Ponca City, Oklahoma officials say they’ve completed construction of a citywide fiber broadband network both ahead of schedule and under budget.

The finished network is now providing affordable, uncapped, multi-gigabit fiber access to every local resident in the community or 24,100 residents of Northern Oklahoma city.

In 1996, Ponca City began developing a 140 mile central fiber network to help connect schools, city offices, and other key anchor institutions. The city’s infrastructure was expanded in 2005 to provide access to local businesses, and again in 2007 when the city began providing local access to a citywide Wi-Fi system at no cost to local residents.

Frustrated with substandard service from regional telecom monopolies, in 2014 city officials began seriously talking about building a citywide fiber network. By 2015, officials had begun gauging local interest and found that 85 percent of residents were frustrated with existing service, and overwhelmingly supported the city’s plan to build something better.

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That same year officials began network planning and studying other projects in earnest.

“Collectively we studied more than 2 dozen successful projects and 13 failed ones to learn from those experiences,” Dave Williams, Director of Technology Services for Ponca City said at the time. “We visited other cities that have implemented broadband solutions, read countless research articles detailing the challenges and rewards of such projects, and systematically took every aspect of this project apart and looked at it to develop a plan addressing all the potential problem areas the best we possibly could.”

‘Business is Booming’

Eight years later and those efforts are now paying off for Ponca City residents.

Officials in the South Texas town of Harlingen say they’ve put their plan to deploy a municipal broadband network on hold after projected costs ballooned well beyond original estimates.

Originally, Harlingen officials had hoped to construct a $4 million fiber network to shore up broadband access to the city’s unserved and under-served populace, using a portion of the city’s $22 million share of the American Rescue Plan Act (ARPA).

But a $100,000 study conducted by Houston-based consultants Cobb Fendley and Associates suggested a more realistic price tag would be closer to $10 million, forcing city officials to reconsider their plan.

"We were hoping to get it rolling but we ran into a few hurdles along the way," City Commissioner Ford Kinsley recently told GovTech. "We're looking for some sources other than what we originally thought."

A 2019 census survey found that nearly 35 percent of Harlingen’s households (7,887 of 22,901) lacked any broadband access whatsoever, positioning the city as second worst in the state behind Pharr, Texas, which recently built a municipal fiber network to bring affordable connectivity to its city residents. Harlingen school district officials also say they found that 900 students' homes lacked Internet access as of 2020, hampering city education standards.

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The majority of the rest of the city’s residents are served by one or two providers, resulting in spotty access, high prices, and sluggish speeds. As with so many U.S. markets, the Covid home education and telecommuting boom drove home the need for the kind of affordable, uniform broadband access regional monopolies long failed to deliver.

The Cleveland, Tennessee city council has approved the creation of the Cleveland Utilities Authority, the first step in allowing the city-owned utility to get into the broadband business. The goal: improve utilities services and provide city residents with faster, cheaper, and more reliable fiber access after years of neglect by often-apathetic regional telecom monopolies.

The plan, approved by the city council with a 7-2 vote (see full video here), paves the way for Cleveland’s city-owned utility, Cleveland Utilities, to begin deployment of a $72 million fiber network. The city’s plan, documented in detail here, is heavily inspired by the successes seen by Chattanooga, Tennessee’s publicly-owned utility, EPB.

Of the initial $72 million investment, $64 million will be funded by public-issued debt, and go towards construction of the network, which Cleveland Utilities states should begin in March of 2024 and be completed in “roughly two to three years” barring complications.

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An additional interdivisional loan of $8 Million will fund three years of operation for the new division. The utility’s plan is based on a 30 percent take rate, and aims to become cash flow positive between years 2-3, with all debt paid between years 10 and 12.

The South Carolina Broadband Office (SCBBO) has announced 56 newly funded projects through its new broadband grant program, which state leaders say will dramatically improve resident access to affordable, next-generation broadband networks statewide.

South Carolina historically hasn’t been a hotbed of community broadband deployment, and is one of 17 states that have passed restrictions on municipal network creation, funding, and expansion. Still, there are numerous electric cooperatives in the state busy creatively bridging the digital divide that stand to benefit from an historic infusion of new grant funding.

The state’s latest round of funding comes courtesy of South Carolina’s American Rescue Plan Act, State and Local Fiscal Recovery Funds Priority 1.0 program (ARPA SLFRF 1.0).  

All told, the SCBBO says it has doled out $129.6 million in broadband grand awards to 15 different Internet service providers (ISPs) across 34 different South Carolina counties.

“We are incredibly excited about this next chapter of broadband expansion in South Carolina,” Jim Stritzinger, Director of the SC Broadband Office said in a statement.  “Across the state, most have probably noticed the ISP road crews working diligently to provide high-speed internet access to our homes and businesses. This set of investments will provide a substantial boost to the work that is already underway.”

According to state officials, All ARPA SLFRF 1.0 grants are required to be completed by December 31, 2024. Once completed, the state says these grants will have funded 5,000 additional miles of fiber statewide as well as last mile access to at least 38,995 locations.

Creative efforts are underway in Marin County, California to bring fiber connectivity to underserved pockets of the community and eventually the whole area. Digital Marin, currently housed within the county’s Information Services and Technology Department, is coordinating the project, and is leaning towards a municipally-owned, open-access solution modeled after Ammon’s standout network in Idaho.

Just across the Golden Gate Strait from San Francisco, Marin County is home to about 265,000 residents, as well as the Muir Woods National Monument, a County Civic Center designed by Frank Lloyd Wright, and nearly 73 miles of coastal trail. Despite largely being considered an urban county, Marin also includes suburban and rural areas with 40 percent of the county classified as protected park land.

When it comes to Internet connectivity, the area is peppered with what Marin County resident and Digital Marin Executive Steering Committee member, Bruce Vogen, calls “donut holes of high-quality Internet access.” An unknown provider built a DSL network in the region many years ago and then Comcast later bought and inherited the antiquated infrastructure. Soon after, AT&T entered the market but selected only the most profitable neighborhoods to serve. All 90,000 of the county’s urban households can access the Internet through Comcast, but just 20,000 of these homes have access to the archipelago of AT&T’s fiber network. In any case, Marin’s urban areas are either subject to monopoly or duopoly market control. It has long been apparent there is a digital divide in Marin County, but it wasn’t until the 2022 FCC maps were released that the contours of this divide came into focus.

While a racially-charged controversy swirls loudly around the Los Angeles City Council, a new study lays bare how low-income communities of color are impacted by the quiet business decisions of the region’s monopoly Internet service provider.

Slower and More Expensive/Sounding the Alarm: Disparities in Advertised Pricing for Fast, Reliable Broadband details how Charter Spectrum “shows a clear and consistent pattern of the provider reserving its best offers - high speed at low cost - for the wealthiest neighborhoods in LA County.”

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Authored by Digital Equity LA, a coalition of more than 40 community-based organizations, not only highlights how economically vulnerable households in LA County pay more for slower service than those in wealthy neighborhoods, it also provides evidence for how financially-strapped households are also saddled with onerous contracts and are rarely targeted by advertisements for Charter Spectrum’s low cost plans.

A leading voice behind the Digital Equity LA initiative – Shayna Englin, Director of the Digital Equity Initiative at the California Community Foundation (CCF) – notes that higher poverty neighborhoods (which tend to be mostly made up of people of color) pay anywhere from $10 to $40 more per month than mostly white, higher-income neighborhoods for the exact same service. 

Two recent victories in digital equity work out of California give cause for celebration this week. AB 2748 Telecommunications: Digital Equity in Video Franchising Act and AB 2751 Affordable Internet and Net Equality Act both passed the Communications and Conveyance Committees this week; the former by a margin of 10-3 and the latter 7-3.

Sponsored by Assemblyman Chris Holden, AB 2748 would have a range of impacts if passed, including  giving the state CPUC and local governments more power in negoitating with providers to ensure that there is no discimination based on neighborhood household income that leads to inequitable access to service. It also revises franchise fee agreements at the local level. Read the full bill analysis for more.

From the press release:

"Although DIVCA originally intended to address inequitable broadband access, it remains pronounced across California cities," says Shayna Englin, Director of the California Community Foundation Digital Equity Initiative. "AB 2748 modernizes DIVCA by establishing equal access requirements as policy, and makes them enforceable through a reasonable application process for franchise renewals. We are pleased to co-sponsor Assemblymember Holden's bill, as the legislation will bring us one step closer to ensuring every Californian has access to fast, reliable, and affordable Internet [access]."

AB 2751 would create a Net Equality Program which would require that most state agencies only do business with Internet Service Providers (ISPs) that have a low-income plan offering of $40/month for 25/3 Megabits per second (Mbps). Read the full bill analysis for more.

Public testimony for AB 2751 highlighted the significant disparity in service speeds and prices that disadvantage low-income Californians by the state's two monopoly providers: Charter Spectrum and AT&T:

Comcast announced at the end of January that it will be expanding its stock repurchasing program to $10 billion for 2022. It’s a reminder that local governments need to be wary about the huge cable and telephone monopolies stopping by their offices and offering generously to solve the digital divide once and for all, if only we give them more taxpayer money.

Doing so has largely been a failed policy, and does a better job of transforming public tax dollars into private wealth than it does in efficiently extending Internet infrastructure to communities that need it most. With all the federal funding on the horizon, and some states already looking like they’re going to listen to monopoly lobbyists rather than their constituents, cities and states would do well to follow along closely.

Business is Good

Stock buybacks by publicly traded companies like Comcast are a commonly used mechanism to transfer wealth from the cash a firm has on hand to the pockets of its shareholders, while also driving up its value. The program expansion from Comcast announces as clear as day that the company’s top priority isn’t connecting Americans; it’s to return the most money for the least investment for its shareholders. 

North Louisiana has more premises unserved with high-speed Internet access than any other region of the state. In an effort to bring reliable Internet access to its members who have gone without service, directors of the Northeast Louisiana Power Cooperative (NELPCO) recently agreed to pursue a $54 million fiber buildout. 

During a special meeting called on June 29th, NELPCO’s Board of Directors voted 5-2 to begin providing high-speed Internet access across the seven rural parishes the cooperative serves through its wholly-owned subsidiary, Volt Broadband LLC.

The exact details of the project and how it will be funded are still being worked out. But, the cooperative is preparing to bond for $50 million to deploy fiber infrastructure across its 2,180-square-mile service territory, which runs from “south of Turkey Creek Lake in Franklin Parish north to the Arkansas line, and extends into Morehouse Parish,” according to the cooperative’s website.

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Construction of the fiber network will be completed in segments, beginning in the most populated regions and extending to the most rural, to eventually serve all 11,000 co-op members.