Over the last few months, the U.S. Department of Agriculture (USDA) has released a steady stream of awardee announcements for the first round of its ReConnect broadband program. Among the recently announced recipients is Valley Telecommunications Cooperative Association in Flandreau, South Dakota. The telephone co-op will receive a grant of about $9.5 million to connect nearly two thousand underserved households, businesses, and farms to it’s existing fiber network.

The first round of ReConnect funding made $600 million available in grants and loans to Internet service providers to expand broadband access across the country. Many of the round one awards have gone to locally-run, community-owned providers, like Valley Telecommunications, to build fiber networks. This includes grants to Forked Deer Electric Cooperative; Orangeburg County, South Carolina; and Star Telephone Membership Corporation, as well as awards to two economic development agencies in Tyler and Wetzel Counties, West Virginia.

Valley Reaches a Peak

Members of Valley Telecommunications Co-op can already subscribe to gigabit speed fiber connectivity. From 2008 to 2016, the co-op replaced all of its old copper lines with a modern fiber optic network. “One hundred percent of our members in north central South Dakota can receive gigabit broadband services via that fiber network,” shared CEO and General Manager Jeff Symens at a press conference announcing the ReConnect grant.

Soon after completing the fiber buildout, the co-op decided to expand into nearby communities such as Volga and De Smet, operating under the name Valley FiberCom. However, this still left some homes and businesses outside of the towns unconnected. Symens explained:

According to a research study conducted by Fiber Broadband Association and RVA, LLC, fiber deployments in North America hit record highs in 2019. The broadband deployment initiative experienced a 16 percent growth or roughly 7,500,000 new homes now with fiber connectivity. More than 46.5 million houses have access to fiber Internet access compared to the 50,000 homes in 2002. 


Here are some key findings from the report:

Over the past year, fiber broadband networks became available to 6.5 million additional unique homes — a record level of additions. Smaller providers accounted for 25 percent of these new home connections. 

All-fiber deployments to customer end-points are at record levels, with over 400,000 fiber routes deployed in the last year. This increase was driven by new deployments to homes, upgrades by cable operators, and the beginning of deployments to small cell sites.

To learn more, the full report is available to members of the Fiber Broadband Association. Lisa R. Youngers, president and CEO of the Fiber Broadband Association:

2019 was a banner year for fiber broadband. Fiber networks now support everything from 5G to Smart Cities to the Internet of Things. I’m thrilled that our Association can demonstrate the progress that we have made. In 2020, we will continue the work to connect the unconnected and accelerate our fiber future. 

A similar report in 2018 found that broadband was currently available to 5.9 million new homes. More than 1,000 small providers provided for 29 percent of the deployment.

In the spring of 2019, Houston, Missouri, sent out a call to citizens to share their thoughts on whether or not they'd like to subscribe to Internet access from a municipal network. Less than a year later, the city of around 2,000 people has forged ahead and has hired an engineering firm to begin work on their multi-phase fiber optic project.

Phase One is a Go

Economic Development Director in Houston Rob Harrington says that the city hopes to have the first phase — an eighteen-mile fiber ring that connects city facilities — completed and functional by the end of the summer.

Houston owns and operates a municipal electric utility, which is a big plus for communities interested in better connectivity through publicly owned fiber optic network infrastructure. The Houston Herald reports that the city’s electric utility has brought in additional revenue that, over the last fifty years, has contributed to public improvements in Houston. Houston is the seat of mostly rural Texas County, located in south-central Missouri; the community is about 3.7 square miles.

Another factor in Houston's favor: the city owns the utility poles, which will reduce make-ready time and reduce final cost. A feasibility study, which reported a favorable situation in Houston for a publicly owned Fiber-to-the-Home (FTTH) system, suggested all but about three miles of the first phase of the infrastructure could be deployed on poles. Sewer lift stations, water towers, and other city facilities will connect, which will allow Houston to reduce telecommunications costs. The city will use reserves to fund the first phase of the project.

In recent years, co-ops and municipalities in Colorado have been making fiber optic network investments to provide connectivity so citizens can compete in the digital economy. With all this fiber deployment in Colorado, there are still extremely rural areas that lack access to broadband. With a little help from the U.S. Department of Agriculture (USDA), people living in Dove Creek, near the Utah border, will soon have access to fiber connectivity.

Another Cooperative Receives ReConnect Funding

This fall and winter, we've reported on several electric and telephone rural cooperatives that have won funding through the USDA's ReConnect Program. In Dove Creek, Emery Telecommunications & Video, Inc., a subsidiary of cooperative Emery Telecom will extend service to the small community in Dolores County, Colorado. The co-op will use the $2.73 million grant to deploy Fiber-to-the-Home (FTTH) to more than 500 residences, eight school district facilities, and public safety facilities in Dove Creek and in the nearby community of Monticello, Utah. Among the premises that will receive better connectivity will be farms, ranches, and small businesses.

Emery Telecom will add $1 million to the grant funding and anticipates completing the project within five years, although Emery CEO Brock Johansen believes they can finish deployment sooner. The demand is high, adding extra motivation to finish the project sooner. “We get a lot of requests for service out near the state line,” he said.

"Best Thing Since Pockets on a Shirt"

We last wrote about MB Link, the municipal fiber network in Mont Belvieu, Texas, in October 2018. Since then, the city near Houston has connected about half of its 7,500 residents to the network and is talking about expanding into the surrounding county, reported the Dallas Morning News.

The in-depth article from late last month discussed many aspects of the groundbreaking network, including why the city decided to take charge, the legal and logistical challenges it faced, and how local service is benefiting the community.

MB Link Emerges

As in other communities, poor service quality from existing providers drove Mont Belvieu to deploy a city owned broadband network, the article explained:

For years, residents of this fast-growing town on the outer ring of Houston complained to local leaders about slow and spotty Internet. They put satellite dishes on their rooftops. They endured intermittent service and frequent outages.

. . .

So Mont Belvieu took matters into its own hands: It decided to build and operate its own high-speed Internet service.

Now, MB Link offers residents across the city speeds of up to 1 Gigabit per second for only $75 a month. Approximately half of all Mont Belvieu households get Internet access from the municipal network, which has recently begun providing service to businesses as well.

Community Networks Create Competition

Mont Belvieu isn’t the only city that has built a broadband network to create options for residents and businesses, the article noted:

Christopher Mitchell, director of the Institute for Local Self-Reliance’s community broadband network initiative, said cities began building broadband networks in the 1990s when they had no Internet. Now, he said, they’re motivated because they feel stuck with Internet that’s inferior or overpriced.

. . .

In recent weeks, several rural electric and communications cooperatives have received federal ReConnect funding grants and loans. In December, Tyler and Wetzel Counties in West Virginia learned that they will also benefit from the program. Approximately $5.6 million has been awarded to the region for two projects that will provide Fiber-to-the-Home (FTTH) connectivity in some of the state's northern rural areas.

Development Is the Goal

In Wetzel County, the Ohio Valley Industrial and Business Development Corporation will lead the project and the Tyler County Development Authority, Inc., takes the reigns in the adjacent county. In addition to projects within each county, more than 74 miles of fiber will connect the two.

The Wetzel County project will include $2.1 million in ReConnect Program grant funding and use a matching amount to fund the total project, estimated at $4.2 million. The Ohio Valley Industrial and Business Development Corp., intends to connect more than 1,900 households, five educational facilities, a healthcare center and nine additional community facilities.

The Tyler County Development Authority, Inc. (TCDA) plans to use their $1.7 million grant and a ReConnect loan of equal amount to deploy fiber infrastructure throughout the county. They will bring FTTH to almost 1,400 residences, three school facilities, a healthcare center, and five community facilities within a 26 square mile area. 

Executive Director Eric Peters of the TCDA discussed the Tyler County project at a recent ceremony, where USDA Rural Utilities Administrator Chad Rupe announced the award:

"The Tyler County Development Authority will own the system's physical infrastructure and will lease it to a private service provider. CityNet was instrumental in providing technical expertise and their background as a successful and experienced service provider was invaluable. We anticipate that CityNet will be our contracted ISP."

The USDA's ReConnect Program to expand broadband in rural areas has been awarding funding for several weeks now; electric and telephone cooperatives have received significant awards. In North Carolina, Atlantic Telephone Membership Corporation (ATMC) recently learned that their application for ReConnect funds has been granted and the cooperative will receive $7.9 million toward expanding their Fiber-to-the-Home (FTTH) service.

Celebrating in Columbus County

Cooperative CEO and General Manager Keith Holden, USDA State Director for North Carolina Robert Hosford, and Chief of the Waccamaw Siouan Tribe Michael Jacobs gathered at the Tribe Headquarters in Bolton to announce the award and discuss the project. ATMC will match the USDA grant with an additional $7.9 million, rather than take a loan from the ReConnect program. The total cost of the project is around $15.87 million and will deploy FTTH to more than 2,700 premises, including homes and more than 50 businesses. The infrastructure will also serve three critical community facilities, ten educational facilities, and 23 agricultural operations in northern Columbus County. 

At the event, Hosford noted that better connectivity will help agricultural establishments in the region, one of the main sectors of the local economy. 

“The health and vibrance of rural communities most usually is from farmers and forestry in this state,” Hosford said. “If those small communities are healthy, that means their farming communities are healthy, and this is just another tool in our toolbox to help these rural communities.” 

Hosford said the agriculture industry has struggled in recent months due to ongoing trade disputes, so any boost is a welcome one.

ATMC will use the funding to build out to Tabor City, Hallsboro, Lake Waccamaw, Bolton, and areas north of Whiteville.

Other Grant Sources 

Originally published in 2017, our report, Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era, focuses on cooperatives as a proven model for deploying fiber optic Internet access across the country, especially in rural areas. An update in the spring of 2019 included additional information about the rate at which co-ops are expanding Internet service. Now we’ve updated the report with a new map and personal stories from areas where co-ops have drastically impacted local life.

Download the updated report [PDF] here.

All versions of the report can be accessed from the Reports Archive for this report.

Some highlights from the third edition of Cooperatives Fiberize Rural America include:

• More than 110 rural electric co-ops have embarked on fiber optic projects to increase Internet access for their members, a number that is growing rapidly from just a handful in 2012.
• 31.3 percent of the fiber service available in rural areas is provided by rural cooperatives.
• Personal anecdotes from Michigan, Virginia, Minnesota, and Missouri residents attest to the far-reaching benefits of cooperatives’ expansion into Internet service.
• A new map shows where rural cooperatives are planning to expand fiber Internet service.

Co-ops have proven that this is a model that works. With increased support from federal and state governments, they will continue to connect rural Americans to economic and educational opportunities otherwise denied to them. 

Read Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era [PDF] here.