Mecklenburg Electric Cooperative (MEC) plans to partner with Mid-Atlantic Broadband Communities Corporation (MBC) to extend Fiber-to-the-Home (FTTH) to member residences and businesses in southern Virginia. MEC’s project is yet another effort from rural cooperatives to bring high-quality connectivity to regions that don’t have the same options as urban communities.

Another Electric Cooperative Expanding To Broadband Services

Mecklenburg Electric Cooperative (MEC) is a not-for-profit energy provider headquartered in Chase City, Virginia. MEC is a member of a regional electric cooperative Old Dominion Electric Cooperative (ODEC), which provides wholesale electric services to 11 member cooperatives in Virginia, Maryland, and Delaware. MEC is currently providing electric distribution service to residents, businesses, and other institutions in nine Virginia counties and five North Carolina counties. 

In September, MEC board of directors approved a plan to upgrade fiber optic network infrastructure to connect 27 substations and the three district offices. The upgrade will afford MEC the opportunity to implement a FTTH pilot project to connect member residences and businesses.

MEC plans to initially connect 47 miles of fiber to offices in Gretna and Chase City and seven substations. In the future, MEC would connect offices in Chase City, Ebony and Emporia. In total, the intended fiber optic network would pass within 1,000 feet of 3,000 member residences and businesses in 6 counties.

President & CEO of MEC John C. Lee, Jr.

“It would be inconceivable for us to deploy fiber that will pass right by the homes of many of our members and not make every effort to share that service with them, especially given that our members have waited patiently for access to the same high-quality internet service enjoyed by those in urban areas…they have waited long enough and they should never have to settle for less”

Rural communities across the United States are already building the Internet infrastructure of the future. Using a 20th century model, rural America is finding a way to tap into high-speed Internet service: electric and telephone cooperatives are bringing next-generation, Fiber-to-the-Home (FTTH) networks to their service territories. This policy brief provides an overview of the work that cooperatives have already done, including a map of the cooperatives' fiber service territories. We also offer recommendations on ways to help cooperatives continue their important strides.

Download the policy brief, Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era here.

Key Facts & Figures

Farmers first created utility cooperatives because large private companies did not recognize the importance of connecting rural America to electricity or telephone service. Now, these cooperatives are building fiber infrastructure.

Almost all of the 260 telephone cooperatives and 60 electric cooperatives are involved in fiber network projects. As of June 2016, 87 cooperatives offer residential gigabit service (1,000 Mbps) to their members.

Rural cooperatives rely on more than 100 years of experience. The cooperative approach does not stop with rolling out rural infrastructure, but ensures that their services remain viable and affordable. 

The majority of Montana and North Dakota already have FTTH Internet access, thanks to rural cooperatives. Even one of the poorest counties in the country (Jackson County, Kentucky) has FTTH through a telephone cooperative.

AT&T receives about $427 million each year in rural subsidies to bring Internet service to rural America, but AT&T does not invest in rural fiber networks. 

Moving Forward

Our policy recommendations offer an outline of how to build off of this work and further support rural cooperatives:

1. Design funding programs with cooperatives in mind. Recognize what requirements make sense for large organizations and what is unnecessary for cooperatives.

The Eastern Shore of Virginia Broadband Authority (ESVBA) board of directors has decided to expand Fiber-to-the-Home (FTTH) service to 14 more areas in the region.

Speedy Expansion On The Shore

In the next six months, residents of Accomack and Northampton counties should have access to high-speed Internet. The ESVBA regional open access middle mile network already provides FTTH to three areas, but decided to expand, concluding the current budget would support additional deployment.

Areas specifically identified for expansion include Sanford, Accomac, Greenbackville, Atlantic, Wattsville/Horntown, Hallwood/Nelsonia, Oak Hall/New Church and Quinby. In a meeting planned for Dec 13th, the board will discuss which areas to prioritize, with the idea of moving into two new areas each month.

A Continuing Success

ESVBA was created in 2008 through the efforts of Accomack and Northampton counties. NASA helped fund the build-out of the regional network’s backbone. They have a flight facility on Wallops Island that employs over a thousand Virginians. Government agencies, local schools, and healthcare institutions on the shore needed reliable connectivity for daily operations. Apart from NASA, the Navy and the National Oceanographic and Atmospheric Administration connect to the network, along with schools and medical facilities, making it an indispensable community resource.

Several different telecommunications companies on the Eastern shore utilize the open access network in a variety of ways, including the ISPs Windstream Communications and the local Eastern Shore Communications LLC.

Residential FTTH service is currently underway in Harborton, the Bobtown/Pungoteague/Painter area, and Church Neck where customer sign-on is gradually increasing.

Next Steps

Wilson has made their community-owned Greenlight fiber network central to their economic development plan, a move that may forge a new approach for other communities with similar assets.

Revitalization Efforts

In 2008, when Wilson’s Greenlight community network first launched, the Federal Communications Commission ranked North Carolina last in the nation in percentage of households subscribing to at least a "basic broadband" service. Today Wilson offers free Wi-Fi downtown, schools and libraries are outfitted with high-quality connectivity, and a majority of households subscribe to the broadband service.

Home to over 50,000 residents, Wilson has had a diverse history of industries popping up and dissipating over the years. After deploying their Greenlight Community Broadband, they’ve leveraged new businesses and an entrepreneurial spirit that shows no sign of relenting.

Wilson is initially focusing development downtown. The local daily paper The Wilson Daily Times decided to refurbish an old building and move downtown. The city raised money to renovate an old theater into a cultural center, and an electrical components manufacturing company, Peak Demand, has invested $2.6 million to renovate an old tobacco processing plant.

A Shift From the Old

Wilson involves all community stakeholders to make this revitalization a success. They have worked closely with Barton College, a liberal arts university, and the local nursing school. The community is consciously trying to buy locally and many people meet to discuss how best to promote this.

Wilson’s economic development model has evolved alongside their broadband network and they credit much of their success to Greenlight's benefits. In years past, many towns looked to bolster their economy by attracting companies that offered a windfall of manufacturing jobs— an industrial-era dream. But Wilson is no longer fretting over the decline of large-scale manufacturing companies that once haunted rural America. Instead, they’ve embraced the evolution towards technology companies and entrepreneurial business.

The future of high-quality Internet access in Pinetops, North Carolina, is precarious. Nearby Wilson’s municipal fiber network, Greenlight, provides gigabit connectivity for now, but a series of federal level decisions could change the situation at any moment. Now the story of these two communities and their fight for local telecommunications authority has come to life in the film Do Not Pass Go. Local communities can schedule a screening of the documentary. Watch the trailer below.

A Story Worth Telling

Cullen Hoback’s film tells the story that made national news and that we’ve shared as events unfolded.

Wilson, North Carolina’s municipal Fiber-to-the-Home (FTTH) network has benefitted residents, businesses, and institutions in Wilson since 2008. Neighboring rural towns, including Pinetops, had asked Wilson to expand in order to obtain better Internet access but state law precluded Wilson from serving beyond county borders.

When Chattanooga decided to challenge Tennessee’s law that had a similar effect, Wilson joined the motion to the FCC in 2015. The Commission struck down both laws and Wilson took the opportunity to expand service to Pinetops, the small mountain town of about 1,400 people. Pinetops businesses and residents immediately felt the improvement with FTTH. They experienced economic development opportunities and municipal facilities functioned more efficiently.

This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?

Just days ago, voters in more than a dozen Colorado communities chose to opt out of SB 152 the way Rio Blanco County did in 2014. The rural western county has since started connecting residents and businesses to high-quality Internet access via its publicly owned open access fiber optic infrastructure. Due to high demand, they recently announced that they’re making changes in their business plan and taking a more direct role in operations.

Until now, Rio Blanco County has worked with Colorado Fiber Community (CFC) under a three-layered plan in which CFC contracts with the county to perform maintenance and operations on the network that the county owns. Local ISPs LAI and Cimarron use the infrastructure to deliver services to the public and work directly with subscribers. The county has decided to end its agreement with CFC and take over operations and maintenance.

Too Much Good Internet

The popularity of the project created its own problems when the demand for service far outpaced estimates. CFC budgeted $1.5 million to fund connections in a timely manner but quickly depleted those funds. The county had expected a take rate of 40 percent, but this September CFC anticipated a take rate of 75 - 80 percent.

Without additional funding to expedite installations, CFC would have been limited to connecting 10 - 15 premises per month. Such a rate would only meet about ten percent of the expected demand, when considering more than 100 premises had been connected in August.

Rather than dramatically slow the rate of installations, Rio Blanco County Commissioners decided in September that the county would pay for the first $1,160 required to connect each premise. Property owners are responsible for any additional costs. The Commissioners voted to use reserves to fund the remaining drops.

County Commissioner Si Woodruff told the Herald Times earlier this year:

After a long and arduous process, the folks in Mount Washington, Massachusetts, were finally able to light up their publicly owned fiber optic network last week. According to resident and Select Board Chair Eleanor Tillinghast, “We are thrilled. We’re going to be the envy of everyone.”

It's Finally Here

As we reported last month, the community was eagerly anticipating the opportunity to finish up the last steps to begin connecting subscribers from the town's 146 premises. Approximately 100 are connected and will take services from local Internet service provider Crocker Communications. In addition to providing Internet access, the ISP will handle billing for the city, provide 24/7 tech support for subscribers, and monitor the network. The infrastructure will be maintained by the company that built it for the city, NextGen Group. Mount Washington owns the infrastructure.

Gigabit connectivity is available, but most subscribers have opted for 500 Megabits per second (Mbps). All speeds are symmetrical, which makes Mount Washington’s network valuable as an economic development tool. Community leaders are already seeing in increase in real estate transactions that they relate to the new network. “People may have ruled Mount Washington out before,” Select Board Member Brian Tobin told the Berkshire Edge. “But we just catapulted ahead of other towns in terms of amenities.” As a potential quiet retreat for New Yorkers located in the Taconic Mountains, Tobin and Tillinghast expect to lure more urbanites who want to work remotely for part of the week. Tobin also has a Manhattan apartment and says that his Internet access speeds in the city are only about 117 Mbps download with slower upload speeds.

A Long Process That's Paid Off