Municipal broadband advocates in Ohio realized a major victory today when a bipartisan House and Senate conference committee released the final version of their state budget plan that added $250 million to expand broadband access in the Buckeye State and removed the anonymous budget amendment that would have effectively banned municipal broadband networks if passed into law.

According to The Columbus Dispatch, the two chambers are expected to approve the final budget tonight before sending it to Gov. Mike DeWine to be signed into law ahead of the July 1 deadline. 

The vote comes after local officials, community broadband advocates, and angry residents and businesses from across the state spoke out against the last minute municipal network-killing amendment attached to the state budget proposal. State lawmakers were deluged with a flurry of calls, emails, and letters after the budget amendment was revealed two weeks ago without public discussion or debate. 

“We had a real grassroots movement here in Fairlawn. We are thrilled our residents, subscribers and businesses came together and helped us defeat this amendment,” Fairlawn Service Director Ernie Staten told us immediately following the news. “We appreciate that the State of Ohio recognizes that municipal broadband has a place in this state and we hope to continue this great endeavor.”

Staten said when FairlawnGig sent out word to the community about the budget amendment, the response from Fairlawn subscribers was fast and furious. “Over 700 emails were sent by our subscribers saying, ‘Don’t take this (municipal broadband) away!’ I think that’s amazing,” he said.

Will Municipal Networks Be Able To Access New State Grant Money?

News outlets in Ohio have begun to pick up on something we first reported (here and here, thanks to our local allies), sounding the alarm on an Ohio Senate budget amendment that, if passed, would effectively kill municipal broadband networks and other publicly owned and operated broadband projects in the Buckeye State.

In the days following the unveiling of the budget amendment, the law firm IceMiller released an analysis of the overarching consequences if this language makes it into the final budget, outlining the problems not only for cities, but schools, port authorities, and intergovernmental agreements. The analysis suggests that not only would it discourage future investment, but also require many existing operations to cease altogether, to the detriment of Ohio residents and businesses.

‘Set Ohio Back Decades’

This past Sunday, the Akron Beacon Journal published a story on how the proposed amendment has Summit County officials concerned that it could put the region’s celebrated municipal network FairLawnGig out of business with Fairlawn Mayor William Roth saying the proposed legislation “would set Ohio back decades and make the state less attractive for businesses and economic development.”

The Beacon Journal goes on to report that both Mayor Roth and Summit County Executive Ilene Shapiro are reaching out to state lawmakers and the governor's office asking that the anti-municipal network language be removed from the proposed budget and are encouraging residents to register their opposition to the amendment with their legislators as well.

‘Vigorous’ Opposition From Local Community Advocates

The Ohio Senate attached an amendment to the state's budget bill last week which would place significant restrictions on the establishment of new community broadband solutions. It would also, if passed in its current form, place substantial barriers on the operation and expansion of existing municipal networks and other publicly owned and operated projects.

Cities across Ohio have expanded Internet infrastructure in thoughtful, forward-looking ways. These municipal networks have created local government savings, increased speeds, promoted service competition, and powered economic development.

 Some cities have specifically addressed the affordability gap in cities, where many residents have been left behind in a broken market where large Internet Service Providers (ISPs) have underbuilt networks, leaving hundreds of thousands of broadband-hungry Ohioans in the digital dust.

This fact sheet [pdf] outlines the many long-term benefits that municipal broadband projects have brought to the state. For instance:

Well, they did it. The Ohio Senate passed its two-year $75-billion budget bill yesterday, which included an amendment that effectively bans the creation of municipal broadband networks without much in the way of public debate.

If the amendment contained in the Senate’s budget survives the budget process, it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks.

The vote was along party lines, with 25 GOP State Senators voting in favor of the Senate budget bill and the chamber’s eight Democrats voting against it. With the House having passed its budget bill in April, now the two legislative bodies have until June 30 to negotiate the differences.

According to the Columbus Dispatch, the House and Senate budget bills agree on about 60 percent of what’s contained in the Senate spending proposal. Where the House and Senate disagree is on the size of a state income tax cut, school funding, access to subsidized childcare, and broadband.

Ohio on Cusp of Municipal Broadband Ban

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendment that saddles community-owned projects with an array of conditions designed to prevent, stifle, and discourage political subdivisions from building and operating networks that meet the connectivity challenges of its residents. It also takes aim at existing projects which enhance the resiliency of regional communications, telehealth, and public safety operations.

Among the most pernicious consequences would be that it only allows for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

The Ohio State Senate is set to vote today on the state budget bill that includes an amendment which, if signed into law, would be a major setback for municipal broadband projects in the Buckeye State and protect the big incumbent Internet Service Providers from competition. 

If passed and signed into law it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks. This is a surprising and disappointing move, especially for families who have spent the last year experiencing firsthand the poor Internet connectivity that comes with a broadband market dominated by monopoly providers with no incentive to put the interests of the public ahead of shareholder returns.

Erecting Barriers

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendement with an array of conditions designed to prevent, stifle, and discourage cities from following through with any plan for a city-run network to meet the connectivity challenges of its residents.

The first is a provision that would only allow for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

But a recent Ohio Broadband Strategy report released in 2019 under the direction of Ohio Lt. Gov. Jon Husted pegged the number of Ohioans without access to broadband at just around 1 million. According to the independent broadband tracking firm BroadbandNow, which ranks Ohio 24th in the nation on the broadband access scale, as of June 2021 there were 618,000 Ohio residents who did not have access to broadband with speeds of 25/3 or faster, which means that approximately 94 percent of Ohioans have access to wired broadband with speeds of 25/3 or faster. Restricting municipal networks to only those households with no service whatsoever would effectively preclude new networks in large parts of the state.

Since it was first introduced in Congress in March, the Community Broadband Act of 2021 has gained widespread support from over 45 organizations representing local governments, public utilities, racial equity groups, private industry, and citizen advocates. 

The legislation -- introduced by U.S. Representatives Anna Eshoo, Jared Golden, and U.S. Senator Cory Booker -- would authorize local communities to build and maintain their own Internet infrastructure by prohibiting laws in 17 states that ban or limit the ability of state, regional, and local governments to build broadband networks and provide Internet services. 

The Act also overturns state laws that restrict electric cooperatives' ability to provide Internet services, as well as laws that restrain public agencies from entering into public-private partnerships.

States have started to remove some long-standing barriers to public broadband on their own. In the last year, state lawmakers in both Arkansas and Washington removed significant barriers to municipal broadband networks, as high-quality Internet with upload speeds sufficient for remote work, distance learning, telehealth, and other online civic and cultural engagement has become essential. 

Community broadband networks offer a path to connect the unconnected to next-generation networks. State barriers have contributed to the lack of competition in the broadband market and most communities will not soon gain access without public investments or, at the very least, the plausible threat of community broadband.

The Many Benefits of Publicly-Owned Networks

The Atlantic Telephone Membership Corporation (ATMC) is expanding gigabit fiber Internet access with financial assistance from federal and state grants to provide high-speed broadband to residents living in some of North Carolina's most rural, poverty-stricken regions.

A $7.9 million federal allotment from the USDA’s ReConnect Program, to which the North Carolina-based telephone cooperative is contributing matching funds, has kickstarted a $15.87 million Fiber-to-the-Home (FTTH) broadband deployment project in one of the Coastal Plains’ southernmost counties.

ATMC recently completed construction of the first four phases of its 60-phase “Faster Columbus” project, connecting residents living in the New Life community east of Tabor City to its gigabit fiber service. Upon completion of all 60 phases, the project will provide ATMC’s FOCUS Fiber Internet service to 2,775 unserved households in rural Columbus County. The completed project will also serve over 50 businesses, ten educational facilities, three critical community facilities, and 23 agricultural operations in the communities of Hallsboro, Lake Waccamaw, Bolton, north Tabor City and Whiteville.

The fiber Internet service ATMC is providing is expected to have a substantial impact on the region’s agriculture industry, one of the main sectors of the local economy. The FTTH service will also benefit the Waccamaw Siouan Indian Tribe, whose reservation is located on the edge of the Green Swamp. Speaking of the anticipated service, Brenda J. Moore, Housing Coordinator of the Waccamaw Siouan Indian Tribe said, "Finally our Tribal students can look forward to no more boot-legging of Wi-Fi in order to do their homework."

Snapshot

Nebraska Senate rejects amendment supporting municipal broadband in spending plan

Michigan Governor vetoes bill granting private ISPs property tax exemptions

Montana, Iowa and Maine channel Rescue Plan funds towards new broadband grant initiatives

The State Scene

Nebraska

The Nebraska Senate approved a plan to spend $40 million over the next two years on expanding rural access to high-speed Internet by a unanimous vote on Tuesday, but only after an amendment to L.B. 388 that would have allowed municipalities to offer retail broadband services was rejected.

State Sen. Justin Wayne introduced the amendment, saying that “broadband should be considered a critical infrastructure need and that private telecommunications companies have not stepped up to serve the whole state,” the Lincoln Journal Star reports.

Wayne urged Nebraska Senators “to look to Nebraska's history of public power as a model, as well as to the example of other states that are allowing cities to offer broadband.” The amendment ultimately failed by a vote of 20-24. Wayne assured fellow Senators that he will reintroduce the amendment in the future. 

The bill marked the first time the Nebraska Legislature has suggested using state tax dollars to fund broadband deployment. As it was submitted to Gov. Pete Ricketts for his signature, the bill would annually allocate, until funds run out, $20 million in grants to projects that increase access to high-speed broadband in unserved regions of Nebraska. It would prioritize projects in regions which lack access to Internet service with speeds of at least 25 Megabits per second (Mbps) download/3 Mbps upload. Grant recipients would be required to deploy networks capable of providing service of at least 100/100 Mbps within 18 months. 

Michigan

Schools offer not only education, but nourishment, a place to form friendships and bonds, and a way to make sure youth are safe. When the pandemic hit, schools had to transition to distance learning and, as a result, many students disappeared because their family didn’t have access to or couldn’t afford a home Internet connection. It became immediately clear, all over the country, that a lack of broadband access and broadband affordability were no longer issues that could be ignored. 

Many cities throughout the U.S. have been working over the last year to address this issue, but one city in particular - Columbus, Ohio - has been taking a holistic approach to broadband access. 

The Franklin County Digital Equity Coalition was borne out of the emergency needs presented by the pandemic, but has shaped up to be a good model for how to address the broadband issues facing urban communities across the country. 

After 11 months of meeting and planning, the coalition released a framework in March outlining its five pillars of focus: broadband affordability, device access, digital life skills and technical support, community response and collaboration, and advocacy for broadband funding and policy. 

The coalition also developed two pilot programs to increase broadband access. 

The first, which was a quickly deployed and desperately needed response to the lack of broadband access, was the Central Ohio Broadband Access Pilot Program. Launched in September 2020 in anticipation of the upcoming school year, it offered hotspot devices with unlimited data plans to central Ohio households with k-12 students. The program, while still growing, has been deployed with about 2,300 hotspots distributed so far with the help of PCs for People. 

The second (the City of Columbus and Smart Columbus Pilot Projects) uses the city’s existing fiber backbone to bring affordable Internet service to the Near East and South Side neighborhoods in Columbus.

Both pilot programs are the result of nearly 30 organizations coming together to get affordable access to some of the city and county’s most vulnerable populations.

There’s Power in Numbers