UTOPIA Fiber continues to grow and is now exporting its expertise into Bozeman, Montana – one of the fastest-growing cities of its size and often listed among the best places to live in the country.

Referred to by some as “Boz Angeles” because of the influx of Californians to the area, this Rocky Mountain city of 53,000, nestled in Gallatin Valley, is about to become even more attractive as a rising tech hub for millennials. At the Broadband Communities 2021 Summit last month, it was announced that Bozeman Fiber, a non-profit organization created by the city to expand high-speed Internet connectivity across the region, has partnered with Utah-based UTOPIA Fiber to build an open access fiber-to-the-home (FTTH) network.

Bozeman Fiber has already built an open access fiber ring, serving city, county, and school facilities. It has also connected 200 commercial customers. The partnership with UTOPIA will allow Bozeman Fiber to extend the network across the city, passing 22,000 homes and businesses, with plans to extend further out into the more rural parts of Gallatin County down the road.

Network construction, which is estimated to cost $65 million, is slated to begin in the spring of 2022 and is expected to take three years to be completed.

“This is the first phase of a project that will cover the city and some areas of the county, and the intention is we’ll have future phases that reach further out into the county to hit more rural areas,” UTOPIA Fiber executive director Roger Timmerman said during the press conference announcing the partnership.

Bozeman Fiber CEO Greg Metzger added: “with this project, we’ll be able to attract and retain more businesses, and create jobs.”

County Provides Access to Bond Market

With American Rescue Plan funds flowing into state government coffers, about a third of the nation’s 50 states have announced what portion of their Rescue Plan dollars are being devoted to expanding access to high-speed Internet connectivity.

The federal legislation included $350 billion for states to spend on water, sewer, and broadband infrastructure, though everything we have seen suggests that the vast majority of that will not go to broadband. There is also another $10 billion pot of rescue plan funds, called the Capital Projects Fund, that mostly must be used to expand access to broadband.

Laboratories of Broadband-ification 

As expected, each state is taking their own approach. California is making a gigantic investment in middle-mile infrastructure and support for local Internet solutions while Maryland is making one of the biggest investments in municipal broadband of any other state in the nation. And although Colorado does not prioritize community-driven initiatives, state lawmakers there have earmarked $20 million for Colorado’s two federally-recognized Indian tribes to deploy broadband infrastructure with another $15 million devoted to boosting telehealth services in the state.     

Undoubtedly, individual states’ funding priorities vary. Some states may be relying on previously allocated federal investments to boost broadband initiatives and/or have been persuaded the private sector alone will suffice in solving its connectivity challenges. And in some states, such as Illinois, Minnesota, and Maine, lawmakers have prioritized using state funds to support broadband expansion efforts while other states may be waiting on the infrastructure bill now making its way through Congress before making major broadband funding decisions.

As of this writing, 17 states have earmarked a portion of their Rescue Plan money (totaling about $7.6 billion) to address the digital divide within their borders. Those states are Arizona, Arkansas, California, Colorado, Delaware, Hawaii, Indiana, Kentucky, Maine, Maryland, Montana, Missouri, Virginia, Tennessee, Vermont, Washington, and Wisconsin.

Snapshot

New Jersey establishes state committee to strategize deployment of community broadband networks

Louisiana Senate amends bill, opening state grant program to municipally-owned providers

Washington laws expanding municipal authority to provide retail service take effect

The State Scene

New Jersey 

New Jersey Governor Phil Murphy, on July 7, enacted legislation (A.B. 850) establishing a new state committee tasked with evaluating where community broadband networks should be established across the state, by surveying areas where public networks would be most feasible to deploy.

The 19-member Broadband Access Study Commission “will consider the logistics of deploying community broadband networks and report on its findings to the Governor and the Legislature,” reports ROI NJ. “The mission includes completing a comprehensive study of the success and failures of similar networks around the nation, the costs of constructing and maintaining networks, and the costs to subscribers for monthly access.” 

The Commission will also evaluate impediments to broadband access in the state, including those related to physical access, affordability, and digital literacy. After submitting recommendations to the state Governor and Legislature, the committee will dissolve within a year of its first meeting. 

Louisiana 

Louisiana Governor John Bel Edwards recently signed a bill (H.B. 648) allocating $180 million of incoming federal relief funds toward establishing a grant program - open to both public and private broadband providers - aimed at jumpstarting the buildout of Internet infrastructure to unserved communities across the Bayou State. 

Snapshot

Michigan broadband package repeals law prohibiting state grants from going to government entities

Montana Legislature duplicates federal limitations against schools and library self-constructing networks

U.S. House Republicans bill would give USDA authority over rural broadband, in place of FCC 

The State Scene 

Michigan

Michigan Gov. Gretchen Whitmer issued an executive directive on Wednesday establishing the Michigan High-Speed Internet (MIHI) Office, a new state office tasked with developing a strategy to make high-speed Internet more accessible to Michiganders. 

Gov. Whitmer has argued that more than $2.5 billion in potential economic benefit is left unrealized each year due to a lack of Internet access across the state. MIHI will be housed inside the state’s Department of Labor and Economic Opportunity (LEO). Speaking of the new office, LEO Acting Director Susan Corbin said, “We need to make major investments to support digital inclusion and this office will be focused on leveraging every dollar available through the American Recovery Plan and other federal programs,” reports WILX.

Michigan lawmakers are moving to answer Corbin’s call and recently proposed a $400 million one-time allocation of incoming federal relief funds to the newly created MIHI to work toward expanding access to broadband. With the funds, LEO would be tasked with maintaining a statewide broadband grant program, the Connecting Michigan Communities Broadband Grant. 

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

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.

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. 

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.

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:

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: