After receiving $50 million in new federal funding, the New Hampshire Electric Cooperative (NHEC) has begun a major expansion of its fiber network across large swaths of the state, providing many long-frustrated rural residents access to ultra-fast, affordable broadband for the first time ever.

NHEC currently provides electricity to 88,000 largely rural homes and businesses across 118 New Hampshire communities. In October of last year, NHEC received a $50 million grant from the New Hampshire Business and Economic Affairs Department, made possible by the American Rescue Plan Act (ARPA).

“NHEC is a member-owned, nonprofit electric cooperative and our business is providing essential services to rural New Hampshire,” NHEC President/CEO Alyssa Clemsen Roberts said after the grant infusion. “We welcome the opportunity to provide much-needed high-speed internet to the same areas that NHEC first electrified more than 80 years ago. Grant funding is helpful to our plans to reach all underserved members, and we are grateful for the trust placed in us by the BEA to get the job done.”

That money is being used to shore up NHEC’s growing expansion into broadband access via NHEC's wholly owned subsidiary, NH Broadband. NH Broadband began planning its expansion into broadband in 2019, buoyed by another $6.7 million grant made possible by the CARES Act and the Connecting New Hampshire Emergency Broadband Program.

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NHEC spokesman Seth Wheeler told ILSR that the initial CARES Act grant helped the company deliver affordable fiber access to 1,500 NHEC subscribers in six towns. The new $50 million grant will supercharge a cooperative effort by NH Broadband to expand that broadband access to 15,000 current NHEC electricity customers.

One way or another, Grafton County, New Hampshire is lining up funding to build a massive new middle-mile network county officials hope will drive broadband competition—and more affordable fiber—into long underserved New Hampshire communities. 

Grafton was one of 230 U.S. communities that applied for a National Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program grant. Grafton’s specific application asked for $26.2 million to help fund the creation of the 353 mile broadband middle mile network they’re calling Grafton County Broadband Now.

Costly Challenge from National Incumbent Providers

Charter Communications filed costly challenges with the NTIA challenging the application, falsely claiming that the county’s proposal was “duplicative” and Charter already provided broadband to the region. Most of the claims were based on older, unreliable data provided to the FCC by Charter dramatically overstating broadband availability.

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Grafton County surveys actually indicate the majority of county residents still can’t get access to the FCC’s base definition for broadband, 25 Megabits (Mbps) per second downstream, 3 Megabits per second upstream. Availability data across the county will likely look even worse should the FCC pass a new proposal to boost the definition of broadband to 100 Mbps.

This morning, the Department of Treasury announced the first round of Capital Projects Fund (CPF) awards to states putting together portfolios to deploy new infrastructure to unserved households. Across Louisiana, New Hampshire, Virginia, and West Virginia, 200,000 locations will see new deployments capable of 100/100 Mbps at a total cost of almost $583 million. 

It’s a welcome announcement that should assemble a wide range of solutions and result in much better connections for more than half a million people across the country long left behind by policy and infrastructure solutions so far. It also marks those states which have been more proactive in getting their ducks in a row as early as possible, and opening a dialogue with Treasury about how to use the CPF funds expeditiously to solve remote work, healthcare, and education in the face of the ongoing publish health crisis.

The Basics

The CPF is made up of $10 billion, and part of the $1.9 trillion American Rescue Plan Act passed last year. It complements the $350 billion State and Local Fiscal Recovery Funds (SLFRF) (which can be used for water, sewer, or broadband infrastructure) as well as the Emergency Connectivity Fund (ECF). New infrastructure must be capable of delivering symmetrical speeds of 100 Mbps. There are no local matches required (though most states are and will likely institute some form of requirement).

Over 230 communities have applied for National Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program grants. But community leaders increasingly say they’re facing costly, unnecessary challenges from incumbent broadband providers, who are exploiting unreliable U.S. broadband maps to overstate existing coverage and defend the status quo.

The NTIA’s $288 million grant program - and the looming $42 billion broadband infrastructure investment plan - will help bring affordable broadband to the roughly 20-30 million Americans without broadband, and the 83 million Americans currently living under a broadband monopoly.

In Grafton County, New Hampshire, 39 municipalities are part of a growing list of communities exploring home-grown broadband alternatives. They represent a grassroots movement driven by frustration with market failure that accelerated during the Covid-19 crisis. In response they’ve bonded together to apply for a $26.2 million NTIA grant to improve the region’s substandard broadband.

A Little Something Called Competition

Grafton hopes to use the NTIA funding to provide a middle mile fiber network, making it easier for Internet Service Providers (ISPs) to service each municipality and the county’s 90,000 residents. The network will be open access, inviting numerous ISPs to compete over the same shared infrastructure. Studies have repeatedly shown such open access models result in better, cheaper, faster service. 

There’s a sign in the middle of Lempster, N.H. that reads: “On nearby Allen Road on December 4, 1939, the New Hampshire Electric Cooperative set its first utility pole, an important event in bringing electric service to the farms, mills and homes of the New Hampshire countryside.”

Richard Knox, chairman of the citizen group New Hampshire Broadband Advocates and a member of Broadband Advisory Committee in the town of Sandwich, wrote in the New Hampshire Union Leader about the history behind the sign and why modern-day co-op members are once again celebrating:

When the lights first switched on back in that long-ago December, Lempster schoolchildren marched to the first pole behind a 23-piece band … Residents danced in the streets and partied well into the night … Eighty-one Decembers later, Lempster can claim bragging rights to another momentous first. On December 15, local and state officials joined leaders of the Electric Co-op to celebrate the light-up of its new fiber-optic broadband network.

Expanding Town-by-Town

As we reported then, after New Hampshire Electric Cooperative (NHEC) members voted to authorize the co-op to bring fiber-to-the-home (FTTH) connectivity to its 84,000 members spread out across 115 towns and cities in the Granite State, just weeks later, NHEC connected its first 900 households in Lempster, Clarksville, Colebrook and Stewartstown to its core network, funded with a $6.7 million grant from the state’s Connecting New Hampshire Emergency Broadband Program.

There are more than 600 wireline municipal broadband networks operating across the United States today. And while the ongoing discussion about our information infrastructure by Congress has placed a renewed emphasis on publicly owned endeavors to improving Internet access, the reality is that cities around the country have been successfully demonstrating the wide variety of successful approaches for decades.

In this report, published by the Benton Institute for Broadband and Society, ILSR's Sean Gonsalves, Christopher Mitchell, and Jericho Casper profile how six community networks in a diverse range of places stepped up to meet the needs of their communities, bringing faster, more reliable, and more affordable service. 

It covers:

• Huntsville, Alabama
• Conway, Arkansas
• Ocala, Florida
• Dalton, Georgia
• Ammon, Idaho
• Cheshire County, New Hampshire

The projects above, the report shows, run the gamut from municipally owned and operated fiber networks, to cable system upgrades, to last-mile open access networks, to public-private partnerships.

From Benton:

Communities seeking to create a more competitive broadband market and/or target low-income neighborhoods with high-quality, modestly priced service are increasingly building their own networks, whether in partnership with ISPs or on their own. Local governments considering this option have to do their homework to find appropriate consultants, vendors, business models, and more.

But as the communities profiled here demonstrate, there are many models and opportunities to improve Internet access.

Snapshot

Maine broadband authority redefines statewide broadband as symmetrical 100/100 Mbps connection

California Legislature and Governor reach $5.25 billion agreement on statewide middle-mile network

New Hampshire matching grant initiative aiming to promote partnerships signed by Governor

The State Scene 

Maine

The Maine Senate recently enrolled a bill (L.D. 1432) amending the Municipal Gigabit Broadband Access Fund to only allow communities, municipalities, and regional utilities access to grants through the program. The bill became law without State Governor Janet Mills’ signature on June 24. 

The legislation removes limits placed on the number of grants able to be awarded per project, but limits the amount of funds that may be distributed per project to 50 percent of total costs. The bill, aiming to support the deployment of municipal gigabit fiber optic networks, also requires the ConnectMaine (ConnectME) Authority to establish minimum upload and download speed definitions to foster widespread availability of symmetric high-speed Internet access, beginning in 2025.