Kicking off the new year, Georgia Gov. Brian Kemp’s office announced $234 million of the state’s Capital Projects Fund (CPF) will be used to deploy new high-speed Internet infrastructure in the Peach State, courtesy of the American Rescue Plan Act.

The lion’s share of those federal funds, being administered by the state’s broadband office, will be gobbled up by the four national telecom giants operating in the state. The rest of the grant money will be shared by a half dozen electric cooperatives for smaller projects.

After years of efforts, the telecom industry and a range of independent broadband experts are making progress in a quest to make broadband grants tax exempt, a move industry players large and small say is necessary if the federal government wants the historic round of new federal broadband funding to benefit as many un- and under-served Americans as possible. 

During previous broadband grant programs, such as the (Broadband Technology Opportunities Program) BTOP and (Broadband Initiatives Program) BIP grants in 2010, the Internal Revenue Service had the authority to unilaterally exempt some grants from taxation. 

Tennessee cooperatives and utilities came out at the top of the heap in the latest round of awards from the Tennessee Emergency Broadband Fund, netting nearly half of all money awarded for the expansion of more affordable broadband statewide.

The Tennessee Department of Economic and Community Development (TNECD) awarded $446.8 million to 36 applicants, who are now tasked with deploying improved broadband service to 150,000 unserved homes and businesses across 58 Tennessee counties. All told, TNECD said that 218 applicants applied for a total of $1.2 billion in broadband funding.

Of the $446.8 million in awards, utilities and cooperatives walked away with $204.4 million.

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Major awards to utilities included Lexington Electric System ($27.5 million), Bledsoe Telephone Cooperative ($17.7 million), Greeneville Energy Authority ($8.2 million), Knoxville Utilities Board (KUB) ($15.2 million), Board of Public Utilities of the City of Fayetteville ($23.9 million), and Cumberland Electric Membership Corporation ($17.5 million). 

“This is great news for our community,” Gabriel J. Bolas, President & CEO of KUB, said in a statement provided to ILSR. “We have known for some time that there is a need for reliable internet in Union, Grainger, Sevier, and Jefferson Counties, and this announcement proves there is a broad and concerted commitment to address their needs soon.”

Grants for Regional Telecom Giants Part of the Mix

Regional telecom giants and local monopolies were also well represented by the state’s latest broadband funding round. 

Tennessee cooperatives and utilities came out at the top of the heap in the latest round of awards from the Tennessee Emergency Broadband Fund, netting nearly half of all money awarded for the expansion of more affordable broadband statewide.

The Tennessee Department of Economic and Community Development (TNECD) awarded $446.8 million to 36 applicants, who are now tasked with deploying improved broadband service to 150,000 unserved homes and businesses across 58 Tennessee counties. All told, TNECD said that 218 applicants applied for a total of $1.2 billion in broadband funding.

Of the $446.8 million in awards, utilities and cooperatives walked away with $204.4 million.

Major awards to utilities included Lexington Electric System ($27.5 million), Bledsoe Telephone Cooperative ($17.7 million), Greeneville Energy Authority ($8.2 million), Knoxville Utilities Board (KUB) ($15.2 million), Board of Public Utilities of the City of Fayetteville ($23.9 million), and Cumberland Electric Membership Corporation ($17.5 million). 

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“This is great news for our community,” Gabriel J. Bolas, President & CEO of KUB, said in a statement provided to ILSR. “We have known for some time that there is a need for reliable internet in Union, Grainger, Sevier, and Jefferson Counties, and this announcement proves there is a broad and concerted commitment to address their needs soon.”

Grants for Regional Telecom Giants Part of the Mix

Regional telecom giants and local monopolies were also well represented by the state’s latest broadband funding round. 

NEK Broadband has been awarded a $16 million grant by the Vermont Community Broadband Board (VCBB) to expand fiber access to 10 new Vermont communities. It’s among the earliest of what is likely to be a flurry of activity by the mostly-newly created Communications Union Districts - partnerships between rural cities and towns - which have formed over the last few years to solve the connectivity crisis for the tens of thousands of Vermonters who have been left behind by the current broadband marketplace.

A New Approach

Vermont’s broadband policy leaders say they plan to embrace CUDs as the primary avenue by which they hope to bridge the state’s long standing digital divide. A significant portion of the state’s $150 million broadband package will be funneled toward CUDs in a state where 85 percent of municipalities and 90 percent of underserved locations fall within a CUD.

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The formation of most of the state’s CUDs is relatively new, though the most veteran example (EC Fiber) formed more than fifteen years ago. After years of persistence by EC Fiber, determined progress, and attitudinal changes in policy at the state level, CUDs now sit at the heart of the state’s rural broadband efforts.

Mountain Connect 2022 got a big kick off this morning in Keystone, Colorado with a Q&A discussion between National Telecommunications and Information Administration (NTIA) Assistant Secretary Alan Davidson and Broadband Breakfast CEO, Editor and Publisher Drew Clark.

Davidson provided a broad overview of the newly released Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program, which set the table for the multitude of break-out sessions that attracted a who’s who of broadband providers, vendors, policy-makers and vendors.

Under the BEAD program, each of the 50 states will be eligible to receive a minimum of $100 million to expand high-speed Internet access, though most states will receive hundreds of millions more as additional funding will be allocated to states based on a formula that takes into account how many unserved households are in each state.

Most States On Board for BEAD

Davidson said that 25 states have already submitted their Letter of Intent (LOI) to seek BEAD funding. In all, 35 states have indicated they will also participate in the program so far as NTIA works with the other 15 states and territories to encourage them to take advantage of the largest ever federal investment in broadband.

The window to request an unprecedented amount of federal funds to support state broadband grant programs is now open for business.

On Friday the 13th, the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) officially announced the Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program.

The BEAD program, which is part of the Infrastructure Investment and Jobs Act (IIJA) that was passed in November 2021, represents the single largest federal investment in broadband expansion in U.S. history. The program, according to NTIA’s own definition, is designed to allocate the funds to all 50 states (U.S. territories and Tribal governments) to support “projects that help expand high-speed Internet access … (through) infrastructure deployment, mapping, and adoption. This includes planning and capacity-building in state offices. And it supports outreach and coordination with local communities.”

The Application Process Has Begun

We have documented and discussed the BEAD program on numerous occasions, which you can find here. But the big news that comes with the NOFO release are the application deadlines associated with it.

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States have until July 18 to submit their Letter of Intent (LOI), a required first step for states to receive a minimum of $100 million in BEAD funds. (States will be allocated additional funding based on a formula that takes into account how many unserved households are in each state).

Last week, the Golden State Connectivity Authority (GSCA) announced it has entered into formal partnership with the municipally owned open access network UTOPIA Fiber, for the Utah-based owner and provider to design, build, and operate a new open access fiber-to-the-home (FTTH) network across the 38 rural counties in the state of California. It's a move that not only offers the chance to bring future-proof connections to millions of rural California households in the near future, but have wide policy and industry implications for open access fiber networks down the road. 

Local Governments Band Together

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The Golden State Connectivity Authority is a joint powers authority (JPA) created by the Rural County Representatives of California (RCRC), which represents more than three dozen rural counties across the state. RCRC seeks to tackle the variety of shared problems that the state's rural communities face by advancing concrete policy solutions across transportation, energy, natural resources, governance, healthcare, and a collection of other arenas. 

Next Tuesday, from 10am to 2pm PST, the California Public Utilities Commission will be hosting its annual public workshop “to facilitate collaboration among regional consortia, stakeholders, local governments, existing facility-based broadband providers and consumers regarding cost-effective strategies to reach the broadband access goal.” 

The agenda will feature panels on state and federal funding, an introduction to the new California Advanced Services Fund infrastructure team to talk about mapping and the state’s line extension program, a presentation from Cruzio Internet on a pilot project it recently completed, and a conversation about rulemaking related to public housing, consortia, and broadband adoption. 

ILSR’s Christopher Mitchell is joining the panel at 10:25am PST on Funding Local Broadband Networks, along with representatives from Anza Electric Cooperative, Next Century Cities, and UC Davis.

See the full agenda and join info here. Find the presentations from the event after the fact here.