A Community Approach to Broadband in Vermont: CUDs

In Vermont, a thinly-populated rural state, private providers have often shown little interest in investing in broadband improvements. But innovative business and financial structures called Communications Union Districts (CUDs) have been successful in bringing broadband to Vermonters, according to a report by The Benton Institute for Broadband & Society. CUDs are simple in concept: Two or more local governments join to build and market telecommunications infrastructure. They can be likened to water and sewage districts that create better financial conditions by aggregating demand over a broader area. Since they own or oversee the infrastructure, CUDs have longer return-on-investment timelines and are more attractive to investors. Now, there are 10 CUDs in various stages of operation. They serve 216 of the state’s 252 municipalities (76% of the state’s population) and 93% of the residences that were unserved by adequate broadband in 2023.