Broadband Communities

Continuation of the Affordable Connectivity Program (ACP) in some form seemed assured, and advocacy and industry groups support it, but opposition is growing. Opponents so far have been concentrating on the obvious:

Engineering work has begun on a fiber-optic network expansion planned for Springettesbury Township (PA), which will bring a future-proof fiber-optic network to over 7,500 homes and businesses in the community. Glo Fiber, which provides fiber-to-the-home broadband service, utilizes a 9,300-mile network owned and operated by Shentel, also known as the Shenandoah Telecommunications Company. Mark Hodgkinson, the manager of Springettsbury Township, said the township welcomes GloFiber’s services to the community. 

My answer to “who should build broadband networks” has always started with what should be obvious: Usually, the deployer with the lowest cost of capital. But technology and the $42.25 billion Broadband Equity, Access and Deployment (BEAD) Program and other funding mechanisms have warped the equation. What are your community’s options? What are the deployer options?

The Biden Administration recently announced the designation of 31 ‘tech hubs,’ areas intended to become hotbeds of innovation, across the United States. The more than two-dozen new tech hubs will ‘have the tools they need to compete on a global scale,’ including Economic Development Administration funding opportunities and access to a range of technical assistance from agencies such as the Department of Transportation, the Department of Agriculture, and the Small Business Administration. According to Eric Smith, the Tech Hubs Program Director at the Department of Commerce’s Economic Develop

During the height of the COVID-19 pandemic, the importance of broadband internet connectivity became glaringly obvious for many people. As offices, schools, and businesses closed and stayed shuttered for weeks and in some cases months, many people worked or learned remotely – and continue to do so. Now is a critical time to address the issue of community broadband deployment in New York – and at the same time, enable the transition to clean energy.

Low-income multifamily communities or those with a high percentage of unserved residents are now eligible to receive broadband deployment funding from Congress, and the National Telecommunications and Information Administration (NTIA) reaffirmed this eligibility.  Each state is now building out its programs and establishing criteria that build upon federal priorities and requirements. This is a critical next step in ensuring the total and efficient disbursement of these funds.

In 2023, broadband spending could taper off because of high-interest rates and economic challenges, but buildout expansions remain high. A few factors are driving this. Demand for household internet keeps growing. Leichtman Research Group (LRG) found that 90 percent of US households now get internet service, up from 84 percent in 2017.

It was worth the wait. The third round of the US Department of Agriculture's ReConnect Loan and Grant Program closed in 2022, after awarding $759 million in rural broadband grants and loans to 49 deployers, mostly small local exchange carriers (LECs). The average cost of passing each home, farm, other business, or school was just over $4,500, compared to $4,100 in 2019 and almost $6,000 in 2020. All awardees in this round, and almost all in previous rounds, told USDA they were deploying fiber to the premises.