Community members in Shutesbury, Massachusetts, are now receiving fast affordable, reliable connectivity in their homes and businesses delivered via their publicly owned broadband infrastructure.

It's Happening and People Are Loving It

In late August, officials from Shutesbury announced that they expected testing and verification to be completed in early September. The company hired for installation had scheduled more than 200 premises for September and was making plans to hire additional installers to speed up the process. Shutesbury expects to have most of the town connected to the network by the end of 2019.

In May, 87 percent of the town had already signed up and subscribers have continued to trickle in. Folks in Shutesbury are now beginning to obtain the Internet access they’ve been chasing for more than five years. 

No, Charter, Not You

In 2017, the town rejected a proposal from Charter Spectrum that would have connected 96 percent of the community of around 1,700 people. The offer from the cable comany had come about when the state agency tasked with distributed state funding suddenly had a change of heart. The Massachusetts Broadband Institute (MBI) decided that the big corporate ISPs, which had refused to upgrade services in the area in the past, should have another opportunity to use state funding to build high-quality Internet access infrastructure. Read more about decisions from MBI that delayed connectivity to many rural towns and strengthened monopoly power for companies that had refused to connect the region.

Even though they would have not had to bond, citizens didn’t consider it a good deal. People from Shutesbury wanted every premise connected to fiber. They also didn't want to enter into an agreement with the big ISP because it refused to commit to a specific dollar amount for connecting remaining properties. Voters had already approved bonding to invest in a publicly owned fiber optic network to every premise in town and Charter’s proposal wasn’t up to the standards that...

Applicants in the first round of the U.S. Department of Agriculture’s (USDA’s) ReConnect Loan and Grant Program requested over $1.4 billion to finance rural broadband expansion, exceeding available funds by more than $800 million. Despite tough competition, much of the funding may go to community broadband networks, since more than half of the applicants are publicly or collectively owned, including electric and telephone cooperatives, local governments, and federally recognized tribes.

As was the case in previous federal programs, most community broadband providers applying for ReConnect funds plan to deploy modern, high-speed fiber networks. Unlike the large telecom monopolies, which are letting their rural networks rot even while raking in government subsidies, community owned networks frequently leverage federal funds to deploy future-proof fiber optics in their rural service areas.

ReConnect Review

In 2018, Congress authorized $600 million for the ReConnect program to expand high-quality connectivity in rural America by providing grants and loans to Internet access providers. The first round of ReConnect applications closed earlier this summer with $200 million available in each of the three funding categories:

• 100 percent grant
• 50 percent grant - 50 percent loan
• 100 percent loan

Earlier this year, Congress approved an additional $550 million for the program, which the USDA will distribute after awarding round one funds.

Most entities were eligible to apply for ReConnect funds, including for-profit companies, rural cooperatives, local governments, and tribes. The guidelines for which communities qualified, however, were much more restrictive. Proposed service areas had to be rural, as defined by the USDA, and had to have between 90 and 100 percent of the...

Hillsboro, Oregon, has decided that fast, reliable, and affordable Internet access is a top priority. As they continue to fine-tune their fiber optic network plans, community leaders recently announced pricing and speed tiers for HiLight, expected to launch in 2020.

$55 Gig!

This summer, the Hillsboro City Council confirmed proposed pricing to reflect the community's commitment to bringing high-quality Internet access to each premise; HiLight will offer symmetrical gigabit Internet access for $55 per month to residents. According to the Oregonian, the rate is about half what Comcast charges. HiLight will also provide a 4 gigabit option for $300 per month, which is comparable to Comcast’s price for 2 gigabit service.

Subscribers will also have the option to sign-up for VoIP services for $20 per month, but the utility will not offer video.

Low-income households will be able to subscribe to gigabit service for $10 per month, but the community is still working out details for eligibility. Comcast’s plan for similarly situated folks allows Internet access at 15 Megabits per second (Mbps) download while providing slower upload speeds.

Like many other publicly owned networks, Hillsboro plans to offer symmetrical service to allow subscribers to take full advantage of fiber optic connections. With the ability to send as well as receive data-intensive files, subscribers are more likely to work from home, complete distance learning educational programs, engage in telehealth apps, and partake in innovative technologies.

The Timeline

The city plans to take an incremental approach and dedicate about 10 years toward completion of citywide deployment while avoiding debt. Hillsboro has decided to allocate around $4 million each year for the next 7 years toward the build. City financial experts estimate the network will begin generating revenue in 11 years and will pay for itself in 17 years.

Construction is already in progress in the Sourh Hillsboro neighborhood, a new area of town where approximately 8,000 new homes are being built, allowing crews to install conduit and fiber simlutaneously. Next they plan to...

In the Internet access industry, large corporations typically fight to maintain their positions as monopolies. Even if they have no intention of serving certain communities, big cable and telecom companies work to prevent others from gaining a foothold, fearful that they may someday lose subscribers. On the other hand, municipalities that operate publicly owned networks often encourage, mentor, and collaborate with neighboring communities to get people connected. Now, EPB Fiber Optics in Chattanooga is partnering with municipalities and cooperatives interested in offering Internet access.

Working Past Restrictions

Tennessee still prevents municipal power utilities from offering telecommunications services beyond their electric service areas, but state law won’t deter EPB Fiber Optics from doing what they can. Recently, EPB Vice President of Marketing J. Ed Marsten spoke with Telecompetitor. “We’re partnering with some other municipal and cooperative providers to help them get into the business,” Marston said. “We’ve seen a ton of interest.”

EPB Fiber Optics is offering a range of services to potential utility partners as a way to bring better connectivity to more Tennesseans. In addition to consulting services, the utility may be able to provide transport to an Internet point of presence (POP) and offers tech support. When municipalities or cooperatives work with EPB and use Chattanooga’s staff, they can cut operating costs and reduce the time it takes to begin offering services.

In Massachusetts, Westfield Gas+Electric (WG+E) offers similar services to the nearby rural towns that lack high-quality Internet access. Westfield’s Whip City Fiber, however, is not precluded from offering Internet access via local public infrastructure. Like EPB, WG+E also offers consulting services, if municipalities choose to operate their own networks.

Publicly Minded Moves…So Many

Earlier this year, EPB tripled the speed of their most popular service from 100 Megabits per second (Mbps) symmetrical to 300 Mbps with no price increase. They also decided to drop the price of gigabit...