There’s nearly a billion dollars en route to Colorado to fix internet service issues like slow speeds, affordability or the complete lack of service, especially in rural areas. But to streamline the process and speed up the distribution of funds, a few loose ends were just tied.
The passage of House Bill 1336 and House Bill 1234 seemed more like an administrative task to move more duties over to the Colorado Broadband Office, which was already tasked to handle those chores two years ago by Gov. Jared Polis. But they’re still pretty significant, said Brandy Reitter, the broadband office’s executive director.
“In the old model, we had different steps before the awards could go out. It would take nine to 12 months to get the dollars out the door,” Reitter said. “This makes some really significant improvements in how fast we can deliver broadband to the state.”
Through other departments, the state has for years offered grants to internet providers to help expand service from the big internet pipes crossing the nation to towns and municipalities (the middle mile) and to consumers (the last mile). The Colorado Broadband Office needed those changes codified to become the central source for federal broadband awards.
The impetus to streamline awards was the anticipation of billions of dollars from the infrastructure bill Congress passed in 2021. Last year, Colorado learned it will receive $826.5 million as part of the federal Broadband Equity, Access and Deployment Program, dubbed BEAD. So the state broadband office has been in the process of setting up how that money will be distributed to internet providers, middle-mile builders and municipalities.
One of those sources is the High Cost Support Mechanism, the 2.6% telecom fee that telephone customers pay to offset the cost of voice or internet service for low-income residents. The fees also fund internet service expansion in rural areas. The state’s Broadband Deployment Board reviews applicants twice a year and since 2016, has awarded more than $100 million to internet providers to expand broadband to 40,000 rural households.
As already planned, the 11-member board winds down in September, and the transfer of authority to the state broadband office is complete with the new laws.
“It allows for more funding for other types of projects, such as middle mile and all the other projects or elements of broadband connectivity that typically go under funded or unfunded,” Reitter said. “The governor’s executive order directs CBO to be the central source to meet the state’s universal coverage goal of 99%. This makes CBO the agency for that.”
Colorado households are currently 91.9% covered with broadband service, according to the state broadband office, or CBO.
Local internet providers hope the transition to the state broadband office will continue to seek input from the private sector, said Brian Shepherd, vice president of grant engagement for Visionary Broadband and a former executive at CBO. One of Visionary’s employees serves on the broadband board.
“As with major change, there’s pros and cons,” Shepherd said. “The new process will streamline decision making, but some transparency and critical industry input will be lost. The CBO has promised to include industry in the new process and we’re hopeful they will follow through on that commitment.”
CBO is setting up a new Grant Review Working Group to develop grant guidelines. The office will ask for folks to join the board and previous broadband board members can apply, Reitter said. Guidelines for applying for BEAD-related grants should be out later this summer.
➔ Related: Of $113.5 million awarded by CBO earlier this year as part of the federal broadband grant called the Capital Project Funds, there were challenges and remediations to some of the amounts that left $859,250 remaining. The program allowed existing awardees to apply for available funds. CBO announced Friday that Maverix Broadband and the Southern Colorado Economic Development District received the remainder. >> Award details (see Challenges)
More internet options for apartment, mobile home park residents
Apartment and mobile home residents could benefit from House Bill 1334, which prohibits property owners from refusing to give internet providers access to the property to install service. This happens when a building or property owner already has an existing internet provider and lucrative agreement. But it can also be based on the cost to owners.
The Apartment Association of Metro Denver testified against the bill, complaining that it could lead to anyone walking onto the property and adding “limitless wireless, limitless boxes, limitless poles, limitless towers … without any restrictions,” Drew Hamrick, the group’s general counsel, testified.
Mark Kurtz, with internet provider Elevate Fiber in Montrose, testified in support of the bill and spoke of how it took months of costly meetings between attorneys at the company and a local mobile home park owner for Elevate to provide service to a customer.
That’s been a challenge for ensuring clean drinking water, too, said Reitter, pointing to a bill that passed last year to address water quality testing in mobile home parks. Reitter calls it “artificial barriers” to broadband access if the building’s only option is slower than what the state considers adequate internet speeds of at least 100 mbps in download speeds and 20 mbps up.
“We think that the law expands access to affordable, reliable broadband internet service for some of the most vulnerable communities in Colorado and it’ll help us achieve our 99% goal,” she said.
➔ ONE MORE: Tax refund continues for broadband equipment. House Bill 1036 repealed several “infrequently used tax expenditures,” but it kept the sales and use tax refund for rural broadband equipment through Jan. 1, 2027. Reitter said few refunds are requested but as the state ramps up to award companies building rural infrastructure, “We didn’t want to lose this as a tool,” she said. In 2022, eight out of the nine providers that had installed broadband in rural areas said they didn’t even know about the exemptions. CBO began promoting the refund more last year and has seen increased interest, she said.
250,000 Colorado households lose broadband subsidy
The pandemic-inspired internet subsidy known as the Affordable Connectivity Program has ended. The last fully funded month was April, so some customers still had credit in May but will no longer see the ACP credit on their monthly bill in June.
More than 250,000 households in Colorado enrolled for the discount that offset monthly internet bills by up to $30 a month (and $75 for households on qualifying tribal lands). The state doesn’t have a direct replacement plan, said Reitter, with the state’s broadband office.
“We’re telling folks to use Lifeline if they qualify,” she said. “They will receive a monthly discount of $9.25 and up to $34.25 if they live on tribal lands.”
As the state prepares to offer grants to internet providers to get to 99% coverage, Reitter said that they plan to require internet companies to provide an affordable plan similar to ACP.
“Affordability is one of the key components of broadband adoption and we do have serious concerns about losing 250,000 households who were taking advantage of ACP,” she said. “That is just a huge, staggering number.”
Many internet providers have a lower-priced option available to low-income customers. Comcast’s Internet Essentials still starts at $9.95 per month for 50 mbps. Its $29.95 Internet Essentials Plus plan doubles the speed. Anyone who was eligible for ACP is eligible for Comcast’s subsidized internet, according to the company.
➔ Are you eligible for Lifeline discounts? If your income is 135% or less than federal poverty guidelines (see chart), you’re eligible for the $9.25 monthly subsidy to offset phone and internet costs. >> Find out
➔ Comcast adds lower-priced internet plans. The company launched its NOW plans in April for mobile and internet customers. The NOW Internet is $30 per month for 100 Mbps and $45 per month for 200 Mbps. The NOW Mobile plan provides unlimited 5G data for $25 a month. Neither plan is income restricted. >> Details
Sun economy stories you may have missed
➔ Eminent domain, used to seize land from private owners, has Palizzi Farm in Brighton fearing for its survival. Brighton’s Parkland Metropolitan District No. 1 to exercise eminent domain on a 2-acre strip of land that could ruin the historic farm. >> Read story
➔ Nearly two years since Colorado voters approved affordable housing measure, units are under construction in Denver. Construction of 102 apartments on West Colfax will begin next week. Proposition 123 was passed by Colorado voters in 2022. >> Read story
➔ New technology may help find missing people in Colorado’s backcountry within minutes. During a test mission in La Plata Canyon, search crews found the two people they were looking for within 2 minutes and 14 seconds >> Read story
➔ Colorado bonding authority set to buy, develop the fabled Stanley Hotel in Estes Park after new law. Legislation signed by Gov. Jared Polis approves the Colorado Educational and Cultural Facilities Authority’s first-ever plan to acquire the Stanley Hotel and develop a new film center onsite >> Read story
➔ How environmentalists are trying to force Colorado to get tough on factory farms. A journey through courts and bureaucracy tries to add water protections at big corporate farms >> Read story
➔ Colorado’s governor goes deep on geothermal energy grants to boost private renewables market. Colorado needs the new technology to fill in solar and wind gaps and round out its energy portfolio, governor says >> Read story
Other working bits
➔ Quantum companies eligible for $74 million in funding BUT… only if Colorado wins a federal grant. Colorado, designated an official U.S. Tech Hub for quantum computing last October, applied for up to $75 million from the Regional Technology and Innovation Program. It’s competing with 30 other hubs. No more than 10 are expected to get funding. State lawmakers passed House Bill 1325 to turn the federal money into income tax credits for:
In 10 years, Colorado’s quantum investment aims to generate $1 billion in economic activity and create more than 10,000 quantum-related jobs. That federal decision could come by early July, said Wendy Lea, who leads the state’s quantum consortium. >> Earlier story, view law
➔ 0% interest loans for living expenses during skilled-trades training. Many job training programs offer free or discounted tuition but what’s a student to do about paying rent? Enter Colorado Pay It Forward Fund, which offers zero-interest loans to trainees to pay living expenses while training for a new career. Pay It Forward, seeded with $8 million from five Colorado philanthropies, partnered with The Master’s Apprentice in Denver to offer $3,000 loans to students. They also provide a $600 living stipend and $250 to cover tools to train as a carpenter, electrician, plumber or other skilled trade. The Master’s Apprentice, which is tuition free, had 131 people graduate last year and expects 230 graduates this year. When loans are repaid, they fund future learners. >> Details
➔ Denver South region is hopping, new report says. A new report concluded that the area south of Denver along Interstate 25 has the “most successful business district outside of downtown in the Denver metropolitan area.” Not coincidentally, that benefits the group that funded the effort. Denver South is comprised of community and business leaders in Greenwood Village, Centennial, Lone Tree and adjacent counties. Highlights of the report: The region, with over 150,000 employees and 62 million square feet of commercial space, is projected to add another 50,000 jobs and 12 million square feet by 2042. Another 17,500 housing units are forecast to built over the next 18 years, at a rate of 900 per year for the next decade. >> Read report
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Tyler Fields is your internet guru, delving into the latest trends, developments, and issues shaping the online world. With a focus on internet culture, cybersecurity, and emerging technologies, Tyler keeps readers informed about the dynamic landscape of the internet and its impact on our digital lives.
