In August, voters in Lyndon Township, Michigan, will decide whether or not they want to approve a plan to invest in publicly owned fiber optic Internet infrastructure.

It’s All In The Mills

Voters are being asked to approve a millage increase of 2.9 over a 20-year period. In other words, property taxes will increase approximately $2.91 per $1,000 of taxable value of a property. Those funds will be used to fund a bond to finance the project; city leaders have already determined that the principal amount of the project will not exceed $7 million.

Once the infrastructure has been completed, the community plans to partner with one or more Internet Service Provider (ISP). Estimates for monthly millage bond costs and monthly cost for Internet access at 100 Megabits per second (Mbps) are approximately $57 for Lyndon Township’s average homeowner. Gigabit access will be available and will cost about $25 more each month.

If funding is approved, the community expects to finish the project and be using their new Internet infrastructure by the end of 2018.

Supported By Citizens

The issue of better connectivity in Lyndon Township isn’t a new one. At a meeting in March 2016, Township Board members voted 5-0 to fund a feasibility study. The Board had approached providers about improving connectivity in the area, but none considered an investment in Lyndon Township a good investment. 

At the meeting, members of a broadband initiative started by local residents shared their stories. As is often the case, local residents described driving to the library or Township Hall to access the Internet because their own homes were unserved or connectivity is so poor. According to a Chelsea Update article, when the Board approved the feasibility funding, “[t]here was a vigorous round of applause from the crowd.”

About 80 percent of the community does not have access to FCC defined broadband at 25 Mbps download and 3 Mbps upload. In the summer of 2016 when property owners received a survey about Internet access with their property tax bills, 83 percent of those who replied and were registered voters described...

After tentative plans to work with a private sector partner fell through, Fort Collins is still moving forward. The city wants the option to provide residents and businesses with gigabit connectivity as a municipal service, necessitating a ballot initiative in November to change the city charter. The ballot initiative would allow the Light and Power Utility to provide Internet services and may also ask voters to consent to use municipal bonds to fund the Internet network infrastructure project.

The city estimates the project will cost between $125 million and $140 million and will cover the entire city and its “growth management area,” which is land that is expected to be annexed in the future.

A Long And Winding Road

In 2015, voters in Fort Collins reclaimed local authority by opting out of SB 152, which discourages cities from investing in Internet infrastructure in order to offer services themselves or with private sector partners. The pro-local sentiment was so popular that 83 percent of voters supported opting out.

From there, the city pursued a partnership with Axia. However, the Canadian company pulled out of discussions with Fort Collins and a similar deal with Bloomington, Indiana. Axia’s parent company, Partners Group, was reportedly hesitant to enter the U.S. market and compete with large, incumbent providers Comcast and CenturyLink. Axia Networks USA was operating MassBroadband 123 in Massachussetts and filed for bankruptcy earlier this year, leaving the state searching for another company to manage the statewide fiber-optic network.

The city is still open to partnering with a private sector partner, but is leaning toward providing services through their existing Light and Power Utility. We've seen other deals between municipalities fall apart when they seemed like sure things, which indicates that municipalities must always take care when establishing a relationship with a potential partner.

Santa Cruz and Cruzio were well on their way to entering into a partnership, but the project did not...

On Monday the Colorado Senate Business, Labor and Technology Committee heard SB 42, a bill to repeal the state’s requirement for referendum to reclaim local telecommunications authority. The committee of seven Senators voted 4 - 3 to postpone the bill indefinitely, leaving it in legislative purgatory. We've provided the audio above, but we missed the first minute or so of the recording.

Ample Support

A number of testifiers came to Denver to support the bill and also testified remotely from several locations around the state. Several testified that local investment in Internet infrastructure is the only hope they have for necessary high-quality connectivity. 

Elected officials from communities that have already invested shared stories of how they had approached big national providers and were dismissed. They went on to describe how the state imposed referendum causes missed funding opportunities and the ability to partner with private providers is also at risk when communities have to jump through hoops.

Overwhelming Opt Outs

Sponsors of the bill pointed out that all communities that have held the required referendums have chosen to reclaim local authority by huge margins. Nevertheless, several lawmakers continued to attempt to tie the referendums to community debt and competition with local providers. As our readers know, passing the referendum is an opt out of state law and a number of communities don’t take any other steps.

For some, their purpose is only to have the ability to work with private providers because national providers have already denied the services local communities need. As several testifiers stated at the hearing, local communities don't typically invest in publicly owned Internet infrastructure because they want to be providers - they invest because no one else will do it for them.

It Wouldn't Be A Hearing Without Them

Big providers opposed to the competition and the bill sent lobbyists to testify also. In true form, they advanced the false narrative that local publicly owned network infrastructure competes unfairly with big providers. What they really mean is that they don’t want new entrants to partner with local governments and establish a new model that would threaten their standing as...

The Colorado Senate Business, Labor, & Technology Committee will soon consider the proposed repeal of the state’s restriction on municipal networks. Under current state law, known as SB 152, local governments are not permitted to pursue a municipal network without first holding a referendum.

The Senate Business, Labor, & Technology committee will hold a hearing on the bill on February 13, 2017 at 2 p.m. The full text of the proposed repeal can be found on the Colorado General Assembly’s website.

Accepting Remote Testimony

Folks around Colorado can make their opinion heard without having to trek to the capitol. The committee will accept remote testimony on the issue. Those who wish to speak must register online in advance and choose from specific locations that have reliable connectivity. All of the remote testimony locations are colleges: Adams State, Mesa State, Fort Lewis College, Otero Junior College, and Trinidad State.  

Save Money, Restore Local Control

Senators Kerry Donovan and Lucia Guzman proposed SB 42 to repeal the onerous requirements of SB 152 and to restore local control to the city and county governments. Several communities that Senator Donovan represents have already held expensive referenda on the issue, and all have reclaimed local authority.

At this point, more than a third of all counties in the state have “opted out” of SB 152. To learn more about the state restriction and how almost one hundred communities have restored local authority, listen to the the Building Local Power podcast Episode 5.