Welcome to high-speed Internet on the Iron Range! This past fall, the Northeast Service Cooperative (NESC) completed a multi-year project, a fiber optic network spanning nearly 1,000 miles, on Minnesota’s north shore.

The project, the Northeast Fiber Network, connects public buildings, such as health care facilities, community libraries, colleges and universities, tribal facilities, and government offices. The fiber provides the opportunity for next-generation connectivity in many unserved and underserved areas of eight counties: St. Louis, Cook, Lake, Pine, Itasca, Koochiching, Carlton, and Aitkin. It’s exciting to see this rural project finally come to fruition.

Institutional Network: Now to Go the Last Mile

It’s an institutional network, which means it brings high-speed Internet to community anchor institutions throughout the region. So far, about 320 public entities, including 31 school districts, have connected to the network. The network is designed to provide middle mile connectivity for community anchor institutions, not to bring connectivity to residents and businesses of the region. As with most federally funded projects, the plan is to provide middle mile infrastructure with the hope that the private sector will be more able or willing to invest in last mile connectivity.

That last mile, to homes and businesses, presents a challenge. NESC is leasing fiber to public and private providers and working to ensure that the network can serve as a backbone to greater connectivity. Actively working with private providers, NESC offers a bright future for unserved and underserved communities on the Iron Range.

Collaboration & Funding

A recent series of in-depth articles from Education Week brings to light a persistent aspect of the digital divide: the lack of fast, affordable, reliable connectivity in rural schools. Throughout the country, schools struggle to pay exorbitant fees for aging copper networks. Teachers and students are cut off from digital learning opportunities as whole regions fall farther behind. Education Week brings these issues to the forefront - and community-owned institutional networks could be the answer.

The Education Week articles describes the harsh impact of these grim statistics. The nonprofit EducationSuperHighway found that for rural schools, the median price for connectivity is more than double that of urban or even suburban schools. Although the number of students without access to sufficient bandwidth has been cut in half since 2013, at least 21 million students do not have access to adequate connections. 

In extremely rural communities, large service providers do not have an incentive to build high-speed networks, and small private providers often cannot take on those high upfront costs. This leaves communities with no choice, but to pay skyrocketing rates for slow, unreliable Internet access over aging infrastructure.

East and West: Students Face Similar Challenges

The articles present two compelling case studies of Calhoun County, Mississippi, and Catron County, New Mexico, to tell the story of how high-speed connectivity is so often out-of-reach for rural schools.

Two schools in sparsely-populated western New Mexico split 22 Megabits per second (Mbps) of bandwidth for $3,700 per month. An increase to 50 Mbps wouldn’t require  new fiber, but the upgrade would cost an extra $1,003.47 each month. The local provider has a de facto monopoly in the region so the schools have no choice but to pay the going rate; with no competition they have no leverage for negotiating. According to the New Mexico Public School Facilities Authority, monthly rates range from $1.35 to $3,780 for each Mbps of speed across the state.

In April 2015, Wisconsin's Brett Schuppner from the Reedsburg Utility Commission (RUC) had a conversation with Chris about the utility's plan to expand the municipal fiber network. Funding is one of the biggest challenges but in December, the RUC learned that it a state grant will help move those plans forward.

WisNews recently reported that the RUC applied for $110,000 to bring the triple-play fiber network to Buckhorn Lake in Sauk County. The Wisconsin Public Service Commission announced on December 11th that the RUC will instead receive $69,300 which will allow the network to extend to an additional 105 homes and 40 properties. From the article:

Schuppner said an informal survey of members of the Buckhorn Property Owners’ Association suggests the utility commission will likely recover its out-of-pocket costs for the project not covered by the grant of about $40,000 from new users in the first year.

RUC began serving the community in 2003, expanding in 2011, and offering gigabit service in 2014. The community is located about 55 miles northwest of Madison and home to approximately 10,000 people.

Ten other entities across the state also received grants. RUC anticipates construction to begin on this expansion early this year.

The newly formed Utilities Task Force in the City of Redding, Connecticut, is exploring the potential of bringing fiber connectivity to this rural town of about 9,000 people. Redding is about 65 miles northeast of New York City and just 25 miles north of Stamford.

As part of their feasibility analysis, the task force sent a survey to residents and businesses to gauge interest in bringing a fiber network to Redding. While the analysis is still ongoing, task force board member Susan Clark expressed optimism. “I’ve been energized by how many people have shown interest in this,” Clark told the News Times.

The task force believes if the survey reveals strong interest in the community for the nascent project, private Internet providers would be more inclined to help the community build the network. Community leaders hope that a new fiber network would attract new residents such as “knowledge workers” who depend on reliable, highspeed Internet access that allows them to work from home.

A second member of the task force, Leon Kervelis, told the The Redding Pilot that the task force has hopes the proposed network, if built, could eventually grow beyond Redding: 

“It’s not intended to be a single town project…we’d get several towns together in a conglomerate, and that municipal conglomerate decides procedures and financing for the infrastructure,” he said.

Kervelis also explained the task force’s proposed plan for how to pay for the network, saying residents and businesses would pay a small surcharge on their property taxes, a far cry from current rates:

More than ever before, innovations in healthcare technology are saving lives. A series of 2015 stories from around the nation highlight the importance of fast, affordable, reliable connectivity in using those technologies to serve patients in both urban and rural settings.

Broadband Speed and Medical Crises

The first story comes from Craig Settles, an expert on broadband access issues. In his line of work, Settles is constantly thinking about, talking about, and writing about the many virtues of broadband technology. But Settles explains that after recently suffering a stroke that required rapid medical attention, he gained a new perspective on the issue.

When someone suffers a stroke, they have three hours to get serious treatment or they often will not recover from its debilitating effects. I was lucky, but...while I worked through my recovery and rehab, a thought hit me: The process of my recovery would have been limited -- if not actually impossible -- had I been living in a small, rural or even urban low-income community without broadband.

Better Broadband, Better Medical Care in Rural West Virginia

The Charleston Gazette-Mail profiles the importance of broadband access at the St. George Medical Clinic in rural West Virginia. The clinic is wedged inside of a deep, wooded river valley, where geographic and topographic challenges interrupt access to reliable, high-speed broadband. In other words, the exact type of rural community Settles had in mind when he wrote about his frightening medical emergency.

But St. George Medical Clinic is different. With assistance from FCC funding, St. George recently laid a 12 miles of fiber optic line that delivers the hospital broadband access, essential to an increasing number of modern medical services. As the article explains:

Just this past week, we reported on the plight of Bradley County in Tennessee. Cut off from connectivity, families and businesses are considering leaving to nearby Hamilton County which has Chattanooga’s high-speed fiber network.

By a 12-1 vote, the Bradley County Commission urged the Tennessee legislature to pass a bill (Tennessee HB 1303/SB 1134) enabling public utilities to bring high-speed Internet to Bradley County residents. Current state law - right now embroiled in legal disputes - prohibits public utilities from expanding high-speed Internet access. 

Near-Unanimous Vote (12-1)

As reported in the Chattanoogan, the only naysayer to the resolution was the vice-chairman. He agreed that Charter and AT&T had failed to provide adequate Internet access to the county, but he expressed opposition to municipal networks. Although disagreeing with the resolution, he underscored how local control had disappeared with the current state law:

He said local governments at one time had leverage over providers when they had to come to them periodically for charters, but he said that control went away with the passage of the current law that he said was heavily lobbied.

The commissioners, however, felt that this vote was the only way forward. Some described how dependent their homes and businesses have become on Internet access, and others reiterated that the community suffered die to the lack of competition.

An Engaged Public Speaks Out

According to the Cleveland Daily Banner, the meeting attracted enough residents to pack the room. The people of Bradley County see the importance of better access in their future. Blake Kitterman, president of the Bradley County Young Democrats, told the Commission:

“When Bradley County citizens succeed, we all succeed, and EPB broadband expansion means an interconnected community…It means opportunities for businesses to affordably advertise their products, and students to be able to take part in higher forms of learning.”

A new state law is on the books in Vermont that supporters expect will encourage more investor activity supporting community broadband networks. 

The new law, which took effect this past June, allows for the creation of “communications union districts,” enabling towns and cities to band together to form geographic entities dedicated to establishing fiber-optic broadband networks for their area’s residents and businesses. 

A New Nomenclature

While Vermont towns have been able to work cooperatively via inter-local contracts, the new law is less cumbersome and uses a governmental nomenclature more familiar to most people—the union district. The union district governance model has been used for many years throughout Vermont, including by various utilities that have multi-town operations to handle, for example, sewer and water service.  

Carole Monroe; general manager of the East Central Vermont Community Fiber-Optic Network (ECFiber), a consortium of 24 Vermont communities that have banded together to provide broadband service; told our Christopher Mitchell there isn’t much practical difference for her group operating now as the East Central Vermont Telecommunications District instead of by an inter-local contract.  

“But I can say that in the municipal investment markets, they’re much more familiar with the municipal utility district, whether it’s a water district or sewer district or something along those lines,” Monroe told Chris in a recent edition of Community Broadband Bits podcast. “A municipal utility district is a common language for them. Inter-local contracts, not so much.” 

ECFiber Grew From Inter-Local Contract 

Irvin Thomae, chairman of the EC Vermont Telecommunications District board, agreed. He noted that seven years ago the east central Vermont communities created ECFiber through an inter-local contract. “But this (the inter-local contract) was unfamiliar to investors beyond our state borders,” Thomae told us.

“We needed a structure more capable of being recognized by large institutional investors. It (the communications union district) makes it easier for community broadband networks to appeal more for large investors.”

Iowa, known across the country for its agriculture, is known in other circles for its exciting community broadband projects. Earlier this year President Obama visited Cedar Falls to praise its municipal network and to support other efforts to improve rural high-speed Internet access. One of those efforts is Wiatel. This small telecommunications coop is beginning a $25 million project to upgrade its network from copper to fiber throughout its entire service area.

Fiber Connectivity

The cooper network that Wiatel uses now is sufficient for basic phone service, but upgrading to fiber will future-proof the network and provide better Internet speeds. The coop is based out of Lawton, a small town of about 1,000 people, but the coop serves an area of 700 miles. Wiatel hopes to start burying the fiber cables in the summer of 2016. Once the project gets started, officials from the cooperative estimate they will connect all residential and business customers to fiber within 24-30 months.

Wiatel is part of a long-growing movement as rural coops build fiber networks or upgrade to fiber to improve services for members. Just check out the Triangle Communications coop in Montana, the Paul Bunyan Communications coop in Minnesota, or Farmers Telecommunications Cooperative in Alabama. They’re providing next-generation connectivity at reasonable prices to rural communities often ignored by the large incumbent telephone and cable companies.

Coops: An Alternative

As the Sixth Circuit Court of Appeals reviews the FCC's February decision to scale back state anti-muni laws in Tennessee, at least two munis in the Volunteer State are giving back by saving dollars. Networks are also contributing substantially to  public coffers via Payment in Lieu of Taxes.

Clarksville, Tennessee, Network Becomes Revenue Positive in 2015

As of June 2015, the city’s utility provider CDE Lightband paid off all outstanding expenses related to their fiber optic network. General manager Brian Taylor described how the network has improved the city’s utility services and overall economic picture:

Our fiber project has proven to be an investment that benefits the electric system, the customers and the community. It has allowed us to enhance our distribution system and improve our system reliability; provide customer choice in video, Internet and telephone services and offer another tool in economic development. Every year access to high speed Internet becomes more critical in the recruitment of new business. We are proud to be an integral part of the growth and development of our community.

In a recent press release, CDE Lightband said their 1,200 mile fiber optic network saves the City of Clarksville a total of $4.5 million annually through technological upgrades that have improved the overall safety, reliability, and speed of electrical maintenance and service. The city has also seen 27% growth in broadband service customers over the past year. The network’s cost savings, along with direct revenues from electrical and broadband services, spell major dividends for CDE Lightband coupled with continued optimism for future growth.