Where next for New York’s Internet Master Plan?

New York’s Mayor Eric Adams and Chief Technology Officer Matthew Fraser this week launched what they called a “landmark digital equity programme”. Big Apple Connect will make free high-speed internet and basic cable TV available to 300,000 residents in over 200 New York City Housing Authority (NYCHA) developments by the end of 2023.

Later the same day, Brett Sikoff, Executive Director of Franchise Administration in the city’s Office of Technology and Innovation (OTI), told an oversight hearing that the broader Internet Master Plan is still on hold while it is re-evaluated.

The Internet Master Plan, announced in January 2020 under former Mayor Bill de Blasio, was designed to connect 1.5 million New Yorkers and included a US$157 million capital investment commitment. Since it was launched there has been the pandemic, a change in administration and a consolidation of technology-related departments.

“I am deeply concerned that OTI was not able to provide any details on longer-term plans to connect New Yorkers to the internet beyond the Big Apple Connect programme, which was announced the morning of the hearing,” said Council Member Jennifer Gutiérrez, Chair of the Technology Committee.

“While I celebrate a programme that expediently provides internet access for our NYCHA developments, it’s unacceptable that OTI does not have a comprehensive plan that works to connect more New Yorkers to the internet.”

Big Apple Connect

Big Apple Connect will provide residents of NYCHA developments with a free bundle including an in-home, high-speed internet connection; basic cable TV service; and Wi-Fi hotspots in common areas.

The scheme was piloted at eight public housing developments across the five boroughs and is now being expanded to more than 100 developments.

“‘Big Apple Connect’ is a game-changer for today’s New Yorkers living in public housing on par with the advent of utilities like heat or hot water,” said CTO and OTI Commissioner Matthew Fraser in a press release. “This citywide broadband initiative ensures that New Yorkers need not defer their dreams – or fail to meet basic needs – because they lack the resources to pay for internet or live in a pre-war building. Our city’s students, senior citizens, parents, and job seekers who need in-home, high-speed internet access the most will experience tangible day one benefits that enrich their lives for years to come.”

Once its rollout is complete, Big Apple Connect is projected to be the largest municipal programme to cover the cost of internet for public housing residents in the nation.

Asked during the hearing about the status of the Internet Master Plan, which the city said was on hold earlier this year, Sikoff said: “As this administration came in, we took a hard look at the master plan to see where there are duplications, not just fibre infrastructure around the city but duplication of money that’s being spent elsewhere on other programmes.”

He said this re-evaluation is ongoing.

“While the master plan contemplated a multi-year-long and very expensive investment, Big Apple Connect will help citizens immediately,” he added.

Sikoff also highlighted other efforts to close the digital divide such as the LinkNYC programme which was recently rebooted with 5G kiosks.

He said the US$157 million allocated for the Internet Master Plan remains untouched.

The Big Apple Connect programme could eventually cost approximately US$30 million per year, but this is dependent on how many residents sign up. OTI will be billed directly but a dedicated budget line item is yet to be assigned.

Council Member Julie Menin expressed concern about the cost of paying for Big Apple Connect rather than encouraging residents to sign up for the federal Affordable Connectivity Program.

Sikoff said Big Apple Connect also includes cable TV and aims to give residents choice. NYCHA residents enrolled in Big Apple Connect could also use the ACP benefit to save money on their cell phone bills.

Marketplace

As well as expanding connectivity for residents, another goal of New York’s Internet Master Plan was to increase access for smaller and minority-led vendors.

Following a request for proposals from existing New York City cable TV franchisees for Big Apple Connect, the city entered into three-year agreements with Altice and Charter Communications and is “continuing to negotiate with Verizon” as a possible third franchisee.

Sikoff confirmed the RFP was only sent to these three providers due to their existing infrastructure but said that diversifying the marketplace remains a priority.

During a Big Apple Connect press conference, Fraser said: “In government, oftentimes we try to find the best, perfect, most ideal solution and then along the lines you forget that there are people that are actually hurting.

“This administration – when we talk about getting stuff done, it’s not getting stuff done that’s the perfect thing, it’s getting stuff done so that we can help the people that need the help right now.

“While we work on something that could be more sustainable long term, we have to cover the problems that we have today.”

But some vendors who were selected last year in a separate Internet Master Plan RFP process say they are in limbo.

Stuart Reid, co-chairman of The Smart Community Initiative, Inc., said during the hearing that the company hasn’t heard anything from the new administration.

“Nobody has reached out to us,” he said.

Council Member Gutiérrez commented: “I understand the challenges of re-evaluating a plan from a previous administration, but OTI should not be starting from scratch – the city already has a comprehensive plan that was built by a diverse coalition of advocates, business leaders and experts. We need a robust roadmap, not pop-up programmes.”

A spokesperson for the Mayor’s Office told Cities Today: “We see the Master Plan as a great blueprint that’s incredibly ambitious but Big Apple Connect is delivering right now.”

Asked whether a more detailed announcement on the future of the Master Plan would be made, they said: “It’s all language: the Internet Master Plan was De Blasio’s plan, Big Apple Connect is Mayor Adams’ plan.”

Further information on expanding affordable internet access beyond public housing was not immediately available.

[21 September: Updated to add additional comment from the Mayor’s Office]