1. Massachusetts Broadband Institute Legislative Briefing 4/3/2019
Draft for Policy Discussion Only
Massachusetts Broadband Institute Legislative Briefing 4/3/2019

2. Draft for Policy Discussion Only
Issue Overview
The Last Mile: To support and co-invest in broadband solutions for 53 Massachusetts towns - 44 completely unserved, 9 underserved. Program includes direct grants to municipalities and grants to private broadband providers to cover towns.
Broadband: Federal definition is a speed of 25 megabits per second (Mbps) for downloads, 3 Mbps for uploads.
Challenge: Utilize state funds to support projects which deliver broadband access to premises in rural municipalities that have low population density and high road miles.
Goal: Expand connectivity to at least 96% of premises in each town.

3. Draft for Policy Discussion Only
Issue Overview
Funding Overview: Chapter 231 of the Acts of 2008 provided the initial authorization of $40M for the MBI Fund; These funds together with Federal funds built the MBI 123 Middle Mile serving 123 communities and Critical Anchor Institutions in MA.
$50M in additional State funds were authorized under Chapter 257 of the Acts of 2014;
A third authorization of $45M ($13M for MBI and a separate $32M directly provided to EOHED) was approved by Chapter 133 of the Acts of 2017.

4. Draft for Policy Discussion Only
Summary
Recognizing the failures of the ‘One Size Fits All’ solution to the Last Mile, Commonwealth moved toward a ‘No Silver Bullet’ strategy, supporting two distinct approaches that boosted town choice: Direct grants for fiber-to-the-home (FTTH) municipal projects and public RFPs to spur private provider proposals.
What Didn’t Work: Due to geography and each towns’ unique financial situation, a regional FTTH network did not make sense. Ownership and leadership issues were also problematic.
What Did Work: Giving towns options. For those that can manage a municipal FTTH, EOHED Last Mile Infrastructure Grant program provides a pathway. For towns stymied by bonding and management, private provider options offer a sensible path.

5. Draft for Policy Discussion Only
Last Mile – April 2016
At relaunch of Last Mile (April 2016): 53 towns - 44 completely unserved and 9 ‘partially-served’ by broadband. 28K households

6. Draft for Policy Discussion Only
Last Mile Today
53 Towns in April 2016 – 44 unserved, 9 partially-served.
TODAY:
14 town projects materially complete, including all 9 ‘partially-served’ towns, Mt. Washington, Princeton, Hinsdale, Lanesborough, West Stockbridge.
2 towns serving customers, nearing full completion – Otis, Alford.
26 with either EOHED direct grant, covered by MBI grant – including remaining Charter & Comcast towns, plus Warwick and Petersham.
2 have approved private provider projects, awaiting formal state grant – New Marlborough, Middlefield.
4 working with state & WiValley on regional wireless project – Florida, Hawley, Monroe, Savoy.
4 towns working to formalize a path forward with state:
Monterey - Received Charter proposal, declined;
Tolland, Sandisfield – MBI previously supported bid by Frontier, which failed.
Egremont – MBI made award to Charter but Town couldn’t negotiate CFA, moving toward Fiber Connect.
1 town with no defined path forward – New Braintree. Outreach being made.

7. “Flexible Grant Program”
The tapestry of pathways is matched by a tapestry of funding and contract models
NOTE: The starting point for grant amounts to the towns is the original MBI allocation published for each town in ‘15 and based on desktop “Cartesian” model.
Funding Model
Impact on Towns
Adopted by Towns
Partially-served Towns
Cable contract covered by legislative earmark released.
No cost solution to the towns.
Buckland, Chester, Conway , Hardwick, Huntington, Montague, Northfield, Pelham, Shelburne
1st Round Cable Co. Responses
Cable contracts are covered by each town’s allocation.
No cost solution to the town.
West Stockbridge, Lanesborough, Hinsdale, Princeton, Peru, Tyringham, Hancock
2nd Round Cable Co. Responses
“Flexible Grant Program”
Cable contracts exceed the town’s allocation.
Overage split between state and town. Contract fully funded by state, and town cherry sheet reimbursement agreements in place (avoids town borrowing)
$800 per household estimated
New Marlborough, Worthington, Middlefield
Municipally-owned Fiber Networks
State allocation covers about 40% of the cost.
Local resources cover approximately 60% (debt exclusions, town borrowing, free cash, etc.)
Many are eligible for federal CAF funds which would help offset local contribution.
Eligible for Last Mile Contingency Fund implemented through emergency authorization signed by Gov. Baker in November 2017.
Alford, Ashfield, Blandford, Becket, Charlemont, Chesterfield, Colrain, Cummington, Goshen, Heath, Leyden, Mount Washington, New Ashford, New Salem, Otis, Plainfield, Rowe, Shutesbury, Washington, Wendell, Windsor
Municipally-owned Wireless Networks
Low or no cost to town.
Utilizes local knowledge and expertise.
Royalston, Warwick
MBI Unapproved Partners
Partner failure to disclose financials, assurances of performance, agreement on contract terms, etc.
Towns assume all risk. Not eligible for Last Mile Contingency Fund because no local contribution by citizens is made.
No cost solution for the town, however towns carry the risk of overages.
State allocation is paid in arrears after network is operational and covers 96%.
Petersham, Monterey, Egremont
Municipal Coalition
Towns agreed to aggregate their allocations.
Hybrid-wireless solution.
No cost solution to the towns, however agreement in place for shared responsibility for overages.
Florida, Savoy, Monroe, Hawley

8. Draft for Policy Discussion Only
Town by Town
PARTNER
SUMMARY of STATUS
Total Premise Count
(28,100 total)
Comcast
Summary of Status
Total Premise Count/Running Total 1 2 3 4 5 6 7 8 9
Buckland
Chester
Conway
Hardwick
Huntington
Montague
Northfield
Pelham
Shelburne
9/6/18: Comcast & MBI hosted an event with the Lt. Governor’s office to publicly announce all 9 towns have 96% or more broadband coverage.
Expanded connectivity to 1,303 households, more than 200 over initial contract.
2,578 or 9% of total.
Premises remaining:
25,522 / 91%. 10
Montgomery
Make Ready is complete.
3/26/19: 44 Comcast customers have access to service. 11
Worthington
12/28/18: Grant to Comcast announced by MBI.
12/11/18: Cable Franchise Agreement signed between Comcast and Town.
8/8/18: Worthington contract signed between MTC and Comcast.
Make Ready in progress. 12
Middlefield
3/25/19: Cable Franchise agreement signed by Town officials.

9. Draft for Policy Discussion Only
Town by Town
PARTNER
SUMMARY of STATUS
Total Premise Count
(28,100 total)
Charter
Summary of Status
Total Premise Count/Running Total 13
West Stockbridge
Network completely built and operational.
7,115 or 25% of total.
Premises remaining:
18,407 / 66%. 14
Lanesborough
Network completely built and operational 15
Hinsdale
16 
Princeton
Network completely built and operational   17
Peru
Make Ready is complete. Network Installation being built. 18
Tyringham
Make Ready in process. 19
Hancock
12/18/18: Cable Franchise agreement signed. 20
New Marlborough
11/29/18: Charter files pole applications
1/14/19: Cable Franchise Agreement signed by town.
1/28/19: MBI grant to Charter executed.
Make Ready in progress.

10. Draft for Policy Discussion Only
Town by Town
PARTNER
SUMMARY of STATUS
Total Premise Count
(28,100 total)
Westfield Gas & Electric
(Whip City Fiber)
Summary of Status
Total Premise Count/Running Total 21
Alford
Make Ready complete. Network completely built and operational.
12,898 or 46% of total.
Premises remaining:
5,509 / 20%. 22
Ashfield
Make Ready in process 23
Blandford 24
Becket
Make Ready in process - Eversource considering upgrading services in town 25
Charlemont
12/6/18: Town meeting vote to move forward & build a municipal network.
Pole applications pending 26
Chesterfield 27
Colrain 28
Cummington 29
Goshen
Pole Applications pending 30
Heath 31
Leyden 32
New Ashford 33
New Salem 34
Otis
Make Ready complete - Installations occurring - Network is operational 35
Plainfield 36
Rowe
Make Ready complete - Installations occurring 37
Royalston
Wireless pilot operational; town-wide build-out in design and engineering 38
Shutesbury
Make Ready complete - Installations occurring. 39
Washington 40
Wendell 41
Windsor
All Towns dependent on completion of pole applications and Make Ready in a timely manner from Verizon, National Grid, and Eversource. WG&E, the owner’s project manager for each of these 20 towns, was approved by the FCC to participate in the July 24th reverse auction. Any monies WG&E secures in this auction will be passed along to benefit the debt service to each town. WG&E notified towns unofficially that $10.3 million has been secured in CAF II money.

11. Draft for Policy Discussion Only
Town by Town
PARTNER
SUMMARY of STATUS
Total Premise Count
(28,100 total)
WiValley
Summary of Status
Total Premise Count/Running Total 42 43 44
45 
Florida
Hawley
Monroe
Savoy
Foundational documents in motion: Action Plan; Professional Services Grant for OPM; Inter-Municipal Agreement; Grant Agreement with WiValley.
Phase I construction in progress.
1,031 or 4% of total.
Premises remaining:
4,478 / 16%.
OTHER PARTNERS 46
Petersham
9/5/18: MBI Board votes to award Petersham a Payment in Arrears contract to reimburse the town for Make Ready costs to have Matrix build a Broadband Network.
4,099 or 15% of total. 47
Monterey
Monterey is in negotiation with Fiber Connect requiring a Payment in Arrears.
12/13/18: FC has connected 136 customers out of 874 households.
3/5/19: MBI accepts Town’s letter of interest in MBI FP and asks for documents.
3/29/19: Select board provides 102 page document seeking to reengage and to access their $1.1M allocation to finish building the town’s broadband network. 48
Tolland
Tolland looking at a 60% coverage proposal from Crocker augmented with USDA loan and/or CAF II funding to expand coverage. Comcast has made an offer 2/4/19 currently being reviewed by MBI.
49 
Sandisfield  
Sandisfield is looking at a 60% coverage proposal from Crocker augmented with USDA loan and/or CAF II funding to expand coverage. Charter is considering making an offer and is in discussion with town officials. 50
Warwick
Warwick is a fixed wireless network being town-managed. 51
Mount Washington
Mount Washington network is operational and uses Crocker as their network operator/ISP. Jointly supported by MBI and EOHED grants. 52
Egremont 
10/15/18: Egremont town officials vote to withdraw their support from the Charter proposal and are considering a Payment in Arrears arrangement with Fiber Connect
12/13/18: FC has connected 313 customers out of 920 households.
REMAINING TOWNS 53
New Braintree
While New Braintree has a proposal from Crocker, MBI attempting to engage town on pursuing a solution. 2/4/19: Comcast has made an offer to build a network in NB. Currently under review by MBI
Premises remaining
379 / 1%
53 Towns
28,100 premises
100%

12. Last Mile Today - Lit Towns
Draft for Policy Discussion Only
Today 20 of the 53 towns have subscribers receiving service.
Last Mile Today - Lit Towns
53 Towns in April 2016 – 44 unserved, 9 partially-served.
TODAY:
14 town projects materially complete, including all 9 ‘partially-served’ towns, Mt. Washington, Princeton, Hinsdale, Lanesborough, West Stockbridge.
2 towns serving customers, nearing full completion – Otis, Alford.
26 with either EOHED direct grant, covered by MBI grant – including remaining Charter & Comcast towns, plus Warwick and Petersham.
2 have approved private provider projects, awaiting formal state grant – New Marlborough, Middlefield.
4 working with state & WiValley on regional wireless project – Florida, Hawley, Monroe, Savoy.
4 towns working to formalize a path forward with state:
Monterey - Received Charter proposal, declined;
Tolland, Sandisfield – MBI previously supported bid by Frontier, which failed.
Egremont – MBI made award to Charter but Town couldn’t negotiate CFA, moving toward Fiber Connect.
1 town with no defined path forward – New Braintree. Outreach being made.