A host of cities and counties in Arkansas are about to get a major broadband boost thanks to local officials taking steps to act on a grant program deployed by the state last year. Borne out of the state’s 2020 1st Extraordinary Session at the end of March 2020 in response to the Covid 19 pandemic, the new Rural Broadband I.D. Expenses Trust Fund Grant Program will disburse $2 million in funds divided into 30 one-time grants of $75,000 each to towns, cities, and counties to tackle the digital divide in the Toothpick State. The program is financed via Arkansas’ Restricted Reserve Fund with money given to the state by the CARES Act, and is administered by the University of Arkansas for Medical Sciences (UAMS) Institute for Digital Health & Innovation. And while an array of projects have been awarded funds, money remains available and applications are being accepted on a rolling basis for those who have yet to take advantage.

A Win for Local Self-Reliance and Increasing Competition

The program is expressly designed to bridge the gap for communities that want to begin to improve local Internet access but are stymied by a necessary first step: paying for those economic, design, and feasibility analyses which require pulling together the wide range of options available in the context of local conditions. That’s where this program comes in, according to Rachel Ott, the UAMS Institute’s for Digital Health and Innovation Grant Director. Communities can use the work produced to apply for federal grants down the road, including the recently concluded Rural Digital Opportunity Fund (RDOF), the U.S. Department of Agriculture’s ReConnect Program, funds from the Agriculture Improvement Act of 2018, and any other forthcoming federal funding programs. 

Cities, towns, counties, and unincorporated communities are all eligible to apply. Non-profits and for-profit entities are also eligible to apply, but only in unincorporated communities. If they want to undertake projects in cities or towns, they are required to...

The federal government is about to spend more than $120 million on subsidies that, rather than improving rural connectivity, will make tens of thousands of families worse off.

These funds are part of a 2018 federal program intended to expand rural broadband access called the Connect America Fund phase II (CAF II) reverse auction. The program, in which Internet access providers competed for subsidies, will distribute nearly $1.5 billion over the next 10 years to connect unserved rural residents. But in some communities, the auction may do more to widen the digital divide than diminish it.

While some winning bidders committed to building out high-speed fiber optic networks, satellite company Viasat will rake in more than $120 million in subsidies to continue providing inadequate geostationary satellite connectivity to rural households that are clamoring for something better. Not only does satellite Internet access offer slower speeds, greater latency, and less reliability for a higher cost compared to other technologies, but Viasat’s subsidies are making those areas ineligible for future broadband funds, deterring other providers from building truly high-quality networks. Instead of bridging the digital divide, the process will relegate certain communities to satellite Internet access while others receive ultra-fast fiber and do nothing more than deepen the fissure.

Mo’ Money . . .

The Connect America Fund (CAF) is a multi-phase subsidy program that supports improved connectivity in rural, high-cost areas as part of the Federal Communications Commission's (FCC’s) Universal Service Fund. The most recent phase of the program, the CAF phase II reverse auction, auctioned off regions to providers using a complicated formula that prioritized bids for low subsidy amounts and high-quality service.

Previous rounds of CAF mainly subsidized the large incumbents, such as AT&T and CenturyLink, but for the reverse auction, the FCC opened participation to other entities, including non-traditional providers like electric cooperatives. Eligible areas included rural locations where the incumbents had previously refused subsidies (and the accompanying commitment to expand Internet access).

Viasat was one of the largest winners in the CAF II reverse auction...

On May 30th, New Hampshire Governor Chris Sununu signed SB 170, a bill local community leaders had watched for more than a year. The measure will allow municipalities to bond for publicly owned Internet network infrastructure. Advocates, local elected officials, and citizens have been seeking the authority for years. SB 170 may raise some questions as it's implemented, but the bill is significant because it symbolizes this state's decision to expand local authority for broadband investment, rather than limit the power of local communities.

Read the final version of SB 170 here.

A Better Measurement

As we reported more than a year ago, SB 170 sought to make changes in existing law by allowing local communities to bond for Internet infrastructure. The bill sat in committee until last November, when it was amended and picked up again. The final version of SB 170 allows communities to bond for projects that will connect premises that don’t have access to broadband as defined by the FCC — 25 Mbps download and 3 Mbps upload.

Should the definition of broadband at the FCC increase to faster speeds, so will the definition as it applies in New Hampshire. This is a welcome approach as big ISPs around the country have in recent years tried to convince state legislators to reduce the speed definition of broadband in state legislation. Many is the time well-meaning or well-funded state lawmakers decided to use the incumbent-dictated 10 Mbps / 1 Mbps or even 4 Mbps / 1 Mbps in order to appease the likes of AT&T or CenturyLink. Some states, such as New Hampshire, are realizing that such slow thresholds translate into very little investment into the type of Internet access residents and businesses need. Other states can learn from New Hampshire...

Hey, Minnesota communities, are you looking for funding sources for your broadband project? If yes, and you plan on applying for a Minnesota Border-to-Border Development Grant Program, you should be getting your ducks in a row. The application period is fast approaching - July 3 through September 11.

For the 2017 grant period, the state legislature allocated $20 million to the program to expand broadband service in unserved or underserved areas of Minnesota. As a way to help you sort through the application process, the Minnesota Office of Broadband Development will be hosting several webinars early in the application period.

Dates and times for the webinars are:

Monday, June 26, 
11 a.m. to 1 p.m. (Central Time)

Friday, July 7, 
11 a.m. to 1 p.m.

Monday, July 10, 
11 a.m. to 1 p.m.

Wednesday, July 12, 
11 a.m. to 1 p.m.

Sign up for the webinars and get the details on eligibility, the process, and resources at the Office of Broadband Development website.