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.

Summit County Commissioner Elisabeth Lawrence and her husband who live in Breckenridge, Colorado, received a special holiday treat on December 9th — their house was connected to the new community network, Fiber9600. Crews braved the snow in the mountain community in order to complete the first home install.

Winter Waits for No Fiber

Two residential neighborhoods have been chosen for the first installs. ALLO Communications, the Internet access provider delivering service via the publicly owned fiber optic infrastructure, has stopped scheduling new installation appointments due to the inhospitable winter construction season.

According to ALLO senior operations manager Junius Businelle, however, crews will continue to complete scheduled installations in the first two designated neighborhoods with expected completion by February 1. Installation is free and takes about 90 minutes to two hours, unless a subscriber asks for TV installation, which requires up to an hour.

Lawrence and her spouse, Ryan Scholl, wanted to switch to ALLO because their previous Internet access was too expensive and unreliable. “We’re really looking forward to it because we have really inconsistent internet,” she told Summit Daily. 

From Open to ALLO

The city’s early plans were to develop an open access network in order to spur competition. The community, which welcomes large numbers of tourists every year, has experienced poor Internet access and high rates. City leaders, however, considered the challenges for ISPs operating on open access networks, such as getting a foothold in the community, and decided instead to work solely with ALLO for the first ten years.

With the option to renew the arrangement with ALLO for two more 10-year terms, Breckenridge will give the company a chance to establish themselves as a new entrant. The community will preserve an option to find another ISP in the future, if they’re not satisfied with ALLO after a reasonable period. 

Paul Bunyan Communication’s fiber network, GigaZone, continues to expand in Minnesota and is now offering gigabit connectivity in the Big Falls area. The cooperative is one of an increasing number of co-ops, both telephone and electric, that are picking up the slack in rural areas where large, corporate Internet access companies don't find the case for investing in communities that are not densely populated.

The cooperative has a history of expansion thanks in part due to their own contributions and grants like the Minnesota Border-to-Border grant. They also have offered to upgrade every school within its service area to gigabit Internet speeds with no extra charge and the presence of high-quality Internet access from Paul Bunyan Communications has contributed to economic development in the region. 

Members who are already subscribers but not yet signed up for gigabit service can choose to upgrade and can add more options:

GigaZone service options include unprecedented Broadband Internet speeds of up to 1000 Mbps – a Gigabit. Members who subscribe to GigaZone Broadband can also add PBTV Fusion and/or low cost unlimited long distance service. All current service options also remain available to cooperative members within the GigaZone.

Current routers may not be able to support the capacity increase and to help, the cooperative is offering their own Wi-Fi router to subscribers. The router is free to all new GigaZeone customers for the first six months, with a minimal charge thereafter.

Check out the GigaZone availability map to see where the service is available and where the co-op plans to deploy in the future.