Tag: "connect america fund"

Posted January 19, 2021 by sean

What Becket Town Administrator William Caldwell called “one of the most anticipated news [events]” in town was announced at the North Becket Village fire station weeks before Christmas.

But town officials weren’t there to roll out a shiny new ladder truck or to bring their kids to meet Santa. They were there to bring glad tidings of the launch of construction for Becket Broadband, a municipal Fiber-To-The-Home (FTTH) network that will usher high-speed Internet connectivity into this small Massachusetts hill town.

Since the town received a $3 million state grant to fund the initial work to build the network nearly four years ago, Sertex construction crews have been working and will continue through the winter to string fiber cables on utility poles along the town’s approximately 100 miles of roads with the build-out expected to be complete in 2022.

The project manager for the network’s construction is Westfield Gas & Electric, the city of Westfield’s gas and electric utility which received $10.2 million from the Federal Communications Commission’s (FCC) Connect America Fund Phase II (CAF II) auction to expand fiber networks in 20 nearby communities in western Massachusetts, including Becket.

The work will be done in phases, as network planners have created a map of the town carved up into 10 service areas, each of which will be connected as drops are installed to connect individual homes in those service areas. The...

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Posted November 30, 2020 by sean

The failure of policy and leadership at the federal level in addressing the digital divide was ever more clearly exposed as Covid-19 restrictions were put into place last spring. And, as the pandemic continues to rage, daunting connectivity challenges remain. 

Yes, the Connect America Fund (CAF) II program has doled out over $11 billion since 2015 in subsidies to the big telcos like AT&T, CenturyLink, Frontier, Windstream, and Consolidated ostensibly to upgrade rural broadband to speeds of at least 10/1 Megabits per second (Mbps). But, as Doug Dawson, president of CCG Consulting notes, it’s been a massive subsidy failure given that “even in 2015, it was ludicrous to spend money to build 10/1 Mbps broadband” – the same year the FCC defined broadband as 25/3 Mbps, which means “the FCC was investing in new Internet infrastructure in 2015 that didn’t qualify as broadband at the time of the award of funding.”

And there is reason to doubt that those subsidized upgrades were even completed, even as the FCC just extended the CAF II program for a seventh year.

So as states — and in many instances, local municipalities — step into the breach, the National Governors Association has released a new report that outlines a list of strategies governors can use to increase broadband access in underserved communities. 

Published just before Thanksgiving, the report first lays out the challenge:

According to the FCC, in 2018, at least 18.3 million people lacked access to fixed broadband in the United States that meets minimum [I]nternet access speed of 25/3. 1 Of those 18.3 million people, representing 6 percent of the total population, 14 million live in rural areas and 1 million live on Tribal lands, which amounts to 22 percent and 28 percent of those respective geographic populations [even as] studies have claimed that the FCC data is undercounting the number of people in the U.S. without fixed broadband access, and that the total may be as high as 42 million people.

“In addition to lack of access, the cost of broadband services remains a considerable barrier for many households,” the report points out. “The COVID-19 pandemic has...

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Posted September 11, 2020 by Ry Marcattilio-...

When Craig Eccher, CEO Tri-County Rural Electric Cooperative, joined Christopher on the podcast last fall, he had an exciting project to talk about: the electric cooperative, after strong calls from its membership asking their utility to deliver broadband, stepped up and committed to an $80 million, 3,250-mile fiber build across the rugged terrain of rural Pennsylvania, the first leg propelled by $52.6 million in federal and state grants. Tri-Co Connections, the subsidiary building the network and serving as provider, has begun connecting residents in an aggressive plan to serve 10,000 users in the next three years. The move makes Tri-County the first electric co-op in Pennsylvania to enter the fiber space, and it's doing so in dramatic fashion.

More Humble Beginnings

The project started as a smart meter initiative as the electric co-op realized that reliability and other cost savings gains could be made if it ran fiber to its substations and other infrastructure, but at an annual meeting five years ago members overwhelmingly said they wanted more. In fact, when surveyed, 80% said they wanted their electric utility to deliver broadband. But the co-op faced some significant obstacles, primarily in the form of low population density — its service territory in north-central Pennsylvania has an average of just six homes per mile. Financially, the plan wouldn’t have worked without a successful bid for a number of grants. They include a $17 million PennDOT grant, a $1.5 million state grant from the Pennsylvania Redevelopment Assistance Capital Project program, a $33 million Connect America Fund II (CAFII) grant, and a $2.5 million Appalachian Regional Commission grant. All told, they add up to two-thirds of the anticipated costs of the project. The rest will be paid for by ongoing subscription fees as residents, farms, and businesses are brought online. Sheri Collins, Executive Director of the Pennsylvania’s Office of Broadband...

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Posted June 9, 2020 by Matthew Marcus

Westfield Gas+Electric (WG+E) started its broadband division WhipCity Fiber and the buildout of their network five years ago. The project started with only serving Westfield, but WG+E is now contracting with other small towns in Massachusetts to assist in building and potentially operating their own fiber networks.

Today, WG+E is slated to help connect 12,400 households in 20 Massachusetts towns over the next 10 years. In order to do this, WG+E and WhipCity Fiber will receive more than $10 million over the next ten years through the Federal Communication Commission’s Connect America Fund Phase II auction, which awarded $1.5 billion in subsidies to broadband providers to expand rural connectivity across the nation. The 20 towns that are partnering with WG+E to build fiber networks are: Alford, Ashfield, Blandford, Becket, Charlemont, Chesterfield, Colrain, Cummington, Goshen, Heath, Leyden, New Ashford, New Salem, Otis, Plainfield, Rowe, Shutesbury, Washington, Wendell, and Windsor.

Adapting While Expanding

Westfield has been slowly building out its network, which is owned and operated by WG+E, and it is now roughly 75 percent complete. Lisa Stowe, the communications manager at WG+E, said that they temporarily paused new installations in Westfield due to the Covid-19 pandemic. However, she is hopeful that they will begin connecting new customers and resume their buildout of the network this year.

WhipCity Fiber logo

To construct the WhipCity Fiber network, Westfield issued a $15 million bond. The city must pay down that bond and do routine updates to the network as they continue expanding. Stowe explained that they are well on track to having the network fully constructed within their original six year timeline.

WG+E has been adaptable during the ongoing pandemic. In partnership with the state, they have helped install nine free Wi-Fi hotspots in the region with more on the way. Additionally, as a stopgap for not being able to connect new...

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Posted April 23, 2020 by christopher

Last week, Frontier Communications told the Federal Communications Commission (FCC) that there are 17,000 census blocks in which it is now offering 25 Megabits per second (Mbps) download and 3 Mbps upload. This means well over 400,000 Americans now live in areas no longer eligible for the FCC's Rural Digital Opportunity Fund, a $20.4 billion program to expand rural broadband. The first phase will auction off up to $16 billion in subsidies later this year.

In the filing, the company also identified census blocks where it believes other providers will deploy broadband access through state-funded programs, making those locations ineligible for the federal funds as well.

Frontier is Flailing

Frontier recently declared bankruptcy, following a history of increasingly unsustainable acquisitions. It also just missed its milestone for the Connect America Fund, which required the company to deploy obsolete 10/1 Mbps service to 80 percent of the funded locations by the end of 2019 in return for more than $1.5 billion in subsidies. Some 774,000 locations should have at least 10/1 Mbps service by the end of 2020 from a company Consumer Reports repeatedly finds to be one of the worst Internet Service Providers in the nation.

Frontier is so bad that it went through repeated outages of 911 in Wisconsin, dealt with state investigation after state investigation (including but in no way limited to Minnesota, Ohio...

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Posted April 2, 2020 by Katie Kienbaum

For this episode, Christopher was joined by returning guest Jonathan Chambers to discuss the Federal Communications Commission's (FCC's) Rural Digital Opportunity Fund (RDOF), which will finance broadband deployment across rural America. Jonathan is a partner at Conexon, which works with rural electric cooperatives to plan, fund, and build fiber optic networks.

The pair review the details of the new RDOF program and how the reverse auction compares to the prior Connect America Fund. Jonathan explains how the funding process rewards the local co-ops, communities, and companies that step up to provide high-quality connectivity. He argues that the FCC should move the auction timeline up to quickly expand Internet access because of the pandemic. They also talk about some issues with RDOF and about the potential for the program to improve broadband access in rural areas.

Previously, Jonathan was on Episode 349 and Episode 321 of the Community Broadband Bits podcast to discuss the Connect America Fund.

We'd also like to hear from you. Would you like to hear shorter, more frequent episodes instead of our usual weekly episodes to keep up with the ever-changing times? Let us know by commenting below, by sending an email to podcast@muninetworks.org, or by tagging us on social media.

This show is 39 minutes long and can be played on this page or via iTunes or the tool of...

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Posted January 23, 2020 by lgonzalez

This month, both Frontier Communications and CenturyLink put the FCC on notice that neither company expected to meet deployment milestones related to Connect America Fund Phase II (CAF II). In total, rural households in 23 states will have to wait for connectivity that the two large companies were tasked with developing using federal subsidies.

Not-So-Great Expectations

When Frontier and CenturyLink accepted the funding in 2015, they agreed to provide deployment of Internet access speed of at least 10 Megabits per second (Mbps) download and 1 Mbps upload. By the end of 2018, they agreed to have at least 60 percent of the premises within each state connected and 80 percent of the premises connected by the end of 2019.

In their letter to the FCC, Frontier claims that of the contracted 774,000+ locations in 29 states waiting for connectivity through the CAF II program, they have deployed to around 596,000 in CAF II census blocks. They calculate that these deployments come to at least 70 percent in each state where they've accepted funding. The company also says that in 13 states they "may not have met" the 80 percent milestone.

The failure was a continuation of last year, when they reported that they had met the 60 percent milestone in 27 states, but had failed to make the grade in New Mexico and Nebraska.

logo-frontier.png Frontier accepted more than $283 million in CAF II funding soon after the FCC redefined broadband to 25 Mbps / 3 Mbps. The CAF II program had also increased minimum connections from 4 Mbps / 1 Mbps to 10 Mbps / 1 Mbps, which seemed outdated almost from the beginning. 

The company has been the subject of investigation in Minnesota and other states, due to complaints stemming from poor services, bad...

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Posted January 14, 2020 by Katie Kienbaum

The federal government is about to spend more than $120 million on subsidies that, rather than improving rural connectivity, will make tens of thousands of families worse off.

These funds are part of a 2018 federal program intended to expand rural broadband access called the Connect America Fund phase II (CAF II) reverse auction. The program, in which Internet access providers competed for subsidies, will distribute nearly $1.5 billion over the next 10 years to connect unserved rural residents. But in some communities, the auction may do more to widen the digital divide than diminish it.

While some winning bidders committed to building out high-speed fiber optic networks, satellite company Viasat will rake in more than $120 million in subsidies to continue providing inadequate geostationary satellite connectivity to rural households that are clamoring for something better. Not only does satellite Internet access offer slower speeds, greater latency, and less reliability for a higher cost compared to other technologies, but Viasat’s subsidies are making those areas ineligible for future broadband funds, deterring other providers from building truly high-quality networks. Instead of bridging the digital divide, the process will relegate certain communities to satellite Internet access while others receive ultra-fast fiber and do nothing more than deepen the fissure.

Mo’ Money . . .

The Connect America Fund (CAF) is a multi-phase subsidy program that supports improved connectivity in rural, high-cost areas as part of the Federal Communications Commission's (FCC’s) Universal Service Fund. The most recent phase of the program, the CAF phase II reverse auction, auctioned off regions to providers using a complicated formula that prioritized bids for low subsidy amounts and high-quality service.

Previous rounds of CAF mainly subsidized the large incumbents, such as AT&T and CenturyLink, but for the reverse auction, the FCC opened participation to other entities, including non-traditional providers like electric cooperatives. Eligible areas included rural locations where the incumbents had previously refused subsidies (and the accompanying commitment to expand Internet access).

Viasat was one of the largest winners in the CAF II reverse auction...

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Posted November 26, 2019 by lgonzalez

Some of the most rural areas in the country are in the American western states of Wyoming, Nebraska, and Colorado. This week's guest is Matt Larsen, CEO of fixed wireless Internet service provider Vistabeam. His company has made it their mission to deploy affordable, useful Internet access to the people who live in these areas where large national companies have avoided deploying Internet access infrastructure due to low population density. He grew up living on a ranch and understands the challenges of living in a place where it's difficult to get broadband.

In this episode, we're able to learn more about the company and the recent Connect American Fund Phase II (CAF II) award they've obtained to serve more people in the rural west. Matt describes the areas they'll be serving and how they've had to make some changes in order to meet all the administrative requirements of the federal program. He talks about some of the people who will benefit from their service and explains the bid they submitted to win the funding.

Matt also discusses the Lifeline product that Vistabeam will offer to subscribers, which is a requirement as part of accepting the CAF II subsidy. The new offering is less expensive than satellite Internet access, the only option for many people in the areas covered by this project, and yet offers faster, more reliable service. Christopher and Matt also talk about some conclusions of the recent report by Jon Sallet for the Benton Institute on Broadband and Society and Matt shares his opinion as a fixed wireless provider in the field.

You can listen to Christopher's interview with Jon Sallet about the report in...

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Posted October 28, 2019 by lgonzalez

By now, you’ve met the people of “Villageville,” the imaginary town in rural America that, like many similarly situated communities, are struggling to find better connectivity. This week, we continue our soap opera saga “From Crops to Co-ops: Small Towns Want Better Internet.”

In this episode, the kids of the community are working on another big homework assignment and gather together at the neighbor’s house to tap into his satellite Internet access. Watch to find out the results when Grumpy Gary tells the kids to “get off his lawn.”

In rural areas with low population density, large corporate Internet access providers don’t find the motivation they need to invest in fast, affordable, reliable connectivity. High numbers of residents and businesses depend on satellite Internet access as a last resort. Plans are expensive, unreliable, and typically include data caps. In episode 3, we include pop-up information about satellite Internet access and how communities who must use it settle for less than they deserve.

Don’t miss another opportunity to hear the Very Amateur Acting Troupe from the Community Broadband Networks Initiative and the Institute for Local Self-Reliance fill the roles of local people who are just trying to get online to get stuff done.

If you want to get caught up first, read up on the storyline from episode 1 here or watch it below. You can also check out the synopsis of episode 2 and watch it below to experience the whole story from the start. Share the series playlist, where we'll continue to add episodes as we release them.

Next week we attend a city council meeting in Villageville in which residents and community leaders decide what to do about poor Internet access in their community. Don't miss it!

You can get caught up on the saga here with episode 1:

...

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