This is likely not the first post or article you’ve read about the great broadband rush that’s sweeping the country. Working and schooling from home during the pandemic have highlighted the need to ensure that every community – no matter how rural – has access to broadband internet. The pandemic has also created economic opportunity by encouraging workers to relocate and potentially expand the reach of their companies into Maine. At the same time, federal and state funding has been made widely available to help municipalities and internet providers expand into areas that were previously deemed economically infeasible. The newly formed Maine Connectivity Authority, with its broad but as yet unclear mandate to expand broadband development, will undoubtedly provide new opportunities.
This funding spurt will most likely be short-lived, while the efforts to get a broadband project off the ground can be daunting and drawn-out. Municipalities must carefully consider whether it is better to go it alone, or to join with others in the region to form an interlocal association or broadband utility district. These decisions involve often complex analysis of what funding method will best serve the project, whether the network will ultimately be publicly or privately managed, and whether there is true economy of scale and increased funding opportunity by banding together. When it comes time to write any agreements to memorialize a joint regional project, organizational matters are key. What financial contributions are expected of members? How will the organization be run? Who will own the network? And what happens if a member decides to leave once the network is up and running? Unlike the types of utility districts municipalities are used to running, there is usually an expectation that a broadband network will be managed by a private entity. These private contracts, too, can and should be complex, as a failed relationship could leave residents digitally stranded.
We are here to provide assistance navigating this series of challenges, from the early planning stages through funding and contracting for these projects. Our Municipal Broadband Practice Group has been helping municipalities and regional organizations pursue broadband funding, construction, and contracting projects from conception to completion. With substantial experience in coalition building, interlocal agreements, telecommunications, and public financing, our practice group members were specifically chosen to work as a team to assist clients through the whole project life cycle.
Please contact kcollins@preti.com for more information.
Updates and commentary from Preti Flaherty's municipal law attorneys.
