Vermont Takes a Regional Approach to Rural Broadband Expansion

The economics of rural broadband are challenging for private internet service providers (ISPs) and governments alike. The small populations spread out over large geographic areas make installing infrastructure extremely expensive and offer a limited customer base to offset the costs. As states work to connect these high-cost areas to broadband, they are increasingly turning to a partnership model, often called a regional utility district, as a potential solution. These partnerships involve multiple towns or municipal entities joining together to form a new local government entity for the provision of utility services. Although using regional utility districts for broadband is a relatively new model, in some states, including Vermont, this strategy already has a long history of delivering other essential services, such as water and sewer, to rural communities. In 2015, after a local initiative demonstrated that the model could also work for high-speed internet in the state, the Vermont General Assembly passed legislation allowing towns and cities to collaborate and form communications union districts (CUDs) to provide broadband service. In the years since, CUDs have become a central component of Vermont’s efforts to close the digital divide.