Holland to offer high-speed internet if Aug. 2 proposal passes

By Sheila McGrath
WKTV Contributing Writer

On Aug. 2, the City of Holland could join a short list of cities that has broadband as a city utility. (pxhere.com)

When Holland voters go to the polls on Aug. 2, they will decide on a milage proposal that would give residents a benefit that’s relatively rare in the United States: a publicly funded, city-wide broadband internet network available to anyone living within the city limits.

The Holland City Council voted in April to take the measure to the voters. Now, the city is immersed in a campaign to educate voters about the benefits of the proposal.

If the ballot measure passes, Holland would join cities like Chattanooga, Tennessee; Sandy, Oregon; Cedar Falls, Iowa, and several others spread around the country that have a broadband network run by the municipality.

“Covid made it very clear that home internet is not a luxury,” said Daniel Morrison, a local broadband advocate who runs Hollandfiber.org, a civic group that has long championed the idea. “I’ve been banging this drum for years – that it’s not just people’s Netflix. It’s a utility. Covid changed the perception of that. It’s how you work. It’s how you go to school, it’s how you do everything, It’s not just entertainment. But even entertainment is important too.”

If the ballot measure passes, the funds raised by the millage will extend a fiber network that already exists in the downtown area to the rest of the city. The network will be owned and maintained by the Holland Board of Public Works and operated in the same way as other utilities, such as water or electricity.

“For the average family, we expect this would give them better choice in internet providers and lower – possibly significantly lower – prices,” Morrison said. “Better service at a lower price is what we’re seeing.”

Downtown business in Holland already have been enjoying the faster upload speeds offered by the city’s fiber connections. (pxhere.com)

Residents would be able to choose between several different Internet service providers that offer service packages using the new fiber network, bringing a more competitive environment.

Residents would pay to hook up to the service – $820 per address – but would be allowed to pay that off at a cost of $7 per month for 10 years, according to hollandcityfiber.org, the city website explaining the proposal. A sample internet service bill provided by the city shows an estimated monthly cost of $42 for internet service – $7 for the monthly installment payment for connection, $7 for internet access and $28 for maintenance of the network.

The millage would levy up to 1.5 mills in its first year, and about 1.12 each year after that for the life of the 25-year bond, according to hollandcityfiber.org. The millage would cost about $12.50 per month for the owner of a $200,000 home with a taxable value of $100,000. If approved, the project to run the fiber throughout the city would start in 2023 and be finished two years later.

Morrison said that for businesses in Holland, the service would let them take advantage of high-speed uploads they may not have had before. Businesses in the existing downtown service area are already reaping the benefits, he said.

“There are some companies in town that do video work and they’re able to upload finished projects crazy fast over our current downtown service area,” Morrison said. “It’s unlocking so much potential of high-speed, high-availability options for businesses outside the downtown area.”

Pete Hofswell, Holland’s broadband services superintendent, said Holland first developed a fiberoptic system in the early 1990s to connect, monitor and control the city’s public utilities.

That system has been growing slowly ever since, but expanding broadband access to the rest of the city has been a priority for many years, with ongoing discussions between the city council and the board of public works, Hofswell said.

“City Hall would get back to us and challenge us, saying ‘How can you get this service into more people’s hands?’ They see the value of it. They want to connect everybody in our town.”

A survey of residents taken in 2021 showed that 65% believed community investment was needed to ensure sufficient broadband access for all, and more than 72% agreed that community based broadband would benefit the community, according to hollandcityfiber.org.

Because Holland has had its fiber optic network for decades, the city is in a unique position to expand its network without being hampered by regulations that might affect other communities attempting to put a publicly funded fiber network in place.

The services are governed by the Metropolitan Extension Telecommunications Rights-of-Way Oversight Act, Public Act 48 of 2002, and Michigan Telecommunications Act, Public Act 179 of 1991. In Michigan, public entities by law can provide telecommunications services only if they have first requested bids for the services and received fewer than three qualified bids. And they have to abide by same terms and conditions as those specified in their request for proposals.

But Ted Siler, utility services director for the city, said that because Holland has been providing broadband service for more than 30 years and its service predates the Metro Act, “we’re exempt and grandfathered in.”

Morrison said he’s not worried about regulation popping up to derail Holland’s plans. But other communities might not be so lucky.

“The telecom companies have had their hands in legislation for decades to try to prevent cities from doing what we’re doing. We’re lucky that we been doing this for 30 years in Holland so we’re unaffected by that legislation now,” he said. “But I feel bad for other communities that won’t have the same luxury we do. It’s going to be harder for them.”