Publicly owned Internet infrastructure is typically funded with revenue grants, interdepartmental loans, or through avoided costs at the local level. Part of the planning and infrastructure costs, however, can sometimes be covered by state and federal grants known as Community Development Block Grants (CDBG). Nelson County, Virginia, leveraged CDBG to expand their fiber network and maximize benefits to the community. 

CDBG funds, are distributed to 1,200 units of state and local government by the federal Department of Housing and Urban Development (HUD) and can go toward a variety of infrastructure and development purposes. When communities consider ways to use CDBG funding, they can get long-term valuable benefits by directing those funds toward Internet infrastructure.

Nelson County Broadband 

Currently, the network has 39 miles of middle mile fiber and laterals. Nelson County began preparing for the network in 2007, when it received an initial planning grant of CDBG funds. The grant allowed the county to develop a project which improved their eligibility for federal funding from the American Recovery and Reinvestment Act (ARRA).

They applied and in 2010 for stimulus funding and received a $1.8 million grant from the Broadband Technology Opportunities Program (BTOP) to build out a middle mile network. In the first phase of their construction, the county used the BTOP funding and approximately $456,000 in required local matching funds to deploy 31 miles of fiber backbone. The second phase added another eight miles to the network in 2015, funded in part by $200,000 of CDBG funding; the community has also contributed about $690,000 in other local funds. 

“It becomes a win-win for residents and businesses and for service providers,” said Alan Patrick, Chair of the Nelson County Broadband Authority. “Residents and businesses have an opportunity to receive broadband access, which may have not been available prior to the county building infrastructure in the area, and it is also a benefit to the service providers.”

As of November 2016, 240...

Republican Delegates in the Virginia House Labor and Commerce Committee advanced HB 2108 yesterday, despite opposition from constituents, local leaders, and members of the telecommunications industry. A revised version of Byron’s Bad Broadband Bill now heads to the House Floor today for a vote from the entire body.

A bill titled the “Virginia Broadband Deployment Act” by its sponsor now contains nothing about “deployment” but retains provisions forcing publicly owned networks to reveal proprietary information that limit competition. In the hearing yesterday, President and CEO of the Roanoke Valley Broadband Authority (RVBA) testified that this bill is overkill:

In front of the committee, Smith argued the Virginia Freedom of Information Act stipulations already codified in the Wireless Services Authority Act are sufficient and the new requirements in Byron’s bill could require the broadband authority to reveal proprietary information about its customers.

Under this bill, the broadband authority could have been forced to reveal information about Meridium — that GE Digital was planning to purchase the Roanoke-based company for $495 million, Smith said.

“There’s nothing hidden under the table,” Smith said. “The Wireless Services Authority Act is sufficient because you all did your job in 2003.”

The broadband authority’s rates, books and board meetings already are open to the public.

Our Christopher Mitchell noted that the attempt to force publicly owned networks into a state of "ultra-transparency" was also a thinly veiled attempt to ward off competition from potential public-private partnerships:

The opening of potentially proprietary information under the Virginia Freedom of Information Act regarding pricing, rates, and fees is something the private sector does not have to deal with and would strenuously object to. This is particularly harmful to potential public-private partnerships where I fear an incumbent would seek to punish the partner of a rival by constantly seeking...

Even after constituent calls and emails, and a threat from Governor McAuliffe to veto her bad broadband bill, Del. Kathy Byron is trying to shove through her anti-competitive HB 2108. The legislation will prove fatal for local telecommunications authority if it passes. The revised bill is up for a vote in the House Labor and Commerce Committee on Thursday, February 2nd; Byron is Vice-Chair of the Committee.

Here's The New Bill; Same As The Old Bill

If you’re curious to see the text of the new draft, it is now available on Virginia’s Legislative Information System (LIS). If you’re expecting something better than the original text, you will be disappointed. This version holds on to provisions that Byron’s influential friends in the telecommunications industry need to intimidate and lock out competition.

The revised bill still dictates rules on pricing for municipal networks and imposes heavy-handed transparency rules that put any proposal at a disadvantage. The aim is to discourage potential private sector partners who may wish to work with local governments. The new draft maintains broad enforcement provisions, which large, anti-competitive providers exploit as a delay tactic to bury a publicly owned project before it even starts.

Like it’s predecessor, it’s painfully obvious that this version of HB 2108 is a AT&T sponsored tool to scare off any competition.

Another Bad Review

On Friday, the Virginia Pilot joined a growing number of state media outlets, local governments, companies, and industry associations condemning the bill. Like others across Virginia who want every option to improve connectivity, the Pilot recognizes that municipal networks an important possibility. They also recognize that large corporate providers, such as AT&T, obtain a certain amount of protection from legislators like Byron, which is reflected in the...

Governor Terry McAuliffe is one of a many voices that are speaking out against Del. Kathy Byron’s Bad Broadband Bill, reports the Roanoke Times. According to a spokesman for the Governor, the original text of the bill would have faced certain veto.

The bill was on the January 26th agenda for the House Labor and Commerce Committee, but Del. Byron chose not to present it after all. Instead, it will be on the February 2nd agenda.

The bill was altered before today’s hearing, but the changes still don’t make it worth passing. As it was before, HB 2108 remains the latest big telephone and cable lobbyists' attempt to restrict municipalities from exercising their own local authority. The purpose is to body-block any current or future competition from publicly owned networks and stop public-private partnerships. They want to maintain existing monopolies. 

Governor McAuliffe recognized it and his staffer Brian Coy told the Times via email:

“The Governor is working hard to expand access to broadband Internet across the Commonwealth,” Coy wrote. “That goal requires fostering competition, not stifling it.”

McAuliffe echoed the sentiments of a long list of experts, private companies, and associations who joined together and drafted a letter to the Chair and Members of the Committee. In the letter, they explained why HB 2108 would harm Virginia’s efforts to improve access to fast, affordable, reliable connectivity, especially in the rural areas.

Even those staunch free-market advocates are poo-pooing HB 2108. The Daily Yonder quoted conservative blogger Susan Sili about the bill:

“This is completely frustrating from a local perspective where we have spent years trying to convince citizens in Caroline [County] to vote for less government and free enterprise in a blue county. This kind of U-turn from our creed certainly isn’t helping.”

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