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Experts Point To The Big ‘Payback’ That Flows From Municipal Broadband Investments

At the “Municipal Broadband and Innovative Financing Models: Unlocking Economic Growth” webinar earlier today, attendees got an inside look at how successful community broadband networks have been funded – and how cities and towns can still finance networks even with the uncertainty now swirling around the federal BEAD program.

Co-hosted by ILSR’s Community Broadband Networks Initiative and the American Association for Public Broadband (AAPB), the webinar featured a wealth of municipal broadband financing knowledge from four guests with deep experience navigating the numbers.

Co-host Gigi Sohn, who was joined by ILSR’s Sean Gonsalves, began the webinar with a brief explanation on why AAPB and ILSR are joining forces for what will be a series of webinars designed to assist cities and towns in how local and state leaders can deal with solving local connectivity challenges where the big incumbent ISPs have failed to deliver ubiquitous and reliable service.

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Screenshot of Sean Gonsalves and Gigi Sohn during webinar

“I've been traveling around the country and I hear from a lot of communities who are very interested in a model where they control their broadband networks in their communities,” she said. “We want to kind of demystify the finance part and try to get communities more comfortable with how they can move forward.”

The first guest expert to take center screen was Ernie Staten, the City of Fairlawn, Ohio’s Public Service Department Director.

AAPB and ILSR to Host Webinar on the Financing Fundamentals of Community Networks

The American Association for Public Broadband (AAPB) and ILSR’s Community Broadband Networks Initiative are teaming up to host a webinar later this month for local and community leaders interested – or on the fence – in pursuing municipal broadband solutions to local connectivity challenges.

Municipal Broadband and Innovative Financing Models: Unlocking Economic Growth” will focus on ways publicly-owned broadband networks can be financed and feature municipal broadband providers and financing experts who have successfully navigated the maze of municipal finance.

The free webinar is slated for February 20, 2025, from noon to 1 pm ET.

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Flyer for webinar announcing title, date and time

Registration is open now here.

Co-hosted by AAPB Executive Director Gigi Sohn and Sean Gonsalves from ILSR's Community Broadband Networks Initiative, organizers are encouraging attendees to bring their questions, as the agenda aims to foster information-sharing and actionable insight.

Panelists for the discussion will be:

  • Ernie Staten, City of Fairlawn’s Public Service Department Director
  • F.X. Flinn, ECFiber Governing Board Chair
  • Laura Lewis, Principal and Co-Owner of LRB Public Finance Advisors
  • Eric Rex, Vice President at KeyBanc Capital Markets

“There are more than 400 publicly-owned broadband networks operating right now across the nation,” said AAPB Executive Director Gigi Sohn. “That number has been growing rapidly. But, there's more work to do to address the fear and hesitation that’s stopping some communities from pursuing the public model.”

Municipal Broadband Networks Deliver On Affordability Before And After ACP

In a recently published piece in The American Prospect, Sean Gonsalves, ILSR's Community Broadband Networks Initiative Associate Director for Communications, reports on four cities across the U.S. that are well prepared to deal with the demise of the Affordable Connectivity Program (ACP).  

The article – titled "The Municipal Broadband Solution" – begins by laying out why Congress created the popular program and how letting the ACP go bankrupt undermines the national "Internet For All" Initiative now underway. However, while digital equity advocates across the nation rightly lament the demise of the program, the focus of the article is on cities that have figured out how to deliver afforable high-quality Internet access even without the ACP.   

Here's a few excerpts:

Congress created the ACP to soften a harsh reality: Americans pay among the highest prices for broadband of any developed nation in the world, leaving tens of millions unable to afford internet service—something experts have long noted is a telltale sign of a broken market dominated by monopoly providers, and is at the very heart of why the U.S. digital divide is as massive as it is.

However, although federal lawmakers have known for over a year that the fund would be bankrupt by this spring, GOP congressional leaders have not budged on even bipartisan attempts to save the ACP, prompting the Federal Communications Commission (FCC) to announce in January that the agency was being forced to wind down the popular program.

It’s a major setback for the “Internet for All” effort, especially in light of a recent FCC survey that found 29 percent of ACP beneficiaries would be left without any home internet service whatsoever without the benefit, in an age when internet connectivity is a necessity for meaningful participation in 21st-century society.

Internet For All or Internet For Some?

The American Prospect recently published an analysis – "How Monopolies and Maps Are Killing ‘Internet for All’" – authored by our own Sean Gonsalves that lays out why the federally-backed “Internet For All” initiative will likely fall short of its aspirational goals.

It begins with facts-on-the-ground reporting about the estimated 37,000 households that do not have high-quality access to the Internet in Oakland, California and how cities across the nation are plagued with similar challenges – challenges many digital advocates say is “digital redlining.”

Here's a few excerpts:

“It would be reasonable to think the Biden administration’s $1.2 trillion bipartisan infrastructure law, passed by Congress in November 2021, would change all of this. A significant part of the law devotes $65 billion to a moon shot mission, involving all 50 states and U.S. territories, to bridge the digital divide once and for all. It includes funding to build new modern networks, and other programs to address barriers to broadband adoption, like the Affordable Connectivity Program, which helps eligible low-income households pay for pricey internet bills, as well as initiatives that offer digital skills training and a mandate for the FCC to adopt rules ‘to prevent and eliminate digital discrimination.’”

“Similar to when the federal government set out to bring electricity to every household in America a century ago, the Biden administration intends to do the same with broadband, labeling this historic investment the ‘Internet for All’ initiative.”

“But what hasn’t dawned on most federal and state lawmakers—or at least, it has not been admitted publicly—is that the trajectory we are on will not lead to Internet for All, but something more like Internet for Some.”

You can read the entire story on the American Prospect website here.