Snapshot

This week’s community broadband state legislative roundup revisits and provides updates on important bills moving through the state legislatures in Washington, Oklahoma, and California.  

The State Scene 

Washington 

We’ve been closely covering S.B. 5383 and H.B. 1336, two bills in Washington state that would give Public Utilities Districts (PUDs) and port districts the authority to offer retail telecommunications services.

Our initial coverage pointed out shortcomings in S.B. 5383. The bill originally contained a preemption clause that gave private Internet Service Providers (ISPs) the power to reject PUDs’ and ports’ project proposals in areas where incumbent ISPs claim they plan to expand service within six months. 

Since our last reporting on this piece of legislation, the bill was amended by the State House Community and Economic Development Committee, removing the veto authority initially given to existing ISPs. However, a new provision favoring incumbent cable ISPs was also added, which would prohibit a PUD or port from providing retail Internet services in an area where an existing provider offers service at a minimum of 100 Megabits per second (Mbps) download speed and 20 Mbps upload speed. The minimum speed requirements of this provision would be increased to stay consistent with Washington’s state definition of broadband.

The Committee also amended the bill to allow PUDs and ports to provide retail services in served areas, but only when building to reach an unserved region. 

With vaccines rolling out tier by tier, state by state, and restaurants, bars and public spaces starting to reopen one by one, there seems to be a desire to say, “Wow, things are going back to normal!” Unfortunately, the public health crisis exacerbated healthcare, education, and economic inequities that have long existed in low-income and communities of color across the country and have no chance of going away any time soon. But some community leaders have stepped up and come to the table with one piece of the puzzle in bridging these inequities — better Internet access to these communities. 

Over the summer, we covered several communities that jumped to action and came up with quick ways to implement long-term solutions. 

The city of San Rafael, which sits on the coast of northern California in Marin County, continues to strengthen, expand, and research the use of the network it built over the summer and fall for one unserved area hit hard by the economic, education, and health impact of Covid-19. And on the other side of the country, Meta Mesh in Pittsburgh, Pennsylvania continues construction on a pilot project that is hoping to connect unserved families by the end of this summer.

Focusing on the Future

In San Rafael, California, the city, Marin County and a nonprofit organization — the Canal Alliance — all joined forces to bring free Wi-Fi to the Canal neighborhood. 

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Snapshot

A California ballot initiative would empower voters to build their own Internet access solutions.

The Oklahoma House sends seven broadband bills to Senate.

New York and North Carolina initiate statewide digital inclusion programs.

Virginia is second state to pass comprehensive privacy legislation. 

See the bottom of this post for some broadband-related job openings. 

The State Scene 

California Legislation Could Lead To Massive Investments in Public Broadband

As lawmakers in the Golden State look to rectify a reputation of having one of the highest student populations without Internet connectivity, bills aiming to expand access to 98 percent of California households by increasing investments in public broadband infrastructure were launched early in California’s legislative session.

Though there are several other bills pertaining to broadband that have been introduced in Sacramento, we focus on these four because, if passed, they would have the biggest impact on municipal networks.

S.B. 4, sponsored by State Sen. Lena Gonzalez, D-33, would create a new state-backed bond program, enabling local governments to finance more than $1 billion in public infrastructure projects through bond issuances. The low-interest debt for the projects could be repaid over multiple decades. 

Privately-owned broadband infrastructure builder and operator SiFi Networks is sprouting roots in cities from California to the Commonwealth of Massachusetts.

The Fullerton FiberCity network was SiFi’s first FiberCity — a privately built, financed, and operated open access network. Network construction in Fullerton started in November 2019 and involved over 600 miles of micro-trenching underground fiber, a technique designed to minimize traffic and neighborhood disruption sometimes associated with ripping up roads to install fiber conduit. The first residential customers were hooked up in June, with an anticipated completion date in the fall of 2021.

And while construction of the fiber network in Fullerton isn’t quite finished yet, eight other communities across the country are in the process of becoming the next SiFi fiber cities.

Salem

In Salem, Ma., SiFi Networks announced at the end of November it had completed a “construction trial” which is a “practice run” ahead of the actual construction of the citywide network, slated to start this spring.

Once completed, the Salem project, in which SiFi Networks is partnering with GigabitNow, will offer the city’s 43,180 residents an alternative to the monopoly services of Comcast. GigabitNow, which will be the Internet Service Provider (ISP) for Salem FiberCity, estimates they will be able to begin providing services as early as summer 2021.

All across the country, municipal networks, cooperatives, and cities have been putting in extra effort to make sure that Americans have the fast, affordable, reliable Internet access they need to conduct their lives in the midst of the COVID-19 pandemic. 

AT&T has decided to take another route. A USA Today report last week revealed that the company has stopped making connections to users subscribing to its ADSL Internet as of October 1st. Anyone calling the company to set up new service is being told that no new accounts are being accepted. 

The decision comes right as the National Digital Inclusion Alliance has released a report detailing that only 28% of AT&T’s territory can get fiber from the company. AT&T has deliberately focused investment in more urban areas of higher income. From the report:

The analysis of AT&T’s network reveals that the company is prioritizing network upgrades to wealthier areas, and leaving lower income communities with outdated technologies. Across the country, the median income for households with fiber available is 34 percent higher than in areas with DSL only — $60,969 compared to $45,500. 

The Deep South Hit Hardest

As of today, it looks like the most conservative number of those affected by the decision will be about 80,000 households that have no other option. Our analysis using the Federal Communication Commission’s (FCC) Form 477 data shows that the Deep South will be hit the hardest (see table at the bottom of the page). 

Collectively it means more than 207,000 Americans who, if disconnected, will have no option for Internet aside from their mobile devices or satellite service. The number of Americans affected by the decision but which have additional wireline options is higher: roughly 2.2 million American households nationwide subscribe to the service (see map, below).  

In the city of Fullerton, California (pop. 140,000), privately owned infrastructure builder and operator SiFi Networks has turned on the first section of what will be a city-wide, open access Fiber-to-the-Home network. The project makes Fullerton SiFi’s first FiberCity — a privately built, financed, and operated open access network it plans to duplicate in more cities across the country in the future. When complete next fall, the Fullerton FiberCity network will pass every home and business in the city, with the company's subsidiary, SiFi Networks Operations, selling wholesaling capacity to as many Internet Service Providers (ISPs) as want to enter the market. 

A Different Approach

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SiFi’s FiberCity model remains somewhat unique in the United States, and is much more common in Europe and Asia. CEO Ben Bawtree-Johnson attributes their success to cracking the economic code for private investment in open access information infrastructure, which has seen more attention in recent years as investors and fund managers have seen opportunities. “[O]ur vision really is to create as many last-mile fiber optic networks as we can across the USA in a long term sustainable fashion,” Bawtree-Jobson remarked on an episode of the podcast last fall. “[W]e're all about long term, dry, low yielding, risk mitigated investments, so everything we do is based around 30-year plus type investments.”

Scott Vanderlip can see Google’s headquarters from his house in the town of Los Altos Hills, California (pop. 9,000). But still, some of his neighbors struggle to access the online world that the tech company has helped shape.

“There are people in my town who actually have really no Internet options,” Vanderlip shared in a Zoom interview. This includes some households stuck with satellite connections that have low speeds, high latency, and restrictive data caps. “We are in Silicon Valley, and we have really bad pockets of [limited] broadband,” he continued.

Even the residents who could connect to AT&T or Comcast’s networks, such as Vanderlip, were dissatisfied with the monopoly companies’ poor service quality. So they created Los Altos Hills Community Fiber, a nonprofit mutual benefit corporation that’s bringing a local, high-quality connectivity option to the area.

Los Altos Hills Community Fiber, or LAHCF, owns and finances the local Fiber-to-the-Home network and recruits interested community members, while its technical partner Next Level Networks manages network operations and construction and provides residents with tools to help organize their neighbors. The arrangement gives LAHCF subscribers more say over how the network operates and what speeds they have access to, a stark difference from the antagonistic relationship that many national Internet service providers (ISPs) have with their customers.

“Anyone can do this,” said Next Level Networks COO David Barron in a phone interview. “You just need a few motivated people to organize, and you can be completely free of the telcos and cable operators.”

Money Can’t Buy Cable Upgrades

Comcast and AT&T are the major broadband providers in Los Altos Hills, but the lack of competition means there’s little incentive for providers to improve service quality, despite interest from subscribers. “Los Altos Hills sometimes is listed as the most affluent community in America, and we still have crap Internet service,” as a result of the ISPs’ reluctance to invest in network upgrades, explained Vanderlip.

Marin County and the city of San Rafael, California, are demonstrating what happens when local government, a community nonprofit, and generous stakeholders come together to do something right. Over the summer they’ve built a Wi-Fi mesh network in the city’s Canal neighborhood to connect over 2,000 students and their families in anticipation of the upcoming school year. How the project unfolded shows what a thoughtful, committed group of people can do to respond to a public health crisis, close the digital divide, and make a long-term commitment to the vulnerable communities around them. 

A Neighborhood in Need

The Canal neighborhood (pop. 12,000) was founded in the 1950s and sits in the southeast corner of Marin County, bounded by the San Francisco Bay to the east, the city of San Quentin to the south, China Camp State Park to the north, and the Mount Tamalpais Watershed to the west. It’s split down the middle by Highway 101 and Interstate 580.

Canal is populated by predominantly low-income workers, and remains one of the most densely settled areas in Marin County — one of the wealthiest counties in the nation. Its residents serve, according to San Rafael Director of Digital Services and Open Government Rebecca Woodbury, as the backbone of the area’s service economy. Those who live there are mostly Latinx residents, with a small but significant segment who identify as Vietnamese. A 2015 study highlighted the challenges the community faces. Its population grew by half between 1990 and 2013, while available housing units grew by just 15%. During the same period, median household income shrunk by nearly a third, and unemployment remains twice as high in Canal than in the rest of Marin. It suffers from the largest education disparity in the entire state. It’s also among the hardest hit in the community by the coronavirus pandemic: the Latinx population in Canal accounts for just 16% of Marin County but 71% of cases so far.