Local Governments Opening the Purse Strings. Local governments are listening to their constituents who are demanding broadband, and a surprising number of local communities are finding ways to help pay for broadband networks. In Minnesota alone there are a dozen counties that have agreed to make million dollar plus contributions to help fund local broadband efforts. These are de facto public-private partnerships with small telcos and rural cooperatives using that public funding to help bring broadband to rural areas.
Electric Cooperatives Have Awoken. All over the country we see electric cooperatives planning to bring broadband to their members. These cooperatives own electric grids in many of the same rural places that don’t have broadband. With existing pole lines and rights-of-way these cooperatives have a natural advantage for stringing fiber, particularly if they put the cabling into the electric space on poles and avoid costly make-ready. The coops also enjoy the natural advantage of being customer-owned and customer friendly, meaning that they are likely to see far higher penetration rates than an outside commercial operator building a broadband network.
We Finally Have the Next Big Product. I know numerous small ISPs who have seen instant success selling managed WiFi. I have clients that have achieved penetration rates north of 50% in just one year for the new product (and a few considerably higher than that). Bigger bandwidth requires an efficient and effective WiFi network and customers seem to be glad to have their ISP make this work for them.
Politicians Outside of Washington DC Get It. State legislatures all over the country are listening to constituents and are creating state broadband grant programs. Many of them are doing it the smart way and are mimicking successful grant programs like the one in Minnesota. The grant programs are coming from both red and blue states, demonstrating that broadband is not a partisan issue – almost all of rural America needs better broadband and state legislators are listening to their voters. Federal politics continue to be mired in partisan infighting and we probably won’t see anything out of them for the next few years.
FCC Holds out Possibility of New Spectrum. For the most part the FCC has been giving spectrum to the 5G industry and has not been creative in finding ways to also use spectrum to help solve the rural broadband gap. However, the FCC is looking at spectrum that would significantly benefit rural broadband. Of massive importance is the 6 GHz band being considered as the next swath of WiFi. This would double the amount of mid-range spectrum available for WiFi. The FCC is also considering other frequencies such as C-Band spectrum between 3.7GHz to 4.2 GHz. There are proposals in front of the agency to allow for 5G use in urban areas while allowing use for broadband in rural areas. The FCC may yet give this all to 5G carriers, but there are reasonable ways to share most bands of frequency to benefit both urban 5G and rural broadband.
Urban Broadband Speeds Improving. The big cable companies have unilaterally improved broadband speeds in urban areas, increasing the speed for their base products to between 100 Mbps and 200 Mbps. You might ask how this benefits rural ISPs. The increases in speed are in response to demands from customers, and the cable companies are redefining acceptable broadband – something the FCC is never going to be realistic about. These new urban speeds were easily predictable by anybody that understand that customer demand for broadband speed and total downloads has continued to double ever three years. Fast urban broadband resets the expectation for acceptable rural broadband.
The Big Telcos are Walking Away from Rural America. This has actually been quietly happening for decades as the big telcos have refused to invest in their rural networks. CenturyLink made it clear in 2018 that they are no longer interested in ‘infrastructure returns’ like what is earned on last-mile networks. They now join Verizon, which has been furiously selling rural properties and AT&T that keeps pestering the FCC to tear down rural copper. The door is open even wider for those ISPs that want to fill the broadband gaps.