Municipal Networks

The Consolidated Appropriations Act of 2021 and the American Rescue Plan (ARP) Act offer billions of broadband-related dollars to reduce consumer prices, build out network infrastructure, and fund digital skills programming. How should state and local leaders balance it all? We recommend a two-phase strategy.

Under the surface of Washington’s negotiations over infrastructure – and buried in jargon like "municipal networks" and "overbuilding" – is a debate about how Americans may get their internet in the years ahead. Will your broadband bill come from a purely private company or will it be more like a public utility? The Biden administration wants to at least nudge the country toward the latter. The effort is being led by Vice President Kamala Harris and one aspect of the administration's plan would encourage government-owned broadband networks.

Rep Anna Eshoo (D-CA), Rep Jared Golden (D-ME) and Sen Cory Booker (D-NJ) announced that 45 groups representing consumers, civil rights, industry, municipalities, and utilities are supporting the Community Broadband Act, legislation that will empower local communities to ensure their residents have broadband access by removing roadblocks for public-private partnerships and locally-owned broadband systems.

Sens Maggie Hassan (D-NH) and Shelley Moore Capito (R-WV) reintroduced bipartisan legislation to help states, cities, and towns spur investment in rural broadband projects. The bipartisan Rural Broadband Financing Flexibility Act would allow state and local governments to issue tax-exempt bonds to finance rural broadband projects, including public private partnerships, as well as allow the federal government to assist state and local governments in bond payments. In addition, it would create a federal tax credit that states and localities could direct toward rural broadband projects.

Jackson County Kentucky has one stop light in its 347 square miles—but also high-speed fiber optic internet service to rival any big city. In the coal country of eastern Kentucky, the 800-person town of McKee is the hub of a one-thousand-mile fiber-to-the-home network covering two of the nation’s poorest and most remote counties. The fiber link was built almost entirely with dollars from the federal government. It is a powerful example of the infrastructure of the 21st century and the importance of extending those connections to all Americans.

On May 13, Gov Jay Inslee (D-WA) signed the Public Broadband Act (H.B. 1336), removing all restrictions on public broadband in the state of Washington, according to the bill’s primary sponsor, WA State Rep Drew Hansen (D-23). This critical leap forward in Washington drops the number of states with laws restricting community broadband to 17. The bill grants public entities previously restricted by statute from offering retail telecommunications services the unrestricted authority to provide Internet services to end-users.

Mediacom Communications subsidiary MCC Iowa LLC filed a petition with the Federal Communications Commission seeking review of the rights-of-way management practices of the city of West Des Moines and what the company calls the city’s exclusive relationship with Google Fiber. It focuses on what MCC Iowa says is a $50 million taxpayer financed conduit network that the city is building for the exclusive use of Google Fiber.

Comcast, Charter, AT&T and their respective industry associations have spent years beating back municipal broadband networks in states across the country, lobbying for laws that prohibit such networks and arguing that government-funded broadband puts the thumb on the scale of competition.

Tired of waiting for connectivity solutions to come to town, one Minnesota community has instead partnered with a local telephone cooperative to build a fiber network reaching every home and business in the city. In embarking on its journey to improve local Internet access six years ago, Long Prairie (pop. 3,300) ended up partnering with one of the most aggressive fiber network builders in the state - Consolidated Telephone Company (CTC) - on a solution that meets local needs. The two finished a ubiquitous Fiber-to-the-Home build in 2018, with CTC now owning and operating the network. 

The House Commerce Committee's Subcommittee on Communications and Technology held a hearing on the disparities that exist in accessing affordable, reliable high-speed internet in the US. The panel heard from the National Urban League's Joi Chaney, Public Knowledge President Chris Lewis, Francella Ochillo of Next Century Cities, and George Ford, the chief economist at the Phoenix Center.