PUD Board meeting Monday, September 7, 2026 · 3:00 PM. Public comment is open — attend in person or join by Zoom →

Answering the critics

The honest answer to every "public broadband fails" argument.

Skeptics of public broadband have a familiar list of cautionary tales, and they're worth taking seriously. But every one of them is a different animal from what's happening here. The failures they cite were debt-financed, built-from-scratch systems — or, in one case, outright fraud. Okanogan's network is already built, already profitable, open-access wholesale, and the decision on the table is a one-time ~$1.2 million equipment refresh. You can't default on a network that already works. You can only abandon it.

Start with the skeptics

Even the leading critic's own test says build it.

The most-cited skeptic of municipal broadband, the Information Technology and Innovation Foundation (ITIF), doesn't say "never." It spells out the conditions under which public broadband makes sense — and Okanogan meets every one of them.

"Step in where private won't"

ITIF: "If there are areas that private providers are not interested in serving, even with subsidies, then municipalities should be empowered to step in and offer broadband."

Okanogan: across the rural county the only alternative is satellite — private ISPs haven't built here even with federal money on the table. This is the textbook case.

"Wholesale, not retail"

ITIF: municipalities "should generally avoid providing retail service, and instead provide an open-access… network wherein the retail service and the electronics are left to the private sector."

Okanogan: that is exactly the District's model — it sells wholesale; seven to eight local private providers do the retail.

"Bundle it with the utility"

ITIF: "a municipal electrical service can cost-effectively bundle broadband infrastructure management with electrical service."

Okanogan: the District is a public power utility doing precisely that — broadband rides the poles, crews, and rights-of-way it already runs.

When the movement's leading critic spells out the conditions under which public broadband makes sense, Okanogan meets them — including ITIF's own cautions about cost-benefit and no cross-subsidy: the wireless line is self-supporting, not subsidized from electric. (ITIF, 2019 & 2021.)

And when ITIF argues the other way, it undercuts itself. Its December 2024 report attacking government-owned networks studied just 20 of 400+ and conceded, in its own words, that "the group is too small for the data to represent all U.S. GONs reliably" — then drew sweeping conclusions anyway. ITIF's donors include AT&T, Comcast, Verizon, and Charter.
The cautionary tales

The failures are real. Ours isn't one of them.

We won't wave away the cases critics cite — several were genuine, expensive failures. But look at what failed in each, and the pattern is unmistakable: borrowing heavily to build a brand-new system from scratch, usually at retail. Not one was a profitable, already-built network making a routine upgrade.

The critics say

"Municipal broadband loses money — look at iProvo, Burlington, Kentucky Wired."

What actually happened

Each was a debt-financed build from scratch — the opposite of a routine upgrade. Burlington Telecom improperly used about $17 million of city cash to build a new retail fiber system. Kentucky Wired was a greenfield middle-mile network whose costs blew past estimates by roughly $100 million on pole and right-of-way problems. iProvo was a bond-financed citywide build (open-access like ours, but debt-financed — unlike ours) later wrecked by a private buyer's default; its real warning is about abandonment, not money-losing builds. Okanogan isn't borrowing to build anything new — it's refreshing equipment on a network that already earns ~$1.1 million a year and runs an audited surplus. And the scary "failure" rosters don't survive a fact-check: when the Institute for Local Self-Reliance examined a widely-circulated list of "failed" municipal networks, it found the vast majority weren't failures at all.

The critics say

"Bristol, Virginia proves public broadband fails."

What actually happened

Bristol's network didn't fail as a business — its managers committed fraud. Nine people were criminally convicted in 2016. The network itself was sound enough to sell for tens of millions afterward. That's not a case against public broadband; it's a case for transparency and oversight — which is exactly what we're asking this Board to provide by putting its analysis on the public record.

The critics say

"A University of Pennsylvania study found most municipal fiber can't cover its costs."

What it actually studied

It looked at cities borrowing to build retail fiber from scratch — and that distinction is the whole point. The 2017 Wharton/Penn study found most municipal fiber builds weren't on track to cover their costs over a 30–40-year horizon (researchers on both sides still argue the method). But every case it studied was a greenfield fiber build — and greenfield rural fiber runs $77,000–$204,000 per home (USDA ReConnect awards). Okanogan is the opposite on every axis that drove that result: already built, already profitable, sold at wholesale, and facing a one-time radio refresh in the low hundreds of thousands — not a decades-long buildout. A bottom-up reconstruction of the District's own billing and budgets puts the wireless segment near $270,000 of annual operating income — it is covering its costs today, which is exactly what the fiber builds in that study could not do.

The critics say

"Just use unsubsidized Starlink — the big federal broadband awards mostly collapsed anyway."

What actually happened

Those were speculative bids that fell apart before a dollar was spent — and the biggest one was Starlink's. The defaults critics cite were applications that failed federal review, not built networks that went bankrupt. The largest single rejection was Starlink itself — the FCC pulled its $885 million award after finding it couldn't show it would deliver at the time. Okanogan is the inverse: a network that is already built and already serving customers.

The critics say

"If it could make money, a private company would have built it."

The premise proves the point

No private company has built it — which is exactly why a public utility should. Where the returns don't pencil out for a private firm chasing profit, a public utility — with a far lower cost of capital and a mandate to serve — is the right owner. That's not a loophole; it's the entire reason public utility districts exist. And the District isn't competing with private business: its eight local providers aren't rivals it undercuts — they're its customers.

The critics say

"Government shouldn't compete with private business."

It doesn't — it enables it

The open-access model is the opposite of crowding out the private sector. The District sells wholesale capacity to private retailers who compete with one another over its network — more private competition than most rural counties have. Abandoning the network doesn't free a private market; it hands the county to a single out-of-state satellite company.

The critics say

"Technology keeps changing — you'll just have to spend again in a few years."

True — and it cuts the other way

Recurring equipment refresh is the cost of this business for any owner — Starlink and every private WISP included. But the durable assets here — the towers, the fiber backhaul, the rights-of-way — don't go obsolete; only the swappable radios do. "We'll have to keep it current" is an argument for stewardship, not for walking away. Letting end-of-life gear decay is the one path that guarantees the network falls behind.

The critics say

"If you must invest, build fiber — not fixed wireless."

This already is the recommended hybrid

Fiber to every ranch across this terrain costs a fortune and takes decades. Rural fiber runs roughly $77,000–$204,000 per location in the hardest-to-reach areas (USDA ReConnect awards) — which is why federal policy itself (NTIA's "extremely-high-cost" guidance) directs states to use fixed wireless where fiber is uneconomic, and why Washington's own 2026 BEAD plan put nearly half its build on fixed wireless. The District already runs the recommended model — a fiber backbone with a wireless last mile — and as a tax-exempt public utility it is the lowest-cost-of-capital owner this infrastructure will ever have, a structural reason no private firm has matched it. Fiber where it pays, wireless where it reaches; letting the wireless layer decay is not the prudent choice.

The critics say

"It's only a pause — if the market turns, the District can always invest again later."

Re-entry isn't the reverse of exit

The ability to stabilize this market is a 25-year stock, not a switch — and you don't get it back by flipping it. When entering and leaving a market both cost money you can't recover, exit and re-entry are asymmetric (the "hysteresis" result — Dixit, J. Political Economy, 1989): a temporary retreat becomes a permanent loss. Customers who buy a Starlink dish sink a cost that works against returning; the small local ISPs, who own no towers of their own, lose customers and fold; trained crews scatter into a market short 178,000 broadband workers; and the one-time federal money that built the network may never come again — the District just walked away from a $30M fiber grant it already held. The cautionary tale critics like to cite, iProvo, is the proof in reverse: the same open-access wholesale model, its providers left to collapse, sold for $1 and never rebuilt. "We'll invest later" assumes a door that may not be open. Why the pause can't simply be undone →

The critics say

"It's a competitive marketplace — private providers can handle wireless, so the District doesn't need to."

Competition by whom, incentivized to do what?

"Competition exists" says nothing about whether the market will serve ratepayers — that depends on who owns it. The District competed here for two decades and grew, back when its rival was a locally owned operator (NCI Datacom) and the only fallback was slow satellite. That market has changed: NCI is now part of an out-of-area investment firm (Core Fiber / Heritage Holding) that consolidates local companies across a dozen-plus industries, and the rural fallback is Starlink — a ~$350B multinational that prices by how few choices you have. By the one measure that matters for a price-stabilization utility — ownership and incentives — the market is worse for ratepayers now than at any point the District operated in it. Across essential services, for-profit/outside-investor ownership reliably costs consumers more (the GAO found private water utilities charge $15–21/mo more than public). That's not the moment to step back — it's the moment a public check matters most. See then vs. now →

Concede what's true: those failures were real, and they carry real lessons — don't borrow heavily to overbuild a market private firms already serve, keep the books transparent, and don't try to be the retailer. Okanogan did none of those things. It built a lean, open-access wholesale network, kept it profitable nearly every year for two decades — its audited net worth has more than doubled, from $4.86M in 2019 to $10.5M in 2025 — and now needs an ordinary upgrade. The risk here isn't repeating their mistakes — it's forgetting why this network was built.

And Okanogan would be the outlier. Across Washington, peer open-access PUDs are expanding their networks right now — Jefferson County PUD put about 40% of its 2026 capital budget (over $15 million) into broadband; Kitsap is building with a $15 million federal award plus a state match; and Pend Oreille County PUD — a rural open-access utility like Okanogan, built on a federal stimulus grant — was just awarded a fresh ~$12.4 million federal award plus a state match to expand fiber, while keeping a wireless layer of its own (Fitch rates it 'A', stable). Okanogan is the one pausing its wireless layer — the part that serves the rural majority fiber won't — even though it already turns a profit. See the peer comparison →

What the county's own plans say

The county's own broadband plans make our case — the newest one most of all.

Opponents reach for the county's broadband planning as if it settles the question. It doesn't — and it's worth reading what's actually there. The Okanogan County / Colville Confederated Tribes Broadband Action Team has produced two documents: a December 2020 fiber Strategic Plan and a June 2023 Digital Equity Action Plan. Read closely, neither argues against the wireless network — and the newer one, built around affordability and the rural digital divide, lands squarely on the campaign's side.

The critics say

"A 2020 study looked at this and recommended fiber, not wireless — the experts already settled it."

What the study actually was

It wasn't an evaluation of the wireless network — it was a grant plan for a brand-new fiber build, written by an out-of-area firm. The plan was produced by an Oklahoma City engineering consultancy (ACRS) for a grant-seeking Broadband Action Team, and it says so plainly: "the focus of this study is centered on a fiber-to-the-home solution." A document scoped to justify a fiber buildout was never going to recommend spending on radios. It laid out an 18-area fiber (FTTx/GPON) expansion and put every cost estimate and financial projection in the book toward fiber. It never studied a wireless upgrade, never priced one, and never recommended retiring or abandoning the wireless system. "Didn't budget for it" is not "found it should be shut down."

The critics say

"The study found wireless is unreliable in this terrain — line-of-sight doesn't work here."

It described 2020 gear — not today's

The one knock the study lands on wireless is line-of-sight — and that's exactly the problem the upgrade fixes. Its concern was that "the line-of-site requirement in the rugged terrain and heavy foliage is also problematic," describing the District's old 5.8 GHz Motorola/Cambium radios. Fair enough — for 2020 equipment. The ~$1.2 million refresh on the table is Tarana 6 GHz, a non-line-of-sight platform built for exactly this rugged, wooded terrain — a technology the 2020 plan predates entirely (it isn't mentioned once). The study isn't an argument against modern fixed wireless; read today, it's an argument for the very upgrade the District declined to fund.

The critics say

"Fine — but the long-term answer is fiber to everyone. Wireless is just a stopgap."

The fiber plan's own survey says otherwise

And the county's own numbers show why fiber stops short out here. The District's own federal ReConnect grant works out to about $40,000 per home to run fiber across the northeast county, and the county's 2023 feasibility study priced fiber builds at $32,000–$65,000 a mile plus $650–$1,250 per home just for the drop — concluding valley-wide fiber is "unlikely… without the influx of broadband grant funding." That's the reality of this terrain: rural fiber runs into the tens of thousands of dollars per home, which is the entire reason a single tower covers ground a trench never economically will. Fiber where it pays; wireless where it reaches. For much of the rural county, wireless isn't the stopgap before fiber — it's the only service that's ever actually shown up. See the full fiber-cost math →

And the study's own headcount is our strongest single fact. Asked about the District's network, the PUD's own representative told the study's authors it had ~450 direct fiber connections and ~2,500 wireless connections — wireless served roughly 5.5× more customers than fiber. The local providers reselling that capacity ran ~80 towers. The county's own planning record shows, in black and white, that the wireless layer is the network serving the rural majority — the same majority fiber still hasn't reached. (Okanogan County / CCT Broadband Action Team, Expansion of Broadband Internet — Strategic Plan, December 2020 — read the full document.)
And the county's newest plan backs all of it. The Broadband Action Team's June 2023 Digital Equity Action Plan shifts the whole frame to affordability and the rural digital divide — and its own list of obstacles names "high cost of construction of fiber networks in low population density areas" and the costly pole "make-ready" work fiber requires. It documents the District as "a wholesale provider for multiple rural ISP resellers" delivering service far below the commercial alternatives (the network's residential fiber listed at $35/mo, against Spectrum's $80–$120/mo). A plan built around affordability for a distressed rural county is the last thing that supports cutting the cheapest, furthest-reaching layer of the network. (Okanogan County / CCT Broadband Action Team, Broadband & Digital Equity Local Action Plan, June 14, 2023 — read it here.)

Take the county's own plans seriously and they point where we do: a fiber backbone with a wireless last mile, serving the homes fiber won't economically reach — at a price rural families can afford. The 2020 plan centered fiber because it was a fiber grant plan; the 2023 plan centers affordability and equity. Neither found the wireless network wasn't worth keeping. Letting it decay isn't following the plans — it's ignoring what they actually documented.