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Counties, Private Providers Clash Over Merits of Open Access Networks

Counties see it as a way to increase competition and lower prices, while telecoms see money and quality problems.

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From left to right: John Burchett, Carter Old, and Ramiro Gonzales at Digital Infrastructure Investment

HOUSTON, September 28, 2021 – Tensions emerged Monday when the topic of open access networks pitted municipalities in favor and private companies against the idea of sharing infrastructure with other telecoms.

The Digital Infrastructure Investment conference hosted by Broadband Breakfast heard how counties favor open access networks to drive connectivity, competition among providers, and make internet access more affordable.

“We’re certainly in favor of open access,” said Julie Wheeler, president commissioner of York County, Pennsylvania, noting that affordability and access were York County’s chief priorities. She said York took advantage of Coronavirus Aid, Relief, and Economic Security Act funding they received last year to build a 16-mile dark fiber backbone. The county is now focused on building out their middle mile infrastructure.

Ramiro Gonzalez, director of government and community affairs for the City of Brownsville, is working to bring Brownsville away from being the least connected city in America. His team’s action plan was created during the pandemic working through many models and opportunities. They have allocated 19.5 million dollars into building the middle mile network for Brownsville.

“The middle mile will provide resiliency to all our buildings” and utilities, said Gonzalez. He says the city saw the most value in building middle mile infrastructure and then opening the infrastructure to investors to grow the network from there.

Digital Infrastructure Investment 2021 was hosted as an online and in person conference by Broadband Breakfast at the Broadband Communities Summit. The recording of the Monday event is available for registration and replay.

Open access networks have been a topic of great interest, as cities and states try to figure out how to expand broadband infrastructure. The broadband portion of the infrastructure bill that is expected to be voted on in the House on Thursday will give money to the states and cities to divide. Telecoms have been concerned that builds by municipalities, who then allow other telecoms to ride on it, would effectively replace the incumbents. Republicans in some states have even sought to limit community networks.

But some have suggested that the issue must be framed as more cooperation with providers rather than an existential crisis for them, while others have even said municipal broadband networks with open access provisions could help alleviate competition fears.

Private companies signal issues with open access

Carter Old, co-founder and president for Tachus LLC, approaches networks with one hundred percent buried fiber due to events like hurricanes and floods that have been a tragic part of the recent history of Houston, where Tachus primarily operates.

Tachus’ strategy is to bring a “blazing fast pipe of internet” and from there “allow the customer” to decide what internet experience to bring to their home. “In order to deliver hands down the best customer experience,” said Old, “we feel that owning and maintaining our network is the best way to do that.”

For Ting Internet’s Monica Webb, having too many providers on the same pipeline could potentially create a financial problem whereby a price war would leave some providers without much profit.

John Burchett, head of public policy for Google Access and Google Fiber, noted that building broadband infrastructure is slow, and that Google Fiber is “picking up steam” to penetrate suburbs and small towns.

“With every passing day there’s a new model out there,” he said, stating that there are many paths to building broadband infrastructure. Though he said that Google would be interested in providing an open access network on which it would compete against other providers, he clarified that, “I don’t think you’re going to find any provider who will build a fully open access model,” though he made clear that Google has offered service on shared or leased networks before.

One problem Burchett raised is the lack of choice that the majority of America is facing, alluding to a middle ground between local monopoly and an over-saturated market.

Reporter Riley Steward is a writer from Denton, Texas, who graduated from The University of Texas' Business Honors Program. He has written for various publications including The Recording Academy Grammy.com. He currently lives and writes in New York City.

Funding

$113 Million in Broadband Grants Aim to Empower Colorado’s Local Providers

All but one of the awardees are Colorado-based internet service providers.

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Photo of Highway 160 in Colorado TKN from Defense Visual Information Distribution.

WASHINGTON, January 4, 2024 – Colorado on Wednesday tentatively granted more than $113.5 million in broadband expansion awards to 13 applicants to connect nearly 19,000 homes and businesses across southwest Colorado. 

All but one of the awardees are Colorado-based internet service providers and municipal network operators. The other, Visionary Communications, offers service across two additional states, Montana and Wyoming. 

Administered through the Advance Colorado Broadband Grant Program, the awards were funded by the Treasury Department’s Capital Projects Fund. The program saw fierce competition, receiving 112 applications seeking a combined total of over $642 million across 47 counties.

Clearnetworx emerged as a major victor, securing $25.3 million for five projects. Based in Montrose, Colorado, the locally owned and operated fiber and wireless service provider arose in 2012 to address the region’s broadband scarcity.

Clearnetworx has been granted awards to install fiber along Highway 160 and Highway 184 in Montezuma County. This development coincides with the Colorado Transportation Commission’s recent approval of a fee schedule that allows broadband service providers to install fiber along the state’s roadways at reduced rates. Under the revised fiber access fee structure, broadband providers in rural counties such as Montezuma will gain access to some of the most competitive rates in the region, priced at $0.03 per foot.

Close on its heels, Maverix Broadband, is in line to win $25.1 million, aiming to deploy fiber-to-the-home services across Gilpin, Boulder, Chaffee, and Saguache counties, and Kiowa city, extending coverage to 731 locations in a city of 725 residents.

Fort Collins Connexion, a municipal broadband utility, secured $10.8 million for four projects serving 1,409 locations in Larimer County. Meanwhile, another municipal network operator, Loveland Pulse, is slated to receive $3.2 million to extend fiber connectivity to three service areas.

The Southern Ute Indian Tribe secured $8.5 million to serve 557 locations within the Southern Ute Reservation, marking a significant step in enhancing connectivity.

The recipients are committing over $42 million in additional funds towards the project’s costs – a total $155.5 million investment. 

Additionally, more funding from the Capital Projects Fund is designated for the Ridge View campus in rural Colorado. This initiative aims to establish a supportive residential community to aid in overcoming homelessness, ensuring long-term housing stability, and fostering successful reintegration into preferred communities.

The awards are set for finalization following an ongoing challenge process.

The state is committed to connecting 99 percent of Colorado’s households to “adequate” broadband by 2027. Today, over 90 percent of Colorado’s households and businesses have access to internet with 100 * 20 Megabits per second service, according to state data.

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Funding

Florida Announces $13 Million for Broadband Devices

The money will allow community centers to loan devices like laptops and routers.

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Photo by Shannon McGee

WASHINGTON, January 4, 2024 – Florida announced on Wednesday $13 million in grant funding for devices through its Digital Connectivity Technology Program.

Counties, municipalities, non-profits, and organizations serving high-poverty areas can apply for grants until March 4. The funds can be used to make devices like laptops and routers available for loan at local community centers, or to equip those community centers with connectivity equipment and devices.

The money comes from the Treasury Department’s Capital Projects Fund, a $10 billion pandemic response that provides states money for expanding broadband infrastructure and other connectivity projects. About $9 billion of that has been awarded so far.

Florida received an additional $247 million in CPF funds for its Broadband Infrastructure Program, which the state awarded in July. Those projects are expected to get broadband 59,000 homes, businesses, farms, and community centers. 

CPF rules require new infrastructure funded by the program to deliver speeds of at least 100 * 100 Megabits per second (Mbps), but most projects funded by the state are expected to provide up to 1 * 1 Gigabit per second (Gbps).

The state will hold a webinar on the Digital Connectivity Technology Program’s application process on January 10.

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In Year-End Message, FCC Chairwoman Urges Affordable Connectivity Funding

The low-income internet subsidy could run out of funding as early as April 2024.

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Photo of FCC Chairwoman Jessica Rosenworcel from December 2022

WASHINGTON, December 29, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel again called for Congress to fund the Affordable Connectivity Program.

In a year in review note published Friday, Rosenworcel touted the FCC’s efforts to promote the ACP, which provides a $30 monthly internet discount to low-income households. She noted the more than $77 million in ACP outreach grants – money for organizations to advertise the program and get eligible households enrolled –  the Commission awarded in 2023 and the 7 million new households that signed up for the program, bringing the total to more than 22 million.

“But our progress here cannot slow down – we need help from Congress to keep this groundbreaking program going,” she wrote.

The ACP was set up with a $14.6 billion allocation from the Infrastructure, Investment and Jobs Act. About $3.6 billion of that remains, according to a monitoring tool developed by the advocacy group Institute for Local Self-Reliance. Rosenworcel testified to the Senate in September that the Commission expects that money to dry up as early as April 2024.

Republican leaders on the House and Senate commerce committees expressed some skepticism about the program in a December 18 letter to Rosenworcel, calling the ACP “wasteful” because many enrolled low-income households were able to subscribe to broadband before receiving the subsidy. The FCC’s estimates put the number at 78 to 80,  Rosenworcel testified at a November House oversight hearing, but she noted the figures are not exact, as providers are not required to collect that information when someone enrolls.

President Joe Biden asked Congress in October for $6 billion to keep the fund afloat through 2024. Bipartisan groups of lawmakers and broadband industry groups have also pushed for Congress to refund the program, saying it will be an important tool for closing the digital divide and ensuring low-income subscribers stay online.

Providers who build new infrastructure with money from the Infrastructure Act’s $42.5 billion Broadband Equity, Access and Deployment program will be required to participate in the ACP, which experts have said would help stabilize revenue for ISPs who build in the hard-to-serve areas targeted by BEAD.

Rep. Yvette Clarke, D-New York, hinted at introducing a bill before the new year to address the impending ACP shortfall during the FCC oversight hearing, but the legislation has not yet materialized.

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