The Cleveland, Tennessee city council has approved the creation of the Cleveland Utilities Authority, the first step in allowing the city-owned utility to get into the broadband business. The goal: improve utilities services and provide city residents with faster, cheaper, and more reliable fiber access after years of neglect by often-apathetic regional telecom monopolies.

The plan, approved by the city council with a 7-2 vote (see full video here), paves the way for Cleveland’s city-owned utility, Cleveland Utilities, to begin deployment of a $72 million fiber network. The city’s plan, documented in detail here, is heavily inspired by the successes seen by Chattanooga, Tennessee’s publicly-owned utility, EPB.

Of the initial $72 million investment, $64 million will be funded by public-issued debt, and go towards construction of the network, which Cleveland Utilities states should begin in March of 2024 and be completed in “roughly two to three years” barring complications.

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An additional interdivisional loan of $8 Million will fund three years of operation for the new division. The utility’s plan is based on a 30 percent take rate, and aims to become cash flow positive between years 2-3, with all debt paid between years 10 and 12.

Last November we noted how New York City had scrapped its longstanding plan to build a promising open access fiber network. Not only did that stark reversal leave many partner ISPs high and dry after years of planning, some local community-run ISPs now say the city is forcing them to remove existing free service to affordable housing developments.

People’s Choice Communications, a small NYC cooperative cobbled together by striking Charter Communications workers, was one of several ISPs left in a lurch by the sudden reversal by the Adams administration.

Adding insult to injury, the ISP is now being told by the city to pull existing service provided for free to marginalized communities in The Bronx.

New York City’s original master plan was poised to be a game changer when it was first introduced back in 2020. The plan not only included a pilot program designed to bring affordable broadband to 450,000 residents of New York City Housing Authority (NYCHA) buildings, but a plan to spend $156 million on a pilot open access fiber network.

The proposal was to showcase the real-world benefits of the open access model, which data suggests results in significantly lower costs and higher quality service thanks to increased competition. If successful, the city would have then considered a bigger $2.1 billion plan to deploy such a network citywide, providing a template for major metropolitan areas nationwide.

New Mayor, Old Playbook

With the election of a new mayor, everything changed.

Dryden, New York, population 14,500, has formally launched the town’s municipal broadband network, becoming the first municipality in the state to provide residents with direct access to affordable, publicly owned fiber.

According to the Dryden Fiber website, the town now offers local access to fiber broadband at three speed tiers: symmetrical 400 Megabits per second (Mbps) for $45 a month, symmetrical 700 Mbps for $75 a month, and symmetrical gigabit broadband service for $90 a month.

The city’s pricing options are a dramatic improvement from the area’s regional cable monopoly Charter Communications, whose Spectrum-branded service has largely monopolized vast swath of upstate New York, leaving consumers saddled with high prices, spotty coverage, slow speeds, and some of the worst customer service of any company in America.

It’s also a dramatic improvement over the sluggish, expensive, dated Frontier DSL that peppers the green rolling hills of Tompkins County. After filing for bankruptcy for failing to upgrade its network to fiber, Frontier has promised improvements–but none of those improvements have found their way to rural upstate New York. 

The full cost of Dryden’s municipal network is expected to be $15 million. The pilot area of the project—covering around 50 residences in the southwest part of the town—will be funded by a combination of $2 million in federal COVID-19 disaster relief funding, an Appalachian Regional Commission grant and an as-yet-unspecified number of bonds.

“We were motivated to study and build a municipal broadband system because residents were not satisfied with the options and service provided by commercial ISPs,” Dryden Town Supervisor Jason Leifer told ILSR.

“In 2019 we commissioned a study and found that we could offer the service with newer technology and better pricing over the long term,” Leifer said. “90% of respondents to our household survey supported the project. Dryden was ahead of the curve on the broadband issue because we knew prior to COVID that access to reliable and affordable high-speed internet service is a necessity for our residents.”

Like countless U.S. communities, the pandemic highlighted the essential need for uniform, affordable access, something both Spectrum and Frontier consistency refused to provide, Leifer said.

Kicking off the new year, Georgia Gov. Brian Kemp’s office announced $234 million of the state’s Capital Projects Fund (CPF) will be used to deploy new high-speed Internet infrastructure in the Peach State, courtesy of the American Rescue Plan Act.

The lion’s share of those federal funds, being administered by the state’s broadband office, will be gobbled up by the four national telecom giants operating in the state. The rest of the grant money will be shared by a half dozen electric cooperatives for smaller projects.

In total, the grants were awarded to 12 different applicants to fund 29 different projects across 28 counties.

“When combined with significant capital matches from the awardees, almost $455 million will be invested to serve over 76,000 locations in communities with some of the greatest need for high-speed Internet access,” the Governor’s office said in the Jan. 4 press announcement.

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The Big Telecom winners were Comcast, netting almost $67 million for eight projects that looks to extend broadband access to nearly 28,000 locations; $39.3 million for five Spectrum projects that plan to pass nearly 19,000 locations; Windstream raking in $34.8 million for four projects to make high-speed Internet service available to 4,500 locations, and MediaCom hauling in $27.9 million for three projects to reach 8,200 addresses. 

The electric cooperative grant awards were:

In an economy where inflation seems to be everywhere, Fairlawn, Ohio residents are getting a bit of welcome news.

Subscribers to FairlawnGig – Fairlawn, Ohio’s municipal broadband network – are being upgraded to new service levels as the city-owned network bumps up speeds and slashes prices to make its fiber Internet service faster, and even more affordable.

Earlier this week, FairlawnGig announced that subscribers who had been getting Fairlawn’s basic service tier of symmetrical 300 Megabits per second (Mbps) were being upgraded to symmetrical gig speed service – for the exact same price of $55/month.

FairlawnGig also announced that subscribers who had previously been getting gig speed service will see their bills drop down to $55/month instead of the $75/month they had been paying. Meanwhile, subscribers who were getting 2.5 Gigabits per second (Gbps) for $150/month will now be upgraded to a symmetrical 5 Gbps tier, and see their price drop to $100/month.

“That was always the plan from the very beginning,” the City of Fairlawn’s Public Service Director Ernie Staten told ILSR this week.

We have been striving at all times to bring the greatest speeds and to bring prices down. We have made it where we have done well enough financially to start lowering prices and providing greater speeds.

Local Businesses Threatened to Leave – Unless Better Internet Comes to Town

Fairlawn, a small city of approximately 7,500 Ohioans about 10 miles northeast of Akron, created a telecommunications utility in 2015 to bring city-wide access to high-speed Internet service after years of dealing with subpar broadband offerings from the incumbent providers.

While a racially-charged controversy swirls loudly around the Los Angeles City Council, a new study lays bare how low-income communities of color are impacted by the quiet business decisions of the region’s monopoly Internet service provider.

Slower and More Expensive/Sounding the Alarm: Disparities in Advertised Pricing for Fast, Reliable Broadband details how Charter Spectrum “shows a clear and consistent pattern of the provider reserving its best offers - high speed at low cost - for the wealthiest neighborhoods in LA County.”

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Authored by Digital Equity LA, a coalition of more than 40 community-based organizations, not only highlights how economically vulnerable households in LA County pay more for slower service than those in wealthy neighborhoods, it also provides evidence for how financially-strapped households are also saddled with onerous contracts and are rarely targeted by advertisements for Charter Spectrum’s low cost plans.

A leading voice behind the Digital Equity LA initiative – Shayna Englin, Director of the Digital Equity Initiative at the California Community Foundation (CCF) – notes that higher poverty neighborhoods (which tend to be mostly made up of people of color) pay anywhere from $10 to $40 more per month than mostly white, higher-income neighborhoods for the exact same service.