A bill making its way through the Colorado General Assembly is tackling one of the tools that big incumbent ISPs use to secure their positions as monopoly Internet access providers - the right of first refusal. If HB 1099 passes, and other states see the savvy behind this approach, community leaders and advocates for a competitive broadband market will be able to put a chink in the monopoly armor.

Update: HB 1099 passed the Legislature and the Governor signed the bill into law on April 2nd, 2018. Yay!

A Familiar Story

ISP entrepreneurs, cooperatives that want to offer high-quality Internet access, and entities planning publicly owned projects know the story. Grants are available, usually for an unserved or underserved area that the incumbent DSL provider has ignored. Said entity invests the time and money into developing a plan and applying for the grant, feeling good about the fact that they will likely be able to serve this community that no one else seems to want to serve. 

They apply for the grant, may even receive a preliminary approval, BUT then the incumbent ISP exercises its right of first refusal, which throws a very big wrench into the plans of the ISP entrepreneur, cooperative, or entity.

In June 2017, we interviewed Doug Seacat from Clearnetworx and Deeply Digital in Colorado who told us the story of how his company had applied for and won grant funding through the Colorado Broadband Fund to develop fiber Internet network infrastructure near Ridgway. CenturyLink exercised its right of first refusal, which meant that unless Seacat could change the mind of the board that considered the appeal, CenturyLink would get the funding rather than Clearnetworx.

CenturyLink prevailed because it had the attorneys and the experience to wield the right of first refusal as a weapon. When all was said and done, however, the people in the project area did not have access to the fast, affordable, reliable fiber connectivity they would have obtained from Clearnetworx. CenturyLink instead obtained state subsidies to deploy DSL that was better than the services it was already offering, but no where near as useful as the Internet access Seacat’s company had planned to deploy....

In the early 2000s, Carroll County, Maryland, invested in publicly owned fiber infrastructure to reduce costs and improve services for public schools, county government, and Community Anchor Institutions (CAIs). In addition to meeting that goal, the county’s asset connected to the Westminster Fiber Network, a municipal Fiber-to-the-Home (FTTH) partnership that’s brought gigabit connectivity to a community that once struggled with poor Internet access. In order to build off that success in other parts of the county, the Carroll County Board of Commissioners recently voted to allocate $400,000 to provide grants for more Carroll County Fiber Network expansion.

Second Year In A Row

The funding for 2018 follows last year’s decision to provide $1 million to expand the network. Department of Economic Development executive director Denise Beaver told that Carroll County Times that the county’s broadband committee recommended the grants because ISPs’ reasons for not investing in the rural parts of the county were primarily connected to the cost of deploying fiber.

Carroll County's elected officials decided last year to focus on connecting industrial parks and directed staff to communicate with municipal leaders to learn more about opportunities for fiber in downtown areas to spur economic development.

The Carroll County Broadband Grant Program will provide grants of up to $25,000 per project to ISPs or other entities that ensure a 50 percent matching reimbursement. Each entity can receive no more than $100,000 per fiscal year. Eligibility includes a range of types of projects, including those that involve “…the construction, acquisition, or leasing of facilities or spectrum, land, towers or buildings used to deploy broadband service for business and residentially-based businesses.” 

Entities that want to apply for the grants need to be searching for funding that will bring connectivity to “unserved or underserved” areas. The county has decided to define those types of areas for purpose of the grants:

…Beaver said unserved would be defined as someone with no access to fixed Internet connection with speeds of 10 megabits per second downloads and one megabit per second...

Blandford, Massachusetts, will work with Westfield Gas & Electric (WG+E) to develop a publicly owned fiber optic network. In order to help get the project started, the state’s Last Mile Program has awarded Blandford a $1 million grant.

The funding grant is part of $45 million allocated to broadband infrastructure last fall. In November 2016, the Governor signed a bill that directed the funding to help improve connectivity in western and north central Massachusetts.

Blandford’s network will connect to approximately 96 percent of its premises, including all the residents located on the town's public roads. A little more than 1,200 people live in the town that covers about 53 square miles. The hilltown community is known for the Blandford Ski Area, which has operated for more than 80 years.

Working With Westfield

Blandford joins a list of other western Massachusetts communities looking to WG+E for their expertise and to act as project managers. WG+E trucks began working in Otis last June and the towns of Ashfield, Shutesbury, Goshen, Colrain, Rowe, Chesterfield, Alford, and Heath have also decided to work with WG+E.

Westfield announced almost a year ago that a Fiber-to-the-Home (FTTH) pilot project had been so successful that they determined expanding the project to a citywide network made the most sense. Since then, they’ve been expanding one neighborhood at a time and are still working on covering the entire community of 42,000.

In the mean time, WG+E has also branched out to work with other communities like Blandford. They’ve helped prove that even small communities can establish high-quality Internet network infrastructure. WG+E have taken on differing roles with these other municipal partners, depending on what level of expertise the community seeks.

Learn more about WG+E’s network and their work with neighboring communities in...

The state of Minnesota has awarded Paul Bunyan Communications the Border-to-Border Broadband grant to expand fiber optic services to three different counties.

The expansion will cost $1.78 million, with Paul Bunyan Communications contributing $980,990, and the state Border-to-Border grant covering $802,620. The plan should be finalized by the spring and construction will start this summer. Paul Bunyan Communications projects the build-out will be completed by June 2020.

Rural Minnesota Gets Better Connected

The Border-to-Border Fund was created by the Minnesota state legislature back in 2014. The goal is to help make the financial case for providers to invest in building infrastructure into unserved and underserved areas of the state.

Many underserved areas of the state have included the Border-to-Border grants in their planning process and as a pivotal part of their expansion models. The financial boon from the state has proved successful for many communities. RS Fiber Cooperative has been successfully connecting towns and rural areas in Sibley and Renville County, and they recently announced a gigabit residential connection at no additional cost for subscribers. It’s also attracting investment and industry, explained Mark Erickson in a recent report, citing the forthcoming medical school being built in Gaylord:

"We have that opportunity because of the Fiber-to-the-Home network. Without it, no medical school."

Cooperative Success 

Paul Bunyan Communications Cooperative has already made massive strides in providing high-speed access to large swaths of northern Minnesota. Paul Bunyan’s GigaZone reaches more than 29,400 locations, covering more than 5,000 square miles in Beltrami County, also reaching areas of Cass, Hubbard, Itasca, Koochiching, and St. Louis Counties.

The ever-...