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Infrastructure

Federal Focus On Municipal Builds Rubs Against States’ Policy Opposing Practice: Report

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Photo of Tyler Cooper from BroadbandNow

April 8, 2021 – President Joe Biden’s new broadband plan, which emphasizes the importance of municipal-owned networks, is likely to cause tensions with states that have restrictive rules in place against those kinds of builds, according to a new report.

That focus on local networks in Biden’s infrastructure plan, which includes $100 billion for broadband, has some in the telecom industry critical or uneasy, while others are excited about the possibilities.

New federal funding with attached rules prioritizing municipal and co-op networks will likely collide with policy in almost half the country, as shown in a BroadbandNow report released Wednesday that details restrictive legislation that is currently on the books in 18 states and minor “roadblocks” in five other states.

BroadbandNow has monitored municipal broadband for several years, and the methodology for this report was done differently than in the past. “Instead of tallying every state that restricts municipal broadband in some way, we’re looking at those that explicitly bar or make it unreasonably difficult to establish such networks,” it reads.

“The broadband sector has come into the forefront of public discourse, with millions of Americans struggling to stay online amidst the pandemic. In many communities, local governments have turned to creating their own solutions where private competition has not met the needs of the populace,” writes Tyler Cooper, chief editor at BroadbandNow.

“These barriers vary from state to state, but tend to take the form of outright bans on the establishment and/or operation of municipal broadband infrastructure,” the report reads. “As well as bureaucratic obstacles that make it functionally infeasible to create a citywide network.”

The report also found that “five additional states (Iowa, Arkansas, Colorado, Oregon, and Wyoming) have other types of roadblocks in place that make establishing networks more difficult than it needs to be.” Those roadblocks include items like vague legal stipulations, restrictions on certain pricing mechanisms, proposal-stage barriers, phantom cost requirements, and extra tax burdens.

Several states have introduced legislation to reduce those restrictions, including an Arkansas bill that passed in February 2021, a Washington bill still in progress, a Montana bill that failed, and three bills stalled in Tennessee and Idaho, according to the report.

A Republican-led House bill called the CONNECT Act would restrict government-run broadband networks nationwide as long as more than one other broadband service was already available in an area. The bill was introduced on February 18 by Missouri Rep. Billy Long.

In direct opposition to that effort, Biden’s American Jobs Plan would prioritize funding for “broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives,” according to a White House statement.

Reporter Tim White studied communication and political science at the University of Utah, and previously worked on Capitol Hill for a member of Congress. A native of Salt Lake City, he escapes to the Pacific Northwest as often as he can. He is passionate about politics, Star Wars, and breakfast cereal.

Infrastructure

Utilities Coalition Warns Against Shifting Cost of Replacing Poles

‘Utilities have been willing to perform these voluntary pole replacements because they have been compensated for it.’

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Photo of linemen on a pole from 2015 by Lisa Meiman

WASHINGTON, January 23, 2023 – A coalition consisting of 37 electric utility companies serving 31 million households is warning the Federal Communications Commission that shifting the cost burden of replacing wood poles to house communications equipment onto utilities will make them less likely to take voluntary action to help telecoms expand.

The Coalition of Concern Utilities said in a letter Thursday that the FCC’s current study into whether it should order utilities to share in the cost of replacing poles should factor what those utilities have been doing on a voluntary basis – “prematurely” replacing their poles for telecoms despite it diverting resources from “system reliability, grid modernization and clean energy initiatives.

“Despite these disincentives to prematurely replacing poles for communications companies, utilities for four decades have been willing to perform these voluntary pole replacements because they have been compensated for it,” the letter said.

Traditionally, pole owners can invoice to a telecommunications company the cost of replacing the entire pole if it feels the equipment to be attached would warrant it.

The coalition added that submissions to the commission to “modify this longstanding, carefully balanced and successful cost reimbursement mechanism would cause many utilities to reconsider, for the first time in four decades, whether dropping everything to perform voluntary and premature pole replacements is worth the time, effort and expense.”

Shifting even some part of the cost to the utilities would likely be absorbed by them, the coalition argues, because the utilities will be “hard-pressed” to justify to state utility commissions “how pole replacements solely necessitate by communications attacher requests is a benefit to electric rate payers.”

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Broadband Mapping & Data

NTIA Working on State Guidance for Further Map Challenges After BEAD Allocation: Official

An agency official said states have asked for guidance on how to handle local challenges.

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Photo of NTIA Senior Policy Advisor Sarah Morris at the U.S. Conference of Mayors

WASHINGTON, January 19, 2023 — A senior advisor to the National Telecommunications and Information Administration said Thursday that the Commerce Department agency is working on crafting guidance for states about how to approach local map challenges after it allocates the $42.5 billion from its flagship broadband program. 

The NTIA is preparing to allocate money to the states from the Broadband Equity, Access and Deployment program, following the closing of the deadline Friday to challenge the Federal Communications Commission’s maps on which that funding is dependent. The agency, which has already decided on a base of $100 million for each state, has said it expects to allocate all remaining funds by June 30. 

Sarah Morris, a senior advisor to NTIA head Alan Davidson who was expected to appear at the Conference of Mayors Thursday but could not – said the agency has fielded questions from state officials about how to handle local challenges to the underlying data – including areas that are served and unserved – that props up the FCC’s map. 

“The states have had a lot of questions about how to do this and we are working on guidance for them,” Morris said to a conference room containing mayors from cities across the country. “So we appreciate your [mayors] input as well as we’re thinking through how much guidance and what type of guidance…as states come up with their own state challenge process.” 

Morris added that the NTIA knows there are a lot of other data sources that determine served and unserved areas and that the states will have “more flexibility” in the challenge process, as the FCC is generally constrained by legislation for mapping data. 

What cities can do now for BEAD preparation

Morris also advised cities on what to do now to prepare for when the BEAD allocations are made. 

“Document the connectivity challenges in your communities…we want to make sure those needs are reflected in the five-year plan,” she said, alluding to the applications for BEAD funding. 

She also urged, as many before her have, for the mayors to meet with their state broadband offices, which she called the “center of gravity” for federal broadband funding.  

Finally, she also asked for the mayors help “spread the word. It’s not easy reaching the unconnected and we want to make sure that folks understand the good work that is possible within these programs and that people feel connected, not just the leaders and politicians in the state, but really the folks on the ground in communities, that they understand what’s happening and feel connected to these programs.” 

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Funding

Mayors Urged to Get Moving on State Conversations for Federal Broadband Funding

Time is running out to have cities’ voices heard at state broadband roundtables.

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Photo of Scott Woods (left) and Jase Wilson

WASHINGTON, January 18, 2023 – Representatives from a company that helps internet service providers and local governments get federal broadband money urged mayors of cities across the country Wednesday to quickly get involved in the process by actively engaging their state broadband offices or get left behind.

Scott Woods and Jase Wilson, vice president for community engagement and strategic partnerships and CEO, respectively, at Ready.net told the 91st United States Conference of Mayors in Washington that time was running out to have their voices heard at state roundtables.

Woods noted that the current version of the Federal Communications Commission’s maps are “overstated,” meaning there are inaccuracies in it. But if cities don’t have a plan or don’t come to the state broadband offices and plead their case for better connectivity, they will be left out.

The pair asked the packed conference hall at the Capitol Hilton whether they had conversations with their state broadband offices, but the vast majority did not raise their hands.

“The opportunity is now,” Wilson urged, adding the company’s Broadband.money has created a site and a broadband audit allowing mayors to get them up to speed. Broadband.money is a sponsor of Broadband Breakfast.

The National Telecommunications and Information Administration, which administers the $42.5 billion Broadband Equity, Access and Deployment program, has said that the accurate delivery of the money to connect the underconnected will be contingent on the readiness of the FCC map, which had a deadline to challenge its contents on January 13, 2023.

Each states is expected to be allocated at least $100 million by June 30, with many states receiving much, much more. After the June 30 kickoff, entities, including cities, can apply for a piece of the pie.

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