Recent Trump administration changes to a massive federal broadband grant program are lowering standards for broadband access, shifting the focus away from affordability and equity, and potentially redirecting billions of dollars away from future-proof fiber networks toward slower, more expensive satellite options that don’t seem likely to fix U.S. broadband woes.

But states, worried about losing an historic round of broadband grants, may be too intimidated to be up front about the potential downside of changes the Trump administration calls “the benefit of the bargain.”  

That’s the early story coming out of states like Tennessee, Colorado, and Texas, where state leaders are being forced to dramatically revamp billions of dollars in Broadband, Equity, Access, and Deployment (BEAD) grant planning.

In all three states the changes have introduced new delays and lowered last mile quality control standards. But an early look at the revamped bidding process in all three states shows that billions of dollars are likely being redirected away from locally-owned fiber networks to billionaire-owned low-Earth-orbit (LEO) satellite broadband options insufficient to the task.

Tired of the high prices, spotty coverage, and slow speeds of regional monopoly broadband providers, the remote West Texas city of Monahans has spent the last decade taking matters into their own hands.

Now, thanks to hard work, determination, and local philanthropy, the city’s 7,500 residents are headed for the right side of the digital divide.

Carroll Faulkner, who consulted with the city on its project, and Teresa Burnett, executive director of the Monahans Chamber of Commerce, told ILSR the project to bring Monahans into the modern era has been a challenging labor of love.

It has recently culminated in the completion of the first phase of the project, bringing affordable fiber to around 2,000 residents in city 36 miles southwest of Odessa.

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“We are very passionate about this project,” Burnett told ILSR. “It's been a lot of ups and downs, and it's been 10 long years.”

The city’s network build is in partnership with Hosted America, which is acting as the first last mile ISP serving residents, and View Capital’s American Fiber Infrastructure Fund, which technically owns the finished network. Hosted America enjoys early exclusive usage of the network, but the duo say the network will ultimately be open access, allowing numerous partners.

Phase one of the network plan was completed roughly a year ago, bringing affordable fiber for the first time ever to around 2,000 locals. The full cost of phase one was expected to be around $4.5 million, said Faulkner, of which around $1 million was funded by the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The remainder of the funding was obtained from View Capital and a coalition of philanthropic organizations.

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 …

As ILSR continues to support local communities in solving Internet connectivity challenges, the Community Broadband Networks (CBN) team has kicked off a new initiative deep in the heart of Texas we are calling the Digital Opportunity Lab.

It mixes elements from the on-going Tribal Broadband Bootcamps with ingredients from CBN’s community engagement work to create a customizable-program in support of digital equity coalitions and community leaders amid a national effort to unlock the participatory benefits of broadband for all.

“Our focus isn’t on telling communities what they should or shouldn’t do,” ILSR Community Broadband Networks Director Christopher Mitchell explained. “We zero in on demystifying the technology involved, illuminating the digital landscape as it functions today, and share what we’ve learned and distilled after nearly two decades of documenting what local communities are doing to bridge multiple digital divides.”

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Digital Opportunity Lab Debut

In a colonia outside of Pharr, Texas – nestled in the Rio Grande Valley – the first Digital Opportunity Lab convened last week with a focus on high school-aged students.

Harrison County, Texas officials say they’re poised to use the county’s remaining Rescue Plan (ARPA) funds to strike a fiber expansion partnership with Etex Communications, a subsidiary of the locally-owned Etex Telephone Cooperative.

The Harrison County Commissioners Court says it’s putting the finishing touches on a $4.5 million public-public partnership with Etex that will help deliver fiber access to the Western end of the heavily underserved Texas county with the help of $1.5 million in federal ARPA funds.

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ARPA Funds To The Rescue

Etex Telephone Cooperative was originally formed in 1952 to meet the communication needs of people living in rural northeast Texas. Beginning with 743 members when the co-op was first created, the provider now services more than 12,600 members scattered across a service territory of 710 square miles of rural East Texas.

“Internet is a big issue. It’s almost as fundamental as water and electricity. You gotta have it,” Harrison County Judge Chad Sims tells The Marshall News Messenger. “It is an essential thing. So we’re happy to partner with ETEX.”

U.S. News & World Report recently ranked Brownsville, Texas as one of best places to live in the Lone Star State and as one of the most affordable places to retire.

Now – as the border city continues to make progress on an ambitious revitalization initiative – it is adding to its “best, most affordable” resume by transforming the digital landscape with a citywide fiber network to bring fast, reliable, and affordable Internet service to its nearly 200,000 residents.

The effort is being launched on the back of a city-owned middle mile fiber backbone and partnership with Lit Fiber to build out last mile service, operating as Lit Fiber BTX.

“We just lit up our first subscriber and will have 10,000 locations-passed by the end of the year,” Rene Gonzalez, Lit Fiber’s Senior Vice President of Policy and Regulatory Affairs, told ILSR this week.

“Brownsville was a place that had been neglected. But now, SpaceX is here. We are here. It’s exciting.”

The excitement was palpable last week at the BTX Demo Center in downtown Brownsville where city and Lit Fiber officials held a “special community social” to celebrate service getting turned on for the first LIT Fiber BTX subscriber and to showcase what the network will offer city residents and businesses moving forward.