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Vermont House Backs $150 Million Broadband Plan Creating New State Office

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2 years ago

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Photo by Michelle Raponi used with permission

A bill dedicating $150 million of anticipated federal funding to create a new state broadband office to coordinate and accelerate the expansion of high-speed Internet access throughout Vermont passed the State House of Representatives last week with overwhelming bipartisan support.

On March 24th, the Vermont House approved H.B. 360 by a vote of 145-1, backing the creation of the Vermont Community Broadband Authority. If the bill becomes law it would help fund and organize the deployment of broadband infrastructure between Vermont’s nine Communications Union Districts (CUDs) and their potential partners, which include electric distribution utilities, nonprofit organizations, the federal government, and private Internet Service Providers.

The bill was introduced in the state Senate last Friday, and discussed for the first time in the Senate Finance Committee on Wednesday.

Enabled by a 2015 law, CUDs are local governmental bodies consisting of two or more towns joined together to build communications infrastructure. They were established to create innovative solutions to build broadband networks and provide a combination of Fiber-to-the-Home and fixed wireless Internet connectivity in their respective territories across Vermont, especially in areas where incumbent ISPs fail to provide adequate service.

Vermont’s CUDs, which have called for federal funding assistance since the onset of the pandemic, are ideally positioned to distribute funds in a way that will provide reliable and high-performance Internet access to every nook-and-cranny of the state. Vermont’s active CUDs have already constructed deep pockets of fiber.

Whether or not the CUDs will be able to reach the state’s goal of delivering universal 100/100 Megabits per second (Mbps) Internet service by 2024 now rests in the hands of Vermont’s Senate, Congress, and the Biden Administration as state and federal lawmakers wrestle with how to best expand access to broadband.

CUDs Desire State Block Grants

The U.S. government has not yet provided guidance on how states will be able to distribute the federal dollars headed their way. In this sense, amendments added to H.B. 360 before it passed Vermont’s House, increasing the bill’s appropriation from an initial $30 million to $150 million, reflect the CUDs call for federal funding and state lawmakers’ desire for the federal government to establish rules that give states flexibility to utilize the funding how they see fit.

As of yet, it appears one of the main sources of broadband infrastructure funding allocated under the American Rescue Plan Act, the Coronavirus Capital Projects Fund, will be awarded in the form of state block grants. States will be awarded between $100 million and $500 million in block grants for capital projects, which include building improved telecommunications networks at a time when remote work, education, and telehealth are more prevalent than ever.

Vermont’s CUDs are hoping little to no constraints are placed on how states can spend incoming federal grant money. In conversation with ILSR, Carole Monroe, CEO of ValleyNet (the operations company of Vermont’s first fully-operating CUD, ECFiber) expressed deep frustrations about the strings that were attached to CARES Act funding. Recipients of CARES Act money were required to spend the funds within months of it being distributed. Monroe lamented the fact that it forced recipients to pursue short-term solutions.

“By the time it reached the state, it was too late to do anything except a few wireless access points here or there,” said Monroe.

“We’ve all been hoping for an infrastructure bill, but I think there will be many strings attached,” she said, cognizant of her past experiences with bureaucratic contingencies on funding. If the funding comes in the form of “block grants to the state it will make it much easier to move forward” because Vermont has a strategic and well-developed plan.

CUDs Need Startup Capital, and to Consolidate

Based on a Magellan Advisors’ report commissioned by Vermont’s Department of Public Services, it is estimated that it will cost $1 billion to deploy broadband infrastructure to the estimated 254,000 locations (82 percent of Vermont) that currently lack 100/100 Mbps symmetrical service (see inline map below, or high-resolution version at the bottom of this story).

CUDs have historically had limited access to the financial capital necessary for expansion into unserved and underserved areas of the state, as previous broadband grant programs have not offered the scale to solve the problem, and traditional funding sources tend to shy away from investing in entities with limited revenue history and little collateral.

Though private investors are beginning to show interest in funding CUDs initiatives, Vermont’s CUDs see the incoming federal funding as a rare opportunity for the infusion of start-up capital initially necessary for CUDs to be financially self-sufficient.

Monroe said that in order for CUDs to be self-supporting they need enough capital for three years of audited financials, three years of positive cash flow, and three years of positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). After getting CUDs to that point, they would then be able to access the municipal bond market, in which interest on money borrowed is not taxable.

While H.B. 360 will help by developing favorable taxing, financing, and regulatory mechanisms to support CUDs, Monroe suggested that it may also make sense for some of Vermont’s smaller CUDs to work together, consolidating Vermont’s nine CUDs into perhaps five or six. Some of the CUDs are very small (serving only about 10 rural towns), which may make it more difficult to gain return on investment.

Potential Partnerships

At the heart of H.B. 360 is a call for increased partnerships to deliver resilient last-mile broadband infrastructure. It will be interesting to follow Vermont’s CUDs to see what entities they end up partnering with, as each partnership is likely to be unique.

Last Friday, Consolidated Communications, a major provider of Internet service in the region, responded to a CUDs request for proposal, demonstrating that the private ISP is willing to partner with the CUDs to deliver high-speed Internet service.

According to Monroe, a large portion of ECFiber’s 6,000 current subscribers switched from Consolidated Communications, so the company quickly learned they needed to improve its service and/or partner with the CUDs to remain viable in the state.

Consolidated Communications could be a desirable partner for Vermont’s CUDs given that they already have access to many pole attachments throughout the state. This will save CUDs from spending already-limited funds on utility pole attachments and make-ready work that often leads to increased costs in the buildout of broadband networks.

Another potential partner for CUDs is Green Mountain Power (GMP), the major electric utility in Vermont, which recently reached an agreement with the Department of Public Service to cover the costs of up to $2,000 for make-ready work in each of the utility’s unserved locations. With 7,500 unserved locations in the utility’s service area, the agreement would reduce the cost of building broadband networks within their footprint by as much as $15 million. Many CUDs are working to calculate how the cost-savings agreement could significantly advance their efforts to expand broadband into unserved regions.

The electric utility’s contributions would also help bring equity to Vermont’s energy sector. Currently all Vermont electric ratepayers are contributing to the rollout of clean energy technologies, yet not all ratepayers are able to access those technologies because they do not have access to adequate broadband.

One thing is clear: Vermont state lawmakers see federal funding, guided by new state legislation, as key to creating a more equitable future and delivering universal broadband access for its citizens.

See a high-resolution map of locations served by 100/100 Mbps in Vermont here.

Editor’s Note: This piece was authored by Jericho Casper with the Institute for Local Self Reliance’s Community Broadband Network Initiative. Originally published on MuniNetworks.org, the piece is part of a collaborative reporting effort between Broadband Breakfast and the Community Broadband Networks program at ILSR.

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Contributing Reporter Jericho Casper graduated from the University of Virginia studying media policy. She grew up in Newport News in an area heavily impacted by the digital divide and has a passion for universal access and a vendetta against anyone who stands in the way of her getting better broadband.

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Broadband Mapping & Data

Association Says FCC Not Budging on Identifying Anchor Institutions on Broadband Map

SHLB said FCC officials recommended a workaround that risked penalties.

Published

16 hours ago

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March 22, 2023

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Photo of John Windhausen, executive director of SHLB

WASHINGTON, March 22, 2023 – An association representing anchor institutions said in a letter Wednesday that officials from the Federal Communications Commission conveyed that they will not be changing the methodology that excludes schools and libraries from the broadband map and instead recommended a “work around” that the group said could risk penalties.

The Schools, Health and Libraries Broadband Coalition has repeatedly told the FCC that its broadband map incorrectly leaves out anchor institutions because they are categorized as non-broadband serviceable locations by virtue of the fact that they are treated as businesses that purchase commercial service rather than subscribers to “mass-market broadband internet access service,” which is what the FCC maps. SHLB has said this means institutions may not be able to get enhanced connectivity.

While SHLB has said that many small and rural libraries and other institutions subscribe to mass market service, it said in meeting notes from a Monday rendezvous with officials that the commission is “locked into” their current methodology and even recommended a “work-around” that the association said risked penalties.

According to SHLB, officials said the institutions could challenge their status on the map by representing that “they are not anchor institutions in order to change their designation.

“This recommendation is not feasible,” SHLB said. “Anchor institutions are not about to risk penalties by mis-representing themselves in such a way.”

The map, which has been extensively challenged by local governments and is updated every six months, is relied on to provide the most accurate picture of connectivity in the country and to assist federal agencies in divvying out public money. In fact, the National Telecommunications and Information Administration will use the map to determine how much each state will get from tis $42.5 billion Broadband Equity, Access and Deployment Program by June 30.

SHLB said it commissioned a study that found the “vast majority” of 200 libraries on the FCC map were “grayed out” as not broadband serviceable locations.

“If states base their funding decisions on the Map, they will not be able to provide funding to ensure that anchor institutions receive gigabit level service as called for” in the BEAD program, SHLB said in the letter.

The association also said that information presented to it by the FCC during the meeting suggests the map “significantly overstates the areas that are served.”

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Alex Kerai: The Rise of Digital Nomads Highlights Fast Broadband Needs

The top cities for remote work all have something in common: fast internet speed and free connection spots.

Published

3 weeks ago

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March 3, 2023

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The author of this Expert Opinion is Alex Kerai, Consumer Trends Reporter for Reviews.org

Companies across the United States are offering remote work, providing the opportunity for employees to become digital nomads and travel the globe while working. But where should these ‘digital nomads’ go?

The team at Reviews.org came up with a list of the 10 best cities for digital nomads and found that the key to living life as a digital nomad is fast internet speed. In fact, all but one of the top 10 cities for digital nomads have average internet speeds of over 100 Megabits per second (Mbps).

Why do digital nomads need fast internet?

Digital nomads have been around for decades, but they gained in popularity during the COVID-19 pandemic when it was possible to work from anywhere in the world.

But you can’t just pack your bags and set off on your journey. The most important things digital nomads need are a laptop, a cell phone and a strong internet connection. While it can be easy to find the first two things, a strong internet connection is dependent on where you move.

However, it can be hard to find a strong enough connection for Zoom calls and Google Docs while you’re in the middle of nowhere. So the big thing digital nomads need to consider before embarking on the trek of a lifetime is finding a place with a strong connection.

The top cities all have one thing in common

At Reviews.org, we decided to find the best U.S. cities for digital nomads. Forty percent of the weighted score was given to average download speed and the number of free WiFi hotspots. Internet connectivity was key to ranking the best cities.

And what did we find? All of the top cities have fast internet speed and free connection spots.

  1. Atlanta, GA: 114.1 Mbps average speed and 138 free WiFi hotspots
  2. Portland, OR: 106.2 Mbps average speed and 153 free WiFi hotspots
  3. Austin, TX: 104.2 Mbps average speed and 134 free WiFi hotspots
  4. Seattle, WA: 111 Mbps average speed and 164 free WiFi hotspots
  5. Phoenix, AZ: 96.2 Mbps average speed and 114 free WiFi hotspots
  6. Houston, TX: 115.7 Mbps average speed and 105 free WiFi hotspots
  7. Dallas, TX: 117.1 Mbps average speed and 96 free WiFi hotspots
  8. Chicago, IL: 104.1 Mbps average speed and 143 free WiFi hotspots
  9. Las Vegas, NV: 116.2 Mbps average speed and 65 free WiFi hotspots
  10. San Francisco, CA: 124.2 Mbps average speed and 119 free WiFi hotspots

These metro areas were determined to have the fastest speeds thanks to Federal Communications Commission data compiled by HighSpeedInternet.com, which discovered that the average internet speed is 89.3 Mbps and the fastest metro is separated from the slowest metro by over 95 Mbps!

So, where you decide to live can have a huge impact on how you work. If you live in Myrtle Beach, North Carolina (number 98 on our list), you might have gorgeous weather and views, but its average internet speeds are over 65 Mbps slower than metros in our top 15.

Overall, digital nomads need to have fast internet speed and numerous provider options in their metro area. Plus, it doesn’t hurt to have some WiFi spots available when you want to work outside of the house.

Becoming a digital nomad

Digital nomads have the freedom to travel and work from anywhere. With the increasing prevalence of remote work plus the ubiquity of mobile, wireless technology, anyone is able to become a digital nomad and move somewhere new. And honestly, it’s pretty awesome having the ability to travel the world without worrying about commuting to an office.

But to be a digital nomad, you need to have internet access and broadband equity is key. Without it, there’s no way you can stay connected to your work while living away from the office. Some places have better internet access than others, but overall US metros share strong internet connection and lots of WiFi hotspots.

So what are you waiting for? Pick a city from our list and start your life as a digital nomad today!

Alex Kerai is the Consumer Trends Reporter for Reviews.org where his writing and research help users tackle what lies ahead. He has spent his career writing for small businesses, entertainment companies, nonprofits, and higher education institutions, helping them align their mission and attract consumers. This piece is exclusive to BroadbandBreakfast, but the research was originally published by Reviews.org on February 7, 2023.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Next Century Cities Presses FCC for ‘Average’ Speed on Broadband Label

The group also recommended a more streamlined complaint process for digital discrimination issues.

Published

3 weeks ago

on

March 2, 2023

By

Screenshot of Francella Ochillo, executive director of Next Century Cities

WASHINGTON, March 2, 2023 – Advocacy group Next Century Cities pressed Federal Communications Commission officials in a meeting late last month to incorporate the average speeds of internet packages on the new broadband label instead of just “typical” speeds.

“An average speed allows consumers to understand the real speeds they can expect to receive, whereas typical speeds can only provide the potential speed a consumer might receive,” the group said in a Thursday letter summarizing the meeting. “Broadband speed estimates are typically higher than actual speeds delivered.”

The FCC is now in the process of gathering more input as to whether it should include more information on the label that is supposed to resemble nutrition panels on foods. The labels have been ordered by the commission in November after a consultation with the public.

The group also pushed for discounts consumers are eligible for and the state and local taxes that they would have to pay. “These data points enhance a consumer’s ability to understand the charges at the end of the month, which is also essential for the success of the CBNL.”

The point the group is pushing is that more granular data is required to get service to as many people as possible. “Absent granular data, the Commission will continue to have significant blind spots in broadband deployment, the success of its subsidy programs, and key areas that require digital discrimination investigations,” the NCC said in the letter.

Experts, however, have warned about the level of detail and additional information on the labels that may burden providers, including smaller outfits that have fewer resources than larger players.

In addition to the broadband speeds promised by the providers, the new labels must also display typical latency, time-of-purchase fees, data limits, and provider-contact information.

The NCC also recommended the FCC set up a “quasi-formal complaint process” for state and local governments, community anchor institutions like libraries, schools and health care facilities, and other organizations that collect digital discrimination data. This, it said, would allow for a less burdensome way to communicate issues without having to go through the “procedural burden” of a formal complaint.

“It would also promote collaboration between local officials, community leaders, anchor institutions, and the Commission which are all working to help end digital discrimination,” it said.

The commission is currently examining how to define digital discrimination when it comes to infrastructure builds.

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