Municipal Networks

The Federal Communications Commission recently voted to subject the Internet, once again, to legacy public utility telecommunications regulation originally designed for the old Ma Bell monopoly. While the FCC’s new rules do not push so far as to regulate retail rates (though they do regulate wholesale termination rates), the FCC’s rules open the door to potential retail rate regulation of broadband services by the states.

Affordable Connectivity Program (ACP) broadband benefits are set to halt at the end of May, leaving millions of families with a difficult choice to make. For the sake of 60 million Americans who depend on ACP, the program must be renewed.

Minnesota eliminated two laws that made it harder for cities and towns to build their own broadband networks. The state-imposed restrictions were repealed in an omnibus commerce policy bill signed on May 21 by Gov Tim Walz (D-MN). Minnesota was previously one of about 20 states that imposed significant restrictions on municipal broadband.

Town by town, Vermont is getting connected thanks to communication union districts (CUDs) rolling out fiber cable. The Vermont Community Broadband Board says the work of the CUDs is moving the needle, with the vast majority of Vermonters getting access to fiber connection, something they say is a change from a year-and-a-half ago. Davis Brakeley calls his experience of trying to surf the web just over a year ago “the dark ages.” Brakeley is on the board of trustees of the Shard Villa Residential Care Home in Salisbury.

Cities and towns that build their own broadband networks often say they only considered the do-it-yourself option because private Internet service providers didn't meet their communities' needs.  Hundreds of municipal broadband networks have been built around the US as a result, including dozens that have started operating since 2021. The rise of public broadband hasn't happened without a fight, though.

The 2021 Infrastructure Investment and Jobs Act (IIJA) provides $42.45 billion in grant funding to states via the Broadband Equity Access and Deployment Program (BEAD). IIJA also underscores that any state receiving these funds may not exclude local governments from applying to use these funds to build their own broadband networks.

Treasury Secretary Janet Yellen visited a recently completed Comcast rural broadband project in Stafford County, Virginia, highlighting that this is a public-private project between Comcast and the county. The giant cable company is involved in public-private partnerships across its national footprint. For years cable operators such as Comcast, Charter and Cox have fought hard against municipal broadband projects, always crying that it’s wrong for taxpayer dollars to compete against their private investments.

Engagement is key with any successful public broadband network hoping to get off the ground, according to Chris Walker, the senior executive director of Infrastructure Strategy Noa Net, a non-profit public broadband organization owned by public utilities that operates in the Pacific Northwest. Kerem Durdag, the CEO of Maine-based Great Works Internet, said providers need to realize it’s alright to make money, but it’s also alright to have a social contract defining how a given project will benefit the community.

Popular narratives characterising neoliberal economic orthodoxy hold that all forms of government intervention are counter-productive to free markets.  Conservatives who claim to embody such liberalism often trace opposition to government interventions to two founding Chicago School economists, Friedrich August von Hayek and Milton Friedman.

A blueprint for cities and counties to expand Internet access by leveraging a municipally-enabled, middle-mile fiber backbone without bearing the full burden of infrastructure costs. The approach could help bridge the persistent digital divide affecting numerous communities nationwide. Drawing on case studies from Fort Worth and Lake Cities (TX), and Joplin (MO) Middle Mile as a Catalyst highlights the efficacy of following this approach.