It’s been nine months since we launched our Big List of American Rescue Plan Act (ARPA) Community Broadband Projects, tracking what communities are doing with the various pots of federal money intended to go towards solving local broadband challenges. Since then, we’ve recorded 250 community projects and 27 states which have announced significant broadband grant programs or disbursement for new infrastructure projects. Here we highlight some of the community projects we’re really excited about, including those that have decided to build their own networks and those building on existing projects, as well as those using ARPA dollars for open access networks, affordable connectivity, or Internet access for students. We also discuss some examples of solutions we believe are less permanent, forward-thinking, or likely to result in long-term success, including the distribution of hotspots and the allocation of funds to monopoly providers. 

What We’re Excited About: Community-Owned Networks and Open Access  

Fortunately, we’re seeing a number of communities approve plans to spend their Rescue Plan dollars on building their own municipal networks. In Lexington, Tennessee (population 8,000), the city is collaborating with Lexington Electric to bring broadband to the community. An ARPA grant is expected to cover about $20 million of the total $50 million price tag, and the city will issue bonds for the rest. If this grant is received, Henderson County (28,000) – where Lexington is located – has agreed to a 10 percent match (from $300,000 to $500,000). 

Back in January, Colorado Springs Utilities (CSU) announced it was going to begin building a city-wide, open access fiber network owned, and that Ting would be its first anchor tenant. Construction of the network is expected to begin in the third quarter of this year, with a target completion date of 2028 (originally planned for fifteen years). The network will provide multi-gigabit service to roughly 200,000 homes as well as city businesses and anchor institutions. It’s still early in the process, but projections at the moment have the utility spending $45 million to $100 million a year for the next six years to complete the project. The first phase will see 225 new fiber route miles laid.

CSU Has Long Used Fiber

For thirty years CSU has built fiber across Colorado’s second-largest city. CSU’s dramatic  expansion of this existing network directly benefits the utility by reducing overall costs, improving infrastructure monitoring, and boosting overall utility network resiliency. And it all will come with no rate increases to CSU electric customers.

But the company’s decision to lease access to this fiber expansion also directly aids the local community by lowering consumer utility costs, and delivering universal, affordable, high-speed Internet access. It’s a significant boon to Colorado’s second largest city that’s now an attractive, high-tech growth market. 

Fairfield City, California is one of several cities in the state hoping to lean on both California’s broadband expansion initiative and the American Rescue Plan Act to provide faster, less expensive Internet access for city residents. The city says it will soon exit the research phase of its project and outline what they believe is the best path forward.

Last May the city council approved a plan to deploy a city-owned broadband network to expand broadband options in the city using Rescue Plan funds. Last August, the city launched a Broadband Action Planning (BAP) process to measure the scope of Internet access gaps and propose a solution, the results of which will soon be shared with the city council and the public.

Digital Divide Exacerbated

Like so many U.S. communities, the lack of affordable, equitable Internet access was particularly pronounced during the Covid crisis, the city said. 

“Access to broadband is becoming a prerequisite for improving economic and social welfare,” Fairfield City Communications Manager, Bill Way, told ILSR. “It provides a conduit to enable open and accessible government, enhance business competitiveness, and improve the quality of residents’ lives through improved delivery of services such as telework, telehealth, distance learning, and digital inclusion.”

The city recently completed a survey of community members, and the majority of the almost 300 responses cited limited competition and a lack of affordable Internet access options. 

“While a few comments were positive, most comments indicated lack of options, low speeds, and high costs,” Way said. “One specific consideration to note, although city staff coordinated with outside agencies to cast a broad reach for the survey, and utilized in-house engagement efforts, the responses did not generally capture vulnerable populations, most at-risk of being digitally excluded.”

In this episode of the Connect This! Show, co-hosts Christopher and Travis Carter (USI Fiber) will be joined by Heather Gold (CEO, HBG Strategies LLC) and Milo Medin, an industry veteran who recently left Google as VP of wireless services.

The panel will tackle what we can expect to see in the broadband marketplace in 2022, with a special focus on fiber, including who is building it and why the capital markets are so hungry for it. What are we likely to see from builders big and small? What will competing against the national monopoly providers look like? Is fixed wireless a viable option ten years from now?

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Five small towns in rural Maine are connecting with one another in a steady grassroots effort to expand broadband access in the Midcoast. After conducting a survey which affirmed the towns’ acute need for better connectivity, a local coalition is navigating state funding and weighing network options. 

In Waldo County, a collection of local officials and community volunteers have formed the Southwestern Waldo County Broadband Coalition (SWCBC) to organize efforts to bring broadband to five towns in rural Maine, clustered about 30 miles east of Augusta. Freedom, Liberty, Montville, Palermo and Searsmont combined have only 3,300 houses along 340 miles of road. The need for better Internet access became particularly visible during the pandemic, as local officials tried to convene online for Selectmen’s meetings. Two selectpersons from neighboring towns connected over this shared need for access, and the coalition grew from there. 

A year after a group of local broadband champions got together to see how they could improve Internet access in Missoula, Montana, the Missoula Valley Internet Cooperative has successfully raised funds and designed, deployed, and launched a wireless mesh network delivering 150 Megabit per second (Mbps) symmetrical service to more than 50 of 550 pre-registered households for, on average, $40-60/month. The community-owned option has injected some welcome competition to a stagnant local broadband market, with a second network already in the planning stages in a community to the north.

Both efforts are being driven by the Pacific Northwest Rural Broadband Alliance (PNWRBA), a Missoula, Montana-based nonprofit aiming to build resiliency, local capacity, and expand quality Internet access to the region by making use of a variety of community-oriented business models. The nonprofit serves not only to coordinate grassroots organizing efforts, but provide technical assistance and lead policy engagement with local leaders. It is running a dual mission. First, to bring faster and more affordable Internet access via a community-owned model to the area. And second, to prove out a series of models in the region with the hopes of generating additional community-based approaches to improving broadband in the region and beyond.

Grant Creek 

A new report by the Electronic Frontier Foundation argues that the general lack of fiber network coverage across the United States - with barely a third of homes able to choose a fiber option -  comes in large part from the domination of the broadband marketplace by incumbent providers who both own and operate the infrastructure that provides Internet access to the vast majority of Americans. It’s a classic market failure, authors Benoît Felten and Thomas Langer argue, where there’s a clear profitable business case for the existence of more fiber access that continues to go unaddressed. At its core, the failure is driven by the attitudes of monopoly Internet Service Providers (ISP) which prefer to reap the profits from existing legacy copper and cable infrastructure rather than invest in new build outs. As a result, a larger proportion of Americans than many other nations remain stuck on slower, more expensive connections.

The solution, the report shows, is relatively straightforward and economically viable for as many as 78 percent of all households across the country: the construction of a series of local or regional fiber networks operated on a wholesale basis, whereby any ISP that wants to can join an open, transparent marketplace, creating much more competition than exists in the current arena. 

“Wholesale Fiber is the Key to Broad US FTTP Coverage” offers an economic case for open access fiber in improving access, affordability, and driving competition. Comparing the potential of what it calls a Vertically Integrated Operators deployment (i.e. traditional incumbent broadband providers that build, own, and operate networks for end users) and Wholesale Network Operators deployment (an open access arrangement where the physical infrastructure is owned by one entity that invites providers to operate on the network and connect end users for a fee), the report finds that the Wholesale Network Operator model reduces the risk of capital investment, drives infrastructure expansion, and would lead to future-proof connectivity for hundreds of millions of Americans.