Tag: "funding"

Posted November 19, 2019 by lgonzalez

UTOPIA Fiber will soon be branching out as they continue to forge partnerships with local communities in their region. In addition to expanding their own infrastructure, the organization is working across the state line to help Idaho Falls expand a municipal network.

Funding in Place

The Utah Infrastructure Agency (UIA) recently announced that it will provide $48 million to UTOPIA Fiber to facilitate expansion of the network. UIA is a separate entity, but the two operate as an integrat; leaders from both entities credit this approach for the growth of the network since 2009. According to a November 14th press release, UIA secured the funding with Lewis Young Robertson & Burningham, Inc. (Financial Advisor), KeyBanc Capital Markets Inc. (Senior Managing Underwriter), and Gilmore & Bell (Bond and Disclosure Council). 

Executive Director of UTOPIA Fiber Roger Timmerman said:

“We have the best partners in the business who have worked relentlessly over the past few months to get us to this point. The demand for municipally-owned fiber has skyrocketed and we are excited to be a leader in the industry. Over the past four years, UTOPIA Fiber has doubled the number of subscribers on its fiber network and has entered into partnerships with several additional communities.”

The newly acquired funding demonstrates a growing interest in open access fiber network infrastructure as investment. The UTOPIA Fiber network is currently an option for more than 100,000 premises, providing multiple options for households and businesses in a competitive environment. Other open access networks in locations around the U.S. are in the works, including publicly and privately owned infrastructure.

According to the press release, this is the fourth round of funding that UIA has closed on within the last year in order to meet demand and expand to additional communities.

Connecting an Expanding List of Communities

The town of Morgan City, which will be the 13th community in Utah to connect to the publicly owned open access network,...

Read more
Posted November 15, 2019 by lgonzalez

Open access networks offer opportunities for competition and innovation that networks owned and operated by one entity can’t provide. We've written about open access networks owned, operated, and funded by public entities; now private investors are increasingly attracted to these competitive, fiber optic environments.

Changing Paradigm

Over time, American Internet access subscribers have become accustomed to the idea that options are limited because large, corporate Internet access providers have positioned themselves so as not to compete with one other. In areas where local communities have deployed open access models, such as in Ammon, Idaho, or in places with regional open access networks, like UTOPIA Fiber in Utah and the many Public Utility District networks (PUDs) in the state of Washington, those connecting to the network have benefitted from ISP choice and access to high-quality connectivity.

In Europe and Asia, open access models appear more regularly, but in the U.S., the open access arrangement has primarily been adopted by local governments offering wholesale service to ISPs. Often they do so as a way to comport with state law. In the past few years, however, private companies and investment firms have seen the potential of open access fiber optic infrastructure in the U.S. For example, SiFi Networks announced a project in Fullerton, California, earlier this year with plans to establish similar infrastructure projects in other communities.

We recently touched base with Kelly Ryan, CEO of iFiber Communications, an Internet service provider that operates via open access networks owned and operated by PUDs in Washington. We also talked with James Wagar, Managing Director of Thomas Capital Group, who has eyes on open access fiber optic network projects.

The Finance Piece

James notes that in recent years, privately funded open access networks...

Read more
Posted October 30, 2019 by lgonzalez

The Benton Institute for Broadband & Society has a reputation for looking at today’s reality with an eye toward tomorrow’s needs. In their report, Broadband for America’s Future: A Vision for the 2020s, Benton Senior Fellow Johnathan Sallet continues that perspective and offers insightful recommendations for a new National Broadband Agenda.

Download the report, Broadband for America’s Future: A Vision for the 2020s here.

Broadband for All Needs a New Approach

As access to high-quality connectivity becomes more critical each day, those without fast, affordable, reliable Internet access lose ground more quickly as time passes. In addition to the opportunities that come with broadband access, lack of adoption translates into lack of technical skills. Innovation isn’t slowing down for folks who don’t have broadband. 

As Sallet notes, access to and adoption of broadband improves our economy, strengthens communities, and empowers American workers. Obtaining that access and expanding that adoption, however, is proving more challenging than it should be.

In his report, the author reviews in detail the barriers that have prevented the U.S. from achieving its goal of ubiquitous access and adoption of broadband. He’s able to make recommendations based on four key policy areas:

Deployment of networks where adequate broadband does not exist;

Competition to increase choices and spur lower prices and better-quality service to their residents;

Affordability and Adoption for those who wish to have broadband in their homes but lack the means or the skills to acquire it; and

Community Anchor Institutions, such as schools and libraries, that increasingly serve their users wherever they are. 

Deploying Better Networks, Creating Choice

In addition to better data collection in order to know where Internet access is inadequate, Sallet writes that policymakers and citizens should also have access to information about Internet access that hasn't...

Read more
Posted August 26, 2019 by lgonzalez

In June, Governor JB Pritzker signed the Rebuild Illinois capital plan, a $45 billion effort that will repair and improve all manner of infrastructure in the state. Within the plan, state leaders intend to dedicate $420 million to upgrade and expand broadband infrastructure. Such a significant investment can make a real difference in the state, as long as decision makers adopt smart policies and allow local communities to receive funding for broadband projects.

Gas Tax for Gigabits

An increase in the state’s motor fuel tax will fund most of the broadband initiative. The increase in gas prices at the pump, which took effect on July 1, jumped from 19 to 38 cents. Similarly, a special fuels tax on diesel, liquefied natural gas, and propane increased from 2.5 cents to 5 cents. State analysts anticipate the increase will garner an additional $1.24 billion to state coffers in 2020.

The Rebuild Plan also grants state bonding authority for infrastructure projects and Cook County municipalities are permitted to raise their gas taxes by an additional three cents per gallon. There are also title and registration fees that will contribute to the fund.

As part of the plan, Illinois created the Connect Illinois initiative, which is part of the Illinois Department of Commerce. One of the goals of the initiative's Broadband Office is to provide all K-12 students with high-speed Internet access at no charge. As part of the Rebuild Illinois plan, $20 million will be used to update and expand the Illinois Century Network, which serves K-12 schools, colleges and universities, public libraries, and Internet access providers.

seal-illinois.pngConnect Illinois and the initiative’s Broadband Office will administer the grants made possible by the fuel tax increase. The office will also work to determine federal grants that are available and how best to access them to advance the state's goals.

Connectivity Council

In mid-August, Pritzker...

Read more
Posted July 5, 2019 by lgonzalez

The Office of Broadband Development (OBD) at the Minnesota Department of Employment and Economic Development (DEED) recently released a call for Border to Border Broadband grant applications. The deadline to submit your application is September 13, 2019

This year, the State Legislature has appropriated $20 million in funding for projects located in unserved or underserved communities. As a reminder, Minnesota has established the thresholds as:

Unserved area: households or businesses lack access to wire-line broadband service at speeds of  25 Megabits per second (Mbps) download and 3 Mbps upload.  

Underserved area: households or businesses do receive service at or above 25 Mbps / 3 Mbps, but lack access to wire-line broadband service at speeds of 100 Mbps download and 20 Mbps upload.

The OBD has posted a map of the state which allows users to to input addresses and quickly determine if their location qualifies for grant funding. Check it out here

Who Can Apply?

As other states have shaped their broadband grant programs, they’ve looked to Minnesota for guidance. One of the shining characteristics of the Border to Border Broadband Broadband Development program has been the diverse field of eligible applicants. In some states, grants can only go to private sector companies, but Minnesota takes an “all hands on deck” approach. Eligible applicants include:

  • Incorporated businesses or partnerships
  • Political subdivisions
  • Indian tribes
  • Minnesota nonprofit organizations organized under chapter 317A
  • Minnesota cooperative associations organized under chapter 308A or 308B
  • Minnesota limited liability corporations organized under chapter 322B for the purpose of expanding broadband access

Eligible Program Costs and Matching Funds

Applicants can only receive grant funding if they provide matching funds, which can come from any public or private source. The project infrastructure must be able to support minimum symmetrical speeds of 100 Mbps.

Costs associated with a project that will be eligible for consideration include those associated with acquisition and installation of middle mile or last mile infrastructure. In addition to project planning, awardees may also apply for grant funding to pay...

Read more
Posted May 9, 2019 by lgonzalez

During this legislative session, state lawmakers in several states passed bills that allocated funds to broadband deployment and planning programs. In many states, elected officials are listening to constituents and experts who tell them that they need fast, affordable, reliable connectivity to keep their communities from dwindling. States that refuse funding to public entities, however, block out some of the best opportunities to connect people and businesses in rural areas. In places such as Michigan, Tennessee, and Virginia, states need to trust their own people to develop necessary broadband networks.

The Great Lakes State: Not Great at Supporting Local Broadband

Michigan’s HB 5670 caught the attention of community broadband advocates when it was introduced by Representative Michele Hoitenga in 2018. The bill was firmly anti-municipal network and after some investigation, it became clear that Hoitenga received guidance from lobbyists from big cable and telephone monopolies. HB 5670, with its sad definition of “broadband” and attempt to fork over state funds to big national ISPs didn’t go anywhere alone after word spread.

seal-michigan.png Folks from the Michigan Broadband Cooperative (MBC) and other constituents in rural Michigan voiced their concern and the bill seemed to disappear. In reality, the House folded the language into SB 601, a large appropriations bill, which has now become law. Section 806 lists the types of entities that are eligible to receive grants from the $20 million set aside for infrastructure -- public entities are specifically eliminated.

In Michigan, places such as Sebewaing, and Marshall have already proven that local residents and businesses need gigabit connectivity and that they trust services from their local municipal utility broadband provider. The language of SB 601 as written will also prevent local governments from obtaining...

Read more
Posted March 28, 2019 by lgonzalez

Current lawmakers in the Vermont House have rapidly advanced H 513, a bill that addresses both policy and funding hurdles in an attempt to expand broadband throughout the state. After a vote of 139 - 2, the bill went on to the Senate on March 26th.

Looking at Local Models

H 513 recognizes that more than a quarter of the state’s premises don’t have access to broadband speeds as defined by the FCC, 25 Megabits per second (Mbps) download and 3 Mbps upload. The state’s Department of Public Service, which assembled the data, also determines that almost a fifth of premises can’t obtain speeds of 10 Mbps / 1 Mbps. With so many rural communities hurting for access to fast, affordable, reliable connectivity, state lawmakers are anxious to find tools to expand broadband across Vermont.

Legislators note in the language of H 513 that they believe the FCC’s “light-touch” approach toward expansion of broadband:

“…does little, if anything, to overcome the financial challenges of bringing broadband service to hard-to-reach locations with low population density. However, it may result in degraded broadband quality of service.”


H 513 goes on to acknowledge that grassroots approaches that use local knowledge and support will be the most successful in Vermont.

Lawmakers and their staff have lauded ECFiber as one model that works in a place like Vermont, where many smaller communities can pool their resources and work together to develop a regional network. As the Communications Union District has developed over the years and dealt with funding challenges head-on, it has become apparent that access to capital is one of the most difficult hurdles to overcome.

Funding for Innovation

seal-vermont.png In order to help local projects, H 513 will establish the Broadband Innovation Grant Program within the Department of Public Service (DPS) and the Broadband Expansion Loan Program within the Vermont Economic Development Authority (VEDA). 

... Read more
Posted March 19, 2019 by lgonzalez

Governor Jay Inslee started to promote his bill for better broadband earlier this year and, with any luck, Washington will have a solid foundation to expand broadband before the end of this year’s legislative session. SB 5511, a measure backed by the Governor, has sailed through the Senate, and has now appeared in the House. The bill establishes a State Broadband Office and earmarks funding for local broadband initiatives.

The bill is on the agenda for today's House Innovation, Technology & Economic Development Committee meeting at 10 a.m. PDT.

Difficult But Doable

In order to bring high-quality Internet access to all of Washington, millions and possibly billions of dollars of infrastructure investment are required. No one is certain how much completing the task will cost, and obtaining a better estimate will be one of the tasks of the State Broadband Office (SBO), which will be created by SB 5511. The bill allocates $1.2 million for the SBO.

Rural communities, economic development organizations, and tribes have all supported a measure to establish state investment in broadband infrastructure deployment across Washington. In January, Inslee met with leaders from communities across the state, including Colville Business Council member Susie Allen representing the Colville Tribes, to discuss the need for state funding:

“I have been working on broadband initiatives on our reservation for many years, but unfortunately, substantially, we still remain under-served and unserved, without broadband services,” said Allen. “The Colville Tribes have invested several millions of dollars to begin to meet this need, but we require assistance from the state and federal agencies to complete this work… The lack of broadband service creates not just an inconvenience, but poses real safety concerns throughout the reservation.”

The Colville Tribe has invested $6 million in order to connect the tribal government and under the terms of SB 5511, they would qualify to receive more funding in grants and low-interest loans.

The Tribe...

Read more
Posted March 5, 2019 by lgonzalez

Brent Christensen, Chief Operating Officer of Christensen Communications, came into our Minneapolis office to sit down and have a chat with Christopher this week for podcast 346. Their interview comes a short time after Christopher and several other Institute for Local Self-Reliance staff took a tour of the Christensen Communications facilities.

Brent has an additional role as President and CEO of the Minnesota Telecom Alliance (MTA) a group that advances...

Read more
Posted February 7, 2019 by lgonzalez

Big cable and telecom lobbyists managed to locate a legislative vehicle for the components of last December's bill to fund rural broadband, locking out some of the state's most promising opportunities to bring better connectivity to those who need it the most. There’s still time for Michiganders to express displeasure and the result and possibly influence change. You can file a public comment online through February 15th.

The Problems

When we reported on Michigan’s HB 5670 in December, it was set to appear before the House Communications and Technology Committee. Prior to the hearing, however, Chair Michele Hoitenga removed it from the agenda. Regular readers will remember Hoitenga, whose support from cable and telecom companies has inspired her to introduce anti-muni legislation in the past.

The bill, dubbed the “Broadband Investment Act,” established a fund to provide grants for infrastructure deployment, but specifically locked out municipalities and other government entities from eligibility. Consequentially, local ISPs that might want to provide services via publicly owned fiber were also stifled from projects because this provision essentially ended the possibility of public-private partnerships or any competition with large incumbents.

According to the language of HB 5670, “broadband” was defined as 10 Megabits per second (Mbps) download and 1 Mbps upload. While we have seen state broadband legislation from several years ago falling back upon this outdated definition of “broadband,” Michigan condemns rural residents to slow, unreliable, last-century technology. It indicates a thinly veiled attempt to hand over state funds to telecom companies with no interest in providing anything better than what they already offer in rural Michigan — DSL or satellite Internet access.

Language in the bill also goes to extreme lengths to ensure that funds will only go to projects that have not received funding from any other source. What will prevent many projects from ever receiving funds, unless those projects are being developed by big corporate incumbents, is the fact that funds can’t be awarded to projects in places where...

Read more

Pages

Subscribe to funding