Mountain Connect 2022 got a big kick off this morning in Keystone, Colorado with a Q&A discussion between National Telecommunications and Information Administration (NTIA) Assistant Secretary Alan Davidson and Broadband Breakfast CEO, Editor and Publisher Drew Clark.

Davidson provided a broad overview of the newly released Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program, which set the table for the multitude of break-out sessions that attracted a who’s who of broadband providers, vendors, policy-makers and vendors.

Under the BEAD program, each of the 50 states will be eligible to receive a minimum of $100 million to expand high-speed Internet access, though most states will receive hundreds of millions more as additional funding will be allocated to states based on a formula that takes into account how many unserved households are in each state.

Most States On Board for BEAD

Davidson said that 25 states have already submitted their Letter of Intent (LOI) to seek BEAD funding. In all, 35 states have indicated they will also participate in the program so far as NTIA works with the other 15 states and territories to encourage them to take advantage of the largest ever federal investment in broadband.

The window to request an unprecedented amount of federal funds to support state broadband grant programs is now open for business.

On Friday the 13th, the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) officially announced the Notice of Funding Opportunity (NOFO) for the $42.5 billion Broadband Equity Access & Deployment (BEAD) program.

The BEAD program, which is part of the Infrastructure Investment and Jobs Act (IIJA) that was passed in November 2021, represents the single largest federal investment in broadband expansion in U.S. history. The program, according to NTIA’s own definition, is designed to allocate the funds to all 50 states (U.S. territories and Tribal governments) to support “projects that help expand high-speed Internet access … (through) infrastructure deployment, mapping, and adoption. This includes planning and capacity-building in state offices. And it supports outreach and coordination with local communities.”

The Application Process Has Begun

We have documented and discussed the BEAD program on numerous occasions, which you can find here. But the big news that comes with the NOFO release are the application deadlines associated with it.

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States have until July 18 to submit their Letter of Intent (LOI), a required first step for states to receive a minimum of $100 million in BEAD funds. (States will be allocated additional funding based on a formula that takes into account how many unserved households are in each state).

Last week, the Golden State Connectivity Authority (GSCA) announced it has entered into formal partnership with the municipally owned open access network UTOPIA Fiber, for the Utah-based owner and provider to design, build, and operate a new open access fiber-to-the-home (FTTH) network across the 38 rural counties in the state of California. It's a move that not only offers the chance to bring future-proof connections to millions of rural California households in the near future, but have wide policy and industry implications for open access fiber networks down the road. 

Local Governments Band Together

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The Golden State Connectivity Authority is a joint powers authority (JPA) created by the Rural County Representatives of California (RCRC), which represents more than three dozen rural counties across the state. RCRC seeks to tackle the variety of shared problems that the state's rural communities face by advancing concrete policy solutions across transportation, energy, natural resources, governance, healthcare, and a collection of other arenas. 

Next Tuesday, from 10am to 2pm PST, the California Public Utilities Commission will be hosting its annual public workshop “to facilitate collaboration among regional consortia, stakeholders, local governments, existing facility-based broadband providers and consumers regarding cost-effective strategies to reach the broadband access goal.” 

The agenda will feature panels on state and federal funding, an introduction to the new California Advanced Services Fund infrastructure team to talk about mapping and the state’s line extension program, a presentation from Cruzio Internet on a pilot project it recently completed, and a conversation about rulemaking related to public housing, consortia, and broadband adoption. 

ILSR’s Christopher Mitchell is joining the panel at 10:25am PST on Funding Local Broadband Networks, along with representatives from Anza Electric Cooperative, Next Century Cities, and UC Davis.

See the full agenda and join info here. Find the presentations from the event after the fact here.

Jefferson County, Washington’s Public Utility District (PUD) is just the latest to take advantage of a flood of new grants — and recently-eliminated restrictions on community broadband — to expand access to affordable fiber across the state.  

Over the last few months, the PUD - situated northwest of Seattle, just across the Puget Sound - has been awarded more than $11 million in grants, including $1 million from the Washington State Public Works board, and another $9.7 million in Broadband Infrastructure Acceleration grants doled out by the Washington State Department of Commerce. The funds will help the PUD connect 2,600 homes in Gardiner, Quilcene, Cape George, Discovery Bay, and Marrowstone Island over the next two years.

Locally Operated Infrastructure, Affordable Prices, Fast Speeds

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Construction is expected to start later in 2022, with the first subscribers to come online sometime in the first half of 2023. A project breakdown says they hope to provide basic speeds of 100 Megabits per second (Mbps) for $65 a month, and speeds of 1 Gigabit per second (Gbps) for $90 a month. The network will be open access, which means that additional ISPs (including, presumably, those currently offering service on the existing network) will be able to continue into the expanded areas.The PUD plans to offer a low-income tier for $45/month ($15 after the Affordable Connectivity Program subsidy), which is welcome to see.

Buoyed by an explosion in new grants and the recent elimination of state restrictions on community broadband deployments, Washington State is awash in freshly-funded local broadband proposals that should go a long way toward shoring up affordable Internet access across the Pacific Northwest. 

In addition to Covid relief and various state grants, thirteen Washington State counties, ports and Tribal associations recently received $145 million in Broadband Infrastructure Acceleration grants aimed at boosting Internet access and affordability statewide. It’s the first tranche of $260 million planned for new infrastructure, and particularly exciting because it looks like nearly all of the funds went to community-led endeavors, with many of the newly built networks operated by local governments. Some projects will result in partnerships with locally rooted providers.

“Infrastructure is the foundation for digital equity,” Washington Commerce Director Lisa Brown said of the funding. “Washington state’s goal is to ensure all of our residents have access to affordable high-speed internet, as well as the devices, skills and confidence needed to connect with critical resources.”

State leaders say they received more than $413 million-worth of requests for 36 different projects, and have shared both a list and a map of all approved grants online. 

Essential Aid for Existing Projects

In this episode of the Connect This! Show, co-hosts Christopher and Travis Carter (USI Fiber) are joined by Peggy Schaffer (ConnectME) and Matt Schmit (Connect Illinois) for a closer look at state broadband offices.

The panel will dig into state grant opportunities, what broadband offices look for in partnerships, and how states are getting creative to support ISPs that connect underserved communities.

Subscribe to the show using this feed on YouTube Live or here on Facebook Live, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback and ideas for the show.

Watch here on YouTube Live, here on Facebook live, or below.

<p>The <a href="https://www.pewtrusts.org/en/">Pew Charitable Trusts </a>has begun publishing memos that will be useful for state broadband offices as they beef up staff to ensure state broadband grant funds are not wasted and track whether states are awarding grants to proposed projects in a way that advances various state’s goals in building a bridge across the digital divide.</p><p>One memo focuses on how allowing providers to object to applications can promote accountability. The second memo examines how state broadband offices can use scoring metrics to evaluate grant applications.</p><p><strong>The Challenge Process</strong></p><p>The first memo begins noting that by “providing a system for existing high-speed [I]nternet providers to raise concerns about grant applications, (it) can help state broadband offices ensure that public funds are not tapped multiple times for the same project or awarded to areas without sufficient need.”</p><p>That can be done through the “<a href="https://www.pewtrusts.org/-/media/assets/2022/01/broadband-grant-progra… process</a>,” which allows Internet Service Providers (ISPs) to challenge an application if the challenger can demonstrate that they already provide service in a grant application area, have started network construction in that area, or have plans to do so.</p><p>The memo boils down four summary points that are “key features from a variety of states.”</p><blockquote><p>• Challenge processes can be an important control to prevent public subsidies from being awarded to areas that are already receiving equivalent service or will receive equivalent service within a set period (e.g., 12 months).

Across the Commonwealth of Virginia, local governments, county broadband authorities, cooperatives, and private Internet Service Providers are leveraging the influx of American Rescue Plan funds to reach the state’s goal of achieving universal access to high-speed Internet connectivity by 2024.

With $850 million in state appropriations for broadband connectivity and $1.15 billion in local government and private service providers’ funding matches, the state is on track to invest $2 billion dollars toward broadband expansion in the coming years, and is currently investing in broadband expansion projects at record levels.

In August, Gov. Ralph Northam and the Virginia State Legislature agreed to devote $700 million of the state’s $4.3 billion in American Rescue Plan funds to expand access to broadband. The $850 million investment the state has announced will consist mostly of American Rescue Plan aid. The funds will be administered by the Virginia Telecommunication Initiative (VATI), which distributes grants to public-private partnerships to extend broadband service to unserved regions of the state, or areas that lack access to Internet service delivering connection speeds of at least 25/3 Megabits per second (Mbps).

Public-Private Partnerships Deep in the Heart of Virginia

From the marsh grasslands making up Virginia’s Eastern Shore, across the three peninsulas carved out by the Chesapeake Bay, all the way to the Shenandoah Valley in the West, a diverse array of regional partnerships have formed between Virginia’s local governments, electric and telephone cooperatives, and private ISPs as broadband expansion efforts continue to advance in 2022.

Cedar Falls Utilities is bringing 10 Gigabit per second (Gbps) Internet access to the last 700 residents in its electric service area. With the help of a $2.3 million state grant, Cedar Falls Utilities fiber ISP - CFU FiberNet - will be connecting rural residents to the west and north of Cedar Falls city limits. 

Up until this point, CFU FiberNet has offered rural residents in the utilities service area without a fiber connection a fixed wireless option called WaveNet Wireless with two speed options: 9/1 Megabits per second (Mbps) for $56/month and 18/2 Mbps for $75/month. We do not know if WaveNet Wireless will continue after the expansion into these rural areas is complete. 

The funds were awarded through the Empower Rural Iowa Broadband Grant Program which had nearly 180 applicants hoping for a grant from the $97.5 million pot of money. Ultimately, 38 projects were chosen. Winning bids aimed were aimed at two groups of households, with the requirement to deliver at least 100 Mbps symmetrical service to what we usually call “underserved” areas (where service is greater than 25/3Mbps but less than 100/100 Mbps), or 100/20 Mbps service in areas where broadband access is currently less than 25/3 Mbps. 

The challenge for these CFU electric subscribers to get onto the fiber network was the $7,500 cost of the drop; households in rural areas all around the country face a similar financial obstacle, even when excellent broadband service is nearby. With CFU contributing an additional $3 million to the effort (making the total project cost $5.3 million) these residents will no longer have the burden of making that hefty financial decision.