As the federal government makes unprecedented investments to expand high-speed access to the Internet, unbeknownst to most outside the broadband industry is that nearly a third of the states in the U.S. have preemption laws in place that either prevent or restrict local municipalities from building and operating publicly-owned, locally-controlled networks.

Currently, there are 16 states across the U.S. (listed below) with these monopoly-protecting, anti-competition preemption laws in place.

These states maintain these laws, despite the fact that wherever municipal broadband networks or other forms of community-owned networks operate, the service they deliver residents and businesses almost always offers faster connection speeds, more reliable service, and lower prices.

In numerous cases, municipal broadband networks are able to provide low-cost or free service to low-income households even in the absence of the now expired federal Affordable Connectivity Program (ACP). And for several years in a row now, municipal networks consistently rank higher in terms of consumer satisfaction and performance in comparison to the big monopoly Internet service providers, as PCMag and Consumer Reports have documented time and time again.

Nevertheless, these preemption laws remain in 16 states, enacted at the behest of Big Cable and Telecom lobbyists, many of whom have ghost written the statutes, in an effort to protect ISP monopolies from competition.

The Infrastructure Law Was Supposed to Move the Preemption Needle But …

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.

Cooperatives and Tennessee municipal broadband projects have nabbed a respectable chunk of Tennessee's latest round of middle and last mile broadband grants.

Tennessee’s Department of Economic and Community Development (TNECD) recently announced the state had awarded more than $162.7 million in broadband and digital opportunity grants, funded primarily via federal COVID relief legislation.

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TNECD indicates that $97.2 million is being earmarked for last mile and middle mile connectivity programs, with $65.5 million set aside for digital opportunity programs. The grants should extend broadband to an additional 236,000 Tennessee residents across 92 counties. Winners will provide $48 million in matching funds and must complete all projects by the end of 2026.

As is often the case, the regional telecom monopoly nabbed the lion’s share of the grants and awards, with Charter (Spectrum) being awarded more than $11.7 million for projects across Polk, Hardin, and Wayne counties. Charter was the top winner in the TNECD’s 2022 grant awards as well, nabbing $20.4 million to fund expansion across six counties.

At the same time, municipalities and cooperatives have been fairly well represented in both the 2022 and this year’s awards.

As the municipal broadband movement continues to gain momentum, we created a new fact sheet to highlight the dramatic surge in the number of communities building publicly-owned, locally controlled high-speed Internet infrastructure over the last three years.

In January, we announced our updated tally of municipal broadband networks across the U.S., which showed that between January 2021 and January 2024 at least 47 new municipal networks had been lit up for service.

Our census of new municipal broadband networks comes while dozens of other projects are still in the planning or pre-construction phase, which includes the possibility of building 40 new municipal networks in California alone.

The new fact sheet not only contains pertinent numbers to illustrate the rising tide of municipal broadband networks, it also includes snapshots of four recently launched networks now providing service to communities hungry for high-quality Internet connectivity and competitive choice.

You can find the new Rising Tide of Municipal Broadband fact sheet here.

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Community Broadband Resource Pairing

With Big Telecom’s assault-on-competition campaign as loud (and misleading) as ever, a small municipal broadband utility in Massachusetts is quietly showcasing one of the many reasons why building publicly-owned, locally controlled broadband infrastructure is gaining in popularity, racking up awards, and earning high subscriber satisfaction rates in communities across the nation.

With an eye on keeping local dollars close to home for community investments, last week the Westfield City Council voted to approve an $11.1 million bond for a new athletic track and field at the local high school, thanks to the success of Westfield Gas & Electric’s broadband subsidiary Whip City Fiber. And though the return on investment may not be as eye-popping as the $2.7 billion Chattanooga's municipal network, EPB Fiber, has reaped in Tennessee, Westfield officials hailed the community investment as a “huge moment” for local residents.

In a recently published piece in The American Prospect, Sean Gonsalves, ILSR's Community Broadband Networks Initiative Associate Director for Communications, reports on four cities across the U.S. that are well prepared to deal with the demise of the Affordable Connectivity Program (ACP).  

The article – titled "The Municipal Broadband Solution" – begins by laying out why Congress created the popular program and how letting the ACP go bankrupt undermines the national "Internet For All" Initiative now underway. However, while digital equity advocates across the nation rightly lament the demise of the program, the focus of the article is on cities that have figured out how to deliver afforable high-quality Internet access even without the ACP.   

Here's a few excerpts:

Congress created the ACP to soften a harsh reality: Americans pay among the highest prices for broadband of any developed nation in the world, leaving tens of millions unable to afford internet service—something experts have long noted is a telltale sign of a broken market dominated by monopoly providers, and is at the very heart of why the U.S. digital divide is as massive as it is.

However, although federal lawmakers have known for over a year that the fund would be bankrupt by this spring, GOP congressional leaders have not budged on even bipartisan attempts to save the ACP, prompting the Federal Communications Commission (FCC) to announce in January that the agency was being forced to wind down the popular program.

It’s a major setback for the “Internet for All” effort, especially in light of a recent FCC survey that found 29 percent of ACP beneficiaries would be left without any home internet service whatsoever without the benefit, in an age when internet connectivity is a necessity for meaningful participation in 21st-century society.

As the new year begins, the Institute for Local Self-Reliance (ILSR) announced today its latest tally of municipal broadband networks which shows a dramatic surge in the number of communities building publicly-owned, locally controlled high-speed Internet infrastructure over the last three years.

Since January 1, 2021, at least 47 new municipal networks have come online with dozens of other projects still in the planning or pre-construction phase, which includes the possibility of building 40 new municipal networks in California alone.