Now that the lengthy legal beef has been settled and New York’s Affordable Broadband Act (ABA) is set to take effect this month, it marks a potentially pivotal moment in a national effort to address one of the biggest barriers to broadband adoption: 

Affordability.

The first-in-the-nation law requiring large Internet Service Providers (ISPs) operating in New York to offer a $15/month plan for qualifying low-income households stands to benefit the approximately 1.7 million New Yorkers who had been enrolled in the federal Affordable Connectivity Program (ACP) Congress allowed to expire last spring.

With a new administration entering the White House – supported by GOP Congressional leaders who blocked previous ACP renewal efforts – the newly enacted ABA “paints a path that other states will look at,” as New Street Research analyst Blair Levin recently noted.

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“In a world where the federal government is subsidizing low-income households for $30 a month, states did not need to take action to address low-income broadband affordability,” Levin added. But now, without the ACP benefit, “states may try to assist low-income households to keep them connected.”

New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

New York’s Municipal Infrastructure Program (MIP) continues to provide grant funds to build municipal broadband networks across the state, as state broadband officials recently announced the program’s largest round of funding to date.

As we reported in June, the MIP program – specifically designed to fund municipally-owned networks as part of the Empire State’s $1 billion ConnectALL initiative – awarded $70 million to a half dozen projects earlier this summer.

Then, earlier this month, another $140 million in grant awards were announced for an additional six projects, promising to deliver “more than 1,200 miles of publicly-owned fiber optic infrastructure and wireless hubs, connecting (passing) over 60,000 homes and businesses with affordable, symmetric service – offering equal download and upload speeds at rates below regional averages.”

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The funding will be used to expand broadband infrastructure (and seed competition) in the Central New York, Finger Lakes, Mohawk Valley, North Country, Mid-Hudson and Western New York regions.

In a prepared press statement, New York Gov. Kathy Hochul characterized the grants as “a transformative step forward in our mission to connect every New Yorker to affordable, high-speed Internet.”

Erie County, New York’s ErieNet broadband initiative is poised to begin construction in Buffalo, NY, after the Buffalo Common Council recently passed a resolution approving the Telecommunications License Agreement with ErieNet LDC. The approval is a major step toward bringing affordable next-gen broadband access to long-neglected parts of Western New York.

ErieNet is a nonprofit, local development corporation (LDC), launched in September 2022, designed to construct and manage a municipal-based open-access fiber optic backbone. ECC Technologies has been chosen to handle sales, marketing, and tech support operations for the network.

“Construction has already begun for ErieNet with underground conduit installations, and utility work necessary to make utility poles ready for ErieNet fiber optic cable attachments,” ECC Technologies’ VP Matthew Crider tells ISLR. “We expect segments of our network to come online beginning in March of 2025; and have the ErieNet 400+ mile open access network substantially built by the end of 2025.”

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“Bringing high-quality broadband to Erie County begins in the City of Buffalo, and the Common Council’s approval opens up the way to make that happen,” Erie County Executive Mark Poloncarz said in a prepared statement.

Crider told ILSR that the current construction budget for the network is approximately $34 million, funded through American Rescue Plan Act (ARPA) broadband grants.

As Digital Inclusion Week 2024 swings into action, frontline digital inclusion practitioners from across the nation will come together for a timely Building for Digital Equity (#B4DE) livestream event today that focuses on “Coalition Building for Success.”

The popular (and free) virtual gathering – co-hosted by Institute for Local Self-Reliance (ILSR) Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA) – will go live today from 3 to 4:15 PM ET.

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For Digital equity advocates or interested guests who have yet register for the event, there is still time to register here.

The third #B4DE of the year will delve into how coalitions are finding success in pushing the digital equity movement forward as Digital Equity Act grant programs are being established.

The keynote speaker for today’s livestream will be Georgia Savage, Deputy Director of #OaklandUndivided, who helped lead the way in securing $38.5 million in grant funding that will expand broadband infrastructure and distribute Internet-connected devices to thousands of low-income households across East and West Oakland, California.

Communities looking to leverage American Rescue Plan Act (ARPA) funding for broadband or other local infrastructure need to act soon or risk losing access to a once-in-a-generation funding resource.

Most ARPA recipients seem well aware of the deadline, but data suggests more than a few communities could drop the ball.

As part of the 2021 American Rescue Plan Act (ARPA), $25 billion was specifically earmarked for broadband expansion.

But the law also created the State and Local Fiscal Recovery Funds (SLFRF) program, which doled out $350 billion for states, municipalities, and tribal governments to offset pandemic losses or flexibly invest in local infrastructure.