The window to request an unprecedented amount of federal funds to support state broadband grant programs is now open for business.

On Friday the 13th, the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) officially announced the Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program.

The BEAD program, which is part of the Infrastructure Investment and Jobs Act (IIJA) that was passed in November 2021, represents the single largest federal investment in broadband expansion in U.S. history. The program, according to NTIA’s own definition, is designed to allocate the funds to all 50 states (U.S. territories and Tribal governments) to support “projects that help expand high-speed Internet access … (through) infrastructure deployment, mapping, and adoption. This includes planning and capacity-building in state offices. And it supports outreach and coordination with local communities.”

The Application Process Has Begun

We have documented and discussed the BEAD program on numerous occasions, which you can find here. But the big news that comes with the NOFO release are the application deadlines associated with it.

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States have until July 18 to submit their Letter of Intent (LOI), a required first step for states to receive a minimum of $100 million in BEAD funds. (States will be allocated additional funding based on a formula that takes into account how many unserved households are in each state).

If you don't quite have enough good broadband podcast content in your life (we don't know how that's possible with a backlog of almost 500 episodes of Broadband Bits and nearly 40 episodes of the Connect This! show), you're in luck. The always-wonderful 99 Percent Invisible podcast, in a recent episode, takes on last-mile network infrastructure as part of its bonus Future of.. series.

In "The Future of the Final Mile," Roman Mars uses the evolution of broadband access over a handful of years in Detroit and Chattanooga to illustrate what happens when a community sucessfully takes the future of its information infrastructure into its own hands. With interviews from local residents and broadband advocates, the episode addresses the uneven broadband marketplace, efforts to address inequitable access in Detroit through a citizen-created wireless mesh network, and a full fiber-to-the-home build in Chattanooga. Mars and his co-producer ask a lot of good questions about why more communities don't take bold steps, why preemption persists in 17 states, and what communities can do.

The episode is 41 minutes long. Listen to "The Future of the Final Mile" here, or read the transcript here.

Jefferson County, Washington’s Public Utility District (PUD) is just the latest to take advantage of a flood of new grants — and recently-eliminated restrictions on community broadband — to expand access to affordable fiber across the state.  

Over the last few months, the PUD - situated northwest of Seattle, just across the Puget Sound - has been awarded more than $11 million in grants, including $1 million from the Washington State Public Works board, and another $9.7 million in Broadband Infrastructure Acceleration grants doled out by the Washington State Department of Commerce. The funds will help the PUD connect 2,600 homes in Gardiner, Quilcene, Cape George, Discovery Bay, and Marrowstone Island over the next two years.

Locally Operated Infrastructure, Affordable Prices, Fast Speeds

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Construction is expected to start later in 2022, with the first subscribers to come online sometime in the first half of 2023. A project breakdown says they hope to provide basic speeds of 100 Megabits per second (Mbps) for $65 a month, and speeds of 1 Gigabit per second (Gbps) for $90 a month. The network will be open access, which means that additional ISPs (including, presumably, those currently offering service on the existing network) will be able to continue into the expanded areas.The PUD plans to offer a low-income tier for $45/month ($15 after the Affordable Connectivity Program subsidy), which is welcome to see.

Even as high-speed Internet access is widely considered a basic utility akin to electricity and clean water, there are still 17 states with preemption laws that either ban publicly-owned broadband networks or have barriers that make it all but impossible for municipalities to compete with monopoly Internet Service Providers. This, despite the major incumbents having received billions in taxpayer subsidies over the years and having failed to deliver universally reliable and affordable connectivity.

However, as it has become increasingly clear that the private market alone is not going to solve America’s connectivity crisis, last year two states (Arkansas and Washington) rolled back their preemption laws that were protecting monopoly incumbent providers from competition, allowing local and regional governmental entities to build the telecommunications infrastructure their residents need.

Now, one Nebraska lawmaker has recently filed a bill that, if passed, would significantly remove his state’s current barriers to municipal broadband. Nebraska State Sen. Justin Wayne of Omaha filed LB916 last week with the state legislature’s Transportation and Telecommunications Committee.

As it stands now, according to the Coalition for Local Internet Choice (CLIC), Nebraska “generally prohibits agencies or political subdivisions of the state, other than public power utilities, from providing wholesale or retail broadband, Internet, telecommunications or cable service. Public power utilities are permanently prohibited from providing such services on a retail basis, and they can sell or lease dark fiber on a wholesale basis only under severely limited conditions. For example, a public power utility cannot sell or lease dark fiber at rates lower than the rates incumbents are charging in the market in question.” 

Bill to Let Local Communities Decide on Broadband

Once a booming center of manufacturing, Allentown, PA (pop. 120,900) is looking to reinvigorate its economy by reinventing itself as a modern 21st century “smart city,” bringing fiber-to-the-home Internet connectivity to every resident in the city.

In October, the city proposed using $7 million of its $57 million in American Rescue Act Funds to aid in the deployment of a citywide FTTH network. City leaders hope the investment will help them reach the goal outlined in its strategic economic development plan to become a smart city by 2030.

The city will work with Iota Communications to conduct a feasibility study they hope will be complete in the coming months. While the possibility of a FTTH network is in the early stages for the city, the proposal signals a serious ambition to bridge the digital divide in the region.

Feeling The Way Forward

Allentown is one of three cities that make up a larger geographic area known as Lehigh Valley, with the other cities being Easton (pop. 27,000) and Bethlehem (pop. 75,500). For a while now, leaders in the valley have been talking about the digital divide and it’s been made clear with the pandemic that it can no longer be put on the backburner.

Pennsylvania lawmakers passed a law 2019 clearing the way for municipalities to have more of a say in how 5G is deployed in their communities. And while many local officials say the new law will help pave the way for Allentown to stay ahead of the curve, some have cautioned that a focus on 5G is a major distraction.

We've been writing for years that the artificial restrictions put on municipalities that keep communities from solving their connectivity needs with locally owned and operated networks are unpopular with the vast majority of Americans, irrespective of political affiliation. Today, 17 states persist in keeping these barriers in place.

A new survey out from Consumer Reports shows just how out of touch such policies are, and we've been remiss in not pointing it out. The survey, which comes from data collected in Chicago in August of 2021, highlights an array of important statistics.

They include the fact that "nearly a quarter of Americans (24 percent) who have a broadband service at their home say it’s difficult to afford their monthly broadband costs," with "a larger percentage of Black, non-Hispanic (32 percent) and Hispanic (33 percent) Americans than white, non Hispanic Americans (21 percent) say[ing] it’s ‘somewhat’ or ‘very’ difficult to afford their monthly Internet [access] costs."

The most recent survey also finds that "43 percent of Americans who have broadband service in their household say they are dissatisfied with the value they get for the money," a testament to the circumstances for tens of millions of households stuck in monopoly territory with no viable options.

What about municipal or community-owned broadband?

Three out of four Americans feel that municipal/community broadband should be allowed because it would ensure that broadband access is treated like other vital infrastructure such as highways, bridges, water systems, and electrical grids, allowing all Americans to have equal access to it.

A larger percentage of Democrats (85 percent) than Independents (74 percent) and Republicans (63 percent) say municipal/community broadband should be allowed.

Across the Commonwealth of Virginia, local governments, county broadband authorities, cooperatives, and private Internet Service Providers are leveraging the influx of American Rescue Plan funds to reach the state’s goal of achieving universal access to high-speed Internet connectivity by 2024.

With $850 million in state appropriations for broadband connectivity and $1.15 billion in local government and private service providers’ funding matches, the state is on track to invest $2 billion dollars toward broadband expansion in the coming years, and is currently investing in broadband expansion projects at record levels.

In August, Gov. Ralph Northam and the Virginia State Legislature agreed to devote $700 million of the state’s $4.3 billion in American Rescue Plan funds to expand access to broadband. The $850 million investment the state has announced will consist mostly of American Rescue Plan aid. The funds will be administered by the Virginia Telecommunication Initiative (VATI), which distributes grants to public-private partnerships to extend broadband service to unserved regions of the state, or areas that lack access to Internet service delivering connection speeds of at least 25/3 Megabits per second (Mbps).

Public-Private Partnerships Deep in the Heart of Virginia

From the marsh grasslands making up Virginia’s Eastern Shore, across the three peninsulas carved out by the Chesapeake Bay, all the way to the Shenandoah Valley in the West, a diverse array of regional partnerships have formed between Virginia’s local governments, electric and telephone cooperatives, and private ISPs as broadband expansion efforts continue to advance in 2022.