As states struggle to readjust their plans to expand high-speed Internet access in the wake of the Trump administration “termination” of the Digital Equity Act, Vermont is working to address the multi-million dollar shortfall by aligning the state’s Digital Empowerment initiative with its newly established Affordable Long Drop Program.

The Affordable Long Drop Program was established to provide grants to eligible Internet service providers (ISPs) in order to cover the connection costs for Vermonters whose homes are beyond standard drop distances.

Typically, an ISP will pay for a standard drop, which is the final external link that connects a provider's distribution network to the end-user's location – a distance that most often spans a couple hundred feet or less.

In rural areas around the country, community-minded operators like telephone and electric cooperatives will often cover the first quarter of a mile. This has also been the case in Vermont, where many of the state’s Communications Union Districts (CUDs) have been footing the bill to cover as much as the first 2,000 feet of drop distance. But, as with any predominantly rural state, there are a number of homes located just beyond that 2,000 foot range.

The construction costs of extending fiber lines can get pricey the further the home is away from the main fiber routes. Vermont’s Affordable Long Drop Program aims to help pay for the drops costs of the last mile networks that are currently being built across the state to help ensure residents in harder-to-reach locations can still get Internet access.

In partnership with the Benton Institute for Broadband and Society, today ILSR releases a new report examining how the state of Vermont is supercharging its telecommunications infrastructure efforts to reach the unconnected by puttings its weight behind community broadband-driven efforts.

The report - Neighborly Networks: Vermont's Approach to Community Broadband [pdf] - traces the emergence of a unique public-public partnership arrangement that first appeared in the Green Mountain State in 2008. The Communications Union Districts (CUD) model first emerged more than a decade and a half ago among a coalition of towns in the eastern part of the state long-ignored by for-profit Internet Service Providers. There, a collection of community broadband champions came together to prove that the solution to the broken marketplace lay internal to east-central Vermont. ECFiber, a publicly owned, nonprofit ISP was borne of that effort, and began bringing affordable, fast, reliable service to households in the region.

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Ten years later, when the state began formulating a plan for the future of Internet access, the progress made by and lessons learned from ECFiber drove a landmark shift in public policy in the state. Volunteers emerged, towns voted, and CUDs were placed at the center of Vermont’s effort to bridge the infrastructure gap in the state. Today, there are ten CUDs covering 216 towns across the state, and Vermont’s leaders have put the lion’s share of public funds behind the communications union district model.

Tracing the history of this effort from 2008 to today, this report breaks down the conditions that led to this sea change, where the CUDs are at today, and how we might learn from the Vermont case to improve Internet access elsewhere across the country.

As the new year begins, the Institute for Local Self-Reliance (ILSR) announced today its latest tally of municipal broadband networks which shows a dramatic surge in the number of communities building publicly-owned, locally controlled high-speed Internet infrastructure over the last three years.

Since January 1, 2021, at least 47 new municipal networks have come online with dozens of other projects still in the planning or pre-construction phase, which includes the possibility of building 40 new municipal networks in California alone.

CVFiber continues to make progress in deploying affordable fiber to long-neglected rural areas in Vermont, as the state’s effort to embrace CUDs (Communications Union Districts) as a cornerstone of bridging the digital divide also pays dividends.

In late 2022 CVFiber broke ground on an ambitious plan to build a 1,200-mile fiber-optic network to bring affordable gigabit broadband access to 6,000 rural Vermont addresses deemed underserved by commercial broadband providers.

According to an October announcement by the CUD, its first customers have been connected in the central Vermont town of Calais, with construction ongoing in nearby Middlesex, East Montpelier, and Worcester.

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“We are enthusiastic about our progress as we bring high-speed Internet to central Vermont communities,” CVFiber Executive Director Jennille Smith said. “The progress that we have made and the impact that we’ve been able to achieve to date could not have been accomplished without the unwavering commitment from our partners. We are optimistic as we expand to other service areas.”

CUDs have proven to be a useful way for municipalities to band together to cooperatively build broadband projects that may have been financially and logistically impossible to try alone. Vermont CUDs can legally fund needed broadband expansions through debt, grants, and donations—but not taxes, though they themselves are tax-exempt nonprofits.  

CVFiber’s fiber deployment is expected to cost $60 million, $27 million of which is being paid for by federal grants made possible by the American Rescue Plan Act (ARPA). The remaining cost is expected to be funded by network revenue, loans, and future grant opportunities.