The 2021 American Rescue Plan Act (ARPA) continues to quietly help fund a number of extremely popular community-owned, open access fiber deployments that are challenging entrenched U.S. monopoly power, and driving super cheap, community-owned and operated fiber networks into long neglected towns.
New York State, for example, just leveraged ARPA funds to give a $26 million grant to Oswego County. Oswego County is going to use that money to build an open access fiber network. That means multiple ISPs can come in and compete over shared infrastructure owned by the county. Our Copia report showcased how this model can help disrupt monopoly power and lower broadband costs for users.
The anchor tenant on Oswego County’s new network, Empire Access, will provide locals with 500 Megabit per second (Mbps) service for $50 a month; symmetrical 1 gigabit per second (Gbps) service for $65 a month; and symmetrical 2 Gbps service for $100 a month.
That’s not great news for regional New York State monopolies Charter and Verizon, who’ve grown fat and comfortable charging much higher prices for much slower access. The lack of real competition between the two giants for decades has resulted in high prices, slow speeds, spotty coverage, inconsistent upgrades, repair delays, and substandard customer service.
Charter, you might recall, was almost kicked out the state for lying to regulators about its merger with Time Warner Cable. Verizon similarly has long been under fire for cheaping out on uniform fiber upgrades despite untold millions in taxpayer subsidies.
Meanwhile in Minnesota, Carver County officials say they’ve also been leveraging ARPA funds to deploy affordable gigabit fiber to every county resident. Their model is slightly different: The city has used grant money to build dark fiber, which they then lease to a company called MetroNet as part of a public-private partnership. MetroNet is offering locals gigabit fiber for prices way less than regional monopolies:
“Metronet currently offers four tiers of service with varying promotions, which currently include symmetrical 150 megabit per second (Mbps) fiber for $35 a month; symmetrical 500 Mbps for $45 a month; symmetrical 1 gigabit per second (Gbps) for $50 a month; symmetrical 2 Gbps for $70 a month; and symmetrical 5 Gbps for $110 a month.”
Again, this kind of stuff doesn’t get much attention from a press that declares infrastructure too boring to cover. But this kind of stuff is quietly transformative all the same. It’s also not clear to me why Senate Democrats aren’t competently messaging the impact ARPA funds are having on affordable broadband. Or local community centers, local road improvements, or affordable housing.
Many states try to “address the digital divide” by throwing more and more money into the laps of giant regional telecom monopolies with a long history of subsidy abuse. Many other states are trying to “fix broadband access” by throwing money at Elon Musk’s Starlink, ignoring the LEO satellite platform’s capacity constraints, high prices, erratic leadership, and problematic environmental impact.
But some states (most notably Vermont, Maine, California, and New York) are trying a different tack: they’re investing heavily in community-owned open access infrastructure, and treating broadband more like an essential utility (where maximizing shareholder profits isn’t the top priority). They’re leveraging an historic infusion of federal funds to put local communities in charge of their own connectivity fate.
Entrenched telecom monopolies, which have worked tirelessly over decades to dismantle broadband competition and state and federal oversight, have worked tirelessly to demonize and undermine community broadband access. But in a decade it should be interesting to see what the data says about the differing approaches.
Keep in mind that states are also poised to receive more than $42.5 billion in additional broadband grants courtesy of the 2021 infrastructure bill. That program has significantly more restrictions than ARPA, and there’s every indication that the Trump administration will do its best to redirect as much of that money as possible away from community owned endeavors and toward companies that kiss Trump’s ass.