Columbus will contribute some of its COVID relief funds to help low-income residents connect their homes to new broadband infrastructure.
The Columbus Board of Works has approved an agreement between the city and Hoosier Networks, LLC for a digital access program. Hoosier Networks is a fiber network utility provider established by Meridiam Infrastructure North American Corp., which has agreed to create a fiber network that officials say will reach at least 85% of Columbus and is also creating networks in Bartholomew County, Bloomington and Shelbyville.
“We’re looking at what we’re calling a digital equity program, which is assisting lower-income residents with being able to connect to the fiber itself,” said City Director of Finance, Operations and Risk Jamie Brinegar. “There are two pieces to the cost of having fiber to your home. One is the monthly expense, and the second is the drop from the conduit to the home. One of the things we’ve discussed with Meridiam and Hoosier Networks was partnering with them to cover that cost of the drop from the conduit to the home. And one of the ways we can do that is with our American Rescue Plan money.”
According to the agreement approved by the board of works, Hoosier Networks and the city of Columbus will establish a digital access program to “achieve a fair distribution of the internet and modern technology throughout the city, and to reduce the societal disparities among income, race, age, gender, and geographic location.”
Under the agreement, the city will contribute up to $625,000 to a digital access fund. These dollars will be used to cover 50% of “drop costs” to income-qualifying residents for up to $350 per unit. Additionally, if there are still city funds left in this account five years after it is established, the remaining funds will go toward “any activities supporting digital access for city residents.”
In turn, Hoosier Networks will cover at least 50% of drop costs to income-qualifying residents while city’s funds remain available and 100% of costs thereafter.
Residents will be eligible for the digital access program if they live within the city boundary and qualify for assistance under one or more of the following programs: Supplemental Nutrition Assistance Program; HUD Housing Voucher (also referred to as Section 8 Vouchers or Housing Choice Vouchers); Indiana Temporary Assistance for Needy Families; Indiana Department of Education’s free meals eligibility criteria; Old Age, Survivors, and Disability Insurance recipients of Supplemental Security Income; Medicaid; WIC; or Veterans Pension or Survivor Benefits.
Additionally, Meridiam officials have said in the past that once the fiber network is complete and service is available, residents who are eligible for the Federal Communications Commission’s Affordable Connectivity Program will be able to receive internet access for free. According to the FCC, this program provides a discount of up to $30 per month toward internet service for eligible households.
Senior Investment Director Nick Phillips told Columbus officials in July that Meridiam will initially have an exclusive contract with one internet service provider (ISP). The contract will be for five years with the option for two one-year extensions, making the maximum term seven years. After the initial contract period is over, Meridiam will then be open to forming agreements with other providers.
It was announced in September that GigabitNow would serve as the initial ISP. At the time, it was estimated that Columbus residents would be able to sign up for service in early 2023, with most residents receiving service by the end of 2024.
Brinegar said that work on the network is underway.
“Their goal is still, I believe, end of first quarter to be able to start offering service to some of those initial areas in the downtown area,” he said.
