Now that the lengthy legal beef has been settled and New York’s Affordable Broadband Act (ABA) is set to take effect this month, it marks a potentially pivotal moment in a national effort to address one of the biggest barriers to broadband adoption: 

Affordability.

The first-in-the-nation law requiring large Internet Service Providers (ISPs) operating in New York to offer a $15/month plan for qualifying low-income households stands to benefit the approximately 1.7 million New Yorkers who had been enrolled in the federal Affordable Connectivity Program (ACP) Congress allowed to expire last spring.

With a new administration entering the White House – supported by GOP Congressional leaders who blocked previous ACP renewal efforts – the newly enacted ABA “paints a path that other states will look at,” as New Street Research analyst Blair Levin recently noted.

Image

“In a world where the federal government is subsidizing low-income households for $30 a month, states did not need to take action to address low-income broadband affordability,” Levin added. But now, without the ACP benefit, “states may try to assist low-income households to keep them connected.”

Wadsworth, Ohio officials say they’re making steady progress on the expansion of a city-owned broadband network that’s extending affordable fiber connectivity to the city’s nearly 25,000 residents.

Originally a coaxial-based network, the city now says it’s in the process of delivering Wi-Fi to many city residents while they go block-by-block removing older coaxial cable and upgrading residents to more future-proof fiber optic connectivity.

All told, city officials say they currently have around 5,800 existing subscribers that will ultimately be upgraded to fiber.

Image

Wadsworth, Ohio first launched its hybrid fiber-coaxial CityLink network back in 1997, and has been offering broadband, television, and phone access to the community ever since.

In 2020 ILSR spoke with Wadsworth IT Manager Steve Lange in Episode 438 of the Community Broadband Bits Podcast.

Affordable, Popular Alternatives To Monopoly Power

The network, unlike many similar deployments, is separate from the city’s municipal electric department. Wadsworth Assistant Service Director Mike Testa recently told the Medina County Gazette that the city has completed around 400 fiber installations so far, including a recently updated area along Weatherstone Drive where 120 homes were connected.

In the City of Sherwood, a mostly residential bedroom community 16 miles south of Portland, officials have been quietly cultivating a digital vineyard across Oregon’s “Gateway to Wine Country.”

As part of its on-going work to build out a citywide fiber network, Sherwood Broadband recently secured a $9 million grant from the Oregon Broadband Office Broadband Deployment Program (BDP) to continue expanding Sherwood’s municipally-owned network into neighboring rural communities just outside city limits.

The grant award is part of $132 million in federal Rescue Plan funds the state is doling out to an array of community-owned broadband initiatives for 16 projects across 17 counties.

Award winners include Beacon Broadband, a subsidiary of the Coos-Curry Electric Cooperative ($19.4 million); Jefferson County ($19.2 million); Douglas Fast Net, a wholly-owned subsidiary of the Douglas Electric Cooperative ($8.5 million); the Idaho-based member-owned cooperative Farmers Mutual Telephone Company, which offers broadband service in Malheur County, OR ($18.9 million); and a handful of independent providers like Blue Mountain Networks ($6.5 million) and Ziply Fiber ($10.2 million), recently acquired by Bell Canada.

New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

Image

“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

With the incoming Trump administration and the ascendance of GOP leaders taking aim at key aspects of broadband expansion initiatives embedded in the Bipartisan Infrastructure Law, industry insiders expect the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program to likely get a major facelift in the coming months.

GOP Senate leaders have signaled they will push for BEAD to be scaled back or reconfigured.

One way they may do that is to remove the law’s preference for funding fiber network deployments and create a path for subsidizing Musk’s satellite Internet company, arguing that Starlink would be a more cost-effective solution to bring broadband to rural America.

Late last week, in fact, NTIA released its “Final Guidance for BEAD Funding of Alternative Broadband Technology.” And while the updated guidelines still considers fiber deployments as “priority broadband projects,” the agency administering the BEAD program now explicitly says that states can award “LEO Capacity Subgrants.”

Digital inclusion advocates are bracing themselves for an uncertain year ahead.

As the incoming GOP regime takes aim at key aspects of the Digital Equity Act (DEA) and the BEAD (Broadband, Equity, Access, And Deployment) program, those working to bridge the digital divide have more questions than answers just as states are preparing to dole out federal grant money yet to be awarded to grant recipients.

One major question looming over both BEAD and the Digital Equity Act is whether a new Congress can leverage the Congressional Review Act – a tool Congress can use to overturn certain federal agency actions – to undermine the 2021 bipartisan infrastructure law behind the national “Internet For All” initiative.

Image

“The Congressional Review Act only applies to things that were adopted in the last six months. I know that there were a number of things the FCC did to make sure that they were done and would be non-reviewable under the CRA and I suspect NTIA did that as well (with BEAD),” former FCC Chief of Staff and now New Street Research policy advisor Blair Levin said during our final Building For Digital Equity (B4DE) livestream of 2024.

North Carolina’s Roanoke Cooperative continues to make steady progress with expansion of its Fybe last mile fiber network within The Tar Heel State.

Cooperative officials tell ILSR that the cooperative and a coalition of organizations across North Carolina have major expansion plans in the works, starting with a fiber build in Halifax County, population 47,298.

Currently, Fybe provides fiber broadband service to around 6,000 subscribers in North Carolina, but thanks to an historic infusion of federal and state grants, the hope is to expand fiber access to the bulk of unserved addresses county-wide.

Fybe COO Bo Coughlin tells ILSR that the lion’s share of the cooperative's upcoming efforts to bring affordable connectivity to unserved and under-served portions of North Carolina will be under the banner of a coalition dubbed Encore, a nonprofit collaboration between MCNC, North Carolina Electric Membership Cooperatives (EMC), and Fybe.

“MCNC has been around for 40 years,” Coughlin notes. “It started as an economic Development institution funded by the state. Their goal was originally to help birth the microchip industry in RTP down in Raleigh, but today they provide transport to around a hundred universities, charter schools, and community anchor institutions across nearly 100 counties.”

Image

Back in April, Fybe won a $9 million Growing Rural Economies with Access to Technology (GREAT) grant to help bring fiber to the largely underserved, heavily-rural residents of Martin, Bertie, Halifax, and Hertford counties.

“So currently, we pass about 5,000 total homes across Northampton and Halifax,” Coughlin said of Fybe’s current footprint.

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

In the wake of the election, and with potential major changes ahead for the national "Internet For All" effort, many in the broadband world are wondering: where do we go from here?

That's what the next Building For Digital Equity (#B4DE) livestream event seeks to answer, inviting you to wear your ugly sweater, join the free virtual gathering, and dive into what a post-Biden administration broadband world may look like.

Slated for December 16, 2024 from 3 to 4:15 PM ET, the "Reflect, Recharge, Reach Forward" themed livestream promises to offer penetrating insights and practical ideas on the way forward.

Registration is now open here.

Image

Co-hosted by Institute for Local Self Reliance (ILSR) Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA), the popular (and free) online event will feature two prominent figures in this space: NDIA Executive Director Angela Siefer and New Street Research Policy Advisor Blair Levin.

New York’s Municipal Infrastructure Program (MIP) continues to provide grant funds to build municipal broadband networks across the state, as state broadband officials recently announced the program’s largest round of funding to date.

As we reported in June, the MIP program – specifically designed to fund municipally-owned networks as part of the Empire State’s $1 billion ConnectALL initiative – awarded $70 million to a half dozen projects earlier this summer.

Then, earlier this month, another $140 million in grant awards were announced for an additional six projects, promising to deliver “more than 1,200 miles of publicly-owned fiber optic infrastructure and wireless hubs, connecting (passing) over 60,000 homes and businesses with affordable, symmetric service – offering equal download and upload speeds at rates below regional averages.”

Image

The funding will be used to expand broadband infrastructure (and seed competition) in the Central New York, Finger Lakes, Mohawk Valley, North Country, Mid-Hudson and Western New York regions.

In a prepared press statement, New York Gov. Kathy Hochul characterized the grants as “a transformative step forward in our mission to connect every New Yorker to affordable, high-speed Internet.”