Update (6/18/20)

In response to the $1.25 billion Vermont received from the federal Coronavirus Relief Fund, lawmakers immediately began discussing using $100 million of it to bridge the state's digital divide, with fully $45 million going to construction of new fiber networks across the Green Mountain State. But they were quickly stopped short by restrictions set on the monies, which stipulated the strict terms by which the funds were to be used. In the end, the state won't be seeing any construction from these funds. Instead a smaller amount — $43 million — will be directed at immediate relief efforts rather than long-term planning:

• "$13 million in proposed spending to connect Vermonters to broadband internet services. The bulk of that, $11 million, would create a program to be managed by the public service department called Get Vermonters Connected Now [to] provide subsidies to low-income Vermonters who can't afford to use broadband networks already available in their neighborhoods."
• "$20 million to compensate utilities . . . for the cost of continuing to serve people who stopped paying bills due to COVID-19."
• "$7.3 million for the Agency of Digital Services to make it more secure for state employees to work remotely and to upgrade the obsolete unemployment insurance computer system."
• "$500,000 for a "telecommunications recovery plan."
• "$466,500 for local cable access organizations in recognition of the additional coverage they've taken on during the pandemic."

It's possible that federal regulations could change, but in the meantime Vermonters will have to look inward to solve its connectivity challenges.

Original Story

In the past few years, states around the U.S. have made incremental changes in their laws to ease restrictions on municipalities and cooperatives interested in developing high-quality Internet network infrastructure. When communities in Connecticut wanted to exercise their right to space on utility poles at no cost, however, pole owners objected. After a drawn out review of the state's "Municipal Gain" law, local communities have finally obtained the decision they've pursued to develop cost-effective publicly owned fiber optic municipal networks.

Process, Procedure, and PURA

In 2016, the state's Office of Consumer Counsel (OCC) turned to Connecticut's Public Utility Regulatory Agency (PURA) and asked the agency to clarify a 110-year-old state law regarding utility poles in municipal rights-of-way (ROW). In Connecticut, about 900,000 of the poles are scattered throughout the state and are prime locations for fiber optic cables for improved connectivity. Most of the poles belong to Verizon, Frontier, one of the state's electric providers, or are jointly owned by two or more of them.

The Municipal Gain Law was created in the early 1900s to give local communities reserved space with no attachment fee on the poles in order to hang telegraph wires. As telephone and other technologies evolved that required wiring, municipalities wanted to take advantage of the space. There were several lawsuits between pole owners and municipalities over the years with pole owner interests usually losing out to the needs of the public. By 2013, it became clear that amending the law to allow communities to access the municipal gain space "for any use" made sense and the state legislature made the statutory language change. Local communities saw the change as an opportunity to string fiber in the space, establishing publicly owned infrastructure on which they could partner with private sector providers for improved local connectivity.

In the past year, communities and cooperatives in Texas have been making gallant efforts to better connect local residents and businesses with high-quality Internet access. Now, they may get a little help from the State Legislature.

Helping Co-ops

Earlier in this session, Senator Robert Nichols introduced SB 14, a bill that will allow electric cooperatives that hold easements obtained for electric service infrastructure the ability to extend those easements to broadband infrastructure. The bill replicates the FIBRE Act, a 2017 Indiana bill that opened up possibilities for rural cooperatives in that state.

Nichols told KLTV that he has high hopes for his bill:

“I’m getting a lot of support because all of the other plans for broadband that have been proposed use subsidies,” said Nichols. “This one asks the state for nothing, it asks the federal government for nothing.”

He also told KLTV that the Governor’s office has expressed support for the proposal.

Read the text of the bill.

Similar to Indiana’s FIBRE Act, the extension of the easement applies to those that already exist. By enacting making the change, cooperatives that already have infrastructure in place will save time in deploying fiber optic networks because they won’t need to obtain a second set of easements from members who’ve already granted them for electricity infrastructure.

In addition to offering broadband to members sooner, cooperatives who are able to take advantage in the change in the law will also save financially. Personnel costs, filing, and administrative fees add up when a co-op must obtain multiple, sometimes dozens or hundreds, of legal easements. Occasionally, a property owner doesn’t consent to an easement right away. This change in the law will prevent hang-ups in deployment due to uncooperative property owners that can jeopardize a project.

Back Home Again in Indiana

The small town of Windsor is joining the list of communities in western Massachusetts who are taking measures to improve local connectivity with publicly owned Internet infrastructure. The town of fewer than 1,000 people anticipates connecting all residents and businesses before the end of 2019.

Grants Are So Good

Windsor is benefitting from a grant of more than $886,000 from the FCC Connect America Fund, to be distributed over a 10-year period. Six other Berkshire County communities will also receive funding from the FCC; Westfield Gas+Electric (WG+E) applied for the funding on behalf of the region’s communities. In total, the seven towns will receive more than $2.45 million during the next decade to improve local broadband. The Westfield utility has been working with its neighbors in recent years in different capacities, including as an ISP, network operator, and as consultants.

Community leaders originally estimated Windsor’s planned Fiber-to-the-Home (FTTH) network would cost approximately $2.3 million. Select Board Member Doug McNally said that the community may use the award from the FCC to help pay down debt to deploy the network or may be used directly to help residents who have long driveways, requiring more individual investment to connect to the town’s network.

Windsor also received approximately $830,000 from the state in 2017 and previously approved borrowing to fund deployment. Windsor had planned to work with the WiredWest cooperative, until the Massachusetts Broadband Institute (MBI) put up several hurdles that interfered with the cooperative’s ability to realize their business model. WiredWest has revamped what it plans to offer member towns and, according to McNally, Windsor may contract with the co-op for Internet access and operate the network.

If Windsor chooses WiredWest, subscribers could choose between symmetrical packages of 25 Megabits per second (Mbps) for $59 per month or 1 gigabit per second for $75 per month. Voice service would cost an additional $19 per month. All subscribers also pay an additional $99 activation fee.

The City of Sanford, Maine, is putting the final pieces of funding in place to move forward with its ambitious 45-mile fiber optic build, SandfordNet, the largest fiber infrastructure build proposed in Maine to date. 

Along with two other funding sources, the project will be financed by an existing Tax Increment Financing (TIF) district in downtown Sanford. According to the Journal Tribune, the project will cost $2.02 million in total to complete; that figure is higher than initially projected, due in part to fees to access utility poles. 

The SanfordNet project involves building what the city describes as a “fourth redundant ring” that will attach to the statewide fiber loop known as the “Three Ring Binder.” Sanford’s building out the 45 miles of fiber and then connecting it to the Binder, which is about nine miles beyond city limits. The fiber will connect nearly 90 Community Anchor Institutions (CAIs), such as libraries and hospitals, to the infrastructure that will offer 10 Gigabit per second symmetrical upload and download capacity. The city is utilizing an open access model, leasing out its fiber to ISPs in a non-discriminatory approach that promotes competition.

GWI of Biddeford, Maine, will operate the network for Sanford and intends to offer Fiber-to-the-Home (FTTH) to residential premises along the fiber route in areas where there's sufficient demand. The open access model will create the opportunity for competition, creating better rates and better services for Mainers in the region. For more on what has become known as the "Maine Model," check out Christopher's conversation with GWI's CEO Fletcher Kittredge, episode 214 of the Community Broadband Bits podcast.

Where the Project Stands

Nestled along the south eastern border of Maine are Baileyville and Calais. As rural communities situated next to Canada in the state's "Downeast" region, neither town is on a list of infrastructure upgrades from incumbents. With an aging population, a need to consider their economic future, and no hope of help from big national ISPs, Baileyville and Calais are joining forces and developing their own publicly owned broadband utility.

Baileyville and Calais

There are about 3,000 residents in Calais (pronounced "Kal-iss") and 1,500 in Baileyville, but according to Julie Jordan, Director of Downeast Economic Development Corporation (DEDC), many of those residents are aging and younger people find little reason to stay or relocate in Washington County. The community recognizes that they need to draw in new industries and jobs that will attract young families to keep the towns from fading off the map.

Most of the residents in the region must rely on slow DSL from Consolidated Communications (formerly FairPoint), while a few have access to cable from Spectrum (formerly Time Warner Cable); expensive and unreliable satellite is also an option and there's some limited fixed wireless coverage in the area. A few larger businesses that require fiber optic connectivity can find a way to have it installed, but Julie tells us that it's incredibly expensive in the area and most can't afford the high rates for fiber.

Economic Development Driven

Organized in 2015, the nonprofit DEDC came together with the focus on recruiting new businesses to the area and to support existing businesses. As DEDC quickly discovered, unless the region could offer high-speed, reliable Internet infrastructure, attracting new businesses and helping existing businesses expand would be extremely difficult. They also determined that new families would not be interested in Baileyville or Calais without high-quality connectivity. "It was a no-brainer," says Julie, "you have to go fiber."

With the best intentions, Kentucky announced in late 2014 that it would build out a statewide open access fiber optic network to at least one location in each county to encourage high-quality connectivity in both urban and rural communities. Hopes were high as rural residents and businesses that depended on DSL and dial-up envisioned connectivity to finally bring them into the 21st century. After almost three years and multiple issues that have negatively impacted the project, legislators and everyday folks are starting to wonder what's in store for the KentuckyWired project. 

Local Communities Are Best Suited To Deploy Community Networks

There is no one-size-fits-all method of deploying across a state filled with communities and landscapes as diverse as Kentucky. From the urban centers like Louisville and Lexington to the rocky, mountainous terrain in the southeastern Appalachian communities, demographics and geography vary widely. But most lack modern Internet access and local ISPs have found it hard to get affordable backhaul to connect to the rest of the Internet.

There are several municipal networks in Kentucky, some of which have operated for decades. In addition to Glasgow, Paducah, Bowling Green, Frankfort, and others, Owensboro is currently expanding a pilot project that proved popular. As our own Christopher Mitchell discussed at the Appalachia Connectivity Summit, several cooperatives have made major fiber-optic investments in the state.

When it comes to connecting residents and local businesses, we strongly believe local entities are the best choice. Local officials have a better sense of rights-of-way, the challenges of pole attachments, and the many other moving pieces that go into network investment. Projects with local support see fewer barriers - people are more willing to grant easements, for instance. 

This is the transcript for Episode 271 of the Community Broadband Bits Podcast. Research Associate Hannah Trostle takes over as host in order to quiz Christopher Mitchell on the latest developments in community networks. Listen to this episode here.

Christopher Mitchell: I can't believe we're freek'n talking about satellite again!

Lisa Gonzalez:This is Episode 271 of the community broadband bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. What do the FCC satellite internet access mobile broadband. Madison, Wisconsin, and utility poles in Louisville, Kentucky, have in common. They're all in the recent community broadband news and they're all in this week's podcast. In this episode, Research Associate Hannah Trostle boots Christopher from the host chair to interview him about some significant recent developments. For more details on these and other topics check out the appropriate tags at MuniNetworks.org. Now, here's Hannah and Christopher.

Hannah Trostle: Welcome to the Community Broadband Bits podcast. This is your host this week Hannah Trostle. Joining me is the normal host Christopher Mitchell.

Christopher Mitchell: I don't know how normal I am but thank you for having me on my show.

Hannah Trostle: Now we're going to kick you off, and I'm only going to do the podcast from now on.

Christopher Mitchell: I can't say I don't deserve it.

Hannah Trostle: Well you've been gone quite a bit. Where have you been?