Tag: "financing"

Posted June 29, 2020 by Ry Marcattilio-...

Funding can seem like an insurmountable barrier to expanding Internet access and adoption. But for states, local communities, nonprofits, or other organizations looking for some help, the National Telecommunications and Information Administration (NTIA) has updated its federal funding search tool for 2020. 

Whether you’re looking to find money specific to your region, to pair a broadband project with transportation infrastructure, to expand access on tribal lands, or to connect your community’s anchor institutions, the NTIA can help. The funding search tool also lets users sort through options depending on what stage of the process they’re at, so whether you’re exploring your options via a feasibility study or looking to evaluate or expand adoption rates, the tool has you covered. It also, helpfully, provides funding sources for those looking to fund programs to expand digital literacy skills and training.

You can find, for instance, the USDA ReConnect program there, which helps fund projects in rural areas. We’ve written about how communities in Virginia, Maine, Iowa, and elsewhere have secured ReConnect funding to advance community broadband development in their states. Likewise, we recently wrote about how Cumberland County, Maine, used a U.S. Department of Housing and Urban Development Community Development Block Grant to fund a broadband plan that brought together several communities seeking better Internet connectivity in the region. 

See the USDA's complete Broadband Funding Guide [pdf] or dive into the online search tool.

More Resources

For more, see our two fact sheets on funding: Fact Sheet on...

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Posted June 17, 2020 by Katie Kienbaum

As part of its Lunch and Learn series, the Community Broadband Action Network (CBAN) is hosting a webinar next week on New Market Tax Credits. The webinar, scheduled for Tuesday, June 23 at 12 p.m. central, will explore how communities can use the tax credits to help fund and deploy broadband networks.

Registration is free and required. Sign up online.

Who’s Who

CBAN, based out of Iowa, advocates for community-based broadband solutions and assists communities in improving local connectivity. Members of CBAN include local governments, broadband providers, and community organizations.

Shawnna Silvius, director of the Montgomery County Development Corporation, will moderate the discussion. Speakers for the webinar are Myriam Simmons of tax services firm Ryan and Jonathan Klassen of Rural Development Partners.

Money, Money, Money

We’ve covered community broadband network financing options many times in the past.

While many local governments opt to issue bonds or search out state and federal grants to fund connectivity projects, some have taken different, innovative approaches. For example, Ammon, Idaho, is using Local Improvement Districts to build out its fiber network. And in Virginia, Nelson County took advantage of Community Development Block Grants to expand connectivity.

For more, check out our fact sheets on Financing Municipal Networks [pdf] and Creative Funding Sources For Fiber Infrastructure [pdf].

Posted April 17, 2020 by Matthew Marcus

In the Monadnock Region of New Hampshire, at least six towns have voted to issue bonds to construct fiber networks in partnership with regional incumbent telephone company Consolidated Communications. Chesterfield approved the measure in April 2019 and recently executed a public-private partnership contract with Consolidated.

Chesterfield was the first municipality in New Hampshire to take advantage of Senate Bill 170, signed into law in 2018, which allows municipal governments to bond in order to build broadband infrastructure in places not served by commercial broadband providers. Over the last year, the towns of Dublin, Harrisville, Rindge, Walpole, and Westmoreland have also voted to bond are also in the process of bonding, or have already bonded (Rindge), and are finalizing public-private partnership contracts with Consolidated to develop Fiber-to-the-Home networks. The towns plan to issue bonds in July and should have finalized contracts by that point.

New Hampshire’s rural areas have struggled to connect rural residents to adequate broadband, and these towns are undertaking these partnerships to improve currently insufficient connectivity. Part of the challenge has been the rotating series of incumbent telephone companies, from Verizon to FairPoint and now Consolidated. Large publicly-traded telephone firms have difficulty justifying investments in rural areas when the same amount of capital could offer a much greater return in higher-density cities. But Consolidated is developing a new model with these towns that may work to everyone’s benefit.

Chesterfield has already executed their contract with Consolidated. The forthcoming contracts between Consolidated and Dublin, Harrisville, Rindge, Walpole, and Westmoreland will very likely be reflective of Chesterfield’s contract with one important difference, shared Tim Wessels, a Rindge Teltech Committee Member. The Chesterfield contract with Consolidated calls for the town to transfer the town-funded network to Consolidated when the 20-year bond is retired. But according to Wessels, Consolidated does not want to own the town-funded last-mile networks in Dublin, Harrisville, Rindge, Walpole, and Westmoreland, and this...

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Posted December 24, 2019 by lgonzalez

It was about five years ago that we brought consultant Eric Lampland from Lookout Point Communications into the office for episode 80 of the Community Broadband Bits Podcast. We've completed more than 300 other episodes since then, but his insight still rings true on the many indirect cost savings of community broadband networks. As activity in our office slows down a little for the holiday season, we thought this would be a great time to revisit the conversation with Eric to remind listeners of some of the reasons why so many communities are interested in taking control of their connectivity options with public investment. Enjoy! 

Today, Lisa and I are joined by Eric Lampland for a discussion of how a community could justify building a community owned network from the indirect benefits that it would create, including the savings that each household realizes from competition driving down prices. Eric Lampland is the CEO and principal consultant of Lookout Point Communications, which helps local governments that are building a network or considering an investment.

Eric and I start by discussing how quickly the cost savings per household add up to equal more than the cost of building a network and we digress from there, covering other topics related to community owned networks. This includes how big cable companies would respond to this approach.

I have to note that most community networks have not been justified on this basis - the vast majority of community networks were designed to pay their full costs and they are doing so. Here, we discuss the general benefits of these networks that are often sidelined in the policy discussion and how they alone may justify a fiber network.

Toward the end, we begin discussing open access, something we will...

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Posted July 2, 2019 by lgonzalez

Summer is the time for the Mountain Connect Broadband Development Conference, one of the events that Christopher is sure to attend every year. This year, it was held in Dillon, Colorado, and while he was enjoying the scenery, he collected a series of interviews. This week we hear from Brian Worthen, CEO of Mammoth Networks.

With its home base in Wyoming, Mammoth serves locations in eleven western states. They primarily provide wholesale middle mile service, but the company also offers last mile connectivity in select locations. Brian describes how, over time, Mammoth has developed a system of adopting combinations of technology to get the job done. They provide service in areas that are often sparsely populated, in areas where the geology varies, and Mammoth adjusts to the needs of their diverse customers.

The company received an award at Mountain Connect for their work on Colorado’s Project THOR. In this interview, Brian describes their involvement with the project and with several other local projects in the state. Christopher and his guest talk about cooperatives and their expanding role in delivering high-quality Internet access. They consider which levels of government are best suited to offer financial assistance to broadband initiatives, especially in rural communities, and discuss the potential for Low Earth Orbit Satellites to contribute to universal broadband access.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 32 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page...

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Posted May 24, 2019 by lgonzalez

The fifth anniversary of the announcement of the KentuckyWired project is approaching later this year. As voters start to assess their candidates’ job performance, the unfinished and over budget middle mile public-private partnership (P3) has become an albatross that incumbents aren’t able to easily cast off. When we last discussed the project in 2017, we shared our observations and misgivings. Not much has changed, except some of our concerns have played out and the project has become troubled by new problems.

In Case You’re Just Arriving to the Party… 

The statewide, massive middle mile project officially began when Kentucky announced in late 2014 that they would build a fiber optic network in order to bring better connectivity to rural areas. They planned to find a private sector partner and sought bids. In the fall of 2015, Australian firm Macquarie won the contract for what soon became an even larger endeavor — a fiber optic network that would enter every county in the state at a minimum of one location. The network would consist of approximately 3,200 miles of fiber and connect about 1,000 public facilities. At the time the project was developed, the state estimated that deployment would cost approximately $300 million.

With early bipartisan support, the state allocated $30 million from their budget, which they expected to combine with $23.5 million in federal grants. When the Kentucky Economic Development Finance Authority issued $232 million in tax-exempt revenue bonds and $58 million in taxable revenue bonds to complete financing, Bond Buyer named the issue the “Deal of the Year” for 2015. Macquarie’s timeline estimated an optimistic one-year completion for the entire statewide project.

logo-Macquarie.jpgMacquarie Capital, as the entity managing the project, included in the agreement with the state a requirement that they and their partners, including Black & Veatch from Kansas and Ledcor of Canada, would build, operate, and maintain the network for 30 years. During the course of those three decades, the state would pay them approximately $1.2 billion and when the term was over, Kentucky would own the infrastructure free and clear. During the contract period, Kentucky would make “...

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Posted November 15, 2018 by lgonzalez

Earlier this summer, we talked with Jase Wilson and Lindsey Brannon from Neighborly, the investment firm that uses online investing to allow individuals to invest in publicly owned infrastructure projects, including broadband networks. Jase and Lindsey described a program they had just launched, the Neighborly Community Broadband Accelerator. 

A Boost for Local Broadband

The program is designed to help local communities with necessary tools and financing from the start of their project planning. The Accelerator will provide mapping and community engagement tools, help from experts who will share best practices, and access to industry partners, such as ISPs and engineers. In addition to these and other information perks, communities accepted to the program will have the benefit of Neighborly financing at a competitive, below industry rate cost.

Applications were due by September 28th and more than 100 applications indicate that, more than ever, local communities are interested in taking action to improve connectivity. These 35 communities were accepted into the Broadband Accelerator Program:

  • Fresno, CA
  • Nevada City, CA
  • Oakland, CA
  • Palo Alto, CA
  • Santa Rosa, CA
  • Salinas, CA
  • Lyons, CO
  • Madison, CT
  • Jacksonville, FL
  • New Orleans, LA
  • Brockton, MA
  • Cambridge, MA
  • Millinocket, East Millinocket & Medway, ME (on behalf of Katahdin Broadband Utility)
  • Windham, ME (on behalf of Lakes Region Broadband Partnership)
  • Blue Hill, Brooksville, Deer Isle, Penobscot & Sedgwick, ME (on behalf of Peninsula Utility for Broadband)
  • Metuchen, NJ
  • Cleveland, OH
  • Portland, OR
  • Harrisburg, PA
  • Block Island, RI
  • Sweetwater, TN
  • Baird, TX
  • Ashland, VA
  • Manquin, VA
  • Richmond, VA
  • Virginia Beach, VA
  • Enosburgh, VT
  • Sauk County, WI
  • Laramie, WY

To get started, communities will receive curriculum from experts in municipal broadband and related policy, including our Christopher Mitchell, Deb Socia from Next Century Cites, and Blair Levin, Senior Fellow of the Metropolitan...

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Posted September 12, 2018 by lgonzalez

In episode 320 of the Community Broadband Bits Podcast, aired on August 28th, we shared news about an opportunity regarding funding local Internet network infrastructure. Jase Wilson and Lindsey Brannon of Neighborly announced that the online investment platform had recently launched the Neighborly Community Broadband Accelerator. Applications to participate in the program close on September 28th, so we want to encourage local communities, Internet Service Providers, or community advocates interested in new ways to develop better local connectivity to check out the program.

More Than Money

For a quick recap, Neighborly is a technology company that provides an online investment platform to give individuals and entities the ability to invest in projects funded with municipal bonds. The projects are publicly owned and centered on improving the quality of life on the local level. Project areas include transportation infrastructure, schools and libraries, housing, and utilities. The accelerator program specifically aims to help local communities develop their own open access municipal networks to improve connectivity and encourage competition for broadband on the local level.

As Jase and Lindsey described in our interview, the numerous moving pieces associated with developing a fiber optic municipal network create a layered and complex project; a key element is financing. While it’s often left as a later consideration — one that makes or breaks the project — chances of success improve when community leaders address funding early and throughout projects development. 

One of the goals of the Accelerator Program is to help local communities interweave funding throughout the process. The program also provides additional resources throughout the process to help ease broadband network development. Applicants accepted to the program pay no fee and receive:

  • Tools to map, multiply & accelerate community engagement, including demand aggregation technology and marketing collateral to build a grassroots movement
  • Education sessions with leading experts who will share best practices for generating local support, working with civic leaders, overcoming legislative...
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Posted August 30, 2018 by lgonzalez

Shortly after Republican FCC Commissioners repealed federal network neutrality protections late in 2017, state lawmakers began introducing legislation to protect their constituents. California’s AB 1999, introduced as one possible antidote to the FCC failure in judgment, passed the General Assembly on August 29th and is on its way to Governor Jerry Brown.

Read the final version of the bill and the Legislative Counsel Digest here.

Let the People Serve the People

As local communities have investigated ways to protect themselves from throttling, paid prioritization, and other activities no longer banned, they’ve looked at investing in publicly owned infrastructure. Rural communities where national Internet service providers are less motivated to deploy have always struggled to attract investment from the same large companies known to violate network neutrality tenets. Assembly Member Ed Chau’s AB 1999 addresses rural communities’ need for better connectivity, solutions that can preserve network neutrality, and challenges in funding broadband infrastructure.

California’s community service districts (CSDs) are independent local governments created by folks in unincorporated areas. CDSs provide services that would otherwise be provided by a municipality. Residents usually join together to form a CSD and do so to establish services such as water and wastewater management, garbage collection, fire protection, or similar services. A CSD also has the ability to create an enhanced infrastructure financing district (EIFD) in order to finance the development of a broadband network.

The EIFD statute granting the authority allows communities, including CSDs, to join together regional projects for a range of financing purposes. Tax Increment Financing (TIF) and various bonding mechanisms are a few examples.

The law currently on the books, which AB 1999 will change, requires CSDs to first determine that no private entity or person is willing to offer broadband in their sector before they are allowed to invest to do so. If they manage to get past the requirement but an entity or person enters the picture and is willing to provide those services, the...

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Posted August 28, 2018 by lgonzalez

Plenty of local communities are interested in the possibilities of creating publicly owned Internet infrastructure but pause when it comes to funding. This week on the podcast, Christopher interviews Jase Wilson, CEO, and Lindsey Brannon, Head of Public Finance, from Neighborly. The firm is working with local communities and using an innovative approach to financing publicly owned infrastructure projects, including broadband networks.

Neighborly provides an online investment platform that allows individuals to invest in projects funded through municipal bonds. In addition to more traditional projects suited to the muni bond market, such as transportation, education, and housing, Neighborly is working with local communities that want to develop open access municipal networks. In this interview, Jase and Lindsey describe how the open access network fits so well with the firm's philosophy.

In addition to helping drum up the capital for muni deployment, Neighborly sharpshooters recognize that the opportunity for individuals to invest directly in a municipal project in their community will help the project ultimately succeed. After all, the investment is about more than turning profit when it’s providing fast affordable, reliable connectivity in your own hometown.

Lindsey and Jase discuss some of their past work and talk about the new Community Broadband Accelerator program that offers additional tools to communities investing in open access fiber networks. Specifics about the program are available on the Neighborly website and during the interview we get to hear more about the advantages of participating in the Community Broadband Accelerator program.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 36 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to ...

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