Snapshot

Michigan broadband package repeals law prohibiting state grants from going to government entities

Montana Legislature duplicates federal limitations against schools and library self-constructing networks

U.S. House Republicans bill would give USDA authority over rural broadband, in place of FCC 

The State Scene 

Michigan

Michigan Gov. Gretchen Whitmer issued an executive directive on Wednesday establishing the Michigan High-Speed Internet (MIHI) Office, a new state office tasked with developing a strategy to make high-speed Internet more accessible to Michiganders. 

Gov. Whitmer has argued that more than $2.5 billion in potential economic benefit is left unrealized each year due to a lack of Internet access across the state. MIHI will be housed inside the state’s Department of Labor and Economic Opportunity (LEO). Speaking of the new office, LEO Acting Director Susan Corbin said, “We need to make major investments to support digital inclusion and this office will be focused on leveraging every dollar available through the American Recovery Plan and other federal programs,” reports WILX.

Michigan lawmakers are moving to answer Corbin’s call and recently proposed a $400 million one-time allocation of incoming federal relief funds to the newly created MIHI to work toward expanding access to broadband. With the funds, LEO would be tasked with maintaining a statewide broadband grant program, the Connecting Michigan Communities Broadband Grant. 

Less than six months after its creation and a year after the city of Waukegan, Illinois (pop. 89,000) began exploring options to improve connectivity in response to the Covid-19 pandemic, a Request for Proposals (RFP) has been issued by the Waukegan Broadband Task Force in search of qualified applicants to assist in the creation of a broadband master plan. Applications are due June 30th, 2021.

Waukegan is situated about halfway between Chicago and Milwaukee, along the west coast of Lake Michigan. A 2020 initial broadband assessment showed challenges related to price, devices, digital skills for remote learning, and a lack of coordination to get income-qualified residents onto incumbent ISP's low-income plans. The city is served by a patchwork of ISPs, including cable from Comcast, DSL from AT&T and TDS, and fixed wireless from Rise Broadband with starting prices on plans ranging from $30/month to $60/month.

The Task Force website outlines the group's goals and stakes for the community:

There are few cities with the opportunities that exist within Waukegan. However, to truly become a ‘City of Progress’ , Waukegan must take the critical steps necessary to achieve its great potential. While 2020 brought challenges to communities around the globe, it also presented opportunities for innovation, collaboration, change and growth. The Waukegan Community Broadband Taskforce is an open, collective impact inititative of committed community stakeholders for all residents, businesses, institutions interested in working together to create a path to the future.

The RFP calls for solutions addressing access, adoption and utilization, sustainable funding, and communication and community engagement with a particular focus on remote learning, telehealth, and economic development.

The steering committee for the task force is made up of a collection of local nonprofits, the public library, the community center, city officials, and the school district. Funding for the master plan will come from private contributions.

Applicants can direct questions to wbctaskforce@gmail.com by 5pm on June 6th, with full RFPs due by June 30th.

Snapshot

North Carolina Governor budgets $1.2 billion of Rescue Plan funds towards closing the digital divide

Vermont Senate includes private ISPs in what was a community-based solution to universal access

Alabama Governor approves $17 million in broadband grants, some to Comcast and Charter Spectrum

The State Scene

North Carolina 

North Carolina Gov. Roy Cooper released a budget proposal last Wednesday that anticipates using $1.2 billion of incoming federal COVID-19 relief funds towards broadband infrastructure, affordability initiatives, and expanding digital literacy. With North Carolina set to receive a total of $5.7 billion in federal American Rescue Plan funds, Gov. Cooper is dedicating nearly one-fifth of the incoming relief to closing the digital divide. 

Next, the State House, Senate, and the North Carolina General Assembly will create their proposals for how to spend the relief funding. Then, they'll have to rectify any differences. Each chamber's plans could look similar to the governor's or vastly different. 

Gov. Cooper’s proposal specifically allocates [pdf]:

• $600 million towards expanding broadband infrastructure, including: $350 million for the state’s existing last-mile grant program (GREAT grants), $150 million for competitive bidding which will allow county governments to leverage the funds for public-private partnerships, and $100 million towards stop gap solutions “to address local infrastructure needs and connect underserved households not likely to get fiber for three to four years.”

• $420 million towards affordability initiatives which will subsidize low-income service plans.

• $165 million for digital literacy, including: $40 million towards device support to provide computers to 96,000 households which currently lack them; $30 million towards break/fix services to replace devices for over 275,000 North Carolinians; and $95 million towards community-based digital literacy campaigns.

The plan aims to connect 100 percent of North Carolina households with children to high-speed Internet access by 2025, and anticipates the affordability initiatives in the proposed budget will provide 380,000 individuals with a $50/month subsidy for four years. 

Join us on Thursday, May 27 at 5pm ET/4pm CT with a special Financing Edition of the Connect This! show, with co-hosts Christopher and Travis Carter (USI Fiber) joined by Doug Dawson (President, CCG Consulting) and Kim McKinley (CMO, UTOPIA Fiber). The group will dive into the numbers and talk about the economics that make networks succeed. They'll talk about the different models to broadband buildouts, types of financing available to municipalities and small private ISPs, grant programs, the factors that drive healthy take rates, and economies of scale.

The show will begin on Thursday, May 27 at 5pm ET/4pm CT.

Subscribe to the show using this feed, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback and ideas for the show.

Watch here, or below.

With $3.9 billion from the American Rescue Plan Act on its way to Maryland, Gov. Larry Hogan and state legislative leaders have agreed to seize the moment, allocating $300 million of federal COVID-19 relief funds to expand broadband infrastructure and digital inclusion initiatives across the state.

The biggest bulk of the money – $97 million – will go towards funding the building of physical infrastructure with $45 million earmarked specifically for municipal broadband grants.

“The question isn’t how much it’ll cost to bridge the digital divide, the question is how much will it cost if we don’t act right now,” State Senate President Bill Ferguson said at a press conference when the funding was announced.

The bipartisan budget agreement was hailed by Gov. Hogan, a Republican, as an example for the nation demonstrating how “people from different parties can still come together, that we can put the people’s priorities first, and that we can deliver real, bipartisan, common sense solutions to the serious problems that face us.”

One “serious problem” in Maryland, according to a recent Abell Foundation report, is that 23 percent of Maryland households (520,000) do not have a wireline home Internet connection, 40 percent (or 206,000) of which are Black households.

Much of that comes from a lack of affordability and other barriers to adoption. To deal with those challenges, the budget agreement also includes $45 million to subsidize monthly Internet service costs for qualifying families and $30 million to pay for Internet-connected devices for financially eligible households. It also includes an additional $4 million for a new University System of Maryland program to support training and developing curriculum to bridge the digital divide as well as $2 million for digital navigator programs.

Baratunde Thurston hosted Bruce Patterson on the most recent episode of his podcast How To Citizen. The episode is a deep dive into the consequences of a lack of competition in Internet access, and how the city of Ammon on stepped up to meet the challenge. Baratunde talks with Technology Director Bruce Patterson about how he got into this space, how the project got started, and the wealth of positive outcomes it has help drive for the community.

Listen here, then watch the video below on how the network is saving money, creating competition for broadband services, and creating powerful new public safety applications.

Last week we wrote about the partnership between Long Prairie, Minnesota and the  forward-thinking and locally minded local telephone cooperative CTC to build a citywide fiber network and bring affordable, high-speed Internet to everyone in town.

Long Prairie isn’t alone, however, among north-central Minnesota communities needing better options, and for at least two others CTC has become a natural partner. This is both because of its location - offering service across the region in Sullivan Lake, Randall, Pillager, Outing, Nokay Lake, Nisswa, Motley, Mission, Lincoln, Leader, Freedhem, Ely, Brainerd, Baxter, and Crosby -  and because it has become one of the most aggressive fiber builders in the state.

Two other cities, specifically, Ely and Little Falls, have also partnered with CTC to bring fiber loops to their business districts. Both communities have faced challenges when it came to building and connecting their residents and businesses to a fiber network.

Dealt a Poor Hand, Ely Forged Ahead

The City of Ely sits on the Southern side of Shagawa Lake with a population of 3,500. While iron used to be what drove the economy, today Ely is a tourist destination and is known as the entry point for the Boundary Waters. 

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Snapshot

Florida Legislature rewrites utility pole bill to include language backed by municipal electric utilities

North Carolina’s County Broadband Authority Act includes clause drawing criticism from electric co-ops

Oklahoma Governor signs mapping bill, vetoes measure adding Tribal representation to state broadband council

The State Scene

Florida

Tired of waiting for connectivity solutions to come to town, one Minnesota community has instead partnered with a local telephone cooperative to build a fiber network reaching every home and business in the city.

In embarking on its journey to improve local Internet access six years ago, Long Prairie (pop. 3,300) ended up partnering with one of the most aggressive fiber network builders in the state - Consolidated Telephone Company (CTC) - on a solution that meets local needs. The two finished a ubiquitous Fiber-to-the-Home build in 2018, with CTC now owning and operating the network. 

Looking for Solutions

The City of Long Prairie (pop. 3,300), the county seat in Todd County, Minnesota, has long struggled with connectivity. It has manifested in issues with connecting students from their homes, with losing parts of the local workforce, and in a lack of access to support larger healthcare institutions for their aging population. 

In 2014, the city met with state officials as well as broadband providers to discuss the results of a feasibility study that was done back in 2011. Todd County stressed that this was a pressing issue that couldn’t wait anymore - they needed state support with funding and potentially help setting up a partnership with a local co-op. But this kind of partnership couldn’t just be with any co-op, it had to be a mutually beneficial partnership that could connect all of Long Prairie’s businesses and residents. It would take 2 more years before the community entered into an agreement with the right one.  

CTC started in the 1950s as a telephone cooperative, and began offering Internet access via DSL service in the late 1990s and early 2000s. Around 2008, CTC’s Board of Directors decided that the best long-term strategy for providing strong, reliable connectivity would be to build out Fiber-to-the-Premise (FTTP) for all of its members. 

Building on that initial network, the main vision and mission driving the co-op over the last 10 years has been getting as many people in the area fast and reliable connectivity as possible. But because CTC is just one firm, that has meant developing relationships with other towns, cities, and counties that bloom into successful partnerships. 

Snapshot

Nebraska Senate rejects amendment supporting municipal broadband in spending plan

Michigan Governor vetoes bill granting private ISPs property tax exemptions

Montana, Iowa and Maine channel Rescue Plan funds towards new broadband grant initiatives

The State Scene

Nebraska

The Nebraska Senate approved a plan to spend $40 million over the next two years on expanding rural access to high-speed Internet by a unanimous vote on Tuesday, but only after an amendment to L.B. 388 that would have allowed municipalities to offer retail broadband services was rejected.

State Sen. Justin Wayne introduced the amendment, saying that “broadband should be considered a critical infrastructure need and that private telecommunications companies have not stepped up to serve the whole state,” the Lincoln Journal Star reports.

Wayne urged Nebraska Senators “to look to Nebraska's history of public power as a model, as well as to the example of other states that are allowing cities to offer broadband.” The amendment ultimately failed by a vote of 20-24. Wayne assured fellow Senators that he will reintroduce the amendment in the future. 

The bill marked the first time the Nebraska Legislature has suggested using state tax dollars to fund broadband deployment. As it was submitted to Gov. Pete Ricketts for his signature, the bill would annually allocate, until funds run out, $20 million in grants to projects that increase access to high-speed broadband in unserved regions of Nebraska. It would prioritize projects in regions which lack access to Internet service with speeds of at least 25 Megabits per second (Mbps) download/3 Mbps upload. Grant recipients would be required to deploy networks capable of providing service of at least 100/100 Mbps within 18 months. 

Michigan