We've been writing for years that the artificial restrictions put on municipalities that keep communities from solving their connectivity needs with locally owned and operated networks are unpopular with the vast majority of Americans, irrespective of political affiliation. Today, 17 states persist in keeping these barriers in place.

A new survey out from Consumer Reports shows just how out of touch such policies are, and we've been remiss in not pointing it out. The survey, which comes from data collected in Chicago in August of 2021, highlights an array of important statistics.

They include the fact that "nearly a quarter of Americans (24 percent) who have a broadband service at their home say it’s difficult to afford their monthly broadband costs," with "a larger percentage of Black, non-Hispanic (32 percent) and Hispanic (33 percent) Americans than white, non Hispanic Americans (21 percent) say[ing] it’s ‘somewhat’ or ‘very’ difficult to afford their monthly Internet [access] costs."

The most recent survey also finds that "43 percent of Americans who have broadband service in their household say they are dissatisfied with the value they get for the money," a testament to the circumstances for tens of millions of households stuck in monopoly territory with no viable options.

What about municipal or community-owned broadband?

Three out of four Americans feel that municipal/community broadband should be allowed because it would ensure that broadband access is treated like other vital infrastructure such as highways, bridges, water systems, and electrical grids, allowing all Americans to have equal access to it.

A larger percentage of Democrats (85 percent) than Independents (74 percent) and Republicans (63 percent) say municipal/community broadband should be allowed.

Across the Commonwealth of Virginia, local governments, county broadband authorities, cooperatives, and private Internet Service Providers are leveraging the influx of American Rescue Plan funds to reach the state’s goal of achieving universal access to high-speed Internet connectivity by 2024.

With $850 million in state appropriations for broadband connectivity and $1.15 billion in local government and private service providers’ funding matches, the state is on track to invest $2 billion dollars toward broadband expansion in the coming years, and is currently investing in broadband expansion projects at record levels.

In August, Gov. Ralph Northam and the Virginia State Legislature agreed to devote $700 million of the state’s $4.3 billion in American Rescue Plan funds to expand access to broadband. The $850 million investment the state has announced will consist mostly of American Rescue Plan aid. The funds will be administered by the Virginia Telecommunication Initiative (VATI), which distributes grants to public-private partnerships to extend broadband service to unserved regions of the state, or areas that lack access to Internet service delivering connection speeds of at least 25/3 Megabits per second (Mbps).

Public-Private Partnerships Deep in the Heart of Virginia

From the marsh grasslands making up Virginia’s Eastern Shore, across the three peninsulas carved out by the Chesapeake Bay, all the way to the Shenandoah Valley in the West, a diverse array of regional partnerships have formed between Virginia’s local governments, electric and telephone cooperatives, and private ISPs as broadband expansion efforts continue to advance in 2022.

Following hundreds of requests from community members urging the local Public Utility District (PUD) to address the lack of Internet access in Lewis County, Washington, the Lewis County PUD is answering the call with a proposal to construct an open access countywide fiber-to-the-home network and a relentless pursuit of broadband construction grant opportunities on behalf of its 33,000 members.

The plan to construct the 110-mile-long fiber backbone – anticipated to cost between $110 and $130 million to build – is months in the making. Since the beginning of the Covid-19 pandemic, the PUD has applied for over $30 million of state and federal broadband grants. 

In August of 2020, the PUD applied for a $5.5 million grant through the Washington State Public Works Board to provide fiber-to-the-home (FTTH) services to residents of four communities in the western region of the county – “from west Chehalis to Adna and Pe Ell along Highway 6, and down through the Boistfort Valley,” according to the PUD’s website. 

When that grant application was not awarded, the PUD turned to the USDA’s Community Connect program to propose a smaller project that would serve three of the four aforementioned communities. The USDA is expected to announce those grant recipients soon. 

In years past, states have implemented preemptive laws that make it more difficult or impossible for communities to build their own Internet networks. 

These state barriers were often enacted at the behest of large telecom monopolies to limit competition, and include everything from outright bans on municipal broadband networks to oppressive restrictions and requirements which create legal uncertainty for communities attempting to offer telecommunications and Internet services, including via partnerships.

When the Covid-19 pandemic hit the United States in March 2020, there were 19 states maintaining significant restrictions on municipal networks. Today, the number of states upholding these barriers has been reduced to 17. The pandemic served as a turning point in the fight for local authority, and in the past year, Arkansas and Washington adopted legislation significantly rolling back legislative barriers on publicly owned broadband networks. 

In February of 2021, both chambers of the Republican-dominated Arkansas State Legislature voted unanimously to send Senate Bill 74 to State Governor Asa Hutchinson, who signed the bill into law. The legislation grants government entities the authority to provide broadband services and expands the financing options available to municipalities to fund municipal broadband projects.

In May of 2021, Washington State Governor Jay Inslee signed two bills expanding municipal authority to provide retail Internet services to end-users, House Bill 1336 and Senate Bill 5383. Both bills reduce barriers to municipal networks, but House Bill 1336, which completely removes all previously-held restrictions on public broadband in the state of Washington, is expected to take legal precedence.

The Institute for Local Self-Reliance has partnered with Southeast Nebraska Development District (SENDD) and the Nebraska Economic Developers Association (NEDA) to present a broadband seminar series to provide education to local elected officials, economic developers and other stakeholders. The series covers everything from the basics of broadband infrastructure and technology to financial models to the longterm benefits of investing in fast, reliable Internet access.

The series was developed by Christopher Mitchell, in collaboration with SENDD and NEDA, and produced and edited by ILSR Senior Researcher and Multimedia Producer Maren Machles.

Episode 1

In the first episode, Christopher introduces broadband technology and terminology, including network basics, infrastructure development, and business models. 

 Episode 2

In the second episode, Christopher is joined by Brent Comstock (CEO and Founder, BCom Solutions), Thomas Magnuson (Geriatric Psychiatrist at University of Nebraska Medical Center), Kyle Arganbright (Mayor of Valentine, NE and Executive Vice President and co-founder of Sandhills State Bank), and Brook Aken (Economic Development Manager, Omaha Public Power District) to discuss the longterm benefits of fast, reliable broadband on everything from economic development to telehealth. 

Episode 3

Christopher is joined by David Young, Chief Information Officer for the City of Lincoln and Lancaster County in the third episode of the series. The two give guidance on state and federal broadband programs as well as barriers, challenges, and solutions for broadband infrastructure deployment.

Episode 4

The Ohio Senate attached an amendment to the state's budget bill last week which would place significant restrictions on the establishment of new community broadband solutions. It would also, if passed in its current form, place substantial barriers on the operation and expansion of existing municipal networks and other publicly owned and operated projects.

Cities across Ohio have expanded Internet infrastructure in thoughtful, forward-looking ways. These municipal networks have created local government savings, increased speeds, promoted service competition, and powered economic development.

 Some cities have specifically addressed the affordability gap in cities, where many residents have been left behind in a broken market where large Internet Service Providers (ISPs) have underbuilt networks, leaving hundreds of thousands of broadband-hungry Ohioans in the digital dust.

This fact sheet [pdf] outlines the many long-term benefits that municipal broadband projects have brought to the state. For instance:

Well, they did it. The Ohio Senate passed its two-year $75-billion budget bill yesterday, which included an amendment that effectively bans the creation of municipal broadband networks without much in the way of public debate.

If the amendment contained in the Senate’s budget survives the budget process, it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks.

The vote was along party lines, with 25 GOP State Senators voting in favor of the Senate budget bill and the chamber’s eight Democrats voting against it. With the House having passed its budget bill in April, now the two legislative bodies have until June 30 to negotiate the differences.

According to the Columbus Dispatch, the House and Senate budget bills agree on about 60 percent of what’s contained in the Senate spending proposal. Where the House and Senate disagree is on the size of a state income tax cut, school funding, access to subsidized childcare, and broadband.

Ohio on Cusp of Municipal Broadband Ban

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendment that saddles community-owned projects with an array of conditions designed to prevent, stifle, and discourage political subdivisions from building and operating networks that meet the connectivity challenges of its residents. It also takes aim at existing projects which enhance the resiliency of regional communications, telehealth, and public safety operations.

Among the most pernicious consequences would be that it only allows for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

The Ohio State Senate is set to vote today on the state budget bill that includes an amendment which, if signed into law, would be a major setback for municipal broadband projects in the Buckeye State and protect the big incumbent Internet Service Providers from competition. 

If passed and signed into law it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks. This is a surprising and disappointing move, especially for families who have spent the last year experiencing firsthand the poor Internet connectivity that comes with a broadband market dominated by monopoly providers with no incentive to put the interests of the public ahead of shareholder returns.

Erecting Barriers

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendement with an array of conditions designed to prevent, stifle, and discourage cities from following through with any plan for a city-run network to meet the connectivity challenges of its residents.

The first is a provision that would only allow for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

But a recent Ohio Broadband Strategy report released in 2019 under the direction of Ohio Lt. Gov. Jon Husted pegged the number of Ohioans without access to broadband at just around 1 million. According to the independent broadband tracking firm BroadbandNow, which ranks Ohio 24th in the nation on the broadband access scale, as of June 2021 there were 618,000 Ohio residents who did not have access to broadband with speeds of 25/3 or faster, which means that approximately 94 percent of Ohioans have access to wired broadband with speeds of 25/3 or faster. Restricting municipal networks to only those households with no service whatsoever would effectively preclude new networks in large parts of the state.

Snapshot

Michigan broadband package repeals law prohibiting state grants from going to government entities

Montana Legislature duplicates federal limitations against schools and library self-constructing networks

U.S. House Republicans bill would give USDA authority over rural broadband, in place of FCC 

The State Scene 

Michigan

Michigan Gov. Gretchen Whitmer issued an executive directive on Wednesday establishing the Michigan High-Speed Internet (MIHI) Office, a new state office tasked with developing a strategy to make high-speed Internet more accessible to Michiganders. 

Gov. Whitmer has argued that more than $2.5 billion in potential economic benefit is left unrealized each year due to a lack of Internet access across the state. MIHI will be housed inside the state’s Department of Labor and Economic Opportunity (LEO). Speaking of the new office, LEO Acting Director Susan Corbin said, “We need to make major investments to support digital inclusion and this office will be focused on leveraging every dollar available through the American Recovery Plan and other federal programs,” reports WILX.

Michigan lawmakers are moving to answer Corbin’s call and recently proposed a $400 million one-time allocation of incoming federal relief funds to the newly created MIHI to work toward expanding access to broadband. With the funds, LEO would be tasked with maintaining a statewide broadband grant program, the Connecting Michigan Communities Broadband Grant. 

Update: State Governor Jay Inslee signing two bills amending the same section of state law at the exact same time forced the Washington Secretary of State to seek judicial guidance on which bill will take precedence over the other in the face of legal challenge. It is still unclear if the two bills are compatible; however, in these instances the bills should be filed in the order in which they passed the State Legislature, with the bill filed last taking legal precedence. The Public Broadband Act passed the State Legislature one day after S.B. 5383; therefore, the Public Broadband Act should prevail over the Senate bill (S.B. 5383).

Yesterday, following weeks of anticipation, State Gov. Jay Islee signed the Public Broadband Act (H.B. 1336), removing all restrictions on public broadband in the state of Washington, according to the bill’s primary sponsor, State Rep. Drew Hansen, D-23. This critical leap forward in Washington drops the number of states with laws restricting community broadband to 17.  

Rep. Hansen’s tweet announcing the passage of H.B. 1336:

BREAKING: Governor Inslee just signed my Public Broadband Act so we have ENDED ALL RESTRICTIONS ON PUBLIC BROADBAND IN WASHINGTON STATE!!

Next step: contact your local gov’ts (utility districts, ports, counties, etc.) & tell them you want public broadband.

LET’S GO GET IT!!