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Broadband Infrastructure Bill: The Good, The Bad & The Ugly

The bipartisan infrastructure bill, which includes $65 billion for expanding access to reliable, high-speed Internet service, passed in the U.S. Senate yesterday. The full text of the bill, posted on U.S. Sen. Krysten Sinema’s (D-Arizona) website, appears to be identical to the draft of the bill detailed here by the law firm Keller & Heckman.

For those of us who favor local Internet choice, the bill is a mixed bag filled with The Good, The Bad, and The Ugly. Let’s start with …

The Good

Of the $65 billion allocated in the bill, $42 billion of that is to fund the deployment of broadband networks in “unserved” and “underserved” parts of the country. The good part of that is the money will be sent to the states to be distributed as grants, which is better than handing it over to the FCC for another reverse auction. The FCC’s track record on reverse auctions is less than encouraging, and state governments are at least one step closer to local communities who have the best information on where broadband funding is needed.

In a nod to community broadband advocates and general common sense, the bill requires States to submit a “5-year action plan” as part of its initial proposal that “shall be informed by collaboration with local and regional entities.” It goes further in saying that those initial proposals should “describe the coordination with local governments, along with local and regional broadband planning processes,” in accordance with the NTIA’s “local coordination requirements.”

And the bill specifically says that when States award the grant money, they “may not exclude cooperatives, nonprofit organizations, public-private partnerships, private companies, public or private utilities, public utility districts, or local governments from eligibility for such grant funds.”

A Mixed Bag: How The Infrastructure Bill Will Impact Municipal Broadband Networks - Episode 469 of the Community Broadband Bits Podcast

On this week’s episode of the Community Broadband Bits podcast, Christopher Mitchell and ILSR Senior Reporter, Editor, and Researcher Sean Gonsalves talk about the good, the bad, and the ugly of the bipartisan infrastructure bill that passed the Senate today — the episode was recorded last week, before the vote.  

While the bill does not eradicate barriers across the 17 states still restricting municipalities from building their own networks, it does ensure that $42 billion in broadband infrastructure funds go directly to the states instead of the FCC. The two discuss how increasing the definition of broadband from 25/3 Mbps (Megabits per second) to 100/20 Mbps is long overdue, and frankly, not enough to future-proof networks. The two hypothesize that the new definition will ultimately lead to a need for more investment down the road. 

Gonsalves also recaps some of his recent coverage of expanding networks in Ocala, Florida and Fairlawn, Ohio. You can read more of Sean Gonsalves work here

This show is 36 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Biden Executive Order on Internet Service

In case you missed it, earlier this month President Biden signed an executive order that aims to promote competition in the U.S. economy. The order includes 72 initiatives, directing a dozen different federal agencies to promote competition in key sectors. 

The White House published a fact sheet to explain what the EO aims to do. [Read the full factsheet is here]. It begins by pointing out how a "lack of competition drives up prices for consumers," which is why "families are paying higher prices for necessities—things like prescription drugs, hearing aids, and Internet service."

It goes on to say that the order will, among other things, "save Americans money on their Internet bills by banning excessive early termination fees, requiring clear disclosure of plan costs to facilitate comparison shopping, and ending landlord exclusivity arrangements that stick tenants with only a single Internet option."

As you might imagine, we are particularly interested in the section on “Internet Service,” which you can read below:

Internet Service

The Order tackles four issues that limit competition, raise prices, and reduce choices for Internet service.

In the Order, the President encourages the FCC to:

• Prevent ISPs from making deals with landlords that limit tenants’ choices.

U.S. Treasury Clarifies American Rescue Plan Broadband Funding

Today, the U.S. Treasury Department released an updated FAQ clarifying many of the concerns and questions raised by numerous community broadband advocates and members of Congress about the Interim Final Rules (IFR) on how Coronavirus relief funds in the American Rescue Plan Act (ARPA) could be spent on broadband infrastructure.

The day after the rules were first released in May we wrote about how it appeared the IFR, if finalized as is, would significantly limit local communities’ ability to invest in needed broadband infrastructure as the rules initially suggested communities were expected to focus on areas that do not have 25/3 Megabits per second (Mbps) wireline service “reliably available.” While broadband experts might have felt comfortable with that language, it would almost certainly confuse lawsuit-leery city attorneys that have to sign-off on projects in areas with widespread gigabit cable broadband access.

Clarification to Make Community Broadband Advocates Clap

What does the requirement that infrastructure “be designed to” provide service to unserved or underserved households and businesses mean?

The updated FAQ sticks to the 25/3 benchmark, stating: “Designing infrastructure investments to provide service to unserved or underserved households or businesses means prioritizing deployment of infrastructure that will bring service to households or businesses that are not currently serviced by a wireline connection that reliably delivers at least 25 Mbps download speed and 3 Mbps of upload speed.”

However, the FAQ goes on to say, “to meet this requirement, states and localities should use funds to deploy broadband infrastructure projects whose objective is to provide service to unserved or underserved households or businesses. These unserved or underserved households or businesses do not need to be the only ones in the service area funded by the project (emphasis added).”

Congress’ Community Broadband Act Gains Support From 45 Organizations

Since it was first introduced in Congress in March, the Community Broadband Act of 2021 has gained widespread support from over 45 organizations representing local governments, public utilities, racial equity groups, private industry, and citizen advocates. 

The legislation -- introduced by U.S. Representatives Anna Eshoo, Jared Golden, and U.S. Senator Cory Booker -- would authorize local communities to build and maintain their own Internet infrastructure by prohibiting laws in 17 states that ban or limit the ability of state, regional, and local governments to build broadband networks and provide Internet services. 

The Act also overturns state laws that restrict electric cooperatives' ability to provide Internet services, as well as laws that restrain public agencies from entering into public-private partnerships.

States have started to remove some long-standing barriers to public broadband on their own. In the last year, state lawmakers in both Arkansas and Washington removed significant barriers to municipal broadband networks, as high-quality Internet with upload speeds sufficient for remote work, distance learning, telehealth, and other online civic and cultural engagement has become essential. 

Community broadband networks offer a path to connect the unconnected to next-generation networks. State barriers have contributed to the lack of competition in the broadband market and most communities will not soon gain access without public investments or, at the very least, the plausible threat of community broadband.

The Many Benefits of Publicly-Owned Networks

Lawmakers Urge Treasury to Revise Spending Rules on Coronavirus Relief Funds

The day after the U.S. Treasury published the Interim Final Rules on how Coronavirus relief funds in the American Rescue Plan Act can be spent, we sounded the alarm because it appears the rules, if finalized as is, would significantly limit local communities’ ability to invest in needed broadband infrastructure.

Last week, Sen. Ron Wyden (D-Oregon) and eight other members of Congress joined the growing number of community broadband advocates who share those concerns.

On Tuesday, May 25, Sen. Wyden sent a letter to Treasury Secretary Janet Yellen urging her “to ensure any community with service that falls below (the Treasury’s) own standard of 100 (Megabits per second) Mbps upload and download speeds is eligible for funding.”

Two days later, U.S. Rep. Anna G. Eshoo (D-California) and Sen. Cory Booker (D-New Jersey) penned a similar letter that was also signed by Wyden and six other members of Congress (U.S. Reps. Raúl M. Grijalva, Mike Thompson, Jerry McNerney, Lori Trahan, Peter Welch, and Debbie Dingell). Eshoo and Booker have long led efforts to support local initiatives to expand Internet access with community solutions.

25/3 Not Sufficient  

Even as the Treasury acknowledges that families really need 100/100 Mbps service, as the Interim Rules are currently written it suggests communities are expected to focus on areas that do not have 25/3 Megabits per second (Mbps) wireline service “reliably available.” About 90 percent of Americans have 25/3 “available” to them by flawed federal estimates, although millions lack service because it is unaffordable or effectively unreliable. And there is no standard for reliability that communities can measure against.

The Eshoo/Booker letter is particularly salient on this point: 

Biden Administration Decides Cities Should Not Use Broadband Dollars for Broadband

Earlier this year in March, the Biden Administration signed the American Rescue Plan Act, which included, among many other things, multiple sources of funds for broadband infrastructure. The U.S. Department of Treasury was tasked with writing the rules of how local governments can spend the various funds. The Interim Rule has been published and it appears to significantly limit local ability to invest in needed networks. 

The rules say that communities are expected to focus on areas that do not have 25/3 Mbps service reliably available. But there is no measure of what “reliably” means (in federal statute or otherwise). More than 90 percent of Americans have 25/3 “available” to them by best estimates. The result is considerable confusion for urban areas across the nation who no longer qualify for broadband investments under a strict reading of the proposed rules. This is not what the Biden Administration had suggested we should expect in its many press communications about its broadband approach. 

This discussion is about Section 602, which details the direct payments to local governments under the Coronavirus State Fiscal Recovery Fund. The aid offered to local governments has numerous authorized expenditures, including broadband infrastructure.

With Grants and Local Investment, ATMC Expands FOCUS Fiber to North Carolina’s Counties In Need

The Atlantic Telephone Membership Corporation (ATMC) is expanding gigabit fiber Internet access with financial assistance from federal and state grants to provide high-speed broadband to residents living in some of North Carolina's most rural, poverty-stricken regions.

A $7.9 million federal allotment from the USDA’s ReConnect Program, to which the North Carolina-based telephone cooperative is contributing matching funds, has kickstarted a $15.87 million Fiber-to-the-Home (FTTH) broadband deployment project in one of the Coastal Plains’ southernmost counties.

ATMC recently completed construction of the first four phases of its 60-phase “Faster Columbus” project, connecting residents living in the New Life community east of Tabor City to its gigabit fiber service. Upon completion of all 60 phases, the project will provide ATMC’s FOCUS Fiber Internet service to 2,775 unserved households in rural Columbus County. The completed project will also serve over 50 businesses, ten educational facilities, three critical community facilities, and 23 agricultural operations in the communities of Hallsboro, Lake Waccamaw, Bolton, north Tabor City and Whiteville.

The fiber Internet service ATMC is providing is expected to have a substantial impact on the region’s agriculture industry, one of the main sectors of the local economy. The FTTH service will also benefit the Waccamaw Siouan Indian Tribe, whose reservation is located on the edge of the Green Swamp. Speaking of the anticipated service, Brenda J. Moore, Housing Coordinator of the Waccamaw Siouan Indian Tribe said, "Finally our Tribal students can look forward to no more boot-legging of Wi-Fi in order to do their homework."

Federal Government Devotes Billions to Internet Access: A Community Guide to Current Broadband Funding

In the American Rescue Plan Act, Congress and the Biden Administration included a multi-billion dollar appropriation to help expand high-speed Internet access. This guide offers an overview of the different funding opportunities for communities interested in expanding broadband services. As application deadlines vary in some cases and other money must be spent within certain time frames, it is critical for states, municipalities, community organizations, and Tribal governments to start planning initiatives now. 

It’s also worth emphasizing that 18 states still put localities at a disadvantage when it comes to spending anticipated funding effectively by preserving laws that interfere with community investment in broadband infrastructure. Much of this money could also be funneled for other purposes due to a lack of good plans and community engagement. 

The amount of funding flowing into communities is unprecedented. Localities should prepare to spend funds on needed, futureproof infrastructure. This is an historic, once-in-a-lifetime investment in Internet infrastructure and communities who develop a clear, actionable plan and are as ready as possible once the money starts flowing will prosper.

Directory

If you’re a homeowner looking for assistance paying your Internet bill…look to the Emergency Broadband Benefit Program or Homeowner’s Assistance Fund

If you’re an HBCU or Minority-serving institution looking to expand Internet access to your students, or if you’re a minority business enterprise or nonprofit organization in the surrounding community...look to the Connecting Minority Communities Pilot Program.

if you’re a Tribal government, Tribal organization, or Tribal college or university, including native Hawaiian organizations, education programs and native corporations…look to the Tribal Broadband Connectivity Program.

If you’re a city interested in partaking in a public-private partnership…look to the Promote Broadband Expansion Grant Program

If you’re a school or library whose main concern is obtaining remote Internet access devices...look to the Emergency Connectivity Fund.

 

Federal Aid Directly To States, Counties, Localities and Territories

Community Broadband Legislation Roundup – April 6, 2021

Snapshot

This week’s community broadband state legislative roundup revisits and provides updates on important bills moving through the state legislatures in Washington, Oklahoma, and California.  

The State Scene 

Washington 

We’ve been closely covering S.B. 5383 and H.B. 1336, two bills in Washington state that would give Public Utilities Districts (PUDs) and port districts the authority to offer retail telecommunications services.

Our initial coverage pointed out shortcomings in S.B. 5383. The bill originally contained a preemption clause that gave private Internet Service Providers (ISPs) the power to reject PUDs’ and ports’ project proposals in areas where incumbent ISPs claim they plan to expand service within six months. 

Since our last reporting on this piece of legislation, the bill was amended by the State House Community and Economic Development Committee, removing the veto authority initially given to existing ISPs. However, a new provision favoring incumbent cable ISPs was also added, which would prohibit a PUD or port from providing retail Internet services in an area where an existing provider offers service at a minimum of 100 Megabits per second (Mbps) download speed and 20 Mbps upload speed. The minimum speed requirements of this provision would be increased to stay consistent with Washington’s state definition of broadband.

The Committee also amended the bill to allow PUDs and ports to provide retail services in served areas, but only when building to reach an unserved region.