The results of a statewide Tennessee survey on residential and business connectivity are in and they ain't pretty. Thirteen percent of the state - more than 834,000 people - don’t have access to 25 Megabits per second (Mbps) download and 3 Mbps upload, which is the FCC's definition of broadband. Authors of the study make a number of recommendations, the first of which is removing state barriers that stifle Internet infrastructure investment.

"...A More Open Regulatory Environment"

The study, commissioned by the state’s Department of Economic and Community Development (TNECD) earlier this year, includes feedback from more than 23,000 households and businesses. 

From page 13 of the report:

The State of Tennessee could consider lifting administrative burdens and restrictions to broadband infrastructure investment to fostering a more open regulatory environment. 

In the report, the authors provide detailed reasoning for why the state should embrace an open regulatory environment to encourage competition. They note that state barriers impact electric cooperatives, municipalities that operate electric utilities and cannot expand beyond their own service areas, and municipalities that do not operate electric utilities but can only build telecommunications infrastructure in unserved areas with a private partner.

The FCC came to the same conclusion in February 2015 and rolled back Tennessee state laws in order to encourage competition. Tennessee is leading the charge against the FCC's decision with North Carolina (even though NC's Attorney General criticized the law). The parties have filed briefs, attorneys have presented oral arguments, and now the Sixth Circuit Court of Appeals is considering the case.

Co-op subscribers in Challis, Idaho are set to see faster speeds as Custer Telephone Cooperative, Inc. (CTCI) gained permission from city officials to install fiber-optic cable to local homes. With the member-owned telecommunications cooperative expanding its fiber optic network throughout Custer and Lemhi Counties, local residents will benefit from a future-proof network that promises higher speeds and low prices. 

How Did We Get Here?

The rural towns on the eastern side of Idaho’s Sawtooth Range are remote, sparsely populated, and mountainous - all factors which scare away investment from large Internet service providers (ISPs). Yet, they will witness construction of a Fiber-to-the-Home (FTTH) network, something that even their urban counterparts rarely see. CTCI, which has been delivering telecommunications services to the community since 1955, will provide 1,253 co-op members in Custer County and Lemhi County with high-quality Internet connectivity at competitive prices.

CTCI currently provides download speeds of 6-15 Megabits per second (Mbps) and upload speeds of 1 Mbps on its aging coax-copper network. Their initial goal is to achieve 100 Mbps on a 100 percent fiber-optic network, with speeds ultimately reaching 1 Gigabit per second (Gbps) (or 1,000 Mbps). The co-op’s pricing chart currently lists a 100 Mbps download/10 Mbps upload fiber connection at $279.95/month. 

Federal Funds Point in the Right Direction

CTCI receives federal funding through the Universal Service Fund (USF), an FCC program designed to improve Internet connectivity in the rural U.S. CTCI’s receives the funding for operating expenses and investments because of the cooperative's contribution to the public benefit as stated in a 2012 report to the Universal Service Administrative Corporation (USAC):

We aren’t the only ones noticing. As rural communities take control of their connectivity by banding together to form broadband cooperatives, their efforts are getting attention. Earlier this month, PBS News Hour featured a story on the Wired West and RS Fiber Cooperatives.

Ivette Feliciano visits with local residents, business owners, and community leaders in both western Massachusetts and rural Minnesota where both initiatives are rewriting the rules for rural dwellers. She visits with Jake Reike, a farmer from Renville County; he talked with Chris during the Community Broadband Bits podcast episode #198. He described for us how improving local connectivity was what his family needed to maintain their farming lifestyle.

Feliciano also sought out expert Susan Crawford, who explained why people in these sparsely populated communities need high-quality connectivity and why they refuse to wait for big providers who may never come to their rescue.

Download a copy of our report RS Fiber: Fertile Fields for New Rural Internet Cooperative, to learn the details of one Minnesota farming region is bringing better Internet access to its people and businesses. There is much to be gained by joining forces.

For more on Wired West, we recommend WiredWest: a Cooperative of Municipalities Forms to Build a Fiber Optic Network, from the Berkman Center. Crawford helped author that report that dives deeper into the situation in western Massachusetts.

In the 1930s, rural communities joined together through electric cooperatives to bring electricity to their homes and businesses. Today, rural electric co-ops may have the power to bring Internet access to these same communities.

A recent Broadband Communities Magazine article highlights this potential for rural electric co-ops. In the article, Dr. Robert Yadon and D. Bracken Ross of the Digital Policy Institute at Ball State University explain the results of their recent study. 

Electric Co-Ops as Regional Networks

Yadon and Bracken looked into 30 private sector Fiber-to-the-Home (FTTH) providers in Indiana and 16 rural electric co-ops providing Internet service around the nation. After predicting engineering costs, the researchers highlighted a dozen Indiana rural electric co-ops that could serve as regional hubs of connectivity.

The researchers developed a specific process for rural electric co-ops interested in providing Internet access. In summary, they propose:

“For REMCs [Rural Electric Membership Cooperatives], the process begins with a commitment to a middle-mile, smart grid fiber deployment connecting their substations, followed by a phased-approach business model with strategic growth focusing on last-mile customer density. Exploring local business partnership underwriting opportunities, examining the use of an efficient regional network design and combining multiple federal funding programs are the keys to rural broadband deployment success down the road.”

We don’t necessarily agree with these proposals. Our Christopher Mitchell has written many times about how middle mile cannot solve the last mile problems. The incremental approach based on customer density can repeat some of the same problems we’ve seen with cable and telephone companies - skipping over the most rural and smallest localities. Relying on federal funds is not always necessary. In fact, the researchers point to the success of a co-op that continued on after being denied a federal grant.

Pioneering Electric Co-Ops are Models

The Land of 10,000 Lakes wants to become The Land of 10,000 Lakes With High-Speed Internet Access. 

The Minnesota Department of Employment and Economic Development (DEED) will begin taking applications for the Border-to-Border Broadband Development Grant Program on July 22, 2016. The program offers a total of $35 million in funding for projects in unserved and underserved areas. The application submission period closes on October 3, 2016.

The Grant Program

The Border-to-Border program will pay for up to 50 percent of project development costs, awarding a maximum of $5 million per grant. This round of funding sets aside $5 million specifically for underserved areas, and $500,000 will be set aside for areas that contain a significant proportion of low-income households. Officials estimate this year's $35 million in funding will impact an additional 2,000 Minnesotans.

Since May 2014, the Border-to-Border program has provided over $30 million in assistance to over 30 projects throughout Minnesota. This latest funding opportunity brings the total funding up to $65.4 million. It is the largest funding appropriation for the program to date.

Still Not Enough

The Governor’s Task Force on Broadband estimated that Minnesota needs $900 million to $3.2 billion of investment to bring high-speed Internet access to all in the state. The latest funding for the Border-to-Border program, although more than past years, is still not enough. Minnesota Lieutenant Governor Tina Smith stated:

“Broadband isn’t nice, it’s necessary if we want Minnesota’s economy to work for everyone, everywhere in the state. This new investment will connect businesses to customers, students to learning opportunities, and patients to their doctors. This is an important investment but we have a long way to go...”

Learn more about the Border-to-Border program and our suggestions for how to improve it by downloading our May 2016 policy brief Minnesota's Broadband Grant Program: Getting the Rules Right. 

This 4th of July weekend invites us to celebrate the accomplishments of our country. But, 23 million people in rural areas remain without high-speed Internet access.

Rural areas cannot stay unconnected. Agriculture has become a high-tech endeavor, and high-speed Internet access is necessary. Cooperatives, those democratic institutions formed by rural farmers years ago, are becoming an answer.

The Founding Fathers considered rural communities the life-blood of the country. In 1785, Thomas Jefferson, in a letter to John Jay, stated that:

“[C]ultivators of the earth are the most valuable citizens. they are the most vigorous, the most independent, the most virtuous, & they are tied to their country & wedded to it’s liberty & interests by the most lasting bands.”

High-Speed Internet Access Supports Agriculture

The Missouri Farmer Today recently wrote ofthe sorry state of rural Internet access for one family-owned business in Missouri, the Perry Agricultural Laboratory. They process soil samples and perform other agricultural testing for both local and international customers but the best connections available are via satellite. The lab constantly goes over its data cap and sometimes cannot send their reports to customers across the globe if the weather interferes with their signal. A high-speed cable runs along the edge of the property, but the company would have to pay $40,000 to connect to it.

Nonprofit Old Town Orono Fiber (OTO Fiber) is awaiting responses to a recently posted broadband survey. A fiber-optic network is in the works for both Orono and Old Town, but funds are limited. Local officials seek input from local residents and business to “determine both the interest in this project and where the Internet infrastructure would need to be established.”

Approximately 7,800 people live in Old Town; a little over 10,000 people are in Orono and there are also over 11,000 University of Maine students who attend classes there.

Old Town, Orono, and the University of Maine lost a funding battle against Time Warner Cable in 2015. That incident dealt with an area where only about 320 potential subscribers could be served with approximately four miles of fiber. A recent $250,000 grant from the Northern Border Regional Commission put the consortium back on track to finish that project. OTO Fiber is now gathering more information about where to best deploy a broader network; they have funding for about six miles of fiber in each community.

Locals are enthusiastic about high-speed fiber’s potential benefits to the community. OTO Fiber’s survey page states, 

“The purpose of having this infrastructure in our community is to bolster existing businesses that can take advantage of this connectivity and to attract and foster entrepreneurs, students and recent graduates to create new businesses and enterprises that rely on high-bandwidth connectivity. To help us advance this project, please complete one or both of the following surveys.”

A fast, reliable, affordable connection can promote job growth and keep college-age talent in the region. Residents can look forward to symmetrical high-speed connections (the same speeds on the upload and the download) that will open the door to improved video streaming, telemedicine, virtual reality gaming, and a number of other high bandwidth technologies.

In Colorado, the Delta-Montrose Electric Association (DMEA) saw record crowds at their Annual Meeting of Members. Hundreds of people came to check out the event on June 16th and try out the super fast speeds of Elevate Fiber, DMEA’s Fiber-to-the-Home (FTTH) project.  The project will bring speeds of up to a Gigabit per second (Gbps) to DMEA’s 27,000 members. 

Elevate Fiber

During the event, members were able to check out the speed in person and preregister their homes and businesses. It requires a 12-month contract at a minimum of $49.99 each month according to the DMEA’s website. Residents can sign up at https://join.elevatefiber.com/. 

Providing Internet access is a new role for the electric cooperative but DMEA has a plan: the co-op will build out the fiber incrementally. Phase I will encompass about 7,500 homes and businesses in Paonia, Cobble Creek, and the Montrose downtown business district. These locations are test cases of overhead and underground installations in urban and rural areas. 

Celebrate the Times

The Montrose Press reported that over 500 people came to the meeting, making it one of the largest in recent memory. The Annual Meeting of Members celebrated the past accomplishments of the co-op and looked ahead to the fiber future. In addition to free hamburgers and hot dogs, and an appearance by former American Idol contestant Jeneve Rose Mitchell,* attendees could see live demonstrations of Elevate Fiber.

In December 2015, the DMEA Board of Directors unanimously voted to proceed with the FTTH project. At the time, they considered building a middle mile network, but wisely chose to deploy last mile connectivity to members' homes and businesses.

The League of Minnesota Cities has honored ten communities in the south central part of the state for their role in assisting to launch the RS Fiber Cooperative.

At its annual state conference on June 16th, the League awarded its “City of Excellence Award” in the 5,000 to 19,999-population category to the cities of Brownton, Buffalo Lake, Fairfax, Gaylord, Gibbon, Green Isle, Lafayette, New Auburn, Stewart, and Winthrop.

 In a news release, League officials said: 

“These 10 cities, along with 17 townships, worked collaboratively for five years to provide South Central Minnesota residents with access to high speed, affordable, and reliable “gigabit internet service. The cities created a joint governance structure that aligned local taxpayer interests across entities, and initiated a public/private financing structure that enables residents to obtain internet broadband services at minimal risk.

The cities developed grassroots support for the project by hosting more than 150 meetings and by personally contacting hundreds of residents, local businesses, and government officials. Over the next five years, thousands of households and rural farm sites and hundreds of businesses and community organizations will be able to receive high-speed internet service access that greatly exceeds previous services provided by national telecommunications firms.

Communities need reliable broadband access to attract and retain new businesses and residents. The success of the “RS Fiber Cooperative Project” confirms the value of small communities working together with private interests to make a positive difference in lives of constituents.” 

Mark Erickson, former Winthrop city manager who was instrumental in developing RS Fiber, told us he was excited about the award.

"It was a cool award to get; an important recognition for our little towns," said Erickson, currently Winthrop economic development director. "I'm just proud of the mayor and councils in the ten communities for having the vision and patience to make the RS Fiber project happen. When communities take steps to insure better futures for their residents, good things can happen."

Salisbury’s fiber network, Fibrant, is about to connect to three more large customers in North Carolina.

The Salisbury Post writes that Rowan County government and two local manufacturing facilities will be connecting to Salisbury’s municipal fiber network. After considering the needs of several local manufacturers and the Rowan County Government, Rowan County Commissioners gave the necessary approval to expand Fibrant to serve their facilities.

Local Manufacturing Wants Fibrant

The manufacturing facilities, Gildan and Agility Fuel Systems, are both located outside of Salisbury’s city limits, but within Fibrant’s service area. State law requires they obtain permission from the Rowan Board of the Rowan County Commissioners to allow Fibrant to extend service to their location.

Rowan County government also wants to connect to Fibrant and the same law applies to them. The County will use Fibrant as a back-up to their regular Internet connection for a while before deciding if Fibrant should become their primary service service provider.

Meanwhile, Gildan and Agility Fuel Systems just want the high-speed and reliability of the Fibrant network. Gildan is a Canadian manufacturer that makes activewear clothing. Since 2013, the company has worked to expand its existing yarn spinning facility, bringing skilled manufacturing jobs to the region. Agility Fuel Systems makes alternative fuel systems for large trucks. Currently, Agility Fuel Systems uses a connection speed of 20 Megabits per second (Mbps). Fibrant can offer capacity connections up to 10 Gigabits per second (Gbps).

The Agility Fuel System’s North Carolina Director of Operations, Shawn Adelsberger, actively pushed for a Fibrant connection. According to the Salisbury Post, Adelsberger wrote to Rowan County in May: