Vermont’s Communications Union Districts (CUDs), which were the subject of a recently released ILSR report, continue to make steady inroads in delivering high-quality broadband access to long-neglected rural Vermont residents.

In 2021 the Vermont legislature passed Act 71, ensuring CUDs would play a key role in expanding fiber access in the Green Mountain state. In Vermont, municipally-led CUDs – municipal entities created by two or more towns with a goal of building communication infrastructure – can legally fund needed broadband expansions through debt, grants, and donations – but not taxes, though they themselves are tax-exempt nonprofits.

The CUD model allows municipalities to bond together to tackle broadband network deployments that might otherwise prove too costly or logistically difficult if attempted alone.

The results have been transformative for state residents long underserved or completely unserved by the state’s regional incumbent monopoly providers. Locals at times have likened the transformation to moving out of the “dark ages.”

Much of Vermont’s $150 million ARPA-based broadband package went toward assisting CUDs in a state where 85 percent of municipalities and 90 percent of all underserved locations fall under an existing CUD’s jurisdiction.

In partnership with the Benton Institute for Broadband and Society, today ILSR releases a new report examining how the state of Vermont is supercharging its telecommunications infrastructure efforts to reach the unconnected by puttings its weight behind community broadband-driven efforts.

The report - Neighborly Networks: Vermont's Approach to Community Broadband [pdf] - traces the emergence of a unique public-public partnership arrangement that first appeared in the Green Mountain State in 2008. The Communications Union Districts (CUD) model first emerged more than a decade and a half ago among a coalition of towns in the eastern part of the state long-ignored by for-profit Internet Service Providers. There, a collection of community broadband champions came together to prove that the solution to the broken marketplace lay internal to east-central Vermont. ECFiber, a publicly owned, nonprofit ISP was borne of that effort, and began bringing affordable, fast, reliable service to households in the region.

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Ten years later, when the state began formulating a plan for the future of Internet access, the progress made by and lessons learned from ECFiber drove a landmark shift in public policy in the state. Volunteers emerged, towns voted, and CUDs were placed at the center of Vermont’s effort to bridge the infrastructure gap in the state. Today, there are ten CUDs covering 216 towns across the state, and Vermont’s leaders have put the lion’s share of public funds behind the communications union district model.

Tracing the history of this effort from 2008 to today, this report breaks down the conditions that led to this sea change, where the CUDs are at today, and how we might learn from the Vermont case to improve Internet access elsewhere across the country.