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Did you know Anacortes is the first city in Washington to become an Internet Service Provider (ISP)? Anacortes launched its municipal broadband vision back in 2015, when the City Council approved Resolution 2013 to pursue a city-owned fiber network. By 2019, crews had installed 30 miles of fiber through existing water pipes from Mount Vernon to Anacortes, creating a backbone designed to eventually serve the entire community. The project was engineered with help from NoaNet, Washington’s wholesale broadband provider, which projected the network could pay for itself in about 15 years if it captured roughly one-third of the local market.

Today, Access Fiber reaches about 75% of Anacortes’ 7,600 households and businesses—roughly 5,700 premises—with full coverage expected by late 2025. As of mid-2025, around 2,600 customers (about 45% of the service area) are connected. Annual revenue is estimated at $1.8 million. Residents are drawn to the service’s competitive pricing and the 30% discount available through Anacortes’ utility discount program for low-income households.

However, the investment has come at a steep cost. The city has poured approximately $22 million into the network since 2019, with $18.9 million in debt still outstanding and annual debt service of about $700,000. Fiber spending, coupled with slower-than-expected revenue growth, contributed to a $3 million general fund deficit in 2023. City leaders remain optimistic, projecting the fiber program will become self-sustaining next year.

Not everyone is convinced. Critics question the use of taxpayer dollars for a service that not all residents use, especially in a competitive market. Private providers like Ziply Fiber, offering multi-gigabit speeds through SkagitNet, and Starlink, targeting rural users with affordable satellite plans, pose significant challenges. Comcast and T-Mobile further intensify competition with cable and 5G options. To stay relevant in this rapidly evolving broadband landscape, Anacortes must continue upgrading speeds and forging strategic partnerships to expand its market share.

The success of this ambitious venture hinges on its ability to grow revenue and capture a larger slice of the market. Taxpayers should pay close attention to the financial results over the next year, as 2026 will be a pivotal moment in determining whether this high-stake investment delivers on its promise or becomes a costly lesson. Stay informed, attend city council meetings, and hold leaders accountable to ensure your tax dollars are driving a sustainable, community-focused future.

 

Sal Walker

Anacortes, WA