Lawmakers in Ohio are slowly advancing a proposal to help fund rural broadband deployment. HB 378 has similarities to Minnesota’s Border-to-Border Broadband Program and will infuse $100 million in to broadband deployment ecosystem over the next two years. It’s a welcome lift for rural areas struggling to fend off economic dilemmas.

Companions

Last fall, State Senators Cliff Hite and Joe Schiavoni announced their intention to introduce a bill with the same effect. HB 378, however, appeared to pick up steam in March and, after strong bipartisan support in committee and on the floor of the House, the bill went on to the Senate on April 12th.

Back in October, Schiavoni said in a press release:

“This legislation is incredibly important to Ohio’s future. Without access to broadband internet service, businesses can’t reach their customers, students can’t do their homework and workers have difficulty searching for jobs.”

Democrat Ryan Smith and Republican Jack Cera introduced HB 378 with an eye toward economic development in their districts and other rural areas of the state facing the need to diversify their local economies. 

“With this bill, we have the opportunity to level the playing field for rural Ohioans when it comes to vital broadband infrastructure,” said Rep. Smith [in October]. “High speed broadband is the only way we can continue growing our economic base by attracting new commercial development and securing a strong labor force, our most valuable resource.”

Main Points

Like the Minnesota Border-to-Border Broadband Program, which has helped expand high-quality rural connectivity, this proposal doesn’t limit eligibility to private sector entities. Political subdivisions, nonprofits, and cooperatives can also receive awards of up to $5 million or half the cost of the project, whichever is less. This element of the bill is welcome and...

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...