Last November the LA County Board of Supervisors quietly and unanimously approved a project that could dramatically reshape affordable Internet access in the largest county in the United States. While success will require coordination at an unprecedented scale to avoid the mistakes of the past, this new effort has momentum and funding options on its side.

The newly approved plan first aims to deliver wireless broadband to the 365,000 low-income households in Los Angeles county that currently don’t subscribe to broadband service, starting with a 12,500 home pilot project. But the vote also approved a new feasibility study into a Los Angeles county-wide municipal fiber network. 

The motion tasked the LA County Internal Services Department, directed by Director Selwyn Hollins, with coordinating the effort. Hollins in turn is working with the City of Los Angeles’ Bureau of Street lighting  (which had already received a CBDG grant to help fund local Wi-Fi networks) and other regional city agencies already engaged in digital divide efforts. 

Sources familiar with project planning say it’s too early to specify pricing and speeds, but one goal is to be able to provide symmetrical 100 Mbps service for $30/month. As with other communities (like Fort Pierce, Florida), the county then hopes to layer on the $30 discount from the FCC’s Affordable Connectivity Program to ensure costs are negligible for low income residents. 

<p>Located in the most northeastern part of Tennessee, BrightRidge has served as Johnson City’s public power utility for nearly 80 years. About a decade ago, BrightRidge stepped into the broadband space, and has since been taking serious strides to connect Johnson City residents and surrounding communities.&nbsp;</p><p><a href="https://muninetworks.org/content/brightridge-creating-10-gig-communitie… we left off with BrightRidge in 2019</a>, the utility was about to start into the first three phases of a fiber buildout to provide 3,847 homes and 373 businesses with broadband access. Since then, <a href="https://www.heraldandtribune.com/local-news/brightridge-continues-broad… and local funding</a> as well as utility investments have allowed BrightRidge to reach thousands of residents in the area.&nbsp;&nbsp;</p><p>Back in 2009 is when Johnson City, Tennessee began thinking about a possible fiber buildout. Since then, the city of 67,000 has considered a number of approaches, eventually landing on building out a hybrid (fiber and fixed wireless) network and serving as a publicly owned broadband utility to bring Internet access to residents. Known today as BrightRidge Broadband, the utility offers symmetric speeds of up to 10 Gigabits per second (for $149/month) in Johnson City and nearby communities.&nbsp;&nbsp;</p><p>Originally slated to be complete in 2026, demand and success in rolling out the infrastructure has led the utility to speed up its deployment plans.

Communities across the United States got an unexpected gift from the Biden Administration last week in the form of additional flexibility to use Rescue Plan funds for needed broadband investments, particularly those focused on low-income neighborhoods in urban areas. 

When Congress developed and passed the American Rescue Plan Act, it tasked the Treasury Department with writing the rules for some key programs, including the State & Local Fiscal Recovery Funds (SLFRF). That program is distributing $350 billion to local and state governments, which can use it for a variety of purposes that include broadband infrastructure and digital inclusion efforts.

Treasury released an Interim Final Rule in May, 2021, detailing how local governments would be allowed to invest in broadband. I promptly freaked out, at the restrictions and complications that I (and others) feared would result in local governments backing away from needed broadband investments due to fears of being out of compliance with the rule. 

After we worked with numerous local leaders and the National League of Cities to explain the problems we saw in the proposed rule, Treasury released updated guidance in the form of a Q&A document to explain how local governments would be able to build and partner for needed networks. 

Given the many challenges the Biden Administration has had to deal with, we did not expect significant new changes to the Rescue Plan rules around the SLFRF. But after many months of deliberations, the Treasury Department has resolved all of the concerns that we identified as areas of concern in May. 

As we explain below, local governments have wide latitude to use SLFRF funds for a variety of needed broadband infrastructure investments, especially to resolve affordability challenges.

Summary and TL;DR

The rest of this post will cover some key points in the Final Rule with references to the text in the hopes that it will help communities better understand their options and share key passages with their advisers and attorneys. 

Join us live on Thursday, December 16th at 5pm ET for Episode 28 of the Connect This! Show, where co-hosts Christopher and Travis Carter (USI Fiber) will be joined by returning guests Doug Dawson (CCG Consulting) and Kim McKinley (UTOPIA Fiber) to catch up on the news of the week and check in on a number of issues.

The panel will discuss, among other things, the transition from the Emergency Broadband Benefit to the Affordable Connectivity Program, restrictive access and exclusive wiring agreements in apartment buildings, and where the NTIA is on administering the more than $42 billion in new broadband infrastructure.

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