How will Michigan communities benefit from nearly $1.6 billion federal funding for Internet?

There has been a lot of talk about all of the federal dollars, nearly $1.6 billion that will be flowing into Michigan over the next few years to improve “Internet for all.” However, who is going to be receiving the bulk of that funding, and who will end up crediting the most. We posed this question to our AI assistant in Perplexity. Here are the answers along with links to the sources.

Perplexity

To ensure that investments in broadband infrastructure prioritize local ownership and yield direct returns to communities, states can take several key steps:

Promote Community-Owned Models

States should actively encourage and support community-owned broadband models, which have shown significant economic benefits:

Community Benefit Societies: Following the example of Broadband for the Rural North (B4RN) in England, states can promote non-profit community benefit societies that deploy and operate fiber networks[6]. This model ensures profits are reinvested in the network or community.
Municipal Networks: Cities like Ammon, Idaho have demonstrated the effectiveness of municipal open-access fiber networks in lowering prices and boosting competition[6]. States should remove barriers to municipal broadband and provide funding and technical assistance for such initiatives.

Remove Legislative Barriers

Many states have laws restricting municipal broadband. To prioritize local ownership:

Repeal Preemption Laws: 16 states currently have restrictive legislation against municipal broadband networks[7]. Following Colorado’s example, states should remove these barriers to allow local communities to build their own networks[7].
Eliminate Referendum Requirements: States like Alabama and Louisiana require municipalities to hold referendums before providing broadband services[7]. Removing these hurdles can accelerate local broadband deployment.

Implement Supportive Policies

States can enact policies that favor local and community-owned broadband initiatives:

Broadband Improvement Districts: Encourage the creation of Broadband Improvement Districts, where property owners can opt-in to finance network buildout through property assessments[2].
Prioritize Local Providers in Funding: When allocating state or federal broadband funds, give preference to local, community-based providers over large, Wall Street-backed ISPs.
Mandate Open Access: Require that any publicly-funded broadband infrastructure be operated on an open-access basis, allowing multiple service providers to compete.

Invest in Digital Skills and Adoption

To maximize the economic benefits of broadband, states should:

Fund Digital Literacy Programs: Allocate resources for programs that teach digital skills and promote broadband adoption, especially in underserved areas.
Support Smart Community Initiatives: Encourage municipalities to implement smart community services alongside broadband deployment to demonstrate tangible benefits to residents[2].

The Future of Local Economies with Public Broadband

Public broadband has the potential to significantly reshape local economies, especially in underserved areas:

Economic Growth and Innovation

Research shows that communities with high broadband adoption experience:

213% higher business growth compared to areas with low broadband utilization[8].
44% higher GDP growth, fostering a more dynamic local economy[8].
10% higher self-employment growth, lowering barriers for entrepreneurs[8].

Income and Employment Benefits

Public broadband can lead to:

18% higher per capita income growth, amounting to nearly $500 per person annually[8].
Increased employment opportunities, especially for women and in rural areas[10].

Community Resilience and Services

Public broadband enables:

Improved access to telehealth, online education, and remote work opportunities[5].
Enhanced local government services and efficiency through smart city initiatives.

Retention of Local Talent and Businesses

By providing high-quality, affordable broadband:

Communities can attract and retain businesses and skilled workers.
Rural areas can compete more effectively with urban centers for economic opportunities.

Digital Equity and Inclusion

Public broadband can:

Bridge the digital divide, ensuring all community members have access to essential online services and opportunities.
Empower marginalized groups by providing affordable access to digital resources and skills training.

In conclusion, by prioritizing local ownership and community-oriented broadband models, states can ensure that the benefits of broadband infrastructure investments flow directly to communities rather than to large, external corporations. This approach not only stimulates local economic growth but also builds more resilient, connected, and equitable communities for the future.