progress made in building a wireless network by the Confederated Salish and Kootenai Tribes on the Flathead Indian Reservation in Northwest Montana, bringing broadband to 1,300 square miles in the region, and one of the first success stories to come out in part as a result of the FCC’s 2.5 GHz Rural Tribal Priority Window last year. 

City Leaders in Bozeman, Montana, Declare Broadband Essential Infrastructure

In mid-April, city leaders in Bozeman, Montana, passed Resolution No. 5031 to officially declare broadband essential infrastructure for the city. The declaration comports with the city’s long-term goal to bring high-quality connectivity throughout the community.

Read Resolution No. 5031 in its entirety here.

Pointing Out the Positives

In addition to describing the ways access to broadband has improved opportunities for residents and businesses, the language of the resolution lays out the steps Bozeman has already taken. In addition to establishing a planning initiative, the resolution describes their decision to adopt a master plan, and the creation of nonprofit Bozeman Fiber. The resolution also chronicles the city’s investment and urban renewal plan, which includes Bozeman Fiber, and the fact that broadband has become a contributing factor to the city’s social and economic health.

As part of the resolution, the City Commissioners include their next steps in order to advance citywide connectivity in Bozeman:

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City of Bozeman will; 1) create and implement a conduit utility master plan and begin the transition for operating the conduit system as its own enterprise fund; 2) include a conduit design and construction standard as part of the City’s approved engineering standards; 3) maintain updated record drawings and GIS mapping of the City-owned conduit network; 4) consider the expansion of the existing City-owned fiber optic conduit network infrastructure when appropriate and when funding is available; 5) utilize conduit lease revenue for the purchase of additional public conduit; and 6) align conduit network expansion decisions with the City Budget and Capital Improvement Plans and planning processes.

Montana Wants Network Neutrality, Executive Order Makes It So

Chairman Ajit Pai and the Republican FCC Commissioners voted last December to end network neutrality protections, but many local and state elected officials and their many constituents did not support the decision. Suddenly, decision makers began seeking alternative approaches to ensuring an open Internet without fast or slow lanes. This week, Montana took the initiative by using an executive order to bar ISPs from entering into state contracts if those ISPs don't practice network neutrality.

Read the full Montana Executive Order here.

Update: The State of New York is taking similar steps. Read more below.

Executive Order

While 22 states have taken legal action against the Commission to stop the December 14, 2017 repeal, Montana is using state power to protect its 1.043 million citizens rather than wait for the court to decide. On Monday, Governor Steve Bullock signed an executive order while visiting his former high school’s computer science class.

“There has been a lot of talk around the country about how to respond to the recent decision by Federal Communications Commission to repeal net neutrality rules, which keep the Internet free and open. It’s time to actually do something about it. This is a simple step states can take to preserve and protect net neutrality. We can’t wait for folks in Washington DC to come to their senses and reinstate these rules.” 

Montana currently contracts with several ISPs, including CenturyLink, AT&T, and Charter; state contracts come to about $50 million. The executive order requires the state’s Department of Administration to develop policies and guidance by March 1st. In order to enter into a new contract with the state for the new fiscal year that starts on July 1st, ISPs must not:

Verizon Will Cut Off Rural Subscribers In Thirteen States

A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

Montana Telephone Co-Op 3 Rivers Communications Upgrades To Fiber

Out in Big Sky Country, some rural communities look forward to high-speed Internet service from their local telephone co-op. 3 Rivers Communications in Montana has spent the last few years steadily building out their Fiber-to-the-Home (FTTH) network to rural residents.

This spring, 3 Rivers Communications is set to start on two new areas: an $8 million project near Choteau (pop: 1,700) and a $1.5 million project near Fairfield (pop: 700). 

Focus on Rural Residents

The local newspaper Choteau Acantha reported on 3 River Communications’ latest plans. About 500 folks will be able to get high-quality phone, video, and Internet service at home when the co-op finishes both projects in late 2017 or early 2018. 

The current plans focus on rural residents on the outskirts of both towns. Folks in Fairfield already have access to fiber service, but people within the city of Choteau have DSL. Businesses in Choteau can request fiber connections, but the co-op is not currently planning to offer fiber connectivity to residents inside town limits.

These fiber projects are all part of a larger program to upgrade in the cooperative's service area of 17,000 square miles. The co-op is taking out the old copper telephone lines and replacing them with brand new fiber-optic cables. It’s a large undertaking and will serve approximately 20,000 members.

Federal Funding for Rural Areas

To upgrade to fiber in its large service area, 3 Rivers Communications obtained funding from several federal programs, including the Rural Utilities Services (RUS) and the Universal Service Fund. The co-op received a $70 million loan in 2011 and another $30 million loan in 2016 to improve the network. 

Currently, the lowest tier bundle of phone and 10 Mbps Internet service is $85 per month, but co-op members get back excess revenue in capital credits each year. 3 Rivers General Manager Dave Gibson described the balance of costs and prices to the Choteau Acantha:

Bozeman Unique Fiber Model Gets Good Start - Community Broadband Bits Podcast 233

This week, we return to Bozeman's unique model in Montana to get an update now that the network is up and running. President of Bozeman Fiber Anthony Cochenour and city of Bozeman Economic Development Director Brit Fontenot join us again to discuss their unique approach. We last spoke with them on episode 142.

We discuss how they are doing two months after launching the network. With five ISPs already using it to deliver services a several more in the process of signing up, they are on target for where they hoped to be. 

We talk about how their nonprofit approach is governed and how expected challenges turned out to be not as challenging as expected - financing in particular. Many local banks stepped up to particpatein the project, something Bozeman Fiber credits with having strong relationships within the community.

All of our coverage on Bozeman is available here.

This show is 32 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Missoula Schools Set To Save With Self-Provisioning

The Missoula County Public Schools (MCPS) plans to save $150,000 per year by investing in its own fiber infrastructure. Over a 20-year period school officials expect to save approximately $3 million.

Fiber For Education And Savings

MCPS will be the first in the state to self-provision its wide area network (WAN), the connections between district facilities. Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN.

School officials were already leasing lit fiber service when they began investigating options to compare cost and service. They also looked at leasing dark fiber, which would mean they would need to maintain the equipment to light the fiber themselves, and investing in an Indefeasible Right of Use (IRU). The IRU would give the school district the ability to use a designated number of fiber strands to use as they wished for a fixed period of time. 

As other school districts around the country are discovering, the best choice for them was to own the infrastructure and control it themselves:

"We're saving the district $3 million over the next 20 years in the general fund that will be able to be allocated to other things," Littman said of self-provisioned fiber. "It's more than $3 million, actually. The reason we say we'll only end up saving the general fund $3 million in the end is because we do have some annual maintenance costs to incur to protect the fiber."

Leasing lit fiber for the speeds MCPS needs would have cost $1.5 million to $3.1 million for only a five-year contract. A dark fiber 10-year contract would have cost about $3 million.

Right now, the school pays approximately $287,000 per year to lease its WAN connections and for Internet access; about $200,000 of that figure is dedicated to leasing the WAN. The school will still need to contract for Internet access from an Internet Service Provider (ISP).

Bozeman Fiber Breaks Through Phase One

Downtown Bozeman businesses can expect fast, affordable, reliable connectivity via the Bozeman Fiber network within the coming weeks, reports the Bozeman Daily Chronicle. Phase one is now complete.

Businesses Up Next

Bozeman City offices, Gallatin County offices, and local public schools are already connected to the open access network, which is owned and operated by the nonprofit entity Bozeman Fiber. There are already three Internet Service Providers (ISPs) operating on the community network but local officials do not expect residents to have Fiber-To-The-Home (FTTH) Internet access just yet:

“Within a few hundred feet of where the fiber currently is will be available day one of commercial operations,” said Anthony Cochenour, president of the board of Bozeman Fiber. “As far as expanding the network and running under our own steam, (we want to) get business first, fill the coffers, then in years two and three make a bigger push into residential areas.”

Connecting to businesses first allows a community to test the waters, locate potential problems, and create interest in a community-based initiative. With the revenue generated by commercial customers and infrastructure deployed strategically throughout the community, it’s easier to expand to residential areas.

Standing On Its Own

In Bozeman, the $3.85 million in funding for the project came from local banks, so local officials feel especially compelled to create a self-sustaining and stable project. “While setting up Bozeman Fiber was important for economic development, we wanted it to be an agency that stands on its own. Bozeman Fiber is running its own show,” said [Bozeman economic development specialist David] Fine.

The Bozeman Fiber nonprofit plans to connect a local hospital in the near future and add another line west of town. They also hope to eventually host up to ten ISPs by the end of the year, increasing choice for consumers in the future.