Tag: "connect america fund"

Posted March 31, 2017 by lgonzalez

We haven’t reported on East Central Fiber (ECFiber) in almost a year and, boy, are things hopping in Vermont. The community network has obtained funding to expand in east-central Vermont and have a plan to bring high-quality connectivity to more towns during the next two years. In the mean time, FairPoint Communications is using federal funding to overbuild inferior DSL in many of the areas already served by ECFiber. No, this is not an April Fool's Joke.

First, The Good News: ECFiber Is Growing

We recently touched base with Carole Monroe, Stan Williams, and Irv Thomae from ECFiber in Vermont to get caught up on what's happening with the publicly owned network comprised of 24 member towns. 

The last time we shared an update, they had just announced plans to expand the Fiber-to-the-Home (FTTH) network. The organization of 24 member towns received an infusion of $9 million in revenue bonds, which allowed ECFiber to pay down existing debt and add more fiber miles to the network.

Prior to obtaining the new funding source, ECFiber had always used the crowd funding approach, which limited growth to small and steady deployments. In 2015, the state legislature enacted a state law that created “communications union districts.” A Union District can consist of municipalities that join forces to invest in Internet infrastructure; the new model made it easier for ECFiber to obtain funding for larger deployments.

This February, ECFiber announced that the network would now bring service to parts of Royalton, Strafford, Pittsfield, and Randolph, with more growth on the way:

“These expansions have been funded privately and through Connectivity Initiative grants from the state’s Dept. of Public Service,” said Irv Thomae, Chairman of ECFiber and Governing Board delegate from Norwich. “We’re pleased that more residents in these areas are now able to enjoy the benefits of locally grown, full time, state-of-the-art real broadband, Later this year we will bring our service to six entire towns, including Pittsfield, Pomfret, West Windsor, Barnard, Strafford, and Thetford. We plan to fully...

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Posted February 24, 2017 by lgonzalez

Jonathan Chambers from Conexon works with rural electric cooperatives as they bring high-quality Internet access to rural America. When he spoke with Christopher for episode 229 of the Community Broadband Bits podcast last November, he had some choice words to say about how the FCC chose to continue to subsidize big telcos for little return.

They Propose "A Huge Mess"

In a recent post on the Conexon blog, Chambers analyzes “The New Trumpfone Program,” and reveals how proposed Connect America Fund (CAF) subsidies, when applied to real world data, creates outrageous financial waste. While providers can receive up to $17,500 per location in CAF funding, when applied to a per subscriber formula, the figure is $100,000:

There are no U.S. communities where satellite or fixed wireless provides broadband to 100% of the homes and small businesses. Not 80% either, which is the FCC assumption. Not 50% or 25% or 15% or 10% or even 5%. The FCC has data on this. Let’s say, for this arithmetic exercise, that a satellite or fixed wireless subscriber achieves a 15% market share of telephone and broadband service in a rural community.

A 15% market share while receiving $17,500 for every location in an area translates into over $100,000 per subscriber. Should there be insufficient competitive pressure in the auction, the $17,500 per location is a realistic outcome, as is the likelihood of $100,000 per subscriber by some technologies.

Reimburse Per Subscriber

Chambers offers a sensible solution to save CAF funds and direct public dollars in the right direction: reimburse providers for actual subscribers, rather than by location.

The most perverse subsidy incentive is one by which a provider makes more money by not serving customers. That’s the current FCC plan and the basis of many current FCC subsidies. By definition, the high cost subsidy is based on how much a provider is calculated to lose per customer. When the FCC provides funding by location, rather than by subscriber, some technologies will make more money by winning the auction, collecting public funding, and serving no one. Hence the fallacy of the argument that it is less expensive to cover rural...

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Posted October 18, 2016 by Anonymous

This is episode 224 of the Community Broadband Bits Podcast. ILSR research associate and MuniNetworks.org writer, H.R. Trostle, joins the show to discuss the recent report on North Carolina's connectivity and the importance of cooperatives. Listen to this episode here.

 

H.R. Trostle: The telephone cooperative are very used to serving these very sparsely populated rural areas in North Carolina. That's what they were designed to do. That's why they were made.

Lisa Gonzalez: This is episode 224 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance, I'm Lisa Gonzalez. Recently, we released a report focusing on the availability of high-quality Internet access in North Carolina. H.R. Trostle, a research associate at the Institute and one of our authors on MuniNetworks.org, analyzed data from several different sources and she's talking to Chris this week to discuss her conclusions. She and Chris, who co-authored the report with her, discovered that municipal networks and cooperatives have an important role to play in North Carolina. Take a few minutes to check out the report and check out the detailed maps that show the results of their analysis. The report is titled North Carolina Connectivity: The Good, The Bad, and The Ugly. It's available at ILSR.org and MuniNetworks.org. Now here are Chris and H.R. Trostle, from the Institute for Local Self-Reliance, discussing in detail their recent report and their findings on Internet access in North Carolina.

Christopher Mitchell: Welcome to another edition of the Community Broad Bits Podcast. Coming to you live today from the Institute for Local Self-Reliance offices in Minneapolis, with H.R. Trostle, the co-author of our new report on North Carolina. Welcome to the show.

H.R. Trostle: Thanks Chris, it's great to be here.

Christopher Mitchell: Hannah.

H.R. Trostle: Hi.

Christopher Mitchell: I thought we would start with a broad overview of what did the report cover.

H.R. Trostle: The report covered everything from electric...

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Posted February 9, 2016 by christopher

North Carolina is increasingly split between those in urban areas, where some private sector providers are investing in next-generation gigabit networks, and rural areas where the big providers have no plans to invest in modern networks. But coming out of Wilkes County, a cooperative ISP called Wilkes Communications and River Street Networks is taking fiber where the big companies won't.

This week, Wilkes Communications and River Street Networks President & CEO Eric Cramer joins us for Community Broadband Bits episode 188 to discuss their approach, history, and plans for keeping rural communities well connected. They offer gigabit fiber, telephone, and cable television services.

Wilkes has already upgraded all of its original 8800 member-owners from copper to fiber, with some help from the broadband stimulus programs to reach the costliest areas. It is now expanding to nearby areas and has overbuilt the population center of the county after CenturyLink continued plugging away with last century solutions.

Coops like Wilkes are especially important as North Carolina's Legislature has created barriers to prevent municipal networks like Wilson (coverage here) from serving their rural neighbors.

The transcript from this episode is available here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can can download this Mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Posted April 1, 2015 by lgonzalez

A year ago, the FCC accepted applications from entities seeking Connect America funds for rural broadband experiments. After provisional awards and some eliminations, Chanute's FTTH project, Chattanooga's EPB, and a number of additional cooperatives are now on the list of provisional winners reports Telecompetitor.

According to the article, $27 million became available when 16 entities were eliminated for various reasons.

A recent Chanute Tribune article reports that the city's expected award will be approximately $508,000 if it passes the FCC's post-selection process. Mikel Kline, a consultant working closely with the city on its FTTH project told the Tribune:

It is Kline’s understanding that this $508,467 would be cost support for the city’s Fiber to the Home network over the next six years. It requires the city to become an eligible telecommunications carrier, and to finance and construct the fiber network.

This money can be used to pay operational costs or offset a portion of the debt on the city’s investment in the local infrastructure over the next six years.

Remember that Chanute has developed its fiber infrastructure incrementally over more than two decades. The community is moving ahead with its FTTH project to share the benefits of fiber with residents and more businesses after bringing better connectivity to schools, municipal facilities, and a growing number of businesses. 

Recently, the city applied for and received state approval to bond for deployment costs. A 1947 state law required the application be filed with the Kansas Corporation Commission, the state entity concerned with utility regulations. According to Kline, the city has also applied for eligible telecommunications carrier (ETC) status. This designation will allow the city, as a common telecommunications carrier, to obtain Kansas Universal Services Funds.

Read more about their accomplishments in...

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Posted February 13, 2014 by lgonzalez

On January 30, the FCC announced it will begin a process that makes Connect America funds available for pilot projects aimed at expanding broadband in rural areas. Details about the process are still forthcoming, but the FCC asks interested parties to submit "expressions of interest" by March 7th. In order to assist possible applicants, the National Rural Assembly's Broadband Working Group will hold a webinar today, February 13th, at 1:30 EST.

From the webinar announcement:

The National Rural Assembly's Rural Broadband and Policy Group invites all rural stakeholders, to participate in a national webinar in cooperation with the Federal Communications Commission that will explain how to participate in the FCC's new experiment, the Rural Broadband Trials - a program that will fund projects to bring broadband to rural areas.

Participation in this first phase is not mandatory but encouraged. The results from the expressions of interest process will help the FCC determine how much funding will be needed.

You can register online for the free webinar.

Posted February 6, 2014 by lgonzalez

We reported last month on a decision from the FCC to make Connect America funds available to expand broadband. At the time we did not have much detail on the measure, but on January 30th, the FCC released its official statement. The agency reached a unanimous decision to open up Connect America Fund dollars for experimental projects.

The FCC restructured the Universal Services Fund (USF) in 2010 to create the Connect America Fund. Until now, those funds were only available to large incumbents. Because some incumbents did not want to be bound terms associated with the funds, they did not take the money and so a portion of it has not been distributed.

In the January 30th announcement, the FCC stated that it will open up funding to entities other than large incumbents in experimental processes, including nonprofits, cooperatives, municipal and tribal governments, and private businesses. The FTTH Council reported:

Specifically, the Commission’s order outlines a call for multiple pilot projects to examine how best to make the technology transition while preserving consumer welfare and promoting the widespread deployment and use of broadband networks. As part of those projects, the Commission, informed by recommendations of the FTTH Council, will be using “test beds” to experiment with different models of bringing next-generation high-speed broadband to rural areas. 

Interested parties must first file an expression of interest, describing how they would invest the funds. In keeping with the original goal of the Connect America fund, the FCC hopes to hear from organizations with rural broadband project plans. According to a Daily Yonder article on the process:

[Jonathan Chambers, the chief of the FCC’s Office of Strategic Planning and Policy Analysis] said the initial “expression of interest” isn’t a complex document. The FCC wants to hear who is interested in applying for support, what homes or institutions they want to serve and an estimate of the cost to get the job done.

Once they have that information, the commissioners will consider the next steps in creating the funding stream, Chambers said. A background report on the...

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Posted January 16, 2014 by christopher

Let me start by saying that I don't yet know anything in addition to what I write below. We are all waiting for more details. On January 30, the FCC will take action on the FTTH Council's Gigabit Race to the Top progam. We previously took a brief look at the idea, while focusing on big cable and telephone companies' responses.

FTTH Council expects the FCC to adopt a test program that will start with a call for those interested to submit "expressions of interest." The reason we are noting this now, when we know so little about the program is that they believe the program will move quickly once it is announced, so those who may be interested should start planning for it.

From what we know, this program will be open to community owned networks and will be largely focuses on smaller markets with preference for networks that will be improving connections to anchor institutions in particular.

Below, I have embedded a discussion between Craig Settles and Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council.

Listen To Internet Internet Radio Stations with cjspeaks on BlogTalkRadio
Posted July 26, 2012 by lgonzalez

Orangeburg County, South Carolina, received $18.65 million in broadband stimulus funds for high-speed broadband (which we previously noted). Unfortunately, AT&T and its friends at ALEC have since pushed through a state law to limit local authority in building networks.

According to the Broadband Adoption Map from the Investigative Reporting Workshop of the American University School of Communication, Orangeburg County has a broadband adoption rate of 20-40% as compared to the national rate of 60%.

Not only has AT&T refused to invest in modern networks in much of South Carolina, it is not even bothering to accept a federal subsidy that would underwrite some of that cost. Which is actually good for the rest of us, because subsidizing any AT&T activities is a very poor use of taxpayer dollars.

But Orangeburg is moving forward on its own. The Orangeburg County Council approved a $2.4 million contract with Edwards Telecommunications to complete the third phase of their project. This phase alone will use 171 miles of fiber and add 902 households to the network. Two more phases are scheduled before the entire project is complete.

According to a Gene Zaleski Times and Democrat article:

Seventy-five percent of the project will be paid for with a U.S. Department of Agriculture Rural Utilities Service grant and the remaining 25 percent will be paid for with proceeds from the Orangeburg County capital project sales tax.

In 2010, after receiving the award, the County expressed their optimism in a Phil Sarta article in the Times Democrat:

[County Administrator Bill] Clark said broadband capability will be extended to 3,700-3,800 households and roughly 90 businesses. The project area includes...

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Posted February 7, 2012 by christopher

Wally Bowen has again penned an op-ed that we gained permission to reprint. The original ran in North Carolina's Durham News Observer.

President Barack Obama said in his State of the Union address that he wants to upgrade the nation's "critical infrastructure," including our "incomplete high-speed broadband network that prevents a small business owner in rural America from selling her products all over the world."

The Green Bay Packers know how to tackle this problem.

Green Bay, Wis., population 104,000, and its National Football League franchise have much in common with communities left behind in today's broadband world. In 1923, the Packers faced a similar crisis. How to keep the team in Green Bay despite being in an "uncompetitive" market.

Green Bay took a page out of the playbook of rural electrification. It converted the franchise into a community-owned nonprofit. The move permanently tied the Packers to Green Bay and lifted the burden of generating profits for outside investors. In short, Green Bay found a business model in scale with its market.

Rural electrification via a community-ownership business model began more than 100 years ago when for-profit utilities bypassed rural areas. This self-help solution has deep roots in rural America, where nonprofit cooperatives have long provided essential services for local economies.

Yet the congressionally mandated National Broadband Plan omits nonprofit networks as part of a universal broadband strategy. Blair Levin, a former FCC official and Raleigh attorney, is the Plan's lead author. According to Thomas Friedman in a Jan. 3 column in The New York Times, Levin now believes that "America is focused too much on getting 'average' bandwidth to the last 5 percent of the country in rural areas, rather than getting 'ultra-high-speed' bandwidth to the top 5 percent in university towns, who will invent the future."

Levin leads Gig.U, a consortium of major research universities - including UNC-Chapel Hill, Duke and N.C. State - promoting "ultra-high-speed" Internet access. He has every right to advocate for Gig.U, but doing so at the expense of under-served rural communities raises concerns about his work with the National Broadband Plan.

Universal access to electricity was made possible by the 1936 Rural Electrification Act, later amended to help...

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