We’ve mentioned a few times that there are more than $42 billion in broadband subsides about to drop in the laps of state leaders thanks to the 2021 infrastructure bill. Since the bill gives individual states leeway on how this money is spent, a lot of states (like Pennsylvania) are simply throwing the money in the laps of giant telecom monopolies with long histories of subsidy fraud and abuse.
Some states, like California and New York, are, thankfully, doing things a little differently. Hopefully.
California, for example, is spending $3 billion of its funding on a massive open access “middle mile” network that should drive down access costs and boost competition. There’s been some consternation as to how transparently and inclusively California leaders are doing this, but it’s a strong idea.
New York, meanwhile, is directing a lot of its COVID relief and infrastructure bill funding to community owned and operated broadband networks, which saw a massive surge in popularity during the home education broadband headaches during COVID lockdowns. Said lockdowns illustrated that broadband is an essential utility, and that widespread monopolization has clearly led to market failure.
New York just announced that $70 million of a broader $228 million program will be headed to community-owned broadband networks. Like the one being built in Dryden, New York, which is offering locals previously stuck under a Charter cable broadband monopoly symmetrical 400 Mbps, 700 Mbps, and 1 Gbps connections for $45, $75, and $90 a month, respectively.
According to a New York state announcement, many of these areas will be getting affordable fiber broadband for the first time ever:
“These awards through the Municipal Infrastructure Grant Program will connect tens of thousands of homes and businesses across Upstate New York and deliver reliable high-speed internet service to areas of the state that are unserved and underserved while addressing ConnectALL’s mandate to develop a robust, equitable broadband marketplace across New York State.”
A good chunk of the funding is being spent on “open access” fiber networks, which effectively provide multiple providers — municipally owned or private –the low cost ability to provide service. That boosts competition, and in most places where it’s implemented, results in cheaper, better service (I wrote a report on this phenomenon for the Copia Institute last year in case you missed it).
Contrary to what big telecom and its assorted mouthpieces like to claim, community broadband is an organic, grass roots response to monopoly power and market failure, and sees broad, bipartisan support. Which is why telecom giants like AT&T and Comcast tried to have House Republicans impose a national ban in the middle of a national health emergency that was busy highlighting its importance.
Community broadband isn’t magic. It needs to be implemented and funded intelligently. It can take on many forms, from an extension of your local power utility or a cooperative, to a municipally owned network or a hybrid public-private partnership. These creative, popular, local solutions are again a direct result of decades of apathy by regional telecom monopolies that have lobbied many leaders into apathy.
