A looming new bill by Republican Kentucky State Senator Gex Williams could undermine decades of broadband progress made in the state’s capital city by a popular locally-owned utility, Frankfort Plant Board (FPB).

Home to 28,000 Kentuckians, local residents and utility officials in Frankfort are incensed at the bill, which they believe will unnecessarily result in higher rates, fewer jobs, and less broadband competition overall.

Williams is circulating a bill in the Kentucky state legislature that, if passed, would force FPB to sell its broadband division to a private-sector company and subject it to more stringent oversight requirements. In guest editorials circulated in the local press, Williams insists his goal is to “rein in” the FPB, which he deems part of a “runaway” government that lacks accountability.

But there’s no evidence for Williams’ allegations of limited accountability, and locals and activists alike believe that the legislator is simply running interference for regional broadband monopolies upset by the added competition created by the popular, publicly-owned utility.

Another Community-Owned Solution Addressing Market Failure

Like many local U.S. communities, Frankfort sees a notable dearth of meaningful broadband competition, resulting in patchy broadband coverage, slow speeds, high prices, and abysmal customer service. Enter the Frankfort Plant Board, which has been deploying affordable fiber access across the community under the NEXTBAND brand.

As we approached the new year, and after more than a decade of criticism, the FCC finally moved to tackle the agency’s long-dated definition of broadband with an eye on nudging the industry toward faster broadband deployments. But many industry watchers say the belated reform inquiry arrives late and long after other agencies have filled the void left by a lack of FCC leadership.

The FCC’s Notice of Inquiry (NOI), issued in November, asks whether the agency should finally adopt 100 Mbps (megabit per second) downstream, 20 Mbps upstream as the new standard U.S. definition of broadband.

“Ultimately, I believe it is essential in the United States to set big goals in order to get big things done,” FCC boss Jessica Rosenworcel said in a statement. “That is why we are kicking off this inquiry to update our national broadband standard to better align it with the standards in pandemic-era legislation of 100 Megabits per second down and 20 Megabits per second up and also set a long-term goal for gigabit speeds.”

But there’s nothing about the FCC’s planned definition that’s “big.”

Of particular annoyance to long-time industry watchers is the agency’s continued adherence to an upstream standard that remains out of touch with modern needs. While Senators and consumer groups had pushed for a symmetrical definition of 100 Mbps, cable industry lobbyists managed to convince the FCC to lower the upstream bar dramatically.

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Cable broadband speeds are notoriously topheavy, with downstream speeds far in excess of upstream speeds. While full duplex DOCSIS technology is supposed to eventually remedy that, the technology remains far from widespread deployment. 

The Federal Communication Commission (FCC) recently published rules for its broadband nutrition label provides a partial victory for Internet subscribers and a potential marketing advantage for fiber providers – but may pose a challenge for wireless Internet service providers.

Though the new rules were finalized in October, Internet Service Providers (ISPs) have until April 10, 2024 to publish their broadband labels, though providers with 100,000 or fewer subscriber lines have until October 10, 2024.

Just like the label on the back of packaged food in grocery stores helps shoppers understand the nutritional value of the food they are buying, the broadband label requires ISPs to disclose their broadband pricing and service information (at the point of sale) to help potential subscribers make informed decisions about the service they are signing up to get.

Transparency on Display

Though the label is just another red-tape requirement for some providers, others see it as an opportunity to show off the quality of their services.

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Google Fiber, for example, published via social media and its blog a preliminary version of its own broadband consumer label, just days after the final rule was published, and six months before its deadline.

After decades of failed broadband policy-making and incumbent provider neglect, many Tribal communities continue to lack affordable and reliable Internet connectivity. Limited access to capital for last-mile deployment on Tribal lands has been exacerbated by a vast “missing middle mile”  problem, and credible estimates put the costs of universal access on reservations at well over $10 billion.

Despite a historic investment in better Internet access from the federal government directly to Tribes, the problem is not even half solved. The first round of the Tribal Broadband Connectivity Program offered $2 billion in grants but received nearly $6 billion in requests from half of the 574 federally-recognized Tribes. With only $1 billion available in the final round of this program, an enormous funding gap remains.

Funding from the Broadband Equity, Access, and Deployment Program (BEAD) will have to be used strategically and collaboratively with Tribes to bridge this gap. The “high-cost area” match exemption could be an important tool to facilitate sustainable infrastructure deployment on Tribal lands, but it is not yet clear that states will make this exemption feasible.

First Electric Cooperative – and its broadband subsidiary Connect2First – are making major inroads on their quest to deliver affordable fiber Internet service to long-neglected portions of Arkansas.

Buoyed by an historic stretch of federal funding, the cooperative says it’s on target to deliver up to 2.5 gigabit per second service to 72,000 locations by the end of 2024.

Connect2First officials say they’ve deployed 4,371 miles of fiber across 18 counties in the southeastern part of the state, just outside of the state capital in Little Rock, delivering speeds significantly higher than seen in more urban, populous areas. The resulting service is also a notable step up in speed from regional monopolies like AT&T and Optimum, which see little market incentive to upgrade lagging networks or compete on price.

Connect2First residential customers have the choice of three tiers of service: a symmetrical 200 megabit per second (Mbps) connection for $60 a month; a symmetrical 700 Mbps connection for $60 a month; or a symmetrical gigabit per second (Gbps) service tier for $100 a month. The company’s tiers feature no service caps, hidden fees, or long term contracts.

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First Electric Cooperative, headquartered in Jacksonville, Arkansas, began in 1938 with just 3 employees and 150 members. Now with 94,000 electricity customers, it’s one of the largest cooperatives in the country, and the second biggest cooperative in the state of Arkansas.

Fort Worth, Texas, (est pop. 956,000) has struck a $7.5 million, 34-year contract with Dallas-based Sprocket Networks to construct a new 300-mile fiber optic backbone to shore up city municipal communications needs, expand affordable access to marginalized neighborhoods, and boost local economic development.

City officials say construction crews are expected to begin work sometime in the next three to six months, with the full network construction expected to cost $65 million and take three years to complete.

Services will first be made available to nine target neighborhoods (including Las Vegas Trail, Como, Marine Creek, Stop Six, Rosemont and Ash Crescent) on a rolling basis. Sprocket Networks will own the finished fiber network.  

“This partnership was entered into with Sprocket with the hopes of eventually getting to universal service in Fort Worth,” Fort Worth IT Solutions director Kevin Gunn told ILSR in a phone interview. “We want the gold standard fiber optic connectivity: 100 megabits symmetric and up available at every doorstep, whether that's a senior family, multifamily or commercial.”

Gunn told ILSR that the city’s initial payment of $7.5 million to Sprocket consists of $4.5 million in American Rescue Plan Act (ARPA) funds, and $3 million from the North Central Texas Council Of Governments, which has allocated some of its transportation budget to broadband improvements the agency will benefit from.

In response to COVID era broadband inequities, the city of Fort Worth last year expanded free Wi-Fi access to 40,000 largely underserved city residents. Gunn indicated that those connections will be slowly phased out as the city transitions to fiber.

This is a walk and chew gum moment for broadband-for-all advocates. On the one hand, the Federal Communication Commission (FCC) new digital discrimination rules have the potential to rein in egregious examples of digital discrimination. On the other hand, the new rules still fall short of putting forward the kinds of structural solutions necessary to address underinvestment in communities where federal infrastructure dollars may never reach.

Last week, the FCC published its final digital discrimination rules, giving the agency the authority to penalize Internet Service Providers (ISPs) whose policies have a “disparate impact” on historically marginalized communities. The Infrastructure Investment and Jobs Act (IIJA), passed by President Biden in 2021, included a mandate directing the FCC to develop “rules to facilitate equal access to broadband internet access service, taking into account the issues of technical and economic feasibility presented by that objective, including—preventing digital discrimination of access based on income level, race, ethnicity, color, religion, or national origin.”

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After hosting listening sessions and inviting public comment, the final ruling ultimately defined digital discrimination as “policies or practices, not justified by genuine issues of technical or economic feasibility, that (1) differentially impact consumers’ access to broadband internet access service […], or (2) are intended to have such differential impact.” Such an approach authorizes the FCC to penalize providers even if it can’t identify instances of intentional discrimination.

Initial Responses to the Ruling

Pikeville, Kentucky (pop. 7,300) sits about 150 miles southeast of Lexington, in the extreme eastern part of the state. Today, after almost a decade of fighting with Internet Service Provider (ISP) Optimum about service so consistently poor that the city finally sued the provider, it’s working on an alternative: a partnership that will see the local government build new citywide fiber infrastructure and lease it to an operating partner.

A Tale As Old As Time

Publicly available data shows that, historically, about two-thirds of the city of Pikeville can take Internet service from Inter Mountain Cable - a regional provider with about 25,000 subscribers across Kentucky, West Virginia, and Virginia. Likewise, Optimum (formerly Suddenlink) offers cable service to about the same number of households. AT&T’s DSL service covers a little more than a quarter of town. Those living in the northern half of the city generally have better service options than those living in the southern half.

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The path the city of Pikeville has taken began almost 15 years ago. In 2009, the local government signed a new, 10-year franchise agreement with Suddenlink. But when Altice (originally a French telecommunications company) bought Suddenlink back in 2015 to build its portfolio here in the United States, things quickly took a turn for the worse.

In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

With the holiday season upon us, the Institute for Local Self Reliance (ILSR) Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA) are gearing up for the final Building for Digital Equity (#B4DE) event of the year and encouraging digital equity practitioners to save the date.

The popular (and free) virtual gathering will be held December 12, 2023 from 3 to 4:15 pm ET and will feature a holiday-inspired theme: Digital Equity Unwrapped: End of Year Reflections/The New Year Ahead.

You can register for the event now here.

Coming on the heels of our last B4DE event in October, which is still reverberating through digital inclusion circles across the nation, we are excited to follow up with a jolly and informative agenda that will cover:

• The latest on the Affordable Connectivity Program (ACP).
• Lightning Rounds on digital inclusion work with covered populations.
• Setting the table on forthcoming Digital Equity Act funding and how communities are preparing.
• Unpacking digital discrimination and its practical implications.

The keynote speaker for the event will be Patrick Messac, Director of #OaklandUndivided, an equity-based, collective impact initiative launched in Oakland, California.