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Infrastructure Bill Brings New Focus on Decision Making at Community Level

Funneling of infrastructure funds through states differs from Obama-era broadband programs.

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WASHINGTON, January 24, 2022 – Community broadband advocates say the ability for local governments to decide what can be done with broadband money from the recently-enacted Infrastructure Investment and Jobs Act is the best way to manage federal funds for broadband expansion efforts.

During a Broadband Breakfast Live Online event on Wednesday, leaders at community broadband advocacy group Institute for Local Self-Reliance said this sets up a local community-based approach to connectivity, bypassing some of the issues with the Federal Communications Commission’s limited broadband maps.

Sean Gonsalves, a senior reporter, editor and researcher at the ILSR, said that local communities are the best source of information on where within their boundaries there are connectivity issues – far surpassing the knowledge of the FCC’s maps.

The infrastructure legislation, which became law in November, will provide a minimum of $100 million to each of the states to use toward broadband expansion. The states that have applied for American Rescue Plan money now have heaps of cash to work with fully connected their boundaries with high-speed internet.

Christopher Mitchell, director of the ILSR, said Wednesday that for many states the law “may solve almost all their rural broadband problems.”

Local approaches may also make it easier to hold accountable officials who do not effectively spend IIJA funds, Mitchell said, adding that was one component of the law that was missing from the FCC’s Rural Digital Opportunity Fund.

Broadband Breakfast Editor and Publisher Drew Clark stated that the law’s structure of funneling money through states is noteworthy, as the notion of responsibility for individual states to enforce policy has long been a “conservative talking point.”

The panel noted that like RDOF, the Broadband Technology Opportunities Program from Barack Obama’s presidency also differed from the IIJA in that it did not rely on individual states to dispense funds.

Mitchell attributes these differences in the IIJA in part to general trends toward decentralization in policy.

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. You can watch the January 19, 2022, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, January 19, 2022, 12 Noon ET — The Community Broadband Network Approach to Infrastructure Funding

Community broadband networks will play a crucial role in the implementation of the Infrastructure, Investment and Jobs Act, particularly the Broadband Equity, Access and Deployment program, and the Digital Equity Act. This vital session of Broadband Breakfast Live Online will bring our friends from MuniNetworks.org, the Community Broadband Networks Initiative of the Institute for Local Self Reliance, to discuss the issues, trends and concerns they are following. What open questions remain about the IIJA rules? How do the Treasury Department’s rules on the State & Local Fiscal Recovery Funds program interact with the IIJA program? What concerns should community networks have about the next stages of federal funding in their states?

Panelists for this Broadband Breakfast Live Online session:

  • DeAnne Cuellar, Community Broadband Outreach Team Lead, ILSR’s Community Broadband Network Initiative
  • Sean Gonsalves, Senior Reporter, Editor and Researcher, ILSR’s Community Broadband Network Initiative
  • Ry Marcattilio-McCracken, Senior Researcher, ILSR’s Community Broadband Network Initiative
  • Christopher Mitchell, Director, ILSR’s Community Broadband Network Initiative
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Please note: Our event on “State Broadband Officials and the Broadband Infrastructure Surge” has been moved to February 16, 2022.

Panelist resources:

DeAnne Cuellar is a tech equity advocate and communications strategist from San Antonio, Texas. She served as Mayor Ron Nirenberg’s digital inclusion appointee to the City of San Antonio’s Innovation & Technology Committee, resulting in several policy and funding priorities to close the digital divide. As a social impact entrepreneur, she co-founded several cross-sector nonprofit initiatives, advocating for justice, equity, diversity, and inclusion for historically underrepresented communities.

Sean Gonsalves is a longtime former reporter, columnist, and news editor with the Cape Cod Times. He is also a former nationally syndicated columnist in 22 newspapers, including the Oakland Tribune, Kansas City Star and Seattle Post-Intelligencer. His work has also appeared in the Boston Globe, USA Today, the Washington Post and the International Herald-Tribune. Sean joined the Institute for Local Self Reliance staff in October 2020 as a senior reporter, editor and researcher for ILSR’s Community Broadband Network Initiative.

Ry Marcattilio-McCracken is Senior Researcher with the Institute for Local Self-Reliance’s Community Broadband Networks Initiative. He is interested in the democratizing power of technology, systems engineering, and the history of science, technology, and medicine. Previously, Ry worked as an Adjunct Professor of American History in Oklahoma, Rhode Island, and Minnesota. Ry holds a Ph.D. in American History from Oklahoma State University.

Christopher Mitchell is the Director of the Community Broadband Networks Initiative with the Institute for Local Self-Reliance in Minneapolis. Mitchell, a leading national expert on community networks, Internet access, and local broadband policies, built MuniNetworks.org, the comprehensive online clearinghouse of information about local government policies to improve Internet access. Its interactive community broadband network map tracks more than 600 such networks. He also hosts audio and video shows online, including Community Broadband Bits and Connect This!, and Public Knowledge presented Christopher with its Internet Protocol award in 2021, which honors those who have made significant contributions to Internet policy.

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Reporter T.J. York received his degree in political science from the University of Southern California. He has experience working for elected officials and in campaign research. He is interested in the effects of politics in the tech sector.

Funding

Florida, Georgia, Iowa, Minnesota, Missouri and Utah to Receive Nearly $1 Billion in American Rescue Plan Funds

The states will use their funding through the Capital Projects Fund to connect more than 180,000 homes and businesses.

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WASHINGTON, December 1, 2022 – The U.S. Treasury Department on Thursday announced the approval of broadband projects in an additional six states under the American Rescue Plan’s Capital Projects Fund Florida, Georgia, Iowa, Minnesota, Missouri and Utah.

Together, these states will use their funding to connect more than 180,000 homes and businesses to affordable, high-speed internet.

The Capital Projects Fund provides $10 billion to states, territories, freely associated states, and Tribal governments to fund critical capital projects that enable work, education, and health monitoring in response to the public health emergency. In addition to the $10 billion provided by the CPF, many governments are using a portion of their State and Local Fiscal Recovery Funds toward connecting to affordable, reliable high-speed internet.

“The pandemic upended life as we knew it—from work to school to connecting with friends and family—and exposed the stark inequity in access to affordable and reliable high-speed internet in communities across the country in rural, Tribal, and other underrepresented communities,” said Deputy Secretary Wally Adeyemo. “This funding will lay the foundation for the Biden-Harris Administration’s historic investments to increase access to high-speed internet and reduce internet bills for American households and businesses.”

In accordance with Treasury’s guidance, each state’s plan requires service providers to participate in the Federal Communications Commission’s new Affordable Connectivity Program.

The Affordable Connectivity Program helps ensure that households can afford the high-speed internet they need for work, school, healthcare, and more by providing a discount of up to $30 per month (or up to $75 per eligible household on Tribal lands). Experts estimate that nearly 40% of U.S. households are eligible for the program.

The Administration also commitments from 20 leading internet service providers to offer all ACP-eligible households high-speed, high-quality internet plans for no more than $30 per month. As a result, ACP-eligible households can receive internet access at no cost and can check their eligibility for free internet and sign up at GetInternet.gov.

In addition to requiring funding recipients to participate in the Affordable Connectivity Program, Treasury’s guidance requires recipients to consider whether the federally funded networks will be affordable to the target markets in their service areas and encourages recipients to require that a federally funded project offer at least one low-cost option at speeds that are sufficient for a household with multiple users.

The following descriptions summarize the six state plans that Treasury approved today:

  • Florida is approved for $248 million for broadband infrastructure, which the state estimates will connect 48,400 households and businesses – representing approximately 10% of locations still lacking high-speed internet access. Florida’s award will fund Florida’s Broadband Infrastructure Program (BIP), a competitive grant program designed to expand last mile broadband access to homes and businesses in rural areas of the state. Funding from CPF will help Florida continue to prioritize fiber-optic networks and projects proposing affordable service. The BIP is designed to provide internet service with speeds of 100 * 100 Mbps symmetrical to households and businesses upon project completion. Florida submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
  • Georgia is approved to receive $250 million for broadband infrastructure, which the state estimates will connect 70,000 households and businesses – representing 15% of locations still lacking high-speed internet access. Georgia’s award will fund the Georgia Capital Projects Fund grant program, a competitive grant program that is designed to fund broadband infrastructure projects that provide service to areas identified by the state to currently lack access to reliable broadband that can meet or exceed 25 * 3 Mbps, and that adopt practices that support both efficient broadband expansion and community engagement. The Georgia Capital Projects Fund is designed to provide internet service with speeds of 100* 100 Mbps symmetrical to households and businesses upon project completion. Georgia submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
  • Iowa is approved for $152.2 million for broadband infrastructure, which the state estimates will connect 18,972 households and businesses – representing approximately 16% of locations still lacking high-speed internet access. Iowa’s award will fund the Empower Rural Iowa Broadband Program, a competitive grant program designed to address inequities in access to broadband throughout the state of Iowa. Using a three-step process, the program combines mapping data, input from communities, and applications from service providers. Funding from CPF will help Iowa bring broadband service to areas identified having a critical need for broadband. Empower Rural Iowa Broadband Program is designed to provide internet service with speeds of 100 * 100 Mbps symmetrical to households and businesses upon project completion. The plan submitted to Treasury and being approved today represents 100% of the state’s total allocation under the CPF program.
  • Minnesota is approved for $44 million for broadband infrastructure. Minnesota’s award will fund two additional broadband infrastructure programs: Minnesota’s Line Extension Program, a competitive grant program designed to address the needs of individuals who are located near infrastructure for high-quality broadband service but where the cost of the last mile connection is a barrier; and the Low-Density Pilot Program, a competitive grant program that provides financial resources for new and existing providers to invest in building broadband infrastructure in low-density areas of the state that currently lack high-speed internet. Funding from CPF will help Minnesota continue its efforts to provide reliable internet access to predominately rural locations previously facing cost barriers. Both programs are designed to provide internet service with speeds of 100 * 100 Mbps symmetrical to households and businesses upon project completion. Minnesota submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
  • Missouri is approved for $196.7 million for broadband infrastructure, which the state estimates will connect 37,979 households and businesses – representing approximately 8% of locations still lacking high-speed internet access. Missouri’s award will fund the Missouri Broadband Infrastructure Grant Program, a competitive grant program designed to fund broadband infrastructure projects in areas that currently lack access to high-speed, reliable broadband. Funding from CPF will help Missouri bring service to areas where broadband infrastructure projects would not be feasible without assistance. The Missouri Broadband Infrastructure Grant Program is designed to provide internet service with speeds of 100 * 100 Mbps symmetrical to households and businesses upon project completion. The plan submitted to Treasury and being approved today represents 100% of the state’s total allocation under the CPF program.
  • Utah is approved for $10 million for broadband infrastructure, which the state estimates will connect 3,080 households and businesses – representing approximately 5% of locations still lacking high-speed internet access. Utah’s award will fund the Broadband Infrastructure Gap Networks Grant Program (Gap Networks Grant Program), a competitive grant program designed to address gaps in broadband infrastructure where reliable broadband service is currently unavailable. Funding from CPF will help Utah continue its efforts to bridge the state’s remaining digital divide. The Gap Networks Grant Program is designed to provide internet service with speeds of 100 * 100 Mbps symmetrical to households and businesses upon project completion. Utah submitted plans for the remainder of their CPF funds and these plans are currently under review by Treasury.
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Funding

Florida, Mississippi, S.D. and Utah Awarded Broadband Planning Grants

‘This award will provide access to those communities who have for too long went without affordable internet connectivity.’

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Photo of Rep. Bennie Thompson, D-Miss,  by Andrew Harnick

WASHINGTON, November 29, 2022 – The National Telecommunications and Information Administration of the U.S. Commerce Department announced Tuesday that Florida, Mississippi, South Dakota and Utah were awarded their first broadband planning grants under the Infrastructure Investment and Jobs Act.

Florida was awarded $7.4 million, Mississippi with $5.8 million, South Dakota with $3.1 million and Utah with $5.6 million.

“I take great pride in knowing that this award will provide access to those communities who have for too long went without affordable internet connectivity, ” said Mississippi’s Rep. Bennie Thompson.

This is part of the Broadband, Equity, Access and Deployment program and Digital Equity Act program of IIJA with the goal to deploy high-speed internet service networks and develop digital skills training programs.

$65 billion will be invested into expanding affordable high-speed broadband under the infrastructure law.

NTIA launched high-speed internet grant programs to build high-speed internet infrastructure across the country, create low-cost internet service options and address digital equity. The grants for 56 eligible entities are expected to be announced on a rolling basis.

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Funding

Small ISPs Face Economic, Incumbent Bundling Headwinds: CoBank Economist

CoBank also mentions that Space X and T-Mobile will begin testing a satellite service by the end of 2023.

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Drew Clark, CoBank's Jeff Johnston, Capital Partners' Angelo Lacroix and Andrew Semenak of Pinpoint Capital Management

WASHINGTON, November 29, 2022 — An economist at a bank that provides loans for rural infrastructure projects said this month on a Broadband Breakfast Live Online event that smaller internet service providers are likely to face challenges on two fronts in the near future: getting financing for fiber projects in a down economy and from the service-bundling prowess of the larger national players.

With economic weakness forecast in the next 12 to18 months, banks will become more hesitant to lend, said Jeff Johnston, lead economist at CoBank, a $170 million cooperative bank that provides lending and private equity services for rural infrastructure projects by smaller providers. That’s despite an unprecedented amount of federal funding, including $42.5 billion from the Infrastructure, Investment and Jobs Act still to come.

Johnston also warned about larger providers taking up market share in certain regions from the smaller providers because they can bundle services. In a fourth quarter financial report in October 2022, Johnston warned local broadband fixed-wireless providers that incumbents like Verizon and T-Mobile are ramping up smartphone bundle deals with wireless services as a strategy to pry consumers away from smaller providers.

Drew Clark, CoBank’s Jeff Johnston, Capital Partners’ Angelo Lacroix and Andrew Semenak of Pinpoint Capital Management

“Broadband operators located in smaller and/or rural cities could face competitive threats if the national operators decide to target these markets,” the report said. “Their fixed wireless market strategy is largely a function of where they have excess capacity in their networks. We do not see standalone fixed wireless operators as much of a threat to fixed line broadband operators as they don’t have a smartphone bundle to offer, which dilutes their value proposition in markets where fixed line broadband already exists.”

Angelo Lacroix, investment director at Capital Partners, added that “we’re not so concerned about customers falling away because they cannot pay the bills; it’s more about losing customers to competitors.”

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, November 16, 2022, 12 Noon ET – How to Value Your Fiber Company

The United States is currently in the midst of what can only be described as a fiber boom. Wireless and 5G technologies aren’t going away, but stringing fiber deeper into neighborhoods is necessary. And because of this understanding, fiber businesses can become very valuable. In this special session of Broadband Breakfast Live Online, we’ll explore the important question of how to value your fiber business.

Panelists:

  • Andrew Semenak, Managing Director, Pinpoint Capital Advisors
  • Angelo Lacroix, Investment Director, DIF Capital Partners
  • Jeff Johnston, Lead Communications Economist, CoBank
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Andrew Semenak has over 20 years experience in corporate finance and investment banking with large global firms. He is the founding partner of Pinpoint Capital Advisors and has advised on numerous domestic and international capital raisings and mergers and acquisition transactions. Andrew’s relationships span leading small and mid market companies, private equity and infrastructure funds, pension plans, sovereign wealth funds, family offices, endowments and insurance companies.

Angelo Lacroix is an Investment Director covering core plus and value add infrastructure investments in North America for DIF Capital Partners with a strong emphasis on digital investments like fiber and data centers. DIF Capital Partners is a leading midmarket private equity infrastructure investor with over 14bn of assets under management. Angelo is a CFA Charterholder with over a decade of transaction experience and has previous global work experience at KPMG Corporate Finance as well as Macquarie Capital.

Jeff Johnston has over 25 years of telecom experience that includes 11 years as a Wall Street analyst covering tech media and telecom, and 13 years of product management and business development experience for telecom operators. He is currently a lead communications economist in the Knowledge Exchange research division for CoBank, a $160 billion commercial bank that finances rural infrastructure (communications, power and energy) and agriculture.

Drew Clark (moderator) is CEO of Breakfast Media LLC, the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Under the American Recovery and Reinvestment Act of 2009, he served as head of the State Broadband Initiative in Illinois. Now, in light of the 2021 Infrastructure Investment and Jobs Act, attorney Clark helps fiber-based and wireless clients secure funding, identify markets, broker infrastructure and operate in the public right of way.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

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