As states gear up to administer federal BEAD funds from the bipartisan infrastructure law, a handful of states are already making significant investments in municipal broadband using federal Rescue Plan dollars.

California, Maine, Vermont, and New York have each established grant programs that center municipal broadband projects (mostly fiber builds) – with New York being the most recent state to announce more than $70 million in grant awards through its ConnectALL Municipal Infrastructure Grant Program (MIP).

Courtesy of the U.S. Treasury’s Capital Projects Fund, the awards are part of a $228 million initiative to bring high-quality Internet connectivity and consumer-friendly choice to New York communities long-stranded on the wrong side of the digital divide.

The towns of Dryden and Caroline, New York have been awarded a new $8.9 million broadband grant courtesy of the New York State ConnectALL program. The award will help deliver affordable fiber capable of symmetrical speeds up to 10 gigabits per second (Gbps) to residents of both towns, which until now, had been trapped on the wrong side of the digital divide.

Launched two years ago, Dryden officials have told ISLR they’re making steady inroads on municipally-owned fiber deployment to the town of 14,500. Now they’re looking to expand the popular local broadband network further into the town of nearby Caroline.

According to an announcement by Dryden Fiber, this latest grant award will help fund the construction of over 125 miles of new fiber to reach 2,650 new residences in Dryden and Caroline. The first customers in Caroline are expected to be online sometime within the next twelve months.

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“I find a real partnership between the Town of Dryden, Town of Caroline, and the New York State ConnectALL Office,” Dryden Fiber Executive Director, David Makar says of the award. “Years of hard work and seed planting from elected officials, citizen volunteers, and private partner businesses are now showing up ready to provide top-tier quality broadband service for the residents of Dryden and Caroline.”  

In March, Charter Communications tried (and failed) to include a poison bill in New York State’s budget bill that would have hamstrung community broadband. In stark contrast, a New York legislator this month introduced new legislation he says would make it easier than ever for New York state municipal broadband projects to thrive.

State Senator Jeremy Cooney of Rochester has introduced the Broadband Deployment Assistance Act of 2024 (S9134), which would streamline the permitting process for municipal broadband projects by "amending the general municipal law, in relation to requiring substantially similar permits for broadband deployment to be processed together at the same time and on an expedited basis."

“With a quicker timeline and more efficient process for local governments, we can create affordable options for New Yorkers that empower them to take control of their digital destiny,” Cooney wrote in an editorial published at Syracuse.com.

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Cooney says he was motivated by a lack of broadband competition in New York State. New York is dominated by Charter Communications, which was almost kicked out of the state in 2019 for poor service and  misleading regulators about broadband deployment conditions affixed to its 2016 purchase of Time Warner Cable.

Advocates for better Internet access are breathing a sigh of relief in New York as the State Assembly passed a budget bill yesterday that did not include an amendment that would have undermined the state’s municipal broadband grant program.

As we reported last month, buried in language near the bottom of the Assembly budget proposal was a Trojan horse legislative sources said was being pushed by lobbyists representing Charter Spectrum.

The amendment, which did not survive the budget reconciliation process, proposed to limit Municipal Infrastructure Program grants to projects that targeted “unserved and underserved locations only” – a restriction that would have made municipal broadband projects in the state less likely to become financially viable.

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Created as part of New York’s billion dollar ConnectALL Initiative, the MIP is specifically designed to support municipal broadband projects. Such projects are routinely targeted by lobbyists for the big monopoly providers intent on preventing any competition to their often spotty, high-cost service offerings.

Language added to a New York State budget bill is threatening to undermine a municipal broadband grant program established by Gov. Kathy Hochul’s office earlier this year.

Known as the Municipal Infrastructure Program, it was designed to provide grant funding for municipalities in the state eager to build publicly-owned, locally controlled broadband infrastructure as a way to ensure ubiquitous, affordable access to high-quality Internet after decades of frustration with expensive, spotty and uneven service from the regional monopolies.

Currently, New York state lawmakers are in the midst of budget proposal season in which the Governor’s office and both legislative chambers (the state Senate and Assembly) have until April 1 to reconcile and complete a final budget for the upcoming fiscal year.

Buried near the bottom of the Assembly budget proposal (A8805B) is a Trojan horse legislative sources say is being pushed by lobbyists representing Charter Spectrum, the regional cable monopoly and 2nd largest cable company in the U.S. that was nearly kicked out of New York by state officials in 2018 for atrocious service.

One year after launching a municipal fiber network, Dryden, NY officials say they’re making steady progress in their quest to expand affordable fiber broadband to the entire town of 14,500.

While the effort hasn’t been without obstacles, town leaders say the public response to their foray into broadband has been overwhelmingly positive.

“While there are challenges, we are continuing to make great progress in the buildout,” Dryden Town Supervisor Jason Leifer tells ILSR. “We have support from our residents, who continue to show interest in this project. We also have financial support from Tompkins County in the form of grants–and from neighboring municipalities who are interested in replicating our model.”

The city’s network began with a 50-home trial pilot trial in the southwest part of town. The broader $15 million network will be funded by a combination of bonds, $2 million in federal COVID-19 disaster relief funding, an Appalachian Regional Commission grant, and eventually, subscriber revenues.

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The town took a phased approach to deployment, first by connecting the backbone of the network in the southeast of the city, followed by a focus on the western and eastern halves of the municipality, respectively. The Dryden fiber website features a build map that helps locals track network progress.

“We have currently passed over 420 addresses with our buildout,” freshly-appointed Dryden Fiber Executive Director David Makar tells ISLR. “This includes over 150 rental properties – mostly single family homes and apartments – as well as many owner occupied homes and businesses. We are still in phase one, and as we move into the village of Dryden and the hamlets of Varna, Ellis Hollow, and Etna, we will be in phase two.”

Dryden, New York, population 14,500, has formally launched the town’s municipal broadband network, becoming the first municipality in the state to provide residents with direct access to affordable, publicly owned fiber.

According to the Dryden Fiber website, the town now offers local access to fiber broadband at three speed tiers: symmetrical 400 Megabits per second (Mbps) for $45 a month, symmetrical 700 Mbps for $75 a month, and symmetrical gigabit broadband service for $90 a month.

The city’s pricing options are a dramatic improvement from the area’s regional cable monopoly Charter Communications, whose Spectrum-branded service has largely monopolized vast swath of upstate New York, leaving consumers saddled with high prices, spotty coverage, slow speeds, and some of the worst customer service of any company in America.

It’s also a dramatic improvement over the sluggish, expensive, dated Frontier DSL that peppers the green rolling hills of Tompkins County. After filing for bankruptcy for failing to upgrade its network to fiber, Frontier has promised improvements–but none of those improvements have found their way to rural upstate New York. 

The full cost of Dryden’s municipal network is expected to be $15 million. The pilot area of the project—covering around 50 residences in the southwest part of the town—will be funded by a combination of $2 million in federal COVID-19 disaster relief funding, an Appalachian Regional Commission grant and an as-yet-unspecified number of bonds.

“We were motivated to study and build a municipal broadband system because residents were not satisfied with the options and service provided by commercial ISPs,” Dryden Town Supervisor Jason Leifer told ILSR.

“In 2019 we commissioned a study and found that we could offer the service with newer technology and better pricing over the long term,” Leifer said. “90% of respondents to our household survey supported the project. Dryden was ahead of the curve on the broadband issue because we knew prior to COVID that access to reliable and affordable high-speed internet service is a necessity for our residents.”

Like countless U.S. communities, the pandemic highlighted the essential need for uniform, affordable access, something both Spectrum and Frontier consistency refused to provide, Leifer said.