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

The South Carolina Broadband Office (SCBBO) has announced 56 newly funded projects through its new broadband grant program, which state leaders say will dramatically improve resident access to affordable, next-generation broadband networks statewide.

South Carolina historically hasn’t been a hotbed of community broadband deployment, and is one of 17 states that have passed restrictions on municipal network creation, funding, and expansion. Still, there are numerous electric cooperatives in the state busy creatively bridging the digital divide that stand to benefit from an historic infusion of new grant funding.

The state’s latest round of funding comes courtesy of South Carolina’s American Rescue Plan Act, State and Local Fiscal Recovery Funds Priority 1.0 program (ARPA SLFRF 1.0).  

All told, the SCBBO says it has doled out $129.6 million in broadband grand awards to 15 different Internet service providers (ISPs) across 34 different South Carolina counties.

“We are incredibly excited about this next chapter of broadband expansion in South Carolina,” Jim Stritzinger, Director of the SC Broadband Office said in a statement.  “Across the state, most have probably noticed the ISP road crews working diligently to provide high-speed internet access to our homes and businesses. This set of investments will provide a substantial boost to the work that is already underway.”

According to state officials, All ARPA SLFRF 1.0 grants are required to be completed by December 31, 2024. Once completed, the state says these grants will have funded 5,000 additional miles of fiber statewide as well as last mile access to at least 38,995 locations.

More than 121 Colorado cities and towns have now opted out of SB152, a 17-year old state law backed by telecom monopolies greatly restricting the construction and funding of community broadband alternatives.

And the trend shows no sign of slowing down. 

Colorado’s SB152, passed in 2005 after lobbying pressure by Comcast and Centurylink, prohibits the use of municipal or county money for broadband infrastructure without first holding a public vote.

A bipartisan coalition of Pennsylvania lawmakers have introduced legislation that attempts to reverse some of the state’s most-stringent provisions hamstringing municipal broadband builds.

But experts suggest that while the bill may be well-intentioned, a cleaner approach would be to eliminate the state’s harmful and dated restrictions on municipal broadband entirely. 

As it currently stands, Pennsylvania law prohibits municipalities from providing broadband to state residents for money, unless existing telecom providers don’t currently provide broadband access at the address, and those providers claim they’re willing to do so sometime within 14 months of being asked.