The State of Texas is notorious for pitting communities against one another. This time around, it's the little town versus the big city in the funding arena to improve Internet access.

Last week, Texas Comptroller Glenn Hegar kicked off his Texas Broadband Listening Tour 2022, scheduled to take place at 12 different locations statewide. The goal of his stakeholder listening tour is to collect feedback for Texas' newly created broadband development office and how the state should spend a once-in-a-generation windfall of federal resources to close the digital divide. Great news for a state the size of Texas with 29 million residents, right? It depends on where you live. The majority of the communities hosting a public forum are smaller communities. Remember the Alamo? Not Heger's office. Dallas and Austin made the list of stops, but San Antonio and Houston, with some of the state's highest populations, didn't make the cut for the tour. 

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Texas has both unserved and underserved communities living on the wrong side of the digital divide. From 8-80 years old, residents and businesses throughout rural, suburban, and urban communities are all harmed by the lack of community broadband infrastructure, unaffordable connectivity services, and digital discrimination.  

We applaud the approach of public officials doing listening tours. However, we are deeply concerned that many states - red and blue - will ignore the needs of urban residents while focusing solely on solutions for rural areas. We laid this out more broadly in a policy brief we published last year. We can ensure everyone has high-quality Internet access, but we need to make sure that is the explicit goal. 

While a national debate rages over immigration and the border wall, just 30 miles north of the U.S.-Mexico border, Harlingen city officials are coming together to plan the building of a bridge – across the digital divide deep in the heart of the Rio Grande Valley.

When Harlingen (pop. 75,000) was founded at the turn of the 20th century, it established itself as a prominent commerce and transportation hub – the “Capital of the Rio Grande Valley” at “the crossroads of South Texas.” Over the years, thanks to its fertile delta soil, the cultivation of citrus fruit, grain, and cotton became a major part of the local economy. Today, however, the biggest industry in the second most populous city in Cameron County is healthcare.

As attractive as Harlingen has become to residents and visitors – with its extensive park system and tropical bird-watcher’s paradise (the city happens to be located where two primary avian flyways converge) – one thing the city lacks is adequate access to broadband, which is particularly acute among households with school-aged children.

Pandemic Spurs City into Action

That realization was the impetus behind a recent city commission vote to move forward with a feasibility study to determine how the city might build a broadband network and whether it should rely on fiber, fixed wireless, or a mix of deployment technologies to modernize Harlingen’s telecommunications infrastructure.

“What brought this to our attention was of course the pandemic,” City Manager Gabriel Gonzalez told Valley Central News. “When the school district had to go to virtual learning, we found out that there were students and some families that did not have access to (the) Internet.”

Snapshot

New Jersey establishes state committee to strategize deployment of community broadband networks

Louisiana Senate amends bill, opening state grant program to municipally-owned providers

Washington laws expanding municipal authority to provide retail service take effect

The State Scene

New Jersey 

New Jersey Governor Phil Murphy, on July 7, enacted legislation (A.B. 850) establishing a new state committee tasked with evaluating where community broadband networks should be established across the state, by surveying areas where public networks would be most feasible to deploy.

The 19-member Broadband Access Study Commission “will consider the logistics of deploying community broadband networks and report on its findings to the Governor and the Legislature,” reports ROI NJ. “The mission includes completing a comprehensive study of the success and failures of similar networks around the nation, the costs of constructing and maintaining networks, and the costs to subscribers for monthly access.” 

The Commission will also evaluate impediments to broadband access in the state, including those related to physical access, affordability, and digital literacy. After submitting recommendations to the state Governor and Legislature, the committee will dissolve within a year of its first meeting. 

Louisiana 

Louisiana Governor John Bel Edwards recently signed a bill (H.B. 648) allocating $180 million of incoming federal relief funds toward establishing a grant program - open to both public and private broadband providers - aimed at jumpstarting the buildout of Internet infrastructure to unserved communities across the Bayou State. 

Snapshot

Maryland plans to funnel American Rescue Plan Act funding towards community broadband 

Vermont Governor bolsters House plan backing Communications Union Districts 

A national movement to address digital inclusion ignites

See the bottom of this post for related job openings

State Scene

Maryland

Maryland State Governor Larry Hogan made digital equity and literacy a top priority of the state when he signed H.B. 97, the Digital Connectivity Act, into law on April 13. The new law establishes the Office of Statewide Broadband (OSB) within the Maryland Department of Housing and Community Development to create a plan to get all Marylanders connected to affordable, high-speed Internet by 2026. The OSB will also assist in administering $300 million for digital equity initiatives out of the $3.9 billion Maryland received in American Rescue Plan funds. 

The $300 million allocation will be broken down into separate pots of money to address physical infrastructure, affordability, and adoption: $45 million will be for grants that support and expand municipal broadband networks; $75 million for affordability initiatives to subsidize the cost of monthly service fees and devices for eligible residents who are subscribers to private Internet Service Providers (ISPs); and $150 million dedicated to deploy broadband infrastructure and expand connectivity in both urban and rural areas. In addition, $10 million is earmarked for local government and community-based solutions, and $6 million will support adoption initiatives, including $4 million for a new division under the University System of Maryland to develop curriculum on digital literacy and addressing the broadband gap.

Welcome to In Our View, the first installment of a new series here. From time to time, we'll use this space to explore new ideas and share our thoughts on recent events playing out across the digital landscape, as well as take the opportunity to draw attention to important but neglected broadband-related issues.

The disaster in Texas resulting from an electric grid that was deliberately left exposed and likely to fail in rare cold weather events has received a lot of dramatic coverage, as well it should given the loss of life and damage to so many homes and businesses. It also raised some questions in my mind regarding competition and designing markets that will be discussed below. Texas was a leader in allowing different electricity firms to compete in selling electricity over the same electric grid, an arrangement that has some similarities to open access broadband approaches.

In digging into that recent electricity history, I made another interesting and relevant finding that I discuss first as part of the background to understand the lessons from Texas. In 20 years of competing models between, on the one hand, municipal and cooperative structures to deliver electricity and, on the other hand, a largely deregulated and competitive market, the munis and co-ops delivered lower prices to ratepayers.

Many of the sources used in this article are behind paywalls. We wish that weren't the case but we support both paying for news and the libraries that have databases that may allow you to track this down if you have the inclination.

Electricity Deregulation, Texas Style

More than 20 years ago, Texas largely deregulated electricity markets. Residents still have a monopoly in charge of the physical wire delivering electricity to the home, but they could choose among various electricity providers that would effectively use the wire and charge different amounts, differentiating themselves via a variety of factors, including how the electricty was produced.

DayNet, a new Internet utility emerging in Dayton, Texas, is looking to lasso a broadband-minded boss for this small East Texas city of approximately 7,200, about 37 miles east of Houston.

Applications are being accepted for a Broadband Manager/Head Network Engineer to oversee the business and technical operations of DayNet as the city has begun construction of a citywide Fiber-to-the-Home (FTTH) network.

In addition to hiring a Broadband Manager/Head Network engineer, the city is banking on the project to “increase competition and choice . . . while having a positive impact on economic development, education, and the technology amenities that are available to citizens and businesses.”

Good Credit, Better Broadband

To finance the construction, the Dayton City Council approved a $13.7 million bond issuance at a 2.56% interest rate, thanks to the city’s rising credit rating. Network construction began at the start of the year. And when the network is fully built, which is expected to be complete by 2023, 110 miles of fiber will criss-cross the city’s 11 square miles, passing every home, business, and anchor institution in Dayton.

The Expanding Potential in Communities (EPIC) Grant deadline funded by Truist Bank and administered by the Internet Society has been extended by two weeks from its original deadline of February 19 in the wake of the weather hammering eligible areas over the last few days. There's nothing like a severe winter event that knocks power out for millions to break up the monotony of a raging pandemic. 

Grant applications are now due March 5th by 11:59pm. 

Read our original story about the grant program below:

A new grant program funded by Truist Bank's philanthropic initiative and administered by the Internet Society will disburse $1 million in funds to seven community broadband projects over the next year and a half. The Expanding Potential in Communities (EPIC) Grant program is currently soliciting applications, with grants to be disbursed to eligible communities across the southeast United States, including Washington D.C. and Texas, ranging from $125,000-180,000. The program is aimed at kickstarting Covid 19 relief efforts but also providing essential, locally owned broadband infrastructure to unserved and underserved communities.

From the grant program website:

The COVID-19 pandemic has brought the importance of broadband Internet connectivity into focus as work, school, healthcare, and more shift online. Internet connectivity is more important than ever in keeping our lives moving . . . The $1 million Expanding Potential in Communities (EPIC) Grant program supports broadband initiatives in the southeastern United States . . . As the administrating partner, the Internet Society will support local broadband expansion by funding complementary Internet connectivity solutions to help alleviate disparities in education, employment, and social welfare that are exacerbated by lack of access to broadband.

See eligibility requirements below:

A new grant program funded by Truist Bank's philanthropic initiative and administered by the Internet Society will disburse $1 million in funds to seven community broadband projects over the next year and a half. The Expanding Potential in Communities (EPIC) Grant program is currently soliciting applications, with grants to be disbursed to eligible communities across the southeast United States, including Washington D.C. and Texas, ranging from $125,000-180,000. The program is aimed at kickstarting Covid 19 relief efforts but also providing essential, locally owned broadband infrastructure to unserved and underserved communities.

From the grant program website:

The COVID-19 pandemic has brought the importance of broadband Internet connectivity into focus as work, school, healthcare, and more shift online. Internet connectivity is more important than ever in keeping our lives moving . . . The $1 million Expanding Potential in Communities (EPIC) Grant program supports broadband initiatives in the southeastern United States . . . As the administrating partner, the Internet Society will support local broadband expansion by funding complementary Internet connectivity solutions to help alleviate disparities in education, employment, and social welfare that are exacerbated by lack of access to broadband.

See eligibility requirements below:

As voters went to the polls to cast ballots in the 2020 Presidential election, in two major metropolitan areas residents overwhelmingly approved ballot questions to move forward on exploring how to expand broadband access in their respective cities.

In Chicago, nearly 90% of those who cast ballots said “yes” to a non-binding referendum question that asked: “Should the city of Chicago act to ensure that all the city's community areas have access to broadband Internet?" With 2,034 of 2,069 precincts counted, 772,235 voters out of 862,140 cast their ballots in favor of that question.

That vote came on the heels of the roll out of “Chicago Connected,” a new initiative to bring high-speed Internet service to 100,000 households that do not have reliable access within the nation’s third-largest school district.

Meanwhile, in Denver 219,435 voters, or 83.5% of the city’s electorate, cast ballots in favor of question 2H, which allows the city to opt out of the state’s 2005 state law referred to as SB 152. That law prevents municipalities from building or partnering for broadband networks. Approval of the ballot initiative also grants the city “the authority but not [the] obligation to provide high-speed Internet access." Two other Colorado communities – Berthoud and Englewood – also voted in favor of similar ballot questions, asking voters if they want to opt out of SB 152. In Berthoud, 77.3% of voters cast ballots in support of the question. In Englewood, the opt-out question passed with 79.4% of voters in favor, which will allow the city to provide Wi-Fi service in city facilities.