Buoyed by an explosion in new grants and the recent elimination of state restrictions on community broadband deployments, Washington State is awash in freshly-funded local broadband proposals that should go a long way toward shoring up affordable Internet access across the Pacific Northwest. 

In addition to Covid relief and various state grants, thirteen Washington State counties, ports and Tribal associations recently received $145 million in Broadband Infrastructure Acceleration grants aimed at boosting Internet access and affordability statewide. It’s the first tranche of $260 million planned for new infrastructure, and particularly exciting because it looks like nearly all of the funds went to community-led endeavors, with many of the newly built networks operated by local governments. Some projects will result in partnerships with locally rooted providers.

“Infrastructure is the foundation for digital equity,” Washington Commerce Director Lisa Brown said of the funding. “Washington state’s goal is to ensure all of our residents have access to affordable high-speed internet, as well as the devices, skills and confidence needed to connect with critical resources.”

State leaders say they received more than $413 million-worth of requests for 36 different projects, and have shared both a list and a map of all approved grants online. 

Essential Aid for Existing Projects

Dickson, Tennessee (pop. 15,500) was the third municipal electric system to take power from the Tennessee Valley Authority after its creation in 1933, but the utility actually predates the regional electric generation system by almost 30 years. Today, it’s entering a new phase of life, parlaying its 117-year history of bringing affordable electric service into an $80 million fiber-to-the-home (FTTH) build that will see every household in its footprint (37,000 meters) get future-proof Internet access within the next four years.

A Cooperative in Municipal Clothing

Established in 1905, the very first Dickson Electric System (DES) customers received their power from a single 150-horsepower external combustion steam engine. DES upgraded its capacity in 1923, switching to two 150-horsepower oil-burning engines. A little more than a decade later, the TVA was established and DES took service, joining the maturing regional electric system and bringing its 650 customers and 50 miles of line into what would eventually be a group of more than 150 local power utilities almost a century later.

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Today, Dickson Electric territory covers almost 800 square miles across Dickson, Hickman, Cheatham, Williamson, Humphreys, Houston, and Montgomery Counties (with the bulk of its customers in the first three), across about 2,600 miles of distribution line to 37,000 locations.

The FCC’s Rural Digital Opportunity Fund (RDOF) Reverse Auction was completed a little more than a year ago to much fanfare and spilled ink, and though we’ve seen irregular updates over the last twelve months, we thought it worth the time to round up what we know so far in an effort to see where we’re at and determine what is likely to come.

The RDOF was built to award up to $20.4 billion in grants over 10 years using competitive reverse auctions generally won by the lowest bidder. The money comes from the Universal Service Fund fees affixed to consumers’ monthly telecom bills. The previous FCC announced $9.2 billion in auction winners in December of 2020. 

To date the FCC has announced five rounds of Authorized funding released, six rounds of applicants whose bids they have decided are Ready-to-Authorize, and three rounds of Default bids. In total, a little more than half of the $9.2 billion won during the auction has been handed out as of January 14th, 2022, with another $1.3 billion announced on January 28th as ready to be disbursed shortly.

It’s clear that the final picture is still taking shape, but looking at things a year later leaves us feeling a little better than we were immediately after the auction closed. To date, it appears the FCC is closely scrutinizing many of the bidders that most worried industry veterans and broadband advocates, while releasing funds for projects that will bring future-proof connectivity to hundreds of thousands of homes over the next ten years.

Moving Slowly on Problematic Awards

The biggest news so far is that of the top ten winners, seven look to have received no funds at all (see table below or high-resolution version here). That’s $4.1 billion worth of bids for almost 1.9 million locations, and includes LTD Broadband, SpaceX’s Starlink, AMG Technologies (NextLink), Frontier, Resound Networks, Starry (Connect Everyone), and CenturyLink. This is a big deal.

Fairfield City, California is one of several cities in the state hoping to lean on both California’s broadband expansion initiative and the American Rescue Plan Act to provide faster, less expensive Internet access for city residents. The city says it will soon exit the research phase of its project and outline what they believe is the best path forward.

Last May the city council approved a plan to deploy a city-owned broadband network to expand broadband options in the city using Rescue Plan funds. Last August, the city launched a Broadband Action Planning (BAP) process to measure the scope of Internet access gaps and propose a solution, the results of which will soon be shared with the city council and the public.

Digital Divide Exacerbated

Like so many U.S. communities, the lack of affordable, equitable Internet access was particularly pronounced during the Covid crisis, the city said. 

“Access to broadband is becoming a prerequisite for improving economic and social welfare,” Fairfield City Communications Manager, Bill Way, told ILSR. “It provides a conduit to enable open and accessible government, enhance business competitiveness, and improve the quality of residents’ lives through improved delivery of services such as telework, telehealth, distance learning, and digital inclusion.”

The city recently completed a survey of community members, and the majority of the almost 300 responses cited limited competition and a lack of affordable Internet access options. 

“While a few comments were positive, most comments indicated lack of options, low speeds, and high costs,” Way said. “One specific consideration to note, although city staff coordinated with outside agencies to cast a broad reach for the survey, and utilized in-house engagement efforts, the responses did not generally capture vulnerable populations, most at-risk of being digitally excluded.”

In June of 2020, Cullman Electric Cooperative launched Sprout Fiber Internet, a fiber-to-the-home (FTTH) network to bring broadband access to its members in rural Alabama. Sprout Fiber has taken significant strides since then, connecting its 1,300th subscriber in October of 2021.   

By July of 2020, Sprout Fiber had started the first phase of network construction, with plans to connect 25 percent of Cullman’s membership – or 12,000 households – by spring of 2022. Sprout’s first customer was connected in January 2021. By the following September, Sprout was serving “over 1,000 broadband customers and handling about 12 activations per day,” with a little under half of its Phase I deployment finished. This puts its take rate around 20 percent in less than a year. By November, Sprout Fiber had completed a fiber ring backbone to connect its offices and substations.

Expanding Access and Choices

Local competition includes AT&T and Charter Spectrum, which offer service to the town of Cullman itself but not to its surrounding areas. Several wireless and satellite providers also offer service locally. There is significant demand for Sprout Fiber’s service, however, including from members in gap areas that don’t have other options for high-speed Internet access. According to Sprout Fiber, “twenty-five percent of [its] service territory still does not have any access to [the] Internet, and other areas do not have access to a quality Internet connection.”  

Guided by member demand and targeting areas without existing robust broadband infrastructure, Sprout Fiber plans to expand broadband service into ten new areas and to 9,000 additional members in 2022 (see map below, with green areas live right now, with pink scheduled to go live early in 2022 and purple to follow thereafter. For a high-resolution version of the map, click here). Cullman Electric CEO Tim Culpepper told members: 

The USDA’s ReConnect program has disbursed more than $1.5 billion since its inception in December 2018. On the whole, the USDA seems to have done a better job than the FCC of leading to new broadband infrastructure which is fast, affordable, and locally controlled. Much of the money it has given out has gone to community-driven solutions, with Tribes, electric and telephone cooperatives, and local governments applying for and winning awards. The program has also seen partnerships between counties and other public as well as private entities. 

But there’s a lot to like about the newest round of funding, totaling $1.2 billion more (representing a full 80 percent of all money given out so far). The application process for Round 3 began at the end of November, with applications due by February 22, 2022.

Announced at the end of October, the new scoring metric represents a significant step in the right direction, increasing speed definitions on both sides of the application. But there are other things to like here as well. 

Join us live on Thursday, November 11th at 5pm ET for Episode 25 of the Connect This! Show, where co-hosts Christopher and Travis Carter (USI Fiber) will be joined by Glen Atkins (a twenty-year veteran of the cable television industry) and Ron Hranac (former Technical Marketing Engineer at Cisco) to talk about the future of hybrid fiber-coaxial (HFC) network infrastructure. 

Cable began as a one-way video distribution system before transforming into the avenue by which the majority of Americans access the Internet today. It has enjoyed a long life as the result of new specification standards, encoding schemes, and the result of pushing fiber farther and farther into the network. The panel will talk about DOCSIS and the move from the 3.1 standard to 4.0, which will enable symmetrical gigabit speeds to users and more households served at the highest speed tiers. They'll also dig into the pantheon of other hardware and system upgrades used by cable operators, from low latency DOCSIS to virtualized cable modem termination system (vCMTS). 

With so much fiber being built in 2021 and beyond, how much life is left in the cable plant? 

Subscribe to the show using this feed, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback, ideas for the show, or your pictures of weird wireless infrastructure to stump Travis.

Watch here or below on YouTube Live, via Facebook Live here, or follow Christopher on Twitter to watch there.

This piece was authored by Ahmad Hathout, Assistant Editor for Broadband Breakfast. Originally appearing at broadbandbreakfast.com on August 25, 2021, the piece is republished with permission.

The House’s decision to delay passage of the $65 billion spending on broadband included in the infrastructure bill means that final action will wait until Congress returns from its summer break and comes back again for scheduled votes beginning September 20.

Fiber and wireless providers remain optimistic about infrastructure investments in future networks, even as a top lawmaker on Wednesday voiced lingering concerns about spectrum-related provisions in the Senate-passed bill.

On Tuesday, the House passed a budget resolution on a separate $3.5 trillion spending package that is only supported by Democrats. House Speaker Nancy Pelosi put on hold – until September 27 – a commitment to vote on the $1.2 trillion infrastructure package, which enjoys bipartisan support.

The particulars of the broadband segment of the infrastructure measure that passed the Senate on August 10 have been reported, but not yet fully digested. The bill include grants for service providers that provide broadband at 100 Megabits per second (Mbps) download and 20 Mbps upload.

Upload Speeds a Center of Discussion

That in itself would be a significant bump up from the current federal definition of “broadband” as being 25 Mbps down and 3 Mbps up.

But some broadband enthusiasts wanted Congress to push for the symmetrical speeds that some Democratic lawmakers have asked for. Symmetrical speeds, in which the up speed is equal to the down speed, are generally seen to favor fiber deployment.

Still, the final measure that passed the Senate decreed that anything under 100 Mbps down would be categorized as “underserved.”

Nonprofit Alleghenies Broadband is leading a cohesive effort across a six-county region in south-central Pennsylvania to bring high-speed Internet access to areas that are unserved or underserved by reliable networks.

Part of its work is a recently completed Request for Proposals (RFP) in search of forming a series of public-private partnerships to help identify target areas and offer robust solutions to bring new infrastructure to the businesses and residents who need it most. As that process continues to unfold, however, the nonprofit is already working with city and county leaders to pursue a range of wireline and fixed wireless options that will result in better service and publicly owned infrastructure. 

A Regional Approach

Formed in October 2020, Alleghenies Broadband is part of the Southern Alleghenies Planning & Development Commission. By coordinating efforts in six counties (Bedford, Blair, Cambria, Fulton, Huntingdon, and Somerset, collectively representing about 500,000 residents), it hopes to address the broadband gaps scattered across the region. Somerset, Fulton, and Huntingdon seem to be in the worst shape at present: while many residents have access to cable service, large swaths of the counties are stuck with DSL or satellite service only, leading to median download speeds of just 3.7-8 Megabits per second (Mbps) (see Fulton and Huntingdon coverage maps below, with satellite-only areas in grey). The remaining three counties also have significant gaps where no wireline access is available, representing thousands of households with poor or no service.

After three years in a row with similar results, PCMag’s “Fastest ISPs in America” for 2021 analysis shows a clear trend: community owned and/or operated broadband infrastructure supports networks which, today, handily beat the huge monopoly Internet Service Providers (ISPs) - cable and telephone alike – for sheer speed.

The latest list proves it. Of the ten-fastest ISPs in the country, all of them feature operators that either are cities themselves or use city-owned fiber or conduit to deliver service across whole or parts of their footprint. 

City-run networks making the list again this year include Longmont, Colorado (third); Chattanooga, Tennessee (sixth); and Cedar Falls, Iowa (seventh). Cedar Falls topped the list last year, but all three networks are regulars over the last three analyses done by the outlet. Broken down regionally, they are also joined by other municipal networks around the country, including FairlawnGig in Ohio and LUS Fiber in Louisiana.