As Vermont’s nascent Communication Union Districts (CUD) push to bring universal, truly high-speed Internet connectivity to the more rural parts of the Green Mountain State, CUD leaders are calling for changes in how federal funds get funneled to local municipalities, and for a change in how the federal government defines “high-speed” access.

Enabled by a 2015 Vermont law that allows two or more towns to join together as a municipal entity to build communication infrastructure, these local governmental bodies were formed to help the state reach its goal of having universal access to broadband by 2024. The idea is for CUD’s to operate like a water, sewer, or school district as a way for local communities to build their own broadband infrastructure. Establishing a CUD also puts rural regions of Vermont in a position to borrow money on the municipal bond market and eases access to grants and loans to fund broadband projects.

The formation of Communication Union Districts across the state began to pick up steam in the months following Gov. Phil Scott’s signing of H.513 in June of 2019. That legislation, which set aside $1.5 million to support broadband projects, increased funding to help provide Internet service in unserved or underserved parts of the state. It also created a new Broadband Expansion Loan Program within the Vermont Economic Development Authority (VEDA) to assist start-up broadband providers in developing community-based solutions.

Funding Gaps

In a Zoom call last month with U.S. Rep Peter Welch, D-Vt., leaders from the state’s nine CUD’s met virtually with Welch to update the congressman on the status of their efforts and what they see as crucial to succeed in fulfilling their mission without burdening taxpayers.

Representing the Deerfield Valley Communications Union District, Ann Manwaring told Congressman Welch: “It’s wonderful to think about the notion that we should be running like an electric utility. But until there’s some federal legislative action that permits that to...

DVFiber, the nonprofit arm of the Deerfield Communications Union District (CUD), has received a $100,000 grant from the Vermont Public Service Department to conduct pole studies in the towns of Stamford, Halifax, and Whitingham. The grant, as well as an additional $8,000 grant to cover legal and administrative fees, will further propel the CUD down the path to a community-owned fiber network.

Granite Staters with poor Internet access in rural areas should soon realize the benefit of HB 1111, which just passed the state legislature and was signed into law by the governor. The measure provides for the establishment of communications districts to pursue Internet infrastructure projects in New Hampshire. In addition, the law makes it easier for municipalities to determine which areas under their purview are unserved in order to target broadband expansion efforts and expand access to all. 

Removing Barriers, Providing New Tools 

Two years ago SB 170 passed the legislature, allowing communities in the state to bond to develop publicly owned Internet infrastructure for the first time. The bill, however, made such moves contingent upon proving that the proposed areas were “unserved” by a connection of 25/3 megabits per second (Mbps). To do so local governments were required to issue an RFI to the existing Internet Service Provider (ISP). At the time we anticipated trouble with existing providers who had a history of claiming service to large areas when the reality was that many were unserved, and it turns out that worry was well-founded: communities reported that ISPs were ignoring requests for information, making it difficult for them to make progress. 

HB 1111 changes that. If an RFI to a provider goes unanswered for 60 days, it is assumed the latter is unable to deliver broadband. Municipalities can then come together and form communications districts which have the authority to use general obligation bonds to fund an overbuild of the area and seek out public-private partnerships to provide new service.

“Access to consistent broadband and high-speed internet was a problem long before this crisis and the remote learning, work, and health care environment has only exacerbated those inequities,” State Senator Jay Kahn told news outlets. “As we prepare for the possibility of a second wave, we must take steps that efficiently use public funds to leverage private investment to deliver high-...

In March, we reported on the formation of Deerfield Valley Communications Union District in Vermont.

That same month, communities in different parts of the state also formed two other communications union districts (CUDs) to improve their local connectivity. Voters in dozens of towns approved the formation of Northeast Kingdom CUD and Southern Vermont CUD during Vermont’s Town Meeting Day on March 3. The two new CUDs are currently undertaking feasibility studies and hope to take advantage of federal and state funding — including through Vermont’s new — to deploy Fiber-to-the-Home networks to all region residents and businesses.

Developing Districts

Northeast Kingdom CUD is currently made up of 27 towns in the counties of Caledonia, Essex, and Orleans. The group’s FAQ explains that the district’s goal is to “bring a reliable and affordable, high-speed Internet option (at least 100 mbps symmetrical) to every residential and business e911 address in the Northeast Kingdom. According to VTDigger, the participating communities are in some of the most underserved counties in Vermont.

On the other end of the state, the Southern Vermont CUD is comprised of 12 member towns, all in Bennington County. The fact that all of the towns voted to join the CUD doesn’t surprise local officials, who are familiar with residents’ desire for better connectivity. “I had heard next to no negative comments about the CUD, and mostly people who are really anxious to see their internet situation improve," Tim Scoggins, Southern Vermont CUD Governing Board Chair and Shaftsbury Selectboard Chair, told the Bennington Banner.

Both of the new CUDs plan to conduct feasibility studies and create business plans using funding from the state’s Broadband Innovation Grant Program. When it comes to deploying their networks, the two entities hope to tap into federal and state funds to finance construction. “The...