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Trojan Horse To Cripple Muni Broadband in New York Slipped Into State Assembly Budget Proposal

Language added to a New York State budget bill is threatening to undermine a municipal broadband grant program established by Gov. Kathy Hochul’s office earlier this year.

Known as the Municipal Infrastructure Program, it was designed to provide grant funding for municipalities in the state eager to build publicly-owned, locally controlled broadband infrastructure as a way to ensure ubiquitous, affordable access to high-quality Internet after decades of frustration with expensive, spotty and uneven service from the regional monopolies.

Currently, New York state lawmakers are in the midst of budget proposal season in which the Governor’s office and both legislative chambers (the state Senate and Assembly) have until April 1 to reconcile and complete a final budget for the upcoming fiscal year.

Buried near the bottom of the Assembly budget proposal (A8805B) is a Trojan horse legislative sources say is being pushed by lobbyists representing Charter Spectrum, the regional cable monopoly and 2nd largest cable company in the U.S. that was nearly kicked out of New York by state officials in 2018 for atrocious service.

Burning Desire to Bring Affordable Fiber Service To Rural Washoe County, Nevada

Officials in Washoe County, Nevada have struck a new public private partnership (PPP) with Digital Technology Solutions (DTS) to deploy affordable fiber service into the long-neglected rural towns of Gerlach and Empire, Nevada. The deal is part of a broader effort to bring affordable access to underserved residents just out of reach of broadband access.

Behzad Zamanian, Washoe County Chief Information Officer, tells ILSR that the county’s two-phased project first involved contracting with DTS to construct and maintain a $2.3 million middle-mile fiber network that connected Gerlach to Reno, culminating in a ribbon-cutting ceremony at the Gerlach Community Library last July.

“The reason [Gerlach] was identified as a high priority was that it was considered unserved or underserved; there was no presence of any of the major Internet service providers in that region,” he noted. “There was no high speed Internet available.”

Until last summer, area students and residents were completely cut off from online learning, employment services, remote health care, and other essential services and opportunities.

Expanding the middle mile network required close collaboration with the Pyramid Lake Paiute Tribe, which allowed the county to piggyback on the tribe’s existing fiber runs from Reno to Nixon, Nevada. The county then worked closely with the Nevada Office of Science, Innovation, and Technology (OSIT) and DTS to deploy fiber the remaining 60 miles from Nixon to Gerlach.

One Year After Launch, Dryden, NY Muni Network Making Steady Progress

One year after launching a municipal fiber network, Dryden, NY officials say they’re making steady progress in their quest to expand affordable fiber broadband to the entire town of 14,500.

While the effort hasn’t been without obstacles, town leaders say the public response to their foray into broadband has been overwhelmingly positive.

“While there are challenges, we are continuing to make great progress in the buildout,” Dryden Town Supervisor Jason Leifer tells ILSR. “We have support from our residents, who continue to show interest in this project. We also have financial support from Tompkins County in the form of grants–and from neighboring municipalities who are interested in replicating our model.”

The city’s network began with a 50-home trial pilot trial in the southwest part of town. The broader $15 million network will be funded by a combination of bonds, $2 million in federal COVID-19 disaster relief funding, an Appalachian Regional Commission grant, and eventually, subscriber revenues.

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Dryden Fiber map

The town took a phased approach to deployment, first by connecting the backbone of the network in the southeast of the city, followed by a focus on the western and eastern halves of the municipality, respectively. The Dryden fiber website features a build map that helps locals track network progress.

“We have currently passed over 420 addresses with our buildout,” freshly-appointed Dryden Fiber Executive Director David Makar tells ISLR. “This includes over 150 rental properties – mostly single family homes and apartments – as well as many owner occupied homes and businesses. We are still in phase one, and as we move into the village of Dryden and the hamlets of Varna, Ellis Hollow, and Etna, we will be in phase two.”

Alabama Electric Cooperatives Power Ahead With $35 Million In New State Broadband Grants

Alabama has announced the release of $148.3 million in new broadband grants via the state’s Capital Projects Fund (CPF), made possible by the 2021 American Rescue Plan Act (ARPA). While regional monopolies like Charter nabbed the lion’s share of state funding (once again), cooperatives also secured significant funding to tackle the rural digital divide.

“High-speed internet service continues to strengthen and expand across the state, and we are taking the necessary strides on this journey to achieve full broadband access for Alabama,” Alabama Governor Kay Ivey said in a prepared statement. “This has been a monumental task, but it is one that will pay multiple dividends for our state and its residents. Today is an exciting day as we announce these latest projects.”

Cable giant Charter Communications (Spectrum) was the biggest winner of state funds, awarded 23 grants totaling $44.8 million to shore up access to 22,000 underserved homes across 25 Alabama counties. The next biggest award recipient was Mediacom, which received $22.8 million in grants to fund deployment to 8,000 homes across six Alabama counties.

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All told, 16 providers were awarded grants to expand access to 48 different Alabama counties. While regional monopolies were heavily represented in the awards, four different Alabama cooperatives received $34.8 million in grant funding to expand fiber access to more than 11,092 rural Alabama homes and businesses.

Edison, New Jersey Inches Forward On Municipal Broadband Plan

After years of planning, Edison, New Jersey officials are moving forward on a municipal fiber plan built on the back of a $2 million American Rescue Plan Act (ARPA) grant. While the funding was originally announced last summer by state leaders, city officials only just passed a resolution last week accepting the grant.

Edison residents have long complained of a local broadband monopoly at the hands of Optimum, resulting in spotty access, slow speeds, and high prices. While Edison wants to break the competitive logjam, the full cost and scope of Edison’s as-yet-unfinished plan remains unclear.

Edison spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

"Ending Optimum’s monopoly in Edison is a high priority," Edison Mayor Sam Joshi wrote on Instagram and Facebook shortly after the study was published, calling it "a step towards internet freedom."

Ottawa County, Michigan Strikes $25 Million Partnership With 123Net

Ottawa County, Michigan officials say they’ve struck a new public private partnership (PPP) with 123Net on a $25 million fiber deployment that aims to bring more uniform – and affordable – broadband access to Michigan’s seventh largest county by population.

The Ottawa County Board of Commissioners voted last month to approve a master agreement and letter of intent with 123Net.

The finalized agreement calls for 123Net to spend two years deploying 400 miles of new fiber infrastructure as part of an open access, carrier neutral fiber network to bring new competition – and affordable fiber – to 10,000 county residents and businesses.

The $25 million network will be funded by $14 million from Michigan’s Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) grant program; $7.5 million from Ottawa County’s American Rescue Plan Act funds, and $3.5 million in private funding from 123NET.

“We’re at an interesting time in broadband deployment as there are a number of unique funding programs that counties and municipalities can access,” said Chuck Irvin, Executive Vice President of 123NET, said in a statement. “123NET is proud to be part of this exciting project.”

At the same time, county officials say they’ve struck a separate deal with Tilson Technology to build new wireless towers to deliver fixed wireless service to an undetermined number of rural county residents for whom deploying fiber is cost prohibitive.

Eagle, Idaho To Connect First Residents To City’s Open Access Fiber Network

Eagle, Idaho is preparing to connect the first of the city’s 32,000 residents to a new, municipally-owned open access fiber network. The project, which the city says will take between five to 10 years to complete, is being heavily funded by federal grants, and aims to meaningfully boost broadband competition – and affordable access – citywide.

ISLR profiled Eagle’s efforts last year, noting that the $5 million initial downtown fiber loop was jump-started with the help of the city’s $6.7 million allotment of American Rescue Plan Act (ARPA) funding.

Roughly 300 homes and 30 businesses should be able to connect to the network within the next six months, the city now says. More than 30 residential subdivisions are in the early deployment phase, and the project will expand steadily over the next decade, funded by revenues from existing subscribers and future state and federal grant opportunities.

Like countless American communities, Eagle suffers from a notable lack of competition between regional phone giant Lumen (formerly Centurylink, now operating under the Quantum brand), and regional cable company CableOne (under the Sparklight brand). That muted competition results in high prices, spotty access, slow speeds, and substandard customer service.

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Downtown Eagle, Idaho

Enter Eagle’s open access fiber network, which will allow numerous ISPs to compete in layers, driving down market entry costs for providers and broadband access prices for consumers. City leaders say the aim is to offer symmetrical gig speed service for between $50 and $60 to residents, and $150 per month to local businesses.

Municipal Broadband in Colorado Big Winners In Latest Wave Of State Grants

Colorado has long been home to some of the most innovative municipal broadband projects in the country. That trend has only accelerated with last year’s voter-approved elimination of municipal broadband restrictions, and it’s now being buoyed by a massive new wave of state grants that should further expand affordable broadband to long-neglected parts of the state.

Colorado Gov. Jared Polis recently announced the first of multiple broadband investments using stimulus funding from the U.S. Treasury’s Capital Projects Fund (CPF) program. The CPF is funded by $10 billion made possible by the American Rescue Plan Act (ARPA), and is a key part of the state’s goal to bring affordable broadband to 99 percent of Colorado residents by 2027.

According to the Governor’s office, the state just authorized $113 million in CPF funds on 13 projects that will bring fiber service to nearly 19,000 homes and businesses across Colorado. State officials say the funding will be heavily focused on projects in the South and Southwest portion of the Centennial State, where connectivity needs are greatest.

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Colorado State Seal

The Colorado Broadband Office says it received 112 applications asking for more than $642 million in broadband funding across the state–five times greater than the allotted awards.

ECFiber S&P Bond Rating Shines Light on How Municipal Broadband Builds Can Save On Borrowing Costs

Municipal finance is not for the weary.

But for the wise – at least according to the number-crunchers enmeshed in that world – one particular sliver of municipal finance (issuing bonds) has long been a viable way for local communities to finance the construction of municipal broadband networks. And as one Communication Union District in Vermont has discovered, bonding is better – when it’s rated.

Shining a light on bond-backed municipal broadband projects is the recent announcement that ECFiber, Vermont's first Communications Union District (CUD), obtained a BB rating from Standard & Poor Global, the nation’s preeminent credit rating agency. The rating will allow ECFiber to pay lower borrowing costs to complete a network expansion project.

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“This is a historic moment,” Stan Williams, ECFiber’s municipal finance advisor said in a prepared statement. “For the first time, a CUD will be issuing a rated bond, which means that many more investors will be competing to buy those bonds, lowering the interest rate. ECFiber has been managed for its entire existence to reach this goal. It’s hard to overstate the importance of this achievement.”

East Central Vermont Telecommunications District governing board chairman F. X. Flinn added that the new bond rating "was made possible by over 16 years of grass-roots persistence, driven by a conviction that working together, our region could overcome the failure of the marketplace to offer decent broadband to all our homes and businesses."

NEK Broadband Expands Access To Affordable Fiber In Rural Vermont

NEK Broadband continues to bring affordable fiber access to the long-neglected corners of the Green Mountain State. According to the latest update by NEK Broadband, a recently completed rollout has delivered affordable fiber access to 700 new addresses across multiple rural Vermont communities.

NEK Broadband is one of nine Communications Union Districts (CUDs) scattered across the state of Vermont. NEK Broadband alone represents 45 Vermont communities across Caledonia, Essex, Orleans and Lamoille Counties in the northeast part of the state (see the full list of communities here).

The CUD’s latest expansion plan primarily focused on bringing fiber access to parts of Danville, Kirby, Lyndon, St. Johnsbury, Walden and Wheelock, Vermont. With this latest expansion, NEK Broadband now provides fiber access to 2,100 predominantly rural Vermont residents in total, many of which only received broadband for the first time last year.

“We’re so pleased to end 2023 by giving more residents of the NEK access to high-speed internet,” Christa Shute, NEK Broadband’s Executive Director, said in a prepared statement. “We plan to bring even more residents online in early 2024.”

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NEK Broadband hanging fiber

The CUD currently provides upgraded users with access to speeds that exceed those provided by cable and DSL providers, even in many more urban markets.

NEK Broadband currently offers four tiers of broadband service: symmetrical 50 megabit per second (Mbps) service for $80 a month; symmetrical 250 Mbps service for $103 a month; symmetrical 500 Mbps service for $135 a month; and a symmetrical gigabit per second (Gbps) offering for $250 a month.