Tag: "funding"

Posted November 27, 2018 by lgonzalez

As interest in publicly owned broadband network infrastructure increases, local communities seek out new ways to fund municipal networks. Revenue bonds, interdepartmental loans, and avoided costs have been the three most common methods for funding Internet network infrastructure, but local leaders are finding creative approaches to get the job done. The Creative Funding Sources For Fiber Infrastructure fact sheet presents new approaches, pros and cons, and provides examples for further study.

Download the fact sheet.

New Approach to an Ongoing Challenge

Communities that need better connectivity must consider numerous factors when fiber optic network infrastructure is on the table. In addition to the type of model that’s most appropriate, decisions include vendor selection, and the extent of the network footprint. A critical element to every community network are the choice of funding mechanisms local leaders choose to see the project from idea to implementation.

Communities such as Ammon, Idaho, and Kitsap County in Washington are using fresh ideas to fund their infrastructure development. In this fact sheet we describe the way these new mechanisms work and lay out some benefits along with some potentially negative implications. It’s important that communities take a frank look at all the possible repercussions as they move forward. 

This fact sheet will help your own creative funding ideas flow as you look for ways to finance your community’s high-quality Internet access project.

Download the fact sheet.

Posted October 22, 2018 by lgonzalez

Breckenridge was among the list of Colorado communities that voted to opt out of the state’s restrictive SB 152 back in 2016. Now, they’re ready to move forward with design and construction of an open access network. As the resort town prepares to begin work on their fiber infrastructure, several other communities will ask voters to opt out of SB 152 on November 6th.

To the Voters

As we reported in August, Aurora, Cañon City, the town of Florence, and Fremont County had already made plans to put the opt out question on their local ballots. Since then, we’ve discovered that that at least six other local governments want voters to address SB 152.

In Salida, where the town needed to fill a vacated office without delay, community leaders chose to hold their election in September and put the issue on the ballot. The measure to opt out passed with 85 percent of the vote.

Voters will also decide of their towns or counties should reclaim local telecommunications authority in the towns of Fountain and Erie along with Chaffee County and Kiowa County. Over the past several years, more than 120 local communities have asked voters to opt out of SB 152 and local referendums overwhelmingly passed. Many local communities have presented the issue to voters with no specific plans in mind, but do so in order to keep their options open and because they feel that Denver is less qualified than they are in making decisions related to local connectivity.

The Fremont Economic Development Corporation (FEDC) has reached out to voters, urging them to approve the measure with a "yes" vote. The fact that SB 152 still hangs like cloud over the region prevents them from obtaining grant funding to boost economic development.

"We would like to vote to authorize our municipalities to be able to become involved because there is a lot of money out there that is available for the purpose of building infrastructure, but it has to be done through the governmental agency," [Executive Director of the FEDC] said. "We put our shoulder to the wheel on this because we see broadband as a critical element of economic development, as critical in many cases as...

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Posted August 30, 2018 by lgonzalez

Shortly after Republican FCC Commissioners repealed federal network neutrality protections late in 2017, state lawmakers began introducing legislation to protect their constituents. California’s AB 1999, introduced as one possible antidote to the FCC failure in judgment, passed the General Assembly on August 29th and is on its way to Governor Jerry Brown.

Read the final version of the bill and the Legislative Counsel Digest here.

Let the People Serve the People

As local communities have investigated ways to protect themselves from throttling, paid prioritization, and other activities no longer banned, they’ve looked at investing in publicly owned infrastructure. Rural communities where national Internet service providers are less motivated to deploy have always struggled to attract investment from the same large companies known to violate network neutrality tenets. Assembly Member Ed Chau’s AB 1999 addresses rural communities’ need for better connectivity, solutions that can preserve network neutrality, and challenges in funding broadband infrastructure.

California’s community service districts (CSDs) are independent local governments created by folks in unincorporated areas. CDSs provide services that would otherwise be provided by a municipality. Residents usually join together to form a CSD and do so to establish services such as water and wastewater management, garbage collection, fire protection, or similar services. A CSD also has the ability to create an enhanced infrastructure financing district (EIFD) in order to finance the development of a broadband network.

The EIFD statute granting the authority allows communities, including CSDs, to join together regional projects for a range of financing purposes. Tax Increment Financing (TIF) and various bonding mechanisms are a few examples.

The law currently on the books, which AB 1999 will change, requires CSDs to first determine that no private entity or person is willing to offer broadband in their sector before they are allowed to invest to do so. If they manage to get past the requirement but an entity or person enters the picture and is willing to provide those services, the...

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Posted August 21, 2018 by lgonzalez

One of the many states where legislators introduced broadband bills in 2018 was Ohio, where HB 378 appeared to offer a promising answer to funding rural broadband deployment. The bill obtained bipartisan support as it passed through several committees, but prior to the legislature's summer break, enthusiasm cooled.

Looking at Minnesota

HB 378 draws from the Minnesota Border-to-Border Broadband Program by allocating specific funding for deployment. The bill also creates an entity to manage the funding awards. In Ohio, lawmakers anticipated funding would draw from the state’s Ohio Third Frontier Program, which was originally established to assist tech start-ups. In April, HB 378 passed the House with support from both Democrats and Republicans and seemed on a positive track. Two Senate committees also heard SB 225, a companion bill to HB 378.

A second broadband bill, HB 281, addresses only rural last mile connectivity and came before one committee. HB 281 also appeared to have support, but leadership never fast tracked the legislation. HB 281 allocated only $2 million, a fraction of the $100 million required over two years for HB 378. With one generous broadband bill and one much smaller to choose from, experts were left scratching their heads as to why both bills seemed to stop dead in their tracks.

What’s the Hold-up?

Speculation as to why neither of the bills have been advanced further by House and Senate leadership swirls around Governor Kasich’s administration. Democrat Jack Cera believes that the plans for the Third Frontier Fund has held up the process. Cera and other suggest that Governor Kasich wants to focus Third Frontier Funds in other directions, such as smart highways and autonomous vehicles. As far as Cera and others are concerned, broadband for rural Ohio is the priority:

“I think there’s been some push back on it. I would suggest that if the administration and others don’t want to use that funding that we should move forward to use general fund monies on it. To me, it means that type of...

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Posted August 10, 2018 by lgonzalez

Lobbyists from the cable and telecom industry succeeded in using the legislature to firm up their rural Massachusetts monopolies this session. Communities that rely on state funds for local publicly owned broadband infrastructure projects now face restrictions on the reach of their high-speed networks.

A Long Trip Through the Legislature

Governor Charlie Baker’s economic development bill includes a provision designating funding for the Massachusetts Broadband Institute (MBI) and the Executive Office of Housing & Economic Development for broadband deployment. The agencies distribute the funds to various communities where residents and businesses plan to improve their local connectivity. Approximately 20 towns have decided to invest in publicly owned Internet infrastructure, including Alford, Otis, and Mount Washington, to name a few. Others are taking offers from Comcast and Charter, which will build out networks to more premises with state funding. 

Many of the rural communities who are going with the publicly owned option want to connect households and establishments within the town proper, but also what they describe as “edge” properties — those beyond town limits but have no other choice for broadband. Edge properties in western Massachusetts typically don’t have access to anything better than expensive and unreliable satellite or dial-up. Often, there are only a few “edge” properties in each community, but neighbors don’t want to leave anyone behind. 

Baker’s bill began its trip through the state legislature in March and, as is the case with typical large bills, went through numerous hearings along the way. Over the course of the legislative process, a question arose as to whether or not those rural towns wanting to serve edge properties would be able to use state funding to reach edge properties. In the original version of the bill, language specifically allowed municipalities the right to cross municipal borders to serve edge properties, but when the telecom industry opposed the language, it was removed in the House. The action left an ambiguous gap that Gail...

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Posted July 13, 2018 by Hannah Bonestroo

In his recent article written for NBC News, journalist Phil McCausland examines the impacts broadband access can have on rural communities and the challenges that persist in bringing coverage to these isolated areas. Reliable high-speed internet access can spark economic development in some of the United State’s most cash-strapped areas, but a lack of dependable data makes acquiring funding difficult.

McCausland explores how high-speed Internet access is becoming increasingly essential for communities’ economic growth. He spoke with Roberto Gallardo, the assistant director of the Purdue Center for Regional Development, who explained how having broadband access today “is analogous to the installation of a railroad 100 years ago or a highway 50 years ago.”

Bringing Broadband to Rural Areas

McCausland investigates the specific case of Lake County, Minnesota, an area home to 10,000 people that spans 3,000 square miles in the far northeast part of the state. Our 2014 report, All Hands on Deck: Minnesota Local Government Models for Fiber Internet Access, describes how the Minnesota legislature set a goal in 2010 to achieve universal access to high speed broadband throughout the state by 2015, including in Lake County. Many of Minnesota’s local governments stepped up to try to accomplish the goal. Local leaders in Lake County decided that they needed high-speed internet in order to take part in the growing digital economy. McCausland found that after nearly eight years of planning and an investment of over $80 million dollars, the area is seeing the economic benefits of high-speed Internet access. Coverage has boosted tourism and allowed for lifestyles that involve working remotely, as well as becoming essential to the growth of local businesses. 

logo-lake-county-mn.png While conclusive data on the exact economic outcomes are yet to come, McCausland’s interviews in the area reveal that many local residents already feel a direct impact. Local sawmill owner, Greg Hull, has seen an increase in business since receiving broadband coverage. He now has an improved website that “made [his company’s] whole Internet presence a lot more viable, which has in turn opened...

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Posted July 12, 2018 by Hannah Rank

The City of Sanford, Maine, is putting the final pieces of funding in place to move forward with its ambitious 45-mile fiber optic build, SandfordNet, the largest fiber infrastructure build proposed in Maine to date. 

Along with two other funding sources, the project will be financed by an existing Tax Increment Financing (TIF) district in downtown Sanford. According to the Journal Tribune, the project will cost $2.02 million in total to complete; that figure is higher than initially projected, due in part to fees to access utility poles. 

The SanfordNet project involves building what the city describes as a “fourth redundant ring” that will attach to the statewide fiber loop known as the “Three Ring Binder.” Sanford’s building out the 45 miles of fiber and then connecting it to the Binder, which is about nine miles beyond city limits. The fiber will connect nearly 90 Community Anchor Institutions (CAIs), such as libraries and hospitals, to the infrastructure that will offer 10 Gigabit per second symmetrical upload and download capacity. The city is utilizing an open access model, leasing out its fiber to ISPs in a non-discriminatory approach that promotes competition.

GWI of Biddeford, Maine, will operate the network for Sanford and intends to offer Fiber-to-the-Home (FTTH) to residential premises along the fiber route in areas where there's sufficient demand. The open access model will create the opportunity for competition, creating better rates and better services for Mainers in the region. For more on what has become known as the "Maine Model," check out Christopher's conversation with GWI's CEO Fletcher Kittredge, episode 214 of the Community Broadband Bits podcast.

Where the Project Stands

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Posted June 15, 2018 by lgonzalez

In response to the FCC’s decision to end federal network neutrality protections, California and other states have introduced bills to fill the gap left by the Commission. Local communities who had flirted with the idea of publicly owned Internet infrastructure in the past have now taken a second and more serious look to counteract the FCC’s harmful policy shift. Assembly Member Ed Chau’s AB 1999, making its way through the legislative process, is opening possibilities for local communities to invest in their own Internet infrastructure. Chau recognizes that publicly owned networks are an option for more than network neutrality protections, especially in rural communities.

Attitude Adjustment

Our Christopher Mitchell travelled to California in May to testify about the bill as it worked its way through the committee process. AB 1999 could indicate that big telephone and cable companies now have less influence in state Capitols around the U.S. than in past years. We recently wrote about a New Hampshire bill that gives us similar hope — a piece of legislation signed by the Governor there that removed restrictions on local investment in broadband networks.

Like New Hampshire's SB 170, AB 1999 allows communities where big national providers don’t want to invest have more control over how they improve local connectivity. If passed, the bill will give California's community service districts the ability to develop public broadband networks and offer services. The language of the bill also requires that any networks developed by community service districts adhere to network neutrality rules.

Rural Communities Serving Themselves

Community service districts (CSD) are independent local governments created to provide services in unincorporated areas of a county. CSDs are...

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Posted June 13, 2018 by lgonzalez

Cortez, Colorado, has been serving public facilities, community anchor institutions (CAIs), and businesses officially since 2011. In 2015, they expanded to bring fiber connectivity to more businesses; today, seven providers offer services on their open access infrastructure. Now, Cortez is ready to take the next step by offering retail services to residents as an ISP; they’re engaged in a pilot project that will help them determine the best way to move forward. This week, General Services Director Rick Smith joins Christopher to discuss past, present, and future in this town of approximately 9,000.

The guys met up at Mountain Connect in Vail, where they’re joining many other industry and policy professionals discuss infrastructure, connectivity, and policy. While at the conference, Rick and the city received the Community Project of the Year Award.

Rick was on the show in 2014 to describe how this rural community incrementally built its network with local investment and state contributions. This time, Cortez is considering ways to shrink its digital divide and examining funding through ways other than traditional revenue bonding. They’ve also been working on regional efforts to help neighbors get the kind of connectivity needed for economic development. Rick describes how the outdoor equipment retailer Osprey has set up its headquarters in Cortez -- first on the list of necessities was not physical real estate, but the ability to access dark fiber.

As Cortez looks at challenges to achieve their goal of citywide Fiber-to-the-Home (FTTH), they’re considering inventive and methodical ways to reduce costs. They are committed to bringing high-quality Internet access to every citizen in Cortez because they realize that, without action, residents face a potential monopoly provider.

This show is 29 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

...

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Posted June 1, 2018 by htrostle

It took an extra year for a community in Minnesota to finally see high-quality Internet service. Balaton spent an extra year in connectivity purgatory while Frontier delayed a much-needed project. To learn more, we connected with the Balaton and Marshall Economic Development Director Tara Onken and Woodstock Communications Vice President and General Manager Terry Nelson.

Balaton: An Underserved Community

Balaton, is a small town of 600 people in Lyon County, located in the southwest area of the state. Balaton’s Internet service is dismal; residents have access to satellite, fixed wireless, or DSL. Satellite is unreliable, and the fixed wireless services’ max speed is 5 - 10 Mbps. DSL service varies based on how far the home is from the central office. In some places in town, DSL should be able to reach broadband speed -- 25 Mbps (download) / 3 Mbps (upload), but in reality, DSL is slow and unreliable because it is based on old copper lines. 

In 2016, the small private company Woodstock Communications decided to improve connectivity in Balaton. Woodstock already had service to a few local businesses and other members of the community were asking for service. When the Minnesota Border-to-Border Broadband Program grant applications opened, the company requested a grant of about $413,000

The goal was to bring Fiber-to-the-Home (FTTH) service of 1 Gigabit-per-second (Gbps), upload and download, to the underserved residents -- 40 times faster than broadband. FTTH is the fastest, most reliable technology available but also most capital-intensive. It’s available to only about 25 percent of the U.S. population.

Minnesota’s Border-to-Border Broadband Program offers matching grants to broadband projects in unserved and underserved areas. The program aims to meet certain speed goals set by state law: By 2022, all...

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