A bill making its way through the Colorado General Assembly is tackling one of the tools that big incumbent ISPs use to secure their positions as monopoly Internet access providers - the right of first refusal. If HB 1099 passes, and other states see the savvy behind this approach, community leaders and advocates for a competitive broadband market will be able to put a chink in the monopoly armor.

Update: HB 1099 passed the Legislature and the Governor signed the bill into law on April 2nd, 2018. Yay!

A Familiar Story

ISP entrepreneurs, cooperatives that want to offer high-quality Internet access, and entities planning publicly owned projects know the story. Grants are available, usually for an unserved or underserved area that the incumbent DSL provider has ignored. Said entity invests the time and money into developing a plan and applying for the grant, feeling good about the fact that they will likely be able to serve this community that no one else seems to want to serve. 

They apply for the grant, may even receive a preliminary approval, BUT then the incumbent ISP exercises its right of first refusal, which throws a very big wrench into the plans of the ISP entrepreneur, cooperative, or entity.

In June 2017, we interviewed Doug Seacat from Clearnetworx and Deeply Digital in Colorado who told us the story of how his company had applied for and won grant funding through the Colorado Broadband Fund to develop fiber Internet network infrastructure near Ridgway. CenturyLink exercised its right of first refusal, which meant that unless Seacat could change the mind of the board that considered the appeal, CenturyLink would get the funding rather than Clearnetworx.

In southern California, an electric cooperative provides high-speed Internet service and continues to expand, meeting the needs of its 4,000 rural members. With community support, Anza Electric has navigated paperwork, construction delays, and more challenges. In May 2018, the California Public Utilities Commission will decide whether or not to award a grant of $2.2 million for Anza Electric’s fiber network project, Connect Anza.

We spoke with Anza Electric’s General Manager Kevin Short to learn more about the grant proposal and the project timeline. In July 2017, we reported that Anza Electric had submitted the grant application for a rural area south of Mount Jacinto in Riverside County. Short provided us with an update and more information on why this area was not part of the co-op’s first Internet access project.

2018 Grant Application

This area in Riverside County follows scenic highway 74 and includes the communities of Pinyon Pines, Garner Valley, and Mountain Center. The project will provide Fiber-to-the-Home (FTTH) Internet service to the rural co-op members. The co-op will also provide free high-speed Internet access to local fire stations and the Ronald McDonald camp for children with cancer. 

In the early 2000s, Carroll County, Maryland, invested in publicly owned fiber infrastructure to reduce costs and improve services for public schools, county government, and Community Anchor Institutions (CAIs). In addition to meeting that goal, the county’s asset connected to the Westminster Fiber Network, a municipal Fiber-to-the-Home (FTTH) partnership that’s brought gigabit connectivity to a community that once struggled with poor Internet access. In order to build off that success in other parts of the county, the Carroll County Board of Commissioners recently voted to allocate $400,000 to provide grants for more Carroll County Fiber Network expansion.

Second Year In A Row

The funding for 2018 follows last year’s decision to provide $1 million to expand the network. Department of Economic Development executive director Denise Beaver told that Carroll County Times that the county’s broadband committee recommended the grants because ISPs’ reasons for not investing in the rural parts of the county were primarily connected to the cost of deploying fiber.

Carroll County's elected officials decided last year to focus on connecting industrial parks and directed staff to communicate with municipal leaders to learn more about opportunities for fiber in downtown areas to spur economic development.

The Carroll County Broadband Grant Program will provide grants of up to $25,000 per project to ISPs or other entities that ensure a 50 percent matching reimbursement. Each entity can receive no more than $100,000 per fiscal year. Eligibility includes a range of types of projects, including those that involve “…the construction, acquisition, or leasing of facilities or spectrum, land, towers or buildings used to deploy broadband service for business and residentially-based businesses.” 

Entities that want to apply for the grants need to be searching for funding that will bring connectivity to “unserved or underserved” areas. The county has decided to define those types of areas for purpose of the grants:

Blandford, Massachusetts, will work with Westfield Gas & Electric (WG+E) to develop a publicly owned fiber optic network. In order to help get the project started, the state’s Last Mile Program has awarded Blandford a $1 million grant.

The funding grant is part of $45 million allocated to broadband infrastructure last fall. In November 2016, the Governor signed a bill that directed the funding to help improve connectivity in western and north central Massachusetts.

Blandford’s network will connect to approximately 96 percent of its premises, including all the residents located on the town's public roads. A little more than 1,200 people live in the town that covers about 53 square miles. The hilltown community is known for the Blandford Ski Area, which has operated for more than 80 years.

Working With Westfield

Blandford joins a list of other western Massachusetts communities looking to WG+E for their expertise and to act as project managers. WG+E trucks began working in Otis last June and the towns of Ashfield, Shutesbury, Goshen, Colrain, Rowe, Chesterfield, Alford, and Heath have also decided to work with WG+E.

Westfield announced almost a year ago that a Fiber-to-the-Home (FTTH) pilot project had been so successful that they determined expanding the project to a citywide network made the most sense. Since then, they’ve been expanding one neighborhood at a time and are still working on covering the entire community of 42,000.

In the mean time, WG+E has also branched out to work with other communities like Blandford. They’ve helped prove that even small communities can establish high-quality Internet network infrastructure. WG+E have taken on differing roles with these other municipal partners, depending on what level of expertise the community seeks.

People living at the Arlington Mill Residences in Arlington, Virginia, are on track to obtain no-cost high-quality connectivity this fall, likely through the ConnectArlington network. The initiative is an example of how one local community plans to use its publicly owned Internet infrastructure to reduce the digital divide on its home turf.

The Homework Gap

Within Arlington Mill’s 122 affordable units, live 159 children; approximately half of the residences do not subscribe to an Internet access service. Because homework is increasingly dependent on a child’s ability to work online, kids at Arlington Mills must contend with the problem of finding access to computers and the Internet. For households that do subscribe, no-cost Internet access would free up monthly resources from $50 - $75 per month.

The Department of Technology Services (DTS) and Department of Community Planning, Housing, and Development (CPHD) are collaborating to support the Arlington Digital Inclusion initiative. The initiative will start in Arlington Mills by providing free Wi-Fi to each unit and will eventually move to other properties owned by the Arlington Partnership for Affordable Housing (APAH). As the program moves forward, the city plans to seek out private donations and other grants to reduce the digital divide. The program will also be exploring ways to help residents obtain reduced cost or free devices or computers to take advantage of the high-quality connectivity. APAH has already applied for a 2019 Community Development Fund grant to cover the cost of training and notebook computers for residents.

APAH expects to choose an ISP that will use ConnectArlington, the county's dark fiber network infrastructure.

The network began offering dark fiber services to business customers in 2015, but the infrastructure has been in place since 2012. Arlington took advantage of several infrastructure projects, including traffic control upgrades and other public safety improvements, to expand its fiber footprint. In 2014, Christopher spoke with Jack Belcher, who shared ConnectArlington's backstory, for episode 97 of the Community Broadband Bits podcast.

The state of Minnesota has awarded Paul Bunyan Communications the Border-to-Border Broadband grant to expand fiber optic services to three different counties.

The expansion will cost $1.78 million, with Paul Bunyan Communications contributing $980,990, and the state Border-to-Border grant covering $802,620. The plan should be finalized by the spring and construction will start this summer. Paul Bunyan Communications projects the build-out will be completed by June 2020.

Rural Minnesota Gets Better Connected

The Border-to-Border Fund was created by the Minnesota state legislature back in 2014. The goal is to help make the financial case for providers to invest in building infrastructure into unserved and underserved areas of the state.

Many underserved areas of the state have included the Border-to-Border grants in their planning process and as a pivotal part of their expansion models. The financial boon from the state has proved successful for many communities. RS Fiber Cooperative has been successfully connecting towns and rural areas in Sibley and Renville County, and they recently announced a gigabit residential connection at no additional cost for subscribers. It’s also attracting investment and industry, explained Mark Erickson in a recent report, citing the forthcoming medical school being built in Gaylord:

"We have that opportunity because of the Fiber-to-the-Home network. Without it, no medical school."

Cooperative Success 

Paul Bunyan Communications Cooperative has already made massive strides in providing high-speed access to large swaths of northern Minnesota. Paul Bunyan’s GigaZone reaches more than 29,400 locations, covering more than 5,000 square miles in Beltrami County, also reaching areas of Cass, Hubbard, Itasca, Koochiching, and St. Louis Counties.

This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?

After a long and arduous process, the folks in Mount Washington, Massachusetts, were finally able to light up their publicly owned fiber optic network last week. According to resident and Select Board Chair Eleanor Tillinghast, “We are thrilled. We’re going to be the envy of everyone.”

It's Finally Here

As we reported last month, the community was eagerly anticipating the opportunity to finish up the last steps to begin connecting subscribers from the town's 146 premises. Approximately 100 are connected and will take services from local Internet service provider Crocker Communications. In addition to providing Internet access, the ISP will handle billing for the city, provide 24/7 tech support for subscribers, and monitor the network. The infrastructure will be maintained by the company that built it for the city, NextGen Group. Mount Washington owns the infrastructure.

Gigabit connectivity is available, but most subscribers have opted for 500 Megabits per second (Mbps). All speeds are symmetrical, which makes Mount Washington’s network valuable as an economic development tool. Community leaders are already seeing in increase in real estate transactions that they relate to the new network. “People may have ruled Mount Washington out before,” Select Board Member Brian Tobin told the Berkshire Edge. “But we just catapulted ahead of other towns in terms of amenities.” As a potential quiet retreat for New Yorkers located in the Taconic Mountains, Tobin and Tillinghast expect to lure more urbanites who want to work remotely for part of the week. Tobin also has a Manhattan apartment and says that his Internet access speeds in the city are only about 117 Mbps download with slower upload speeds.

A Long Process That's Paid Off