First Electric Cooperative – and its broadband subsidiary Connect2First – are making major inroads on their quest to deliver affordable fiber Internet service to long-neglected portions of Arkansas.

Buoyed by an historic stretch of federal funding, the cooperative says it’s on target to deliver up to 2.5 gigabit per second service to 72,000 locations by the end of 2024.

Connect2First officials say they’ve deployed 4,371 miles of fiber across 18 counties in the southeastern part of the state, just outside of the state capital in Little Rock, delivering speeds significantly higher than seen in more urban, populous areas. The resulting service is also a notable step up in speed from regional monopolies like AT&T and Optimum, which see little market incentive to upgrade lagging networks or compete on price.

Connect2First residential customers have the choice of three tiers of service: a symmetrical 200 megabit per second (Mbps) connection for $60 a month; a symmetrical 700 Mbps connection for $60 a month; or a symmetrical gigabit per second (Gbps) service tier for $100 a month. The company’s tiers feature no service caps, hidden fees, or long term contracts.

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First Electric Cooperative, headquartered in Jacksonville, Arkansas, began in 1938 with just 3 employees and 150 members. Now with 94,000 electricity customers, it’s one of the largest cooperatives in the country, and the second biggest cooperative in the state of Arkansas.

Fort Worth, Texas, (est pop. 956,000) has struck a $7.5 million, 34-year contract with Dallas-based Sprocket Networks to construct a new 300-mile fiber optic backbone to shore up city municipal communications needs, expand affordable access to marginalized neighborhoods, and boost local economic development.

City officials say construction crews are expected to begin work sometime in the next three to six months, with the full network construction expected to cost $65 million and take three years to complete.

Services will first be made available to nine target neighborhoods (including Las Vegas Trail, Como, Marine Creek, Stop Six, Rosemont and Ash Crescent) on a rolling basis. Sprocket Networks will own the finished fiber network.  

“This partnership was entered into with Sprocket with the hopes of eventually getting to universal service in Fort Worth,” Fort Worth IT Solutions director Kevin Gunn told ILSR in a phone interview. “We want the gold standard fiber optic connectivity: 100 megabits symmetric and up available at every doorstep, whether that's a senior family, multifamily or commercial.”

Gunn told ILSR that the city’s initial payment of $7.5 million to Sprocket consists of $4.5 million in American Rescue Plan Act (ARPA) funds, and $3 million from the North Central Texas Council Of Governments, which has allocated some of its transportation budget to broadband improvements the agency will benefit from.

In response to COVID era broadband inequities, the city of Fort Worth last year expanded free Wi-Fi access to 40,000 largely underserved city residents. Gunn indicated that those connections will be slowly phased out as the city transitions to fiber.

This is a walk and chew gum moment for broadband-for-all advocates. On the one hand, the Federal Communication Commission (FCC) new digital discrimination rules have the potential to rein in egregious examples of digital discrimination. On the other hand, the new rules still fall short of putting forward the kinds of structural solutions necessary to address underinvestment in communities where federal infrastructure dollars may never reach.

Last week, the FCC published its final digital discrimination rules, giving the agency the authority to penalize Internet Service Providers (ISPs) whose policies have a “disparate impact” on historically marginalized communities. The Infrastructure Investment and Jobs Act (IIJA), passed by President Biden in 2021, included a mandate directing the FCC to develop “rules to facilitate equal access to broadband internet access service, taking into account the issues of technical and economic feasibility presented by that objective, including—preventing digital discrimination of access based on income level, race, ethnicity, color, religion, or national origin.”

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After hosting listening sessions and inviting public comment, the final ruling ultimately defined digital discrimination as “policies or practices, not justified by genuine issues of technical or economic feasibility, that (1) differentially impact consumers’ access to broadband internet access service […], or (2) are intended to have such differential impact.” Such an approach authorizes the FCC to penalize providers even if it can’t identify instances of intentional discrimination.

Initial Responses to the Ruling

Pikeville, Kentucky (pop. 7,300) sits about 150 miles southeast of Lexington, in the extreme eastern part of the state. Today, after almost a decade of fighting with Internet Service Provider (ISP) Optimum about service so consistently poor that the city finally sued the provider, it’s working on an alternative: a partnership that will see the local government build new citywide fiber infrastructure and lease it to an operating partner.

A Tale As Old As Time

Publicly available data shows that, historically, about two-thirds of the city of Pikeville can take Internet service from Inter Mountain Cable - a regional provider with about 25,000 subscribers across Kentucky, West Virginia, and Virginia. Likewise, Optimum (formerly Suddenlink) offers cable service to about the same number of households. AT&T’s DSL service covers a little more than a quarter of town. Those living in the northern half of the city generally have better service options than those living in the southern half.

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The path the city of Pikeville has taken began almost 15 years ago. In 2009, the local government signed a new, 10-year franchise agreement with Suddenlink. But when Altice (originally a French telecommunications company) bought Suddenlink back in 2015 to build its portfolio here in the United States, things quickly took a turn for the worse.

In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

With the holiday season upon us, the Institute for Local Self Reliance (ILSR) Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA) are gearing up for the final Building for Digital Equity (#B4DE) event of the year and encouraging digital equity practitioners to save the date.

The popular (and free) virtual gathering will be held December 12, 2023 from 3 to 4:15 pm ET and will feature a holiday-inspired theme: Digital Equity Unwrapped: End of Year Reflections/The New Year Ahead.

You can register for the event now here.

Coming on the heels of our last B4DE event in October, which is still reverberating through digital inclusion circles across the nation, we are excited to follow up with a jolly and informative agenda that will cover:

• The latest on the Affordable Connectivity Program (ACP).
• Lightning Rounds on digital inclusion work with covered populations.
• Setting the table on forthcoming Digital Equity Act funding and how communities are preparing.
• Unpacking digital discrimination and its practical implications.

The keynote speaker for the event will be Patrick Messac, Director of #OaklandUndivided, an equity-based, collective impact initiative launched in Oakland, California.

A new chapter in state-Tribal relations is being written as the importance of robust and reliable telecommunication becomes all-too-apparent, especially in the face of more frequent extreme weather events. For the first time, a Tribe in California is building high-speed Internet infrastructure in collaboration with the state, thanks to the resilience of the Hoopa Valley people.

Tucked along the Trinity River in the northwestern corner of the state, the Hoopa Valley Reservation is located in a rural and heavily wooded region that spans over 89,000 acres, home to over 2,500 Tribal citizens. Last summer, the area was ravaged by closely-timed wildfires and thunderstorms, followed by massive landslides that collapsed into the region’s riverways, including the Trinity River, a sacred body of water for the Hoopa Tribe.

As the river turned to mud and dead fish began to wash up on its banks, alarmed residents had limited means of connecting with one another, getting timely information about what was going on, or contacting emergency services. That was because of a hidden casualty of the wild weather: the Tribe’s wireless Internet network, which sustained severe damage that not only hindered communication but also extended the time it took to assess the damage.

With the $14.2 billion Affordable Connectivity Program (ACP) on track to run out of funds by spring/early summer 2024, finally there is a request from the White House to extend funding for the program that over 21 million housholds now rely on to help pay for high-speed Internet service.

Last week, the Biden administration formally asked Congress for another $6 billion to extend the program through November 2024, joining a chorus of public interest groups (including AARP) calling on Congress to replenish the rapidly depleting fund.

(According to our calculations, an additional $6 billion would not fund the program through December 2024 as the White House said. It would fund the program through the end of November 2024. It would take $6.9B to get through the end of December).

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First established with the passage of the Infrastructure Investment and Jobs Act (IIJA) in 2021 as part of the Biden administration’s “Internet for All” initiative, the ACP – currently administered by the Federal Communications Commission (FCC) – provides income-eligible households with a $30 monthly subsidy ($75 per month for those living on Tribal lands) to pay for their Internet service bill. The program also provides a one-time $100 benefit to go towards the purchase of an Internet-connected device such as a laptop or tablet.

Memphis Mayor Jim Strickland has introduced an ambitious new plan to incentivize private telecom providers to deliver affordable fiber to 85 percent of the Tennessee city of 633,000. The project, part of the city’s Memphis 3.0 master plan, will spend more than $700 million to expand broadband in a city where less than a quarter of residents–most of them wealthy–have access to next-generation fiber.

On September 23, city leaders introduced a new city ordinance amendment establishing new, streamlined permitting and fee requirements. Their goal: to incentivize companies willing to expand fiber optic broadband to at least 60 percent of Memphis’ residential and business premises and 60 percent of all existing low-income premises.

Not long after, city leaders unveiled more details about their "Smart Memphis Fiber" effort. After issuing an RFP last year, Memphis officials say they’ve struck a partnership with Paris-based Meridiam and Blue Suede Network to build a $700 million fiber optic network with an eye on eventually reaching 85 percent of the total Memphis population.

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“City Government will incentivize any interested company by reducing our costs through reductions in permitting fees and right-of-way fees,” Strickland said in a recent presentation before the city council. “Additionally, we will streamline our process to allow a company to get to work faster. We are also putting our own skin in the game.”

Syracuse officials have launched a new wireless community broadband network they hope will help bring affordable broadband access to the city of 145,000.

Dubbed Surge Link, the effort is backed by more than $3.5 million in federal funding and aims to deliver free broadband access to the city’s lowest income neighborhoods.

Motivated by peak pandemic connectivity headaches, Syracuse put out a request for proposal (RFP) late last year. The city then hired US Ignite as an advisor, and selected Geneva-based Community Broadband Networks (no relation to our program here at ILSR) to build a fixed wireless network capable of delivering discounted access starting with 2,500 underserved Syracuse households.

City officials tell ILSR the network is using Fixed Wireless Access technology, specifically Citizens Broadband Radio Service (CBRS), which is an emerging technology a growing number of municipalities and other nonprofit community groups have been experimenting with as a way to bring broadband to unserved and underserved residents in dense settings. And while CBRS has promise, as US Ignite notes, “because the technology is relatively new, the hardware and software associated with CBRS networks is also new. Vendors may still be working out the kinks in their solutions, particularly if those solutions are being used in novel ways, or need to interface with other older systems.”

It should also be noted that another New York community (Westchester County) embraced CBRS, only to find that it could not deliver the capacity they wanted to many people who needed the service.