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February 10, 2023
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Communities pursue options in face of broadband setbacks
by Lora Whelan

 

      A number of municipalities in Washington County have been taking matters into their own hands when it comes to envisioning broadband service to meet their needs in an affordable and reliable manner that also provides high and symmetrical upload and download speeds. Charlotte, Eastport, Perry, Pleasant Point and Lubec are just a few of the communities that have been working towards the goal. Fiber-optic cable is usually the material of choice over traditional cable, with communities eyeing the Downeast Broadband Utility (DBU) model as one option to research, emulate or partner with.
      Fiber broadband offers many benefits over traditional cable with wider bandwidth, faster speeds that can travel farther and more durability, with the added benefit of not being affected by moisture and temperature fluctuations. However, a federal grant award program, the Rural Digital Opportunity Fund (RDOF), has been causing heartburn in some communities during the planning process, creating a "Swiss cheese" effect in how communities can and cannot apply for federal funds in the grant applications through the Maine Connectivity Authority (MCA).
      RDOF is awarded by the Federal Communications Commission (FCC) to telecommunications companies, such as Consolidated Communications, with millions of dollars set aside for those companies to build broadband service in specific census blocks of unserved areas. The census blocks can take up a tiny portion of a community, such as in Lubec, or can take over half of a community, such as in Charlotte. Once a census block has been put into an RDOF award, no other federal funds can be used for broadband purposes in that tract, meaning that if a community wants to build a network that includes the census block, finding the funds to do so is almost impossible.
      Many of the communities working on broadband expansion planning and grant applications fall within the FCC's definition of unserved and underserved communities. Unserved is defined as when less than 80% of the population has no access to broadband or no access to "reliable" broadband, which it defines as speeds of less than 25 Mbps download and 3 Mbps upload. Underserved is defined as areas that have at least 80% of the population with access to speeds not less than 100 Mbps download and 20 Mbps upload.

Charlotte hits funding brick wall
      The Town of Charlotte is one community that has spent the last two years working on a broadband plan, only to find right before they submitted their application to the MCA that the town would not qualify for MCA grant funds because RDOF funding was awarded to Consolidated Communications in the late fall of 2020. The town had not been aware of the RDOF award or its funding stipulation, a plight that may be shared by some other communities.
      Amy McDonald, chair of the Charlotte Broadband Committee, explains that the committee had been working with Pioneer Broadband for research and planning. "They were all over it until they became aware of the RDOF award. And then they said that basically, 'You've been given away.'" Consolidated had been given a census block of 57% of the population, which then made it impossible for the town to apply for other federal grant funds to build-out its own network because the census block is such a large percentage of the total population. "Nowhere was this information in the application materials," she notes.
      These RDOF "carve-outs" of a municipality can mean that a town such as Charlotte is hamstrung while it waits to see when and if the RDOF awardee implements build-out. McDonald says, "We tried to reach out to Consolidated to ask, 'What's the plan?'" Consolidated was awarded many census blocks in the state, and the RDOF completion timeline requirements have a percentage rate that lumps in all the blocks. They need to have 40% completed by the third year, she explains, but that means within the state, not a specific census block, with a timeline process that includes an extension in the eighth year. McDonald says, "Consolidated has told us that it will build out in the more populated areas first."
      Nicole Elton, senior manager of public relations and media at Consolidated Communications, says that the company will be building a gigabit-capable fiber network to service census blocks in Charlotte and Lubec. "We are currently in the planning phases for these builds. The program's build timeline extends to 2027, though we will be building before that deadline. We will connect with town leadership as we finalize our build plans and timelines."
      MCA President Andrew Butcher explains that RDOF funding constraints are out of MCA control. While MCA works with federal funds for broadband expansion as well as with communities and companies large and small, the RDOF regulatory framework created at the federal level cannot be changed. He adds that there is well-documented concern about RDOF problems similar to Charlotte's. "I was on the phone with counterparts across the country with the same issue of the 'Swiss cheese' effect."
      In terms of the RDOF timeline rules, while there is much interest in having them changed, "that ship has sailed," Butcher says. He explains that the rules were made in the prior federal administration. "RDOF represents many of the constraints we have to work with."

Sipayik, Eastport and Perry navigate options
      “Not long ago no one thought there would be multiple avenues to broadband," says Chris Waite, the Wabanaki Nation/Four Directions Development tribal broadband consultant who has been working with the Passamaquoddy Tribe at Sipayik on broadband planning. The challenges communities are having with RDOF show just how fast innovations have moved along, he says. "At the national level, all point to how well Maine is moving along efforts and is at the forefront." Of the tribe's broadband access, Waite says, "Like a lot of communities in Maine, they may have access to broadband, but they do not have access to the next generation of broadband that is necessary. The need is there."
      The planning and application process is a moving target, he explains, and to be ready there have to be planning and feasibility studies conducted. The process is a long haul, he cautions, and while it's easy to get excited about the possibilities, it's important to take a "nice, steady approach." RDOF is not an issue for Sipayik, he adds.
      The Eastport Fiber Committee has been working on broadband planning since last summer and has checked with MCA to make sure that the community falls in the unserved/underserved category and does not have RDOF awards. Committee member Ken Burke notes that misinformation about broadband expansion has surprised committee members as well as Sunrise County Economic Council's Elaine Abbott, who works with communities on broadband planning. Abbott says, "There's a misconception that wires would have to be torn down" if a new provider builds a network in the island city. She explains that would not happen, but rather it would only add another option. When she first moved to Eastport, Verizon was the lone provider of DSL service. She points out that they did not have to tear down their lines when Spectrum came through. "If a third provider came in, then fiber would be run along all the same lines."
      The Eastport committee has its work cut out for it to meet grant deadlines in a few months, including wrapping up surveys of residents about their IT use, needs and satisfaction levels. Funding models need to be decided and accepted by the council, with Pioneer Broadband having created preliminary models, with about $2 million in total costs, 75% of it tapping into grants and 25%, or about $500,000, raised without taxpayer contribution, either through a bond, a loan or a line of credit, with payback of the loaned funds made through monthly subscription fees. The model is similar to the Downeast Broadband Utility, which has been running successfully for a number of years now, initially serving Calais and Baileyville, but expanding incrementally to other communities.
      The Town of Perry started the research process in mid-December. Raymond Guilmette, chair of the Perry High-Speed Broadband Committee, notes that the main challenge is playing catch-up with Eastport and Pleasant Point's planning timeline. "Our desire is to write grants at the next grant cycle in the spring." While it's likely that each community will write its own grants, "We're all on the same line, so each helps the other." He explains, "If we all decide that fiber is the way to go, all the way to each house, that's not a technology that is going to be obsolete." A key part of the committee's work will be to talk to all the different vendors that could provide service, a task Eastport has been doing as well. "We'll talk to our colleagues in Eastport and Pleasant Point" about the different kinds of grant funding and loan structures that could be used to create the network.
      Taking a different approach, in 2021 Robbinston selectmen entered into an agreement with Spectrum to provide broadband Internet to the town's residents rather than pursuing an arrangement with the growing DBU. At the time Robbinston First Selectman Tom Moholland said, "Spectrum seemed like the best fit for us." No formal vote was held for the decision, Moholland explains, as DBU did not submit a proposal to be voted on. The agreement was signed at a selectmen's meeting, and Moholland says town officials inquired "on more than one occasion" with other companies, but "the level of interest just didn't seem to be there. Spectrum, however, seemed very interested in working with Robbinston." Moholland says there is no special contract for rates in Robbinston with Spectrum and that "residents will pay whatever the regional rates are that Spectrum charges other customers in our area."

Lubec regroups after grant denial
      “Lubec has significant unserved and underserved areas, but it also has significant served areas by cable," says Axiom Technologies President Mark Ouellette. Axiom worked with the town and the broadband subcommittee of the Lubec Economic Development Committee on a broadband expansion grant application to MCA. The grant was turned down. "It was a really competitive grant round that met a diversity of funding criteria," explains MCA's Butcher. Lubec's application "just wasn't in the top tier of proposals." There were 29 applications, of which 12 were accepted.
      Broadband subcommittee Chair Martha Howell admits that the initial reaction was one of frustration and some anger. "We worked so hard," she says. "But it was very clear there wasn't enough money to go around. Somewhere somebody had to make the cut." She does think that Lubec's RDOF census block of about 100 homes was a factor. Next steps haven't been finalized, but she and others will attend MCA planning sessions over the next few months to understand the next round of grants and any changes to criteria.
      Butcher says that he has a lot of gratitude for the work on broadband that is happening in Washington County. "Downeast Broadband and Pioneer Broadband have been doing incredible work. We often look to Washington County for community-driven, regional scale models."
      He acknowledges "the concern [about RDOF challenges] and that people are frustrated because they care and have been volunteering their time. The constraints are out of our control, so we commiserate. But it's important not to lose hope."

 

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