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].

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...

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.

Macquarie 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 “...

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...