States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

The New Mexico Office of Broadband Access and Expansion (OBAE) has awarded $1.4 million in grants to 15 counties, tribal communities, cooperatives, and municipalities for planning, engineering and grant writing to expand broadband access in long-underserved communities.

The funding not only allows these communities to begin analyzing their local connectivity needs in more detail, it potentially opens the door to helping them apply for more than $675 million in BEAD grants the state of New Mexico is poised to receive courtesy of 2021 infrastructure legislation.

The New Mexico Grant Writing, Engineering and Planning Program (GWEP) awards must be used for grant writing, engineering and planning for broadband expansion projects and the development of infrastructure projects. Traditional private ISPs were not eligible.

The first round of awards were announced in June, with a second batch announced in July.

Image

Round one awardees included $100,000 grants to the Village of Pecos, Valencia County, Pueblo of Isleta, Pueblo of San Ildefonso, Pueblo of Laguna, Pueblo of Jemez, and Otero County, and a $90,000 grant to Luna County.

Los Alamos County New Mexico is getting closer to unveiling its finished plan for a county-wide open access fiber network. The effort, should it be approved by county officials in the next few months, should dramatically improve local competition and broadband access quality for the county’s 19,419 residents.

A 2023 Strategic Leadership Plan adopted by the County Council identified that broadband is an “essential service,” stating that a county-owned community broadband network would be a top priority to improve economic vitality of the county.

So last December, the county issued a project request for proposals (RFP), and is currently examining potential partners as well as build and financing options.

County broadband planners tell ILSR they’re hoping to build a county-wide open access fiber network within a budget of $35 million. That network could theoretically pass 10,014 addresses and if open access, could spur meaningful local competition in a predominately rural county where many either don’t have service, or only have access to Comcast cable.

Image

Los Alamos County Broadband Manager Jerry Smith told ILSR the county is still working its way through the early preparation stages but the project has not been approved by the Los Alamos County Council yet. While planners are currently in the RFP procurement process, the county isn’t yet in position to share more details publicly.

“We are making progress and are now in the final stages of procurement,” Smith said. “We hope to be able to present to our county council a recommended vendor and negotiated contract within the next few months. If we get an approved and funded project, more specific information can be shared at that point.”

Los Alamos County, New Mexico joins the growing list of municipalities looking to explore a community-owned broadband network in a bid to improve resident access to fast, affordable, next-generation fiber.

The request for proposal (RFP), originally issued August 13, called for design, planning, and construction partners for a locally-owned and operated fiber network. An updated RFP was issued on December 12, 2023 stating that applications for phase two of their planned project were deemed “incomplete.” The county has given potential partners until January 12 to respond.

“The county team is now reviewing the submitted proposals,” the county states. “Once one is selected and an agreement finalized, the county will request the council award a contract. This may occur in early 2024.”

Image

The RFPs come after county council leaders passed a motion last January declaring “…that high-quality reliable telecommunication including broadband is an essential service.” Los Alamos County officials did not respond to repeated requests for comment asking for more detail on the county’s goals. Local outlets suggest more details should emerge in 2024.

New Mexico is poised to receive more than $635 million in broadband subsidies courtesy of the Broadband Equity Access and Development (BEAD) program, made possible in turn by the 2021 Infrastructure Investment and Jobs Act.

Panhandle Telephone Cooperative Inc. (PTCI) has announced the broadband provider will be dramatically expanding access to its fiber broadband services in New Mexico thanks to a new $43.4 million grant made possible by federal infrastructure legislation.

The Cooperative currently predominately offers fiber broadband, phone, and cellular wireless phone service to subscribers in Oklahoma and Texas. The $43 million cash infusion will allow the cooperative to expand access outside of its existing footprint into rural Union County, in northeast New Mexico.

As per grant rules, the network will deliver speeds of 100 Megabit per second (Mbps) downstream and 20 Mbps upstream, but the cooperative does not yet have a construction timeline or information on planned tiers and pricing.

PTCI’s existing deployments in Texas provide locals with uncapped fiber access at symmetrical speeds of 100 Mbps, 250 Mbps, and 1 Gbps for $60, $86, and $116 per month, respectively. The company stopped offering TV services in 2020, but launched its own cellular network in its existing territories starting in 2021.

Image

The project’s $43 million grant for expansion into New Mexico was made possible courtesy of a recently announced fourth funding round for the U.S Department of Agriculture’s ReConnect Program. Last month the program announced another $714 million in grants and loans aimed at shoring up broadband access to long unserved or underserved rural Americans.

As voters went to the polls yesterday, broadband-focused initiatives and candidates could be found up and down the ballot all across the country.

Alabama

Alabama voters cast their ballots to decide on a state Constitutional amendment known as the Broadband Internet Infrastructure Funding Amendment. The measure sought to amend the state's constitution "to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities."

That measure passed, garnering a “Yes” vote from nearly 80 percent of Alabama voters. With 73 percent of the vote counted late last night, 922,145 “Yes” votes had been tallied with 251,441 “No” votes.

Also in Alabama, Democratic U.S. Rep. Terri Sewell won her re-election bid to represent Alabama’s 7th congressional district. Sewell, whose district covers a large swath of the Alabama Black Belt, “spent much of her past two years in office bringing American Rescue Plan Act funds to rural Alabama, dedicated to healthcare, broadband access and infrastructure building,” as noted by The Montgomery Advertiser.

Colorado

The Centennial State is not listed as one of 17 states in the nation with preemption laws that erect barriers to municipal broadband because nearly every community that had a vote has passed it to nullify it. But more communities had to go through that unnecessary process yesterday due to the law known as SB-152 that bans local governments in the state from establishing municipal broadband service absent a referendum.

Alabama and New Mexico voters will soon be given the midterm option of changing their state constitutions to help boost broadband funding and deployment, albeit in notably different ways. 

In Alabama, voters will head to the polls on November 8th to vote on a Broadband Internet Infrastructure Funding Amendment that would amend the state's constitution "to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities."

County leaders have spent much of this year warning that Section 94 of the Alabama Constitution bans the state from granting public money or “things of value” to local governments for public and private use. That’s a significant problem when it comes to the $276 million in ARPA funds Alabama Governor Kay Ivey earmarked for broadband expansion last March.

Programs such as the USDA’s ReConnect and the FCC’s Rural Digital Opportunity Fund (RDOF) haven’t run afoul of the Alabama Constitution because they both involve the federal government directly doling out funds for broadband expansion. But ARPA funding allows local municipalities to distribute a portion of state-allocated funds.

Snapshot

Maryland plans to funnel American Rescue Plan Act funding towards community broadband 

Vermont Governor bolsters House plan backing Communications Union Districts 

A national movement to address digital inclusion ignites

See the bottom of this post for related job openings

State Scene

Maryland

Maryland State Governor Larry Hogan made digital equity and literacy a top priority of the state when he signed H.B. 97, the Digital Connectivity Act, into law on April 13. The new law establishes the Office of Statewide Broadband (OSB) within the Maryland Department of Housing and Community Development to create a plan to get all Marylanders connected to affordable, high-speed Internet by 2026. The OSB will also assist in administering $300 million for digital equity initiatives out of the $3.9 billion Maryland received in American Rescue Plan funds. 

The $300 million allocation will be broken down into separate pots of money to address physical infrastructure, affordability, and adoption: $45 million will be for grants that support and expand municipal broadband networks; $75 million for affordability initiatives to subsidize the cost of monthly service fees and devices for eligible residents who are subscribers to private Internet Service Providers (ISPs); and $150 million dedicated to deploy broadband infrastructure and expand connectivity in both urban and rural areas. In addition, $10 million is earmarked for local government and community-based solutions, and $6 million will support adoption initiatives, including $4 million for a new division under the University System of Maryland to develop curriculum on digital literacy and addressing the broadband gap.

Snapshot 

Colorado House passes bill that reduces broadband board membership and conceals mapping data

Michigan legislature approves bill granting ISPs property tax exemptions 

New Mexico and Virginia bills await governors’ action 

The State Scene

Tennessee

Tennessee is home to some of the most creative local solutions to bridging the digital divide. Municipal fiber networks across the state, including Chattanooga’s EPB Fiber network, Morristown’s FiberNet, and Bristol’s network, have been a boon to economic development, job creation, educational initiatives, and overall quality of life in the past decade.

The next city to potentially join the ranks of providing municipal broadband in Tennessee is Knoxville. On March 11, the Knoxville Utility Board approved a business plan to provide Internet services across its service area. 

Despite the widespread success of municipal networks across Tennessee, the state restricts what populations they can serve. Although Tennessee law allows cities and towns to offer advanced telecommunications services if they have a municipal electric utility, the networks are not permitted to offer those services to residents who live outside of the utility’s service area. Removing these restrictions would permit substantial fiber expansion to connect more residents at no cost to the state or taxpayers.

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.