Fast and reliable broadband service is a critical resource for regional economic development, growing and sustaining local businesses, and improving overall quality of life in communities. Developing broadband infrastructure and influencing policy have become increasingly important since the onset of the pandemic. Learn from members who will share promising practices from communities working to develop and assure coverage throughout the country. -Jim Baldwin, Executive Director, Cumberland Plateau Planning District Commission, Lebanon, VA -David Cleveland, Executive Director, East Texas Council of Governments, Kilgore, TX -Ryan Collins, Broadband Coordinator, Buckeye Hills Regional Council, Marietta, OH -Moderator: Monique Boulet, CEO, Acadiana Planning Commission, Lafayette, LA

1. Making the Connection
Ryan Collins
Buckeye Hills Regional Council
October 19, 2021

2. The Digital Desert Persists
 83% of the area lacks broadband at 25/3
 Availability further limited due to de minimis
deployments and deteriorating copper cables
Buckeye Hills 8 County Region
This work is licensed under CC BY-NC 4.0 by Connecting Appalachia

3. The Startling Extent of the Digital
Desert
Our analysis identifies ~700,000 unserved
Ohio households, nearly 4x the FCC
number
Based on
Ookla ® Speedtest Intelligence® data for February 2020 through May
2021 using all providers combined data
This work is licensed under CC BY-NC 4.0 by Connecting Appalachia

4. Varied Estimates of the Digital
Desert
This work is licensed under CC BY-NC 4.0 by Connecting Appalachia

5. In the digital desert…
McDonalds for Broadband Access
 A sad reality that remains prevalent
 State vaccine response assumes
home broadband for provider look-
up and scheduling clinic
appointments
 More schools assume home
broadband
 Lack of home broadband a huge
handicap for job seekers
 Precludes remote work
opportunities
 Many public WiFi options
unavailable during the pandemic
Wall Street Journal on Jan 28, 2013

6. Highways are a fundamental infrastructure
element
 $10 million to $20 million per mile (fully loaded)
 Some waste, fraud and abuse in every project
We can drive the highways!
Missing in Action
Carriers received $82 billion in FCC funding* to
improve telecom infrastructure in rural America in
past 20 years
Yet the rural digital “highway” is missing in action
Imperative to wisely invest public
funding to restore rural America
*The FCC funding comes from the Universal
Service Fund under the “High Cost” program,
established by Congress to subsidize
telecommunications services in rural
America, paid for by surcharges on
consumer telephone bills.

7. Why Does Rural Broadband Require Subsidy?
City or Area of Ohio
Households per
Square Mile
Median Household
Income
Density Compared
to Columbus
Cities
and
Towns
Columbus 1,510 $49,478 100%
Marietta 693 $35,556 46%
Logan 604 $29,691 40%
McConnelsville 486 $25,563 32%
Rural
Expanse
Entirety of Meigs County 26 $33,407 1.7%
Carthage Township, Athens County 17 -- 1.1%
Monroe Township, Perry County 12 -- 0.8%
No terrestrial provider can serve 100% of the “rural expanse” without subsidy.
This is the point of the FCC Universal Service Fund

8. Delivering Fiber Across Rural Ohio
Total Price Tag $3.2 billion
One-Time Subsidy $2.0 billion
100 Miles
One time subsidy equivalent
to building 100 miles of highway
Comparable to Ohio’s share of:
• Past $100 Billion of poorly spent
subsidy
• Existing and proposed Federal
subsidies
Crucial to spend wisely
This work is licensed under CC BY-NC 4.0 by Connecting Appalachia

9. Last Mile Funding
Opportunities
Source Total Funding Distribution
FCC Rural Digital Opportunity Fund $20 billion in subsidy Reverse auction
FCC Rural 5G Fund $9 billion in subsidy Reverse auction
The FCC programs draw monies from the Universal Service Fund, established by the US
Congress, designated to deliver telecommunications services to rural America at rates and
capabilities comparable to urban areas, paid for by surcharges on telephone bills
USDA ReConnect $300 million in grants Competition
Appalachian Regional Commission $25 million in grants Competition
State Broadband Fund $270 million in grants Competition
Federal Infrastructure Fund $65 billion TBD TBD

10. RDOF Phase 1
9 December 2020
Coverage All of Ohio Appalachia Ohio
Households 192,000 155,000
Maximum Subsidy $840 million $700 million
Auction Results $170 million $140 million
RDOF Phase 1 Awarded
 Bidding was much more aggressive than anticipated
 All winners commit to delivering gigabit services, most
pledging to deploy fiber-to-the-home
 FCC due diligence process occurs next
 Anticipate construction to commence Q3-2021
Major Auction Winners in Ohio # Census Blocks
CCO Holdings (Charter/Spectrum) 14,784
Mercury Wireless, Inc. 5,550
Connect Everyone LLC 3,376
LTD Broadband LLC 1,040

11. Aggressive Bidding in Ohio
Percentage
of FCC
Reserve
Average Subsidy
per Unserved
Household - Ohio
Description
100% $4,389
FCC projection of required subsidy to
profitably deploy fiber-to-the-home
60% $2,639 National clearing round
20% $889 As awarded in Ohio
Better Approach:
 Use FCC formula to determine needed subsidy (CACM)
 Define logical geographic service areas and terrestrial infrastructure requirements
 Put out to bid at 100% of the reserve and award based on the best overall value
Figure 7: Reduction in Per Household Funding Based on Reverse Auction
$3,500 per Household
Gap in Required Capital

12. Effect of Low Penalties
Figure 5: Penalties IF Ohio Awarded at 60% Clearing Round
FCC Penalties for Not Deploying
Affected Areas
Cost to Deploy per
Household
@ 60% National Clearing
Round
@ 20% as Awarded in
Ohio
Impact
Most Remote 5%
12% of the Sq Miles
Isolated ~ $30,000
Average ~ $10,000
$2,600 per household $900 per household Less expensive to abandon the
most isolated households and
the lowest population density
areas
Abandoned households/areas
will not be known until
Year 9 in ~2030
Most Remote 10%
22% of the Sq Miles
Isolated ~ $25,000
Average ~ $8,000
$3,300 per household $1,125 per household
Most Remote 15%
30% of the Sq Miles
Isolated~ $20,000
Average ~ $6,000
$4,000 per household $1,350 per household
In remote, expensive locations, it’s cheaper to pay the FCC fine than it is to deploy internet.

13. Incentive to Cherry Pick
Low-Cost Locations
Subsidy Payments to Winning Carriers
Averaged Across the State @ 60%
Population Density (Households per Backbone Fiber Mile)
Per
Household
Cost
and
Reserve
Subsidy
Figure 3. IF Ohio had Been Awarded at the 60% Clearing Round
Low population density
areas subsidize high
population density areas
$10,000
$5,000
$2,500
$7,500
Full Cost to Build
Reserve Subsidy
Subsidy Greater
Than Cost to
Deploy
50% of the $
33% of Sq Miles
85% of the $
70% of Sq Miles
Financial
Incentive
to Abandon
2 4 6 8 10 12 14 16 18
$0

14. Charter/Spectrum: $107M, Gigabit on fiber
Mercury Wireless: $11M, Primarily Gigabit on fiber
LTD Broadband: $8M, Gigabit on fiber
Connect Everyone: $38M, Gigabit on fiber
NexTier: $1M, Gigabit on fiber
Big RDOF Phase 1 Winners in Ohio
Fragmented
Service
Areas
Many providers won a patchwork of
small territories scattered across the
state.
Lack of continuity can be a major
challenge.
Winners with contiguous territories
have some of the most rugged, least
populated areas in the state.

15. Middle Mile Myth
• Myth: The presence of middle-mile fiber in an area will be sufficient
to incentivize last-mile broadband deployments
• Fact: The high cost of extending last-mile broadband in low
population density rural areas requires direct and substantial
subsidies in order to create a sustainable business case.
• FCC, NTIA and private investment have resulted in the deployment
of extensive middle-mile assets over the past 15 years.
• Nearly all health care and K-12 locations are served with fiber.
• Despite this wealth of middle-mile, 125,915 households in
southeastern Ohio still lack even the minimal FCC definition of
broadband of 25/3.

16. Common Misconceptions
Misconception #1: Few rural households subscribe, often as few as 10%.
Fact: Where rural electric cooperatives deploy broadband,
subscription rates in rural areas quickly reach 40%.
Misconception #3: Most rural broadband use is for entertainment.
Fact: The uses of broadband in rural America mirror those of the rest of
the country, reflecting a blend of business, educational and entertainment
functions.
Misconception #2: No one wants more than 10/1 in these areas.
Fact: Where electric cooperatives have built broadband networks,
one third of subscribers opt for the top tier of gigabit speeds.

17. Deploying the Solution
Ensuring Transparency &
Return on Broadband Investments
Through their Regional Councils and Local
Development Organizations, communities
have the potential be in the driver's seat to
lead broadband deployment efforts. This will
ensure transparency and state and federal
investments will net the largest ROI in terms
of speed and numbers of people served.

18. Rural America