With the Affordable Connectivity Program (ACP) poised to run out of funding in early Q2 next year, and no funding source lined up to keep the program alive, a recent U.S. News & World Report survey underscores the significance of the program in the face of rising prices from the nation’s major Internet Service Providers (ISPs).

The ACP offers a monthly benefit of $30 dollars for qualifying households and $75 for qualifying households on Tribal lands (as well as in some remote areas). Over 20 million Americans to date have enrolled in the program to help pay their Internet service bills, but with the $14.2 billion ACP program on track to run dry as soon as May of next year – even amid a historic national effort to establish “Internet For All” – the affordability crisis has become more worrisome for a growing number of Americans.  

U.S. News & World Report’s survey found that Internet prices are going up and that families are compromising other expenses to pay for connectivity, affirming the urgency among digital equity advocates to identify a source of continued funding for ACP, as well as push for more structural solutions that address the root causes of why Americans pay among the highest prices for broadband service in the developed world.

Cleveland, Ohio is putting the finishing touches on an ambitious plan to build a citywide open access fiber network–and deliver affordable fixed wireless service–at minimal cost to city residents. The double-edged proposal aims to bring both meaningful broadband competition–and lower rates–to the long neglected city of 1.7 million people.

Last month, the city announced it had awarded $20 million in ARPA (American Rescue Plan Act) funds to Cleveland-based digital equity non-profit DigitalC. Under the proposal, DigitalC will spend 18 months building a fixed wireless broadband network capable of providing locals with symmetrical 100 Megabit per second (Mbps) service for $18 a month.

DigitalC’s fixed wireless service, EmpowerCLE+, launched in 2018 and accelerated its deployment in 2020 to meet the needs of frustrated parents and workers during peak COVID.

Speaking at ILSR’s and the National Digital Inclusion Alliance (NDIA) Building for Digital Equity (B4DE) event last week, DigitalC CEO Joshua Edmonds noted that the EmpowerCLE+ network currently passes 23,500 households in Cleveland, with 2,300 current subscribers. The city’s new agreement with the city should expand the network’s potential reach to 99.9% of homes in Cleveland.

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“We're thankful for the opportunity and we're just really hoping that people use this as motivation to change things within their respective markets,” Edmonds told ILSR in a phone interview.

Vermont’s nascent Communication Union Districts (CUD) are pioneering creative efforts to deploy affordable broadband to the rural parts of the Green Mountain State. That includes the Lamoille FiberNet CUD, which has greenlit a major new plan to expand affordable access to fiber in the most neglected parts of rural Vermont.

At an Aug. 14th meeting, the Vermont Community Broadband Board (VCBB) approved Lamoille FiberNet’s $1.3 million pre-construction grant, followed by a mid-September approval of the CUD’s $13.6 million construction grant.

“This grant means that, by the end of 2024, we can bring high-speed internet to almost all the homes and businesses in our CUD that are unserved or underserved,” Lamoille FiberNet Communications CUD Chair Jeff Tilton said in a statement.

With the Lamoille CUD covering 10 towns in the north central part of the state (Belvidere, Cambridge, Eden, Elmore, Hyde Park, Johnson, Morristown, Stowe, Waterville and Wolcott), Lamoille plans to have Fidium Fiber and Consolidated Communications deploy and manage 630 miles of new fiber connecting more than 4,800 unserved and underserved Lamoille County homes and businesses. The network will be deployed in two phases.

Lancaster, Pennsylvania has revitalized the city’s long percolating plan for a municipal broadband network, this time via a public-private partnership (PPP) with Shenandoah Telecommunications Company (Shentel). The city’s quest for more affordable, reliable broadband is a quest that’s taken the better part of a decade to finally come to fruition.

Lancaster city officials recently announced that they’d selected Shentel with an eye on ensuring uniform broadband availability to the city of 57,000.

“In 2022, the City issued an RFP for a partner to achieve stated goals, which received five responses, and led to the selection of Shentel,” the city said. “The contract will result in Shentel installing fiber at its sole cost to provide service to 100% of the city’s residents. Shentel plans to commence design and construction immediately upon execution of the final agreement.”

According to Lancaster officials, the city hired CTC Technology & Energy Engineering & Business Consulting to evaluate the city’s needs. The determination to proceed with a PPP with Shental was driven, in part, by the historic broadband grant opportunities being created thanks to the 2021 Infrastructure Investment and Jobs Act (IIJA), and the American Rescue Plan Act, the latter of which provided $39.5 million to the city.

Murfreesboro, Tennessee suddenly finds itself awash with looming broadband competitors thanks to the city’s booming growth. In less than a month, United Communications – owned by not-for-profit electric cooperative Middle Tennessee Electric (MTE) – and Google Fiber have unveiled major plans to expand affordable gigabit fiber within city limits.

MTE-owned United Communications says it has some big plans for the city of 157,000, starting with broadband upgrades for the utilities’ 77,000 existing electricity customers.  

According to a recent announcement, the cooperative-owned ISP will spend $85 million in existing cash reserves to deploy 1,400 miles of fiber in the city, bringing affordable gigabit access to existing MTE electricity customers. As with many utility deployments, the upgrades will prove beneficial for electrical grid monitoring and maintenance.

“We’ve already completed phase one in the Boro, which includes our fiber backbone and service to more than 1,000 homes and businesses. As part of phase one, we also built fiber to the square in downtown Murfreesboro,” United President and CEO William Bradford said in a statement. “It was a privilege to put our fiber infrastructure to work by connecting our neighbors in disadvantaged communities and adding resiliency to the local emergency communications network.”

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Last year, United received $53.4 million in grants from the Tennessee Emergency Broadband Fund (made possible by the The American Rescue Plan Act of 2021) to help shore up broadband access in numerous Tennessee counties, including Bedford, Franklin, Giles, Lincoln, Marshall, Maury, Moore and Williamson.

California digital equity advocates say that recent cuts to the state’s ambitious broadband deployment plan unfairly harm low-income and minority communities. And despite promises from state leaders that the cuts will be reversed, local equity advocates say the process used to determine which neighborhoods should be prioritized remains rotten to the core.  

In 2021, California state leaders announced a $7 billion, multi-armed plan to bring affordable, next-generation fiber to every state resident. A key part of the plan involved building a $4 billion statewide middle-mile open access fiber network designed to drive down the costs of market entry, improve competition, and reduce broadband prices.

At the time, California officials said “the statewide network will incentivize providers to expand service to unserved and underserved areas.” Groups like the EFF lauded the “historic” investment, likening it to bold, early efforts to ensure rural electrification.

But last May, California officials quietly announced they’d be making some notable cuts to the state’s affordable broadband expansion plan. Blaming inflation and rising construction costs, the state’s renewed budget called for a 17 percent reduction in planned broadband investment, on average, across the state.

From Colorado to Texas, municipal broadband providers continue to rack up industry accolades, not just for delivering fiber service–the gold standard of Internet connectivity–but for these networks’ ability to provide ubiquitous access across an entire community at affordable rates.

The National Association of Telecommunications Officers and Advisors (NATOA) recently announced that its Community Broadband Projects of the Year Awards for 2023 will go to the Connexion network in Fort Collins, Colorado and TeamPharr.net in Pharr, Texas.

Awarding Community-Wide Access and Affordability

The Fort Collins award is in recognition for the city having established “a municipal broadband utility created by and for the community to improve the life of all 80,000 residential and commercial properties of Fort Collins through better, more affordable Internet,” NATOA said in announcing the award.

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But it wasn’t just because Fort Collins’ network provides city-wide access to fiber. The award also recognizes that “Connexion offers the fastest Internet speeds available at affordable prices (emphasis added) as well as competitive phone and TV services.”

Local electrical cooperatives say they’re making inroads on efforts to finally bring affordable gigabit fiber connections to long neglected portions of rural South Carolina. Dubbed Carolina Connect, the alliance between Aiken Electric Cooperative, Newberry Electric Cooperative and Mid-Carolina Electric Cooperative is doing what cooperatives across the nation have taken the lead on in recent years in the rural areas many serve: filling the gaps left by regional telecom monopolies disinterested in finishing the job.

Aiken’s website indicates that the cooperative coalition has delivered broadband to more than 14 towns and cities, is currently in the process of bringing broadband to eight more, and has five additional communities in the planning stage. According to the Aiken Standard, the coalition has laid about 6,000 miles of fiber within the nine counties served by Aiken Electric alone; predominantly rural markets spread across the Southwest part of the state.

The deployment is not only delivering broadband to many residents for the first time ever, it’s delivering the kind of affordable pricing locals have never seen, thanks to a notable lack of regional competition between regional telecom monopolies like Breezeline (formerly Atlantic Broadband) and AT&T.

As the National Telecommunications and Information Administration (NTIA) continues to move forward in administering the single biggest federal investment to expand high-speed Internet access in U.S. history, each state and U.S. territory is wrestling with how to best spend the windfall as they lay out their Five Year Action Plans and Initial Proposals necessary to claim their portion of the $42.5 billion BEAD program.

One major barrier to providing universal access to fast, reliable and affordable Internet service–long recognized by ILSR, telecom experts, and a growing number of ordinary citizens–are the monopoly-friendly preemption laws that either outright ban or erect insurmountable barriers to building publicly-owned, locally-controlled broadband networks, aka municipal broadband.

Preemption in the BEAD Era

Currently, 17 states have such preemption laws, most of which have filed their Five Year Action Plans and/or their Initial Proposals. In each of those states, at the behest of Big Cable and Telecom incumbents, state lawmakers have erected legislative barriers to municipal broadband to protect the monopoly players from competition, which is at the very heart of why the digital divide exists in the first place and why tens of millions of Americans suffer from the slower speeds and higher costs that go hand in hand with monopoly service.

Berthoud, Colorado, population 11,717, is the latest Colorado community to explore community broadband alternatives to expand public access to affordable fiber. Currently in the process of crafting a request for quote (RFQ), the city tells ILSR it hopes to make its final determination by November and have a preliminary plan in place by the end of the year.

Originally, Berthoud had planned on forming a coalition with three neighboring Colorado towns (Johnstown, Mead and Milliken) in a bid to expand access. That plan involved striking a memorandum of understanding (MOU) with Lincoln, Nebraska based Allo Communications, to deliver fiber to every address within three years.

But city leaders say the original plan wasn’t meant to be.

“The four communities did not strike a deal with Allo,” Berthoud Business Development Manager Walt Elish told ILSR. “We could not come to terms. Since then, we have looked at other options, including a town-owned network.”

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As with many towns and counties, the high cost of a municipally owned broadband network has the city examining different options, including a potential public private partnership (PPP) with existing providers. PPPs are increasingly common but can have their downsides, including less municipal control over pricing or the potential trajectory of the finished network.