FAQs – Broadband Expansion

There are 5 basic steps to build a broadband fiber network from scratch.  It can be expected to take several years from start to finish.

• Assess Community Need and Establish Support
• Conduct Feasibility Study and Estimate Project Budget
• Secure Funding
• Engineer and Build Fiber Network
• Activate and Operate Network

The BBTF has complete steps 1 and 2.  Once funding is secured, it can be estimated to take another 3-5 years to fully complete the project.

Depending on the PFSA boundary, the project budget is estimated to range from $30M-$66M.  The funding is expected to be a public private partnership; a blend of federal/state grant dollars, private investors and possibly a millage.

• Bond backed by a Millage
• Pooling of Private Investors/Individual Contributions
• Philanthropic Benefactor
• Public Private Partnership

Funding mechanism not allowed for this type of project

• Special Assessment Districts
• Conventional Loan
• Township General Fund

Yes.  That Township would then be responsible for all 5 steps of the process.

Possibly.  Remember that taxable value increases are limited by the Headlee Amendment.  The SEV is a different number and tracks with the market value of a property.  Property taxes are calculated on the taxable value within the constraints of the Headlee amendment.

It depends on the financing and rate structure. If property owners pool their money to fund the project, the per investor cost will vary.  If a millage is approved, the cost will be determined by taxable property value, reflected in the rate structure, the length of the millage and the interest rate on the bond to be paid off.

Examples: 

In Lyndon Township (2020), a resident can choose from 3 unlimited fiber internet plans; ranging from 25 Mbps @ $34.95/month to 1 Gps @ $69.95/month.  http://www.lyndonbroadband.org/faq/#  + millage

In Sharon Township (2017), it was estimated that the monthly cost for the average property owner ($77,000 taxable value) would be under $100 ($35 for unlimited high-speed broadband plus approximately $45 per month for the millage.)

The Lyndon Township broadband web site features a comprehensive list. 

http://www.lyndonbroadband.org/i-can-do-this-with-high-speed-internet/

Two techniques were used to survey the 15 townships. 

• Online speed test conducted by survey participants at their home
• Visual assessment completed by an experienced internet network professional who drove all the roads in the 15 township area
• Coverage maps are available at www.washtenaw.org/broadband

The for-profit ISPs require a defined return on their investment (ROI) over a prescribed period of time.  In the rural areas, where population densities are lower, the ROI takes too long to satisfy their shareholders.

We’re working on it!  The polarized partisan nature of Michigan’s legislature and the Congress makes consensus challenging at this time.  The political will of our elected officials, will determine the direction of future public policy and funding.

• Get to know your elected officials and ask them about their work on expanding broadband access. 
• Federal and State Officials:  https://www.270towin.com/elected-officials/
• Local Officials:  contact your County Clerk’s office
• Submit a letter about your experience and concerns to your local media presence; newspapers, e-news outlets, Facebook, Twitter, Instagram
• Testify at local meetings about your need for broadband access:  County Commission, Township Board, City & Village Councils
• Talk to your neighbors and personal  networks about the need for broadband expansion
• Form a Community Broadband Committee

Resource:  Community Broadband Access Framework http://www.mbcoop.org/resources-2

• Yes.  Fiber has unlimited bandwidth and is the fastest, most reliable technology available today and for foreseeable future.  Data travels at the speed of light on fiber.
• Cellular/wireless service isn’t viable because of high speed data caps, weather, rolling topography and trees.
• Satellite service also has data caps in addition to long lag times/latency.
• 5G is just another version of cellular, still slower with less bandwidth than a fiber connection, and only works where mini cells or antennas can be mounted/installed every 500 feet or so. Practical in cities where there are light polls and buildings close together.