The U.S. Treasury Department announced another six states have been approved to receive nearly $1 billion in Capital Projects Funds from the American Rescue Plan to bring new broadband infrastructure to more than 180,000 homes and businesses.

The latest tranche of CPF funds is heading to Florida, Georgia, Iowa, Minnesota, Missouri, and Utah, bringing the total number of states to have been approved for their share of the $10 billion fund to 22 states.

Lehi City, Utah has broken ground on its new citywide fiber optic broadband network. The network, which city leaders say should take somewhere around three years to complete, will be built on the back of Lehi’s Utilities Department, part of a growing trend of U.S. utilities using an historic infusion of federal funding to expand affordable broadband connectivity.

The Lehi Fiber Network will operate as an open access network, meaning that multiple ISPs will be able to utilize the city’s new infrastructure, providing a much-needed dose of broadband competition to local residents and businesses alike. 

Five ISPs have already committed to providing service over the city-owned fiber, with the first customers expected to see service sometime in early 2023. Lehi’s partner ISPs have yet to specify tier pricing, but data consistently shows that such open access competition routinely drives down costs and improves service quality in regions where it’s adopted. 

After hiring Magellan to conduct a feasibility study, the city in 2020 approved financing the network with a bond it hopes will be fully paid off by broadband subscriber revenues. In 2021, the city announced it had chosen Strata Networks — the largest independent cooperative in Utah — to build and operate the network.

The Navajo Tribal Utility Authority (NTUA) is slated to receive more than half a million dollars in Covid-relief funding from the state of Utah. The funding will help the NTUA expand fiber and wireless access to part of the 27,425 square mile Navajo Nation, improving access at Navajo anchor institutions and some of the nation’s 173,000 residents. 

The NTUA was created in 1959 by Navajo leaders frustrated by the fact that regional utilities had failed to provide uniform electricity services to the Navajo people. Still, over 60 years later and not only is the failure to electrify marginalized communities still a problem, the organization is leveraging its experience in that fight to expand broadband access as well. 

Project Timeline: 30 months

To help fix the problem, the Utah Broadband Center, run by the Governor’s Office of Economic Opportunity, recently doled out $420,732 in broadband grants to the NTUA. Combined with $140,244 in matching funds from the NTUA, the project will bring a combination of fiber and wireless to 473 households currently unserved in Montezuma Creek, Utah. 

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The grants were part of $10 million in Covid relief funding recently awarded by the Utah Broadband Center and made possible by the American Rescue Plan Act.

“From the time they sign the contract with the state, they have 30 months to complete the project,” Rebecca Dilg, Director of the Utah Broadband Center, told ILSR. “We are still working out the details of the contracts with all grant recipients.”

In an announcement at the Mountain Connect conference last week in Keystone, Colorado, municipally owned open-access network operator UTOPIA Fiber announced it has completed its build in West Valley City, Utah. It marks a major milestone, both for residents in the city (who have worked for years to take back control of their information infrastructure) and for the network as a whole (finishing work on one of the original partner cities in the project itself). 

Herculean Push Since 2020

Work offically began on West Valley City in 2004, Executive Director Roger Timmerman and Deputy Director and Chief Marketing Officer Kim McKinley shared at the press event, but expansion efforts have not been steady over the last 18 years. Instead, for a myriad of reasons, progress has been made in fits and starts, with a burst in 2009 but most development happening over the last two years. Local leaders have long recognized the value in completing the build, with residents clamoring for years.

The work comes as part of a five-year accelerated broadband construction plan, though 75 percent of the progress in West Valley City, according to Timmerman and McKinley, has happened just in the last two years. This has been in part because the network has been able to leverage its excellent financial position to be the financial backstop for commercial debt without having to go to the bond market or get fiscal pledges from member cities. This has enabled UTOPIA to move more quickly.

Today, aside from a few Homeowner's Associations (HOAs) and Multi-Dwelling Units (MDUs), West Valley City has been ubiquitously connected to the open access, fiber-to-the-home (FTTH) network, unlocking the potential of fast, affordable, symmetrical connections for all (see map below). 

Fierce Telecom reports Timmerman as saying that “this is a city where they did have cable and DSL options. They recognized those were insufficient for their community.” McKinley added at the event:

UTOPIA Fiber continues to grow and is now exporting its expertise into Bozeman, Montana – one of the fastest-growing cities of its size and often listed among the best places to live in the country.

Referred to by some as “Boz Angeles” because of the influx of Californians to the area, this Rocky Mountain city of 53,000, nestled in Gallatin Valley, is about to become even more attractive as a rising tech hub for millennials. At the Broadband Communities 2021 Summit last month, it was announced that Bozeman Fiber, a non-profit organization created by the city to expand high-speed Internet connectivity across the region, has partnered with Utah-based UTOPIA Fiber to build an open access fiber-to-the-home (FTTH) network.

Bozeman Fiber has already built an open access fiber ring, serving city, county, and school facilities. It has also connected 200 commercial customers. The partnership with UTOPIA will allow Bozeman Fiber to extend the network across the city, passing 22,000 homes and businesses, with plans to extend further out into the more rural parts of Gallatin County down the road.

Network construction, which is estimated to cost $65 million, is slated to begin in the spring of 2022 and is expected to take three years to be completed.

“This is the first phase of a project that will cover the city and some areas of the county, and the intention is we’ll have future phases that reach further out into the county to hit more rural areas,” UTOPIA Fiber executive director Roger Timmerman said during the press conference announcing the partnership.

Bozeman Fiber CEO Greg Metzger added: “with this project, we’ll be able to attract and retain more businesses, and create jobs.”

County Provides Access to Bond Market

Municipal networks in the United States have proven that when dollars are invested in publicly owned information infrastructure, they often return value back to the community several times over. This new fact sheet [pdf] highlights municipal broadband success stories from across the country and some of the many benefits the networks have brought to the communities they serve. 

These networks are directly accountable to the community and have proved themselves for more than 20 years in some cases, bringing lower prices to households than the large private providers. Municipal networks and partnerships account for 9 of the top 10 fastest broadband networks in the nation.

Download Snapshots of Municipal Broadband: A Much-Needed Part of America's Digital Ecosystem [pdf] here.

For timely updates, follow Christopher Mitchell or MuniNetworks on Twitter and sign up to get the Community Broadband weekly update.

Closing the homework gap has been a top priority for Federal Communications Commission (FCC) acting Chair Jessica Rosenworcel. She has a long track record advocating for Wi-Fi-enabled school buses, lamenting viral images of school children completing homework in fast food parking lots, and making the case that no child should be left offline. At the onset of the pandemic, she pledged to use her influence at the agency to fight to increase the flexibility of the E-Rate program, saying “every option needs to be on the table.”

When the American Rescue Plan Act established the Emergency Connectivity Fund (ECF) in March, a $7 billion program to connect students and library patrons to the Internet at off-campus locations, Rosenworcel had an opportunity to follow through on those promises. She could have seized the moment to steer the program in the direction of allowing schools and libraries to build, own, and operate their own school and community networks (what the federal government refers to as self-provisioned networks). Many schools serving areas with poorly connected students already do this, but without much help from the E-rate program.

But when the rules on how to spend the money were finalized on May 10th, the FCC’s Report and Order declared that schools and libraries could not use Connectivity Funds to build self-provisioned networks, but instead could only use the funds to purchase Wi-Fi hotspots, modems, routers, and connected devices, such as laptop computers and tablets. The one exception in which schools and libraries can use Connectivity Funds to build self-provisioned networks is in “areas where no service is available for purchase,” based on data self-reported by private ISPs.