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Monopoly Providers Mire NTIA Broadband Grant Process With Costly, Empty Challenges

Over 230 communities have applied for National Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program grants. But community leaders increasingly say they’re facing costly, unnecessary challenges from incumbent broadband providers, who are exploiting unreliable U.S. broadband maps to overstate existing coverage and defend the status quo.

The NTIA’s $288 million grant program - and the looming $42 billion broadband infrastructure investment plan - will help bring affordable broadband to the roughly 20-30 million Americans without broadband, and the 83 million Americans currently living under a broadband monopoly.

In Grafton County, New Hampshire, 39 municipalities are part of a growing list of communities exploring home-grown broadband alternatives. They represent a grassroots movement driven by frustration with market failure that accelerated during the Covid-19 crisis. In response they’ve bonded together to apply for a $26.2 million NTIA grant to improve the region’s substandard broadband.

A Little Something Called Competition

Grafton hopes to use the NTIA funding to provide a middle mile fiber network, making it easier for Internet Service Providers (ISPs) to service each municipality and the county’s 90,000 residents. The network will be open access, inviting numerous ISPs to compete over the same shared infrastructure. Studies have repeatedly shown such open access models result in better, cheaper, faster service

Benton Institute Releases Report on Community-Led Projects Aiming To Bridge the Digital Divide

In an effort to facilitate the deployment of innovative broadband solutions in underserved areas - both urban and rural - the nonprofit organization US Ignite recently partnered with National Science Foundation (NSF) and Schmidt Futures to launch ProjectOVERCOME. 

The Benton Institute released a report in November naming the seven communities that the project will focus on: Blue River, OR; Buffalo, NY; Cleveland, OH; Clinton City, MO; Detroit, MI;Loiza, Puerto Rico; and Yonkers, NY.

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In the report that was released, Benton spotlights each community and the technologies they will use. The technologies include Citizens Broadband Radio Service (CBRS), fiber, fixed wireless and hotspots. 

According to the initiative's guidelines, these communities were chosen because of how they vary in population, demographics, regions of the country, housing, and industry. The program will work with these communities to experiment in deploying innovative Internet connectivity solutions on a 12-month timeline. 

The projects will collectively result in not only education, outreach, and local broadband organizing development efforts, but provide direct connectivity to more than 700 households.

For example, in a CBRS deployment in New York,

USDA ReConnect Round 3 Rewards High-Speed, Open Access, Locally Driven Networks

The USDA’s ReConnect program has disbursed more than $1.5 billion since its inception in December 2018. On the whole, the USDA seems to have done a better job than the FCC of leading to new broadband infrastructure which is fast, affordable, and locally controlled. Much of the money it has given out has gone to community-driven solutions, with Tribes, electric and telephone cooperatives, and local governments applying for and winning awards. The program has also seen partnerships between counties and other public as well as private entities. 

But there’s a lot to like about the newest round of funding, totaling $1.2 billion more (representing a full 80 percent of all money given out so far). The application process for Round 3 began at the end of November, with applications due by February 22, 2022.

Announced at the end of October, the new scoring metric represents a significant step in the right direction, increasing speed definitions on both sides of the application. But there are other things to like here as well. 

Win a Comprehensive Broadband Master Plan from Connect Humanity and Partners

The recently passed infrastructure package is going to drive an unprecented amount of money to broadband projects over the next few years, which means that communities that begin serious planning and preparation now will find themselves in the best place to succeed in the near and medium future. Dozens of cities have announced plans to use Rescue Plan funds to begin surveying, mapping, developing feasibility studies, and contracting high-level designs, signalling a commitment to improving local Internet access and backing that commitment from that flexible pot of funding.

But maybe local officials in your community have shown a reluctance to heed the call that poor Internet during the pandemic has negatively impacted students, small businesses, or efforts to work from home. Or the city council has already earmarked those funds for needed water or sewer upgrades. The good news is, a philanthropic partnership has launched an effort to help out a handful or communities.

Connect Humanity, in partnership with EntryPoint Networks and Biarri Networks, is giving out five Broadband Master Plans to communities to help bring the digital divide through an initiative they are calling Build Better Broadband. The comprehensive analyses will include everything from surveys of current access, to network design, to financial modeling and risk assessment. Applications are due January 14, 2022. 

Successful applicantions, the website points out, will focus on "speed, affordability, and overall access in diverse, low-income, and/or historically underserved communities through non-profit, community-owned, or public infrastructure." Communities of all sizes, from rural and urban areas, are invited to apply. Contenders will participate in an interview process in the first weeks of February, with winners announced at the end of the month.

Connect Humanity describes itself as a "fund advancing digital equity."

A History of Errors Catches Up with LTD Broadband in Iowa

When the FCC announced the winners of the Rural Digital Opportunity Fund (RDOF) last December, many industry veterans were surprised by the appearance of LTD Broadband as the largest recipient of funds. The company managed to snag more than $1.3 billion to serve 528,000 locations across 15 states, but its capability to do so immediately drew skepticism from many (including us).

Now, a little less than a year later, the company's chickens are coming home to roost. In a recent ruling denying the company the expanded Eligible Telecommunications Carrier (ETC) status it needs to offer service in RDOF-awarded areas, the Iowa Utilities Board took LTD to task for a history of noncompliance and late payments:

Specifically, LTD had not complied with the Board’s February 22, 2019 order, as LTD had not yet filed a registration as a telecommunications service provider, was past due on its DPRS assessment, and had not yet filed an annual report with the Board for reporting years 2019 and 2020. 

[B]eyond the procedural flaws in LTD’s Application, the company’s responses to Board . . . illustrate that LTD has routinely submitted regulatory filings with obvious errors, if filings were submitted at all . . . It is for this reason that the Board takes seriously LTD’s history of inconsistent compliance with this provision, as the regulatory burden is minimal and the consequence of failing to uphold the obligation ETCs pledge to carry out impacts the rest of the industry, the Board, and most importantly, the Iowans served by the program.

But the regulatory board took its comments a step further, basing its ruling also on the fact that the company's behavior in the state betrays what looks like a lack of ability to meet its bidding commitments during the auction:

ATMC Assures All Members Are Served By Fiber

The Atlantic Telephone Membership Cooperative (ATMC) has worked to meet the communications needs of its members since its inception by the citizens of rural Brunswick County, North Carolina who were without telephone service in 1955. Nowadays, ATMC believes meeting members’ communications needs means ensuring all co-op members have access to gigabit fiber Internet service. 

High-speed Internet access is currently available throughout 100 percent of the co-op’s service area in southeastern North Carolina. Most co-op members have access to fiber Internet service already, except for those living in ATMC’s Brunswick County service territory, where ATMC originally began offering Internet services.

Brunswick County is the last county ATMC needs to upgrade to fiber, in order to complete an overarching goal of delivering fiber-to-the-home Internet service to all existing members. The co-op recently announced it will soon start a project to replace all of its copper and coaxial wires in Brunswick County with fiber optic cables. It will cost $100 million dollars and take eight years to complete, but at the end of the project, all of the cooperative’s members in Brunswick County currently served by legacy infrastructure will be upgraded to fiber, offering even faster Internet access speeds and far greater reliability.

In the meantime, ATMC has increased the maximum broadband speed delivered to co-op members in Brunswick County from 200 megabits per second (Mbps) to 600 Mbps, a company press release states. Over 22,000 customers had their download speeds doubled without an increase in price.

“The project is slated to start in January 2022,” according to an ATMC press release announcing the project. “By constructing in the most densely populated communities first, the cooperative estimates that it can convert as many as 75 percent of homes and businesses to the new fiber optic network within the first 60 months.”

Cedar Falls Utility in Iowa to Connect Last 700 Residents With $2.3 Million State

Cedar Falls Utilities is bringing 10 Gigabit per second (Gbps) Internet access to the last 700 residents in its electric service area. With the help of a $2.3 million state grant, Cedar Falls Utilities fiber ISP - CFU FiberNet - will be connecting rural residents to the west and north of Cedar Falls city limits. 

Up until this point, CFU FiberNet has offered rural residents in the utilities service area without a fiber connection a fixed wireless option called WaveNet Wireless with two speed options: 9/1 Megabits per second (Mbps) for $56/month and 18/2 Mbps for $75/month. We do not know if WaveNet Wireless will continue after the expansion into these rural areas is complete. 

The funds were awarded through the Empower Rural Iowa Broadband Grant Program which had nearly 180 applicants hoping for a grant from the $97.5 million pot of money. Ultimately, 38 projects were chosen. Winning bids aimed were aimed at two groups of households, with the requirement to deliver at least 100 Mbps symmetrical service to what we usually call “underserved” areas (where service is greater than 25/3Mbps but less than 100/100 Mbps), or 100/20 Mbps service in areas where broadband access is currently less than 25/3 Mbps. 

The challenge for these CFU electric subscribers to get onto the fiber network was the $7,500 cost of the drop; households in rural areas all around the country face a similar financial obstacle, even when excellent broadband service is nearby. With CFU contributing an additional $3 million to the effort (making the total project cost $5.3 million) these residents will no longer have the burden of making that hefty financial decision. 

New Treasury Rules: Good News for Community-Driven Broadband Solutions

The U.S. Department of Treasury, tasked with writing the rules on how state and local governments can spend various federal relief funds made available for broadband expansion by the American Rescue Plan, recently released the guidelines [pdf] governing the Capital Projects Fund (CPF) — a $10 billion pot of money available to states, territories, and Tribal governments [pdf] to confront the need for improved Internet connectivity exposed during the pandemic.

Compared to when Treasury released rules governing the State and Local Fiscal Recovery Funds earlier this year, this go ‘round brought cheers instead of jeers from community broadband advocates, as we are seeing federal broadband policy break new ground.

The flexibility the Capital Projects Fund gives state and local governments to decide how to spend the relief funds is what broadband advocates are most excited about. CPF applicants are able to use the money in creative ways to respond to critical needs in their community laid bare by the Covid-19 pandemic, as long as the resulting project directly enables remote work, education, and health monitoring. 

A Community Guide to Federal Broadband Funding Opportunities

Update, 1/22/22: Common Sense Media has released an easy-to-read, comprehensive guide to federal broadband funding opportunities. Read it here.

In response to the Covid-19 pandemic, Congress and the Biden Administration passed two federal stimulus relief packages with historic levels of funding for programs devoted to advancing digital equity – the American Rescue Plan Act (ARPA) and the Consolidated Appropriations Act (CAA). 

In early August, legislators in the U.S. Senate passed the Infrastructure Investment and Jobs Act, a $1.2 trillion infrastructure package which continues many of the federal programs started by previous relief packages and includes $65 billion more for expanding high-speed Internet infrastructure and connectivity. Members of Congress returned from their summer break on September 20th and U.S. House Representatives are expected to vote on the infrastructure relief bill, which enjoys bipartisan support, on September 30th.

This guide consolidates the different funding opportunities made available through various relief packages to assist communities interested in accessing federal funds to expand broadband infrastructure and digital inclusion services. It updates ILSR’s Community Guide to Broadband Funding released in April of 2021, which describes programs established under ARPA and CAA in more detail, provides additional resources and answers FAQs.

Important upcoming deadlines are bolded throughout this guide. 

Infrastructure Investment and Jobs Act – Pending 

Episode 17 of Connect This! - Tribal Broadband

In this episode of the Connect This! Show, co-hosts Christopher and Travis Carter (USI Fiber) are joined by Jessica Engle (IT Director for the Yurok Tribe) and Matthew Rantanen (Director of Technology, Southern California Tribal Chairmen's Association) to talk about broadband in Indian Country. 

The panel discusses the realities of deploying wired and wireless broadband infrastructure on tribal lands, and what the Yurok tribe has learned along the way in overcoming challenges and working with partners and vendors to expand access in efficient but sustainable ways.

During the hour, Matt, Jess, Travis, and Christopher also talk about the $1 billion Tribal Broadband Connectivity Program to be administered by the National Telecommunications and Information Administration (NTIA), the long history of underinvestment by incumbent providers in Indian County, and how communities can position themselves to succeed in the context of local conditions in pursuing long-term solutions.

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