New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

Here at ILSR we’re no stranger to telecom monopoly-backed efforts to mislead the public about the significant benefits of community owned broadband access.

That’s why a new “study” by the industry-backed Information Technology and Innovation Foundation (ITIF) maligning municipal broadband doesn’t come as much of a surprise.

The study professes to take a look at a very small number of municipal broadband networks, then makes sweeping and patently false claims about the entire sector.

“In most cases, local governments have neither the competence nor the economies of scale to deliver broadband as well as private ISPs,” the study concludes. “So, favoring government-owned networks wastes societal resources, creates unfair competition, and is frequently unsustainable in the long run.”

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There’s numerous problems here. One being that the survey only looked at 20 municipal broadband networks in a country where more than 450 community broadband networks – serving close to 800 different communities – now pepper the American landscape.

The study author acknowledges the study’s sample size was “too small for the data to represent all U.S. [government-owned broadband networks] reliably,” then proceeds to make broad sweeping assumptions unsupported by any actual evidence.

Erie County, New York’s ErieNet broadband initiative is poised to begin construction in Buffalo, NY, after the Buffalo Common Council recently passed a resolution approving the Telecommunications License Agreement with ErieNet LDC. The approval is a major step toward bringing affordable next-gen broadband access to long-neglected parts of Western New York.

ErieNet is a nonprofit, local development corporation (LDC), launched in September 2022, designed to construct and manage a municipal-based open-access fiber optic backbone. ECC Technologies has been chosen to handle sales, marketing, and tech support operations for the network.

“Construction has already begun for ErieNet with underground conduit installations, and utility work necessary to make utility poles ready for ErieNet fiber optic cable attachments,” ECC Technologies’ VP Matthew Crider tells ISLR. “We expect segments of our network to come online beginning in March of 2025; and have the ErieNet 400+ mile open access network substantially built by the end of 2025.”

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“Bringing high-quality broadband to Erie County begins in the City of Buffalo, and the Common Council’s approval opens up the way to make that happen,” Erie County Executive Mark Poloncarz said in a prepared statement.

Crider told ILSR that the current construction budget for the network is approximately $34 million, funded through American Rescue Plan Act (ARPA) broadband grants.

Alabama Governor Kay Ivey's office has unveiled a new round of broadband grants that will expand fiber access to unserved homes and businesses across 23 Alabama counties. This latest round of grants should help fund 2,347 miles of new fiber deployment, bringing broadband availability to more than 15,000 locations scattered across the Yellowhammer state.

The funding – made largely possible by 2021 American Rescue Plan Act (ARPA) money that both of the state’s Senators voted against – comes on the heels of another $150 million broadband funding round announced back in February.

“With these latest grants, Alabama takes another all-important step to supplying high-speed Internet availability to more rural Alabama communities and neighborhoods,” Ivey said in a statement. “Upon completion of these projects, more children will have better learning opportunities, more businesses will have greater opportunities to compete worldwide, and emergency response departments and medical clinics will be able to offer improved services.”

Both funding rounds were heavily dominated by large private telecoms like AT&T, Charter, and Brightspeed. But the state has also been doling out some sizable awards to local cooperatives in a bid to shore up rural fiber access.

Harrison County, Texas officials say they’re poised to use the county’s remaining Rescue Plan (ARPA) funds to strike a fiber expansion partnership with Etex Communications, a subsidiary of the locally-owned Etex Telephone Cooperative.

The Harrison County Commissioners Court says it’s putting the finishing touches on a $4.5 million public-public partnership with Etex that will help deliver fiber access to the Western end of the heavily underserved Texas county with the help of $1.5 million in federal ARPA funds.

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ARPA Funds To The Rescue

Etex Telephone Cooperative was originally formed in 1952 to meet the communication needs of people living in rural northeast Texas. Beginning with 743 members when the co-op was first created, the provider now services more than 12,600 members scattered across a service territory of 710 square miles of rural East Texas.

“Internet is a big issue. It’s almost as fundamental as water and electricity. You gotta have it,” Harrison County Judge Chad Sims tells The Marshall News Messenger. “It is an essential thing. So we’re happy to partner with ETEX.”

The Federal Communications Commission (FCC) says it won’t be providing broader relief for broadband operators that have defaulted on grant awards via the agency’s messy and controversial Rural Digital Opportunity Fund (RDOF) broadband subsidy program.

According to an FCC public notice, the FCC stated it found "no demonstrated need for broad relief" from provider penalties connected to either the RDOF or Connect America Fund II (CAF II) programs. It also shot down calls for a broader amnesty program for defaulters.

“Given the flexibility available under the existing default processes…we decline to provide a blanket amnesty,” the agency’s Wireline Competition Bureau said.

In a letter to the agency last February, a broad coalition of providers and consumer organizations suggested that either reduced penalties – or some sort of amnesty program – might speed up defaults, freeing areas for upcoming broadband infrastructure bill (Broadband Equity Access And Deployment, or BEAD) subsidies.

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The group was quick to point out that areas where RDOF and CAF II money has been committed are considered “served” for purposes of BEAD deployments, potentially boxing out many desperate U.S. communities from billions in potential funding.

“Many of the RDOF and CAF II awardees who cannot or will not deploy their networks are located in states with the greatest connectivity needs, like Missouri and Mississippi,” the authors wrote. “The Commission should not permit these unserved rural communities to face this type of double whammy and be left behind once again.”

But in its statement, the FCC insisted that changes to its approach aren’t necessary because, it claims, its existing processes are working.

Wilbraham, Massachusetts officials are taking the first steps toward building a city-owned open access fiber network with an eye on boosting local competition and delivering affordable, next-gen broadband access to long-neglected local residents.

Having issued a request for proposal (RFP) earlier this year with the help of EntryPoint Networks, city officials are currently identifying which company they’ll hire to deploy fiber to the city of 14,749.

They say a formal plan to present to voters – as well as a total projected network cost estimate – is expected by October.

“We have no intention of raising taxes or utilizing tax dollars,” Wilbraham Broadband Advisory Committee Chair Tom Newton tells local news outlet The Reminder.

Newton says Wilbraham is hopeful the new network will be primarily financed through an enterprise fund, similar to how the town handles the cost of water and sewer. Depending on take rates, the city is also hopeful the network will be sustainable primarily through subscriber fees. How that all works out in practice remains to be seen.

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Officials are hopeful to keep the total price per household around $60 a month. A project FAQ states the city wants to deliver symmetrical 20 Mbps (megabit per second), 100 Mbps, 250 Mbps, 500 Mbps, and symmetrical 1 Gbps (gigabit per second) service tiers to residents.

Alabama has announced the release of $148.3 million in new broadband grants via the state’s Capital Projects Fund (CPF), made possible by the 2021 American Rescue Plan Act (ARPA). While regional monopolies like Charter nabbed the lion’s share of state funding (once again), cooperatives also secured significant funding to tackle the rural digital divide.

“High-speed internet service continues to strengthen and expand across the state, and we are taking the necessary strides on this journey to achieve full broadband access for Alabama,” Alabama Governor Kay Ivey said in a prepared statement. “This has been a monumental task, but it is one that will pay multiple dividends for our state and its residents. Today is an exciting day as we announce these latest projects.”

Cable giant Charter Communications (Spectrum) was the biggest winner of state funds, awarded 23 grants totaling $44.8 million to shore up access to 22,000 underserved homes across 25 Alabama counties. The next biggest award recipient was Mediacom, which received $22.8 million in grants to fund deployment to 8,000 homes across six Alabama counties.

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All told, 16 providers were awarded grants to expand access to 48 different Alabama counties. While regional monopolies were heavily represented in the awards, four different Alabama cooperatives received $34.8 million in grant funding to expand fiber access to more than 11,092 rural Alabama homes and businesses.