Tag: "funding"

Posted October 10, 2017 by ChristopherBarich

On August 1, 2017, the Franklin County Infrastructure Bank awarded Grove City, Ohio a $2 million loan to support their construction of a municipal fiber optic network. 

The Grove City Plan

According to the city’s Request for Proposal (RFP), the city is focused on first establishing an institutional network (I-Net) and plan to expand it to serve local businesses over time. The initial fiber optic network will connect Grove City to the South-Western City Schools, the townships of Jackson, Prairie, Pleasant, and the Solid Waste Authority of Central Ohio (SWACO). The goal is to create a network with a baseline of ten gigabits symmetric service, ten times the speed of current connections provided by Spectrum (formerly Time Warner Cable).

According to Mayor Richard “Ike” Stage, the increase in network speed will attract businesses and will generate a 100 new jobs for the city. Josh Roth, Senior Program Coordinator for Economic Development and Planning, has said “that Grove City has committed to one hundred jobs over the next three years.”

During the August 1, 2017 general session, the Franklin County Board of Commissioners  passed the resolution to authorize the loan to the city of Grove City. 

Franklin County Commissioner Kevin L. Boyce celebrated the project:

“[T]he fiber optics really makes a difference because companies will look at whether to expand or move there [Grove City]. It could be a deciding factor. Those are jobs that are retained that you may not see."

For more information on the positive relationship between publicly owned Internet network infrastructure and reyaining or...

Read more
Posted October 2, 2017 by Matthew Marcus

The Fort Collins’ ballot measure that could amend the City Charter allowing high-speed Internet to become a municipal utility moves forward after a short legal scuffle. The question will be decided at the November 7th special election.

Failed Legal Petition

After the language of the ballot question was released following approval by City Hall, local activist Eric Sutherland filed a petition with Larimer County. Sutherland — well known for his numerous petitions wagered against the city, county and school district— claimed that the language “failed to consider the public confusion that might be caused by misleading language”. Sutherland also insisted the proposed City Charter Amendment isn’t legal under the Taxpayer's Bill of Rights (TABOR) amendment to the State Constitution. TABOR requires local governments to get voter approval to raise tax rates or spend revenue collected under existing tax rates. 

Attorneys representing the city of Fort Collins rejected Sutherland’s claims and maintained that the amendment isn’t covered by TABOR. A utility does not require voter approval to issue debt because it is legally defined as an enterprise, a government-owned business. Moreover, Fort Collins Chief Financial Officer Mike Beckstead testified that the bonds would be backed by utility ratepayers, not tax revenue. City Council explained in a statement that they included the $150 million-dollar figure in the ballot language in an effort to maintain transparency and show the level of commitment a broadband utility could require from the municipality. By including the dollar amount in the ballot language, the Charter would also establish a limit on any debt.

District Court Judge Thomas French issued his ruling on Sept. 4th, dismissing Sutherland's arguments regarding TABOR and explained that “there are no legal grounds to cause the submission clause to be rewritten” and finally that “...

Read more
Posted September 29, 2017 by lgonzalez

California Legislators have turned on their constituents living in rural areas who want to participate in the 21st century online economy. What began as a move in the right direction - allocating substantial resources to funding high-speed Internet infrastructure - has become another opportunity to protect big incumbents. It’s twice as nice for Frontier and AT&T, because they will be paid big bucks to meet a low Internet access bar.

Discretionary Fund

Democrat Eduardo Garcia, the main author on Assembly Bill 1665, represents the Coachella Valley, a rural area in the southern area of the state near Palm Springs. Democrat Jim Wood coauthored with eight others. Wood represents coastal areas in the northern part of the state, which was passed during the eleventh hour of the 2017 legislative session. Wood’s district and region has obtained several grants from the California Advanced Services Fund (CASF) that have helped to improve local connectivity. 

The CASF is much like CAF; both programs are funded through a surcharge on revenue collected by telecommunications carriers from subscribers. Since 2007, when California authorized the CASF, the legislature has amended the rules and requirements several times. Early on, CASF awards went primarily to smaller, local companies because large corporations such as AT&T and Frontier did not pursue the grants. Now that those behemoths have their eyes on CASF grants, they’ve found a way to push out the companies who need the funds and have shown that they want to provide better services to rural Californians.

AB 1665 allocates $300 million to Internet infrastructure investment and an additional $30 million to adoption and related local programs. Policy experts have criticized the legislation on several fronts. Consultant Steve Blum told CVIndependent:

The incumbents (large corporate ISPs) including AT&T, Frontier and the California Cable and Telecommunications Association jumped in and said, ‘We want the bill to be X, Y and Z.’ … Assemblymember Eduardo Garcia took it and started adding language that reflected the desires of these cable and telephone company incumbents.

“The bill went through three revisions, and each time,...

Read more
Posted September 25, 2017 by htrostle

Another addition to our Community Networks Initiative resources! This fact sheet details the most important aspects of the Connect America Fund (CAF) Auction. What is it? What should it do? Who does it affect? And how can you make a difference?

The Federal Communications Commission (FCC) manages the CAF program, which provides billions of dollars in subsidies to Internet service providers for areas where the cost of building networks is prohibitive. Some large providers decided not to accept some of the subsidies during Phase I - about $198 million annually for 10 years. Now, the FCC plans to host an auction so that providers can submit competing proposals on how best to serve these often rural, high-cost areas. (Check out the map of preliminary areas on the FCC website.)

Before the FCC can hold an auction though, the commission needs advice on how best to conduct it and what criteria they should consider. Jon Chambers, former head of the FCC's Office of Strategic Planning and Policy Analysis, outlined his concerns about the current proposed rules in his article, The Risk of Fraudulent Bidding in the FCC Connect America Fund Auction. Listen to his analysis on Episode 268 of the Community Broadband Bits Podcast.

The first round of public comments has passed, but reply comments are due October 18th, 2017. Read the fact sheet and then submit your own comments at FCC.Gov/ecfs/filings for "Proceedings" Docket 17-182 and Docket 10-90.

Posted September 11, 2017 by lgonzalez

Two Ohio State Senators are taking a page from Minnesota’s playbook to expand rural broadband connectivity. Democratic Sen. Joe Schiavoni and Republican Sen. Cliff Hite recently announced that they would be introducing legislation to create a grant program modeled after the Minnesota Border-to-Border Broadband Grant Program.

Putting Money Into It

The program is expected to expand broadband Internet access to approximately 14,000 rural Ohio households per year. State officials estimate that 300,000 homes and 88,500 businesses in rural areas of the state do not have access to broadband connectivity.

In Minnesota, the Department of Employment and Economic Development hosts the Office of Broadband Development, which administrates grant awards and management. The Ohio bill will place the responsibility for the program in the hands of their Development Services Agency (DSA).

Grants will be awarded of up to $5 million for infrastructure projects in unserved and underserved areas; the grants cannot fund more than half the total cost of each project. Recipients can be businesses, non-profits, co-ops or political subdivisions. The bill allocates $50 million per year for broadband development from the state’s Ohio Third Frontier bond revenues.

The Ohio Third Frontier is a state economic development initiative aimed at boosting tech companies that are in early stages and helping diverse startups. The Ohio General Assembly appropriates funds to the program, much like the Office of Broadband Development in Minnesota.

Minnesota Setting The Trend

seal-minnesota.jpg This isn’t the first time politicians have looked longingly at Minnesota’s plan to build more network infrastructure in rural areas. Ralph Northam, Virginia’s Lieutenant Governor, released an economic plan for his state this summer and addressed the need to improve connectivity in rural areas. In his plan, he suggested that the state adopt clear goals “[s]imilar to the legislation Minnesota has passed.”

His report...

Read more
Posted September 6, 2017 by htrostle

Get your applications ready! The United States Department of Agriculture  Rural Utilities Service (USDA RUS) is accepting applications for another round of loans for the Rural Broadband Access Loan and Loan Guarantee Program. This program provides loans of up to $20 million for rural connectivity. The window to apply opened September 1st, and the deadline is September 30, 2017.

Thousands To Millions Of Dollars For Rural Areas

The USDA RUS has at least $60 million available this funding cycle for this program. All loans will be between $100,000 and $20 million. The program will only consider funding projects that offer speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload.

For this program, the USDA RUS focuses on completely rural communities where at least 15 percent of households do not have high-speed Internet access. To be eligible, these rural areas cannot have more than two incumbent providers or have previously received USDA RUS funding. 

Although the program is specific to rural communities, most organizations are eligible to apply, including tribal governments, local governments, cooperatives, and corporations. No partnerships and no individuals may apply for funding, however, as the loans must go only to organizations.

This is only one of the Broadband programs that the USDA RUS manages. The agency also handles the Community Connect Grants and the Distance Learning & Telemedicine Program. The report “Broadband Loan and Grant Programs in USDA’s Rural Utilities Service” from the Congressional Research Services describes these programs in more detail.

Online Submission Only

The USDA RUS officially began accepting submissions September 1st and organizations have until September 30, 2017, to apply. If you are working in an area with poor Internet service, it’s important to note that this program only accepts applications through an online system. 

Through the online system, RUS staff can review applications and answer questions as they are developed. Once an application is complete and submitted, the staff cannot provide feedback and the organizations cannot edit their applications. 

Learn more...

Read more
Posted September 5, 2017 by lgonzalez

When it comes to rural areas, it’s no secret that national providers have little interest in serving the sparsely populated communities. Cooperatives and small local providers typically pick up the slack but it isn’t easy. In a recent survey indicated that small rural telephone companies are overcoming hurdles to deploy fiber and making long-term plans to continue the trend. Furthermore, rural subscribers are proving that they are hungry for high capacity connectivity.

Local ISPs Are Doing It

Approximately 89 percent of “NTCA 2016 Broadband/Internet Availability Survey Report” revealed that the expense of Fiber-to-the-Home (FTTH) deployment was the most difficult barrier to break through. Even though they faced the difficult problem of financing, 52 percent of survey respondents in the midst of fiber deployments in the spring of 2017 were serving at least half of their customers with FTTH.

Planning For The Future

Fiber is the future for most of the survey respondents. Eighty-two percent reported long-term fiber strategies with 66 percent of those with strategies planning on offering FTTH to at least half of their customers. Another 39 percent of those with long-term fiber strategies will offer fiber to the node to more than 75 percent of their customers by the end of 2019. Thirty-one percent of local telcos with long-term fiber plans who responded to the survey report said that they have already completed their fiber deployment plans.

Subscribers Want More

According to survey respondents, rural subscribers are choosing faster speeds tiers. Relative to the same survey one year ago, the demand for download speeds in excess of 25 Megabits per second (Mbps) more than doubled from eight percent of subscribers to 17 percent of subscribers. As the percentage of subscribers choosing a faster speed tier is increasing, the number of subscribers signing up for slower speeds is decreasing. The report describes rural subscriber behavior as, “moving up the broadband speed chain” and says that “…providers need to be prepared to offer them the level of service they demand.”

What Does The Survey Tell Us?

The survey reveals that rural residents and businesses are increasingly interested in high-quality...

Read more
Posted August 22, 2017 by htrostle

Cell phones as a substitute for home Internet service? That’s what the Federal Communications Commission (FCC) suggested in an August 2017 document. Buried within the Notice of Inquiry for the Section 706 Report, the FCC quietly proposed that mobile service could be considered broadband deployment.

In a recent article, Jon Brodkin at Ars Technica dove into why that suggestion is laughable. Mobile Internet service, especially at speeds less than 25 Megabits per second (Mbps) download and 3 Mbps upload, is not equivalent to high-speed home Internet service. 

This proposal also raises concerns for rural communities exploring funding options.

Overstating Rural Connectivity Has Consequences

If the FCC treats mobile Internet access as broadband deployment, rural areas will suddenly look better connected. On paper, the FCC statistics will show that rural America has sufficient Internet access, but the reality in the trenches will remain as it is today - poor connectivity in many rural communities.

A similar situation has already happened in Iowa, where the inclusion of satellite Internet service is now considered broadband access. The interactive FCC 2016 Broadband Deployment Map clearly shows that almost all of Iowa has high-speed Internet access via satellite. One can use satellite service to browse the web, but it has significant limitations, especially when uploading data.

screenshot of Iowa

[Screenshot from August 2017 of FCC June 2016 Deployment Data of Iowa: Yellow = 25 Mbps/3 Mbps Internet access. Full map here.]

Despite the near-universal coverage shown by the FCC, rural communities in Iowa are still building fiber networks because they consider themselves lacking the connectivity they need to compete. In Iowa, it’s important to make sure that the agriculture community gets the high-speed...

Read more
Posted August 17, 2017 by lgonzalez

With funding from the state to jumpstart their initiative, the city of John Day in Grant County, Oregon, is working with local communities to deploy fiber to nearby Burns. The infrastructure will bring better connectivity to local residents in the mostly rural community.

Beginning Of A Plan

City Manager of John Day Nick Green told the Blue Mountain Eagle that the plan is still in the works, but representatives from the county and local towns will be part of the Grant County Digital Coalition. The group, which is still being organized, will own and manage the infrastructure. They anticipate the network will likely be some sort of hybrid design, rather than Fiber-to-the-Home (FTTH) throughout the entire 4,529 square mile county. “Our goal is to address the entire county’s needs, but we will start with the urban corridor,” said Green.

Green told the Eagle that average download capacity in the county is 10 Megabits per second (Mbps) and local officials want the new infrastructure to boost averages to at least 30 Mbps. There is some fiber in the region for businesses but residential access is poor.

County To County

The city of John Day received $1.82 million from the state, which will fund the project. The county will deploy a 75-mile fiber optic line from Burns in Harney County to the Grant County seat, where about 1,800 people live. John Day is the most populous community in the county, where only about 7,500 people reside. Phase 1 will deploy an additional 85 miles of fiber to connect Grant County facilities, such as city halls, schools, and the county court. For Phase 2, local communities will construct municipal networks to offer residential service in the south and east of the county seat. Phase 3 will follow with a similar effort in the northern and western communities.

Once the Coalition is formed, they will decide whether to offer services directly as a utility company or to lease the infrastructure to a private sector provider. In addition to improving residential Internet access, local officials hope improved connectivity will spur economic development. The early timeline for the Grant County Digital Network estimates local...

Read more
Posted August 16, 2017 by lgonzalez

In a record high turnout for a non-general election, voters in Lyndon Township, Michigan, decided to approve a bond proposal to fund a publicly owned Fiber-to-the-Home (FTTH) network. The measure passed with 66 percent of voters (622 votes) choosing yes and 34 percent (321 votes) voting no.

Geographically Close, Technologically Distant

The community is located only 20 minutes away from Ann Arbor, home to the University of Michigan and the sixth largest city in the state, but many of the Township’s residents must rely on satellite for Internet access. Residents and business owners complain about slow service, data caps, and the fact that they must pay high rates for inadequate Internet service. Residents avoid software updates from home and typically travel to the library in nearby Chelsea to work in the evening or to complete school homework assignments.

Lyndon Township Supervisor Marc Keezer has reached out to ISPs and asked them to invest in the community, but none consider it a worthwhile investment. Approximately 80 percent of the community has no access to FCC-defined broadband speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload.

“We don’t particularly want to build a network in our township. We would rather it be privatized and be like everybody else,” Keezer said. “But that’s not a reality for us here.”

When local officials unanimously approved feasibility study funding about a year ago, citizens attending the meeting responded to their vote with applause

A Little From Locals Goes A Long Way

The community will finance their $7 million project with a 2.9 millage over the next 20-years, which amounts to a $2.91 property tax increase per $1,000 of taxable value of real property. Average cost per property owner will come to $21.92 per month for the infrastructure. Basic Internet access will cost $35 - 45 per month for 100 Mbps; speeds will likely be symmetrical. They estimate the combined cost of infrastructure millage and monthly fee for basic service will be $57 - 67...

Read more

Pages

Subscribe to funding