Blue River, Colorado (est. pop. 882) is the latest Colorado municipality to explore building its own broadband network with an eye on affordable access. The town is part of a trend that’s only accelerated since the state eliminated industry-backed state level protections restricting community-owned broadband networks.

Just south of Breckenridge in the central part of the state, Blue River is nestled in one of the more rural parts of Summit County. Comcast (Xfinity) enjoys a broadband monopoly, resulting in spotty access, slow speeds, and high prices. Locals also routinely complain that cell phone service remains spotty in much of the mountainous area.  

In response, town leaders recently hired the consulting firm, NEO Connect, to explore the possibility of building a town-wide fiber network. According to a feasibility study presented to the Blue River Board of Trustees by Mayor Toby Babich, the construction of a fiber network serving every town resident will cost somewhere in the neighborhood of $13 million.

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While that “may seem out of reach,” Babich recently told the board, “we believe with the right funding and partnership we can move forward with this project.”

The estimates for network construction range somewhere between $7 million to $24 million, depending on how much underground trenching work is required.

This is a walk and chew gum moment for broadband-for-all advocates. On the one hand, the Federal Communication Commission (FCC) new digital discrimination rules have the potential to rein in egregious examples of digital discrimination. On the other hand, the new rules still fall short of putting forward the kinds of structural solutions necessary to address underinvestment in communities where federal infrastructure dollars may never reach.

Last week, the FCC published its final digital discrimination rules, giving the agency the authority to penalize Internet Service Providers (ISPs) whose policies have a “disparate impact” on historically marginalized communities. The Infrastructure Investment and Jobs Act (IIJA), passed by President Biden in 2021, included a mandate directing the FCC to develop “rules to facilitate equal access to broadband internet access service, taking into account the issues of technical and economic feasibility presented by that objective, including—preventing digital discrimination of access based on income level, race, ethnicity, color, religion, or national origin.”

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After hosting listening sessions and inviting public comment, the final ruling ultimately defined digital discrimination as “policies or practices, not justified by genuine issues of technical or economic feasibility, that (1) differentially impact consumers’ access to broadband internet access service […], or (2) are intended to have such differential impact.” Such an approach authorizes the FCC to penalize providers even if it can’t identify instances of intentional discrimination.

Initial Responses to the Ruling

In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

The National Telecommunications and Information Administration (NTIA) recently announced it has created a “programmatic waiver” that offers alternatives to the much-criticized letter-of-credit (LOC) requirement buried in the BEAD program.

The announcement comes after hearing from a coalition of public interest groups and a chorus of broadband experts that the LOC requirement would effectively shut out smaller ISPs from participating in the national effort to expand high-speed Internet access.

When the bipartisan infrastructure law was passed in 2021, establishing the $42.5 billion BEAD program, the NTIA issued a Notice of Funding Opportunity (NOFO) that detailed the spending rules for BEAD grants. Designed to ensure Internet service providers (ISPs) did not take federal grant dollars and leave a project incomplete, the LOC requires BEAD grant applicants to provide a letter-of-credit from a bank that verifies the applicant has at least 25% of the grant dollar amount in cash reserves held in a bank account for the entire time it takes to complete a network build.

The Otter Creek Communications Union District (CUD) has been awarded a $9.9 million grant by the Vermont Community Broadband Board (VCBB). It’s the latest effort by the state to use CUDs to deliver affordable fiber broadband access to the long-neglected rural corners of Vermont.

According to the CUD’s announcement, the funding will help deploy affordable fiber access to roughly 4,100 homes and businesses by 2025. The fiber deployment will be done in partnership with Consolidated Communications, which says it has deployed fiber to 110,000 Vermont homes and businesses since 2021.

The deployment should ultimately bring broadband access to 85 percent of homes and businesses in the Otter Creek CUD area, which covers 17 towns and one city in and near Rutland, Vermont in the southwestern part of the state as 2,300 of the locations targeted by this latest round of funding currently have no access to any broadband service whatsoever.

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“We’re excited to work collaboratively with Consolidated to bring future-proof Internet to the 18 communities within our CUD,” Otter Creek CUD Chair Laura Black said in a statement. “This funding will put us well on our way to meeting the goal of universal service in the Rutland region, bringing all the opportunities that come with reliable, high-speed internet. The Otter Creek CUD board is proud to be on the way to bringing the broadband infrastructure this community needs to participate in the global economy.”

Vermont’s nascent Communication Union Districts (CUD) are pioneering creative efforts to deploy affordable broadband to the rural parts of the Green Mountain State. That includes the Lamoille FiberNet CUD, which has greenlit a major new plan to expand affordable access to fiber in the most neglected parts of rural Vermont.

At an Aug. 14th meeting, the Vermont Community Broadband Board (VCBB) approved Lamoille FiberNet’s $1.3 million pre-construction grant, followed by a mid-September approval of the CUD’s $13.6 million construction grant.

“This grant means that, by the end of 2024, we can bring high-speed internet to almost all the homes and businesses in our CUD that are unserved or underserved,” Lamoille FiberNet Communications CUD Chair Jeff Tilton said in a statement.

With the Lamoille CUD covering 10 towns in the north central part of the state (Belvidere, Cambridge, Eden, Elmore, Hyde Park, Johnson, Morristown, Stowe, Waterville and Wolcott), Lamoille plans to have Fidium Fiber and Consolidated Communications deploy and manage 630 miles of new fiber connecting more than 4,800 unserved and underserved Lamoille County homes and businesses. The network will be deployed in two phases.

Murfreesboro, Tennessee suddenly finds itself awash with looming broadband competitors thanks to the city’s booming growth. In less than a month, United Communications – owned by not-for-profit electric cooperative Middle Tennessee Electric (MTE) – and Google Fiber have unveiled major plans to expand affordable gigabit fiber within city limits.

MTE-owned United Communications says it has some big plans for the city of 157,000, starting with broadband upgrades for the utilities’ 77,000 existing electricity customers.  

According to a recent announcement, the cooperative-owned ISP will spend $85 million in existing cash reserves to deploy 1,400 miles of fiber in the city, bringing affordable gigabit access to existing MTE electricity customers. As with many utility deployments, the upgrades will prove beneficial for electrical grid monitoring and maintenance.

“We’ve already completed phase one in the Boro, which includes our fiber backbone and service to more than 1,000 homes and businesses. As part of phase one, we also built fiber to the square in downtown Murfreesboro,” United President and CEO William Bradford said in a statement. “It was a privilege to put our fiber infrastructure to work by connecting our neighbors in disadvantaged communities and adding resiliency to the local emergency communications network.”

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Last year, United received $53.4 million in grants from the Tennessee Emergency Broadband Fund (made possible by the The American Rescue Plan Act of 2021) to help shore up broadband access in numerous Tennessee counties, including Bedford, Franklin, Giles, Lincoln, Marshall, Maury, Moore and Williamson.