All across the country, municipal networks, cooperatives, and cities have been putting in extra effort to make sure that Americans have the fast, affordable, reliable Internet access they need to conduct their lives in the midst of the COVID-19 pandemic. 

AT&T has decided to take another route. A USA Today report last week revealed that the company has stopped making connections to users subscribing to its ADSL Internet as of October 1st. Anyone calling the company to set up new service is being told that no new accounts are being accepted. 

The decision comes right as the National Digital Inclusion Alliance has released a report detailing that only 28% of AT&T’s territory can get fiber from the company. AT&T has deliberately focused investment in more urban areas of higher income. From the report:

The analysis of AT&T’s network reveals that the company is prioritizing network upgrades to wealthier areas, and leaving lower income communities with outdated technologies. Across the country, the median income for households with fiber available is 34 percent higher than in areas with DSL only — $60,969 compared to $45,500. 

The Deep South Hit Hardest

As of today, it looks like the most conservative number of those affected by the decision will be about 80,000 households that have no other option. Our analysis using the Federal Communication Commission’s (FCC) Form 477 data shows that the Deep South will be hit the hardest (see table at the bottom of the page). 

Collectively it means more than 207,000 Americans who, if disconnected, will have no option for Internet aside from their mobile devices or satellite service. The number of Americans affected by the decision but which have additional wireline options is higher: roughly 2.2 million American households nationwide subscribe to the service (see map, below).  

Last week, Frontier Communications told the Federal Communications Commission (FCC) that there are 17,000 census blocks in which it is now offering 25 Megabits per second (Mbps) download and 3 Mbps upload. This means well over 400,000 Americans now live in areas no longer eligible for the FCC's Rural Digital Opportunity Fund, a $20.4 billion program to expand rural broadband. The first phase will auction off up to $16 billion in subsidies later this year.

In the filing, the company also identified census blocks where it believes other providers will deploy broadband access through state-funded programs, making those locations ineligible for the federal funds as well.

Frontier is Flailing

Several rural counties in east central Indiana, where high-quality Internet access isn't readily available, can anticipate changes in the future, thanks to their local electric cooperative. According to WANE.com, Heartland Rural Electric Member Cooperative (REMC) will be embarking on an expansive project to provide high-quality Internet access via 3,000 miles of new fiber optic infrastructure. The network will serve around 20,000 members in four counties.

WANE.com reports:

The [cooperative] borrowed money to fund the project. In addition, Heartland REMC received several multi-million dollar 10-year tax abatements from Huntington, Wabash, and Wells counties for the project.

The total amount for the project is estimated to be $51 million.

“It’s going to be a long payback period,” [CEO Robert] Pearson said, “but the one commitment we had to make and figure out how to do is to make sure it wasn’t put on the backs of our ratepayers. So no rates will ever be raised because of this. We feel like … there are enough people that want this in order to have the support to pay it back.”

Though Heartland REMC will be constructing the lines for the services, they are partnering with TWN Communications to provide and run the new internet service.

But if you’re not a Heartland REMC member, you can still receive the service. Everyone in the county that does not have high-speed internet can get it as long as the lines are in their area.

Pearson told WANE.com:

“It’s a need in the rural areas and no one else will do it....We at Heartland being a cooperative and servicing those members felt like if no one else is going to do it then we need to because high-speed internet in today’s society is crucial.”

Watch the story on the project, which the cooperative expects to finish in three years:

In June, Indiana’s Hendricks Power Cooperative and Endeavor Communications Cooperative announced that they will be partnering to expand fiber optic connectivity in west central Indiana. Endeavor will provide gigabit Internet and voice services over Hendricks's fiber optic network, bringing broadband to more than 5,000 households within the next four years.

Members Want It

According to the June press release, growth in Hendricks, Putnam, and Montgomery Counties have left businesses and residences in need of high-quality connectivity. The region is outside the Indianapolis metro and growing. Because it has been historically rural, large corporate Internet access companies have not made the same investments they’ve made in urban areas.

From the Hendricks Power press release:

“Our members and community leaders greatly expressed the need for access to high-speed Internet,” said Greg Ternet, CEO of Hendricks Power Cooperative. “Combining the resources of these two cooperative-based businesses will allow us to bring fiber-based technological services in a quicker and more efficient fashion. Joint investments by Hendricks Power and Endeavor Communications will help our community grow in terms of quality of life and economic development.”

Endeavor has been serving rural Indiana communities for around 65 years and began deploying fiber in 2006; they completed fiber deployment in 2016 in nine service exchange areas. With several awards under their belt at the state and national level, and ample experience at communications in rural environments, they seem a natural fit for another rural cooperative, such as Hendricks Power.

Hendricks began like many other electric cooperatives in the 1930s — with rural members working together to get power to their homes and farms. The co-op was formed in 1936 when the local utility, which was owned by private interests, would not expand out where population was sparse. Hendricks Power Cooperative now serves more than 30,000 members.

Getting A Gig

Across the country, state legislatures are ushering in better rural connectivity by passing new laws that enable electric cooperatives to expand high-quality Internet access. In recent years, much of this legislation has authorized co-ops to deploy broadband infrastructure along existing electric easements. Other bills have removed restrictions that previously prevented electric co-ops from providing Internet access. Together, the new legislation makes it easier for electric cooperatives to bring high-speed broadband access to their members, signaling a brighter future for unconnected rural communities

Indiana in the Lead

Indiana’s state legislature was ahead of the curve when it passed SB 478, the Facilitating Internet Broadband Rural Expansion (FIBRE) Act back in 2017. The FIBRE Act permits electric cooperatives to use easements for their electric poles to also deploy broadband networks. Before the General Assembly passed this legislation, cooperatives that wanted to install communications infrastructure, such as fiber optic lines, along their electric easements would have to gain permission from each individual landowner to attach fiber to the existing poles.

Since the passage of the FIBRE Act two years ago, a number of Indiana electric cooperatives have embarked on broadband projects, including Jackson County Rural Electric Membership Corporation (REMC), South Central Indiana REMC, Orange County REMC, and Tipmont REMC. At the announcement event for South Central Indiana REMC’s fiber project, State Senator Eric Koch, author of SB 478, noted that state legislation like the FIBRE Act was enabling electric cooperatives to expand modern connectivity to rural Indiana.

State Laws Advance Co-op Broadband

When Indiana’s Tipmont REMC asked members about broadband in 2017, more than half said that they couldn’t access fast, affordable, reliable connectivity. The rural electric cooperative soon began establishing plans to develop a fiber broadband network. Now, in a move to bring high-quality connectivity to members sooner, Tipmont has acquired local ISP Wintek Corporation, and plans to serve all 23,000 members within the next eight years.

A Comfortable Relationship

Wintek, headquartered in Lafayette, began in 1973 and provides connectivity to Tipmont’s headquarters in Linden, Indiana. The ISP has used the electric co-op's poles for more than 10 years to mount sections of the Wintek fiber for residential and commercial connections. According to Tipmont’s announcement on the acquisition, Wintek has also served as a consultant for IT systems to the cooperative. Tipmont leaders have already established a level of trust with Wintek and vice versa.

According to Oliver Beers, co-owner and COO of Wintek, the acquisition will allow more Wintek customers to access fiber connectivity. “We’ve done as much as we can financially afford to do,” Beers told the Journal Review.

Began as A Solo Project

When the Tipmont board unanimously decided to develop a Fiber-to-the-Home (FTTH) network, they had not intended to work with another entity. They commenced construction this past summer in Montgomery and Tippecanoe Counties, where they’ve already deployed 30 miles of fiber. In November, they connected a dozen households in Linden as test customers to work with the system for two months.

There may be one famous Orange County already — the one in California is home to Laguna Beach, Disneyland, and The Real Housewives — but Orange County, Indiana, will soon be making a name for itself with world-class connectivity thanks to the local electric cooperative.

After a few years of planning, Orange County REMC is moving ahead with the construction of a Fiber-to-the-Home (FTTH) network that will bring premium Internet and telephone services to its members and other nearby residents. Construction on the main fiber ring begins this fall with services starting as early as next year.

The Seventh Cooperative Principle

In Orange County, the co-op’s main service territory, about half of the county’s 9,000 residents do not have access to 25 Megabit per second (Mbps) wired Internet access.

To address this, Orange County REMC began exploring ways to provide fast, reliable connectivity to its members in 2015. Two surveys and a feasibility study confirmed that a fiber project would be financially possible for the co-op and that it would garner sufficient interest from residents, while also improving management of the electric grid. “Based on the second survey, 85 percent of Orange County REMC members stated they would take our service if it were offered,” Matt Deaton, the co-op’s General Manager and CEO, told Hoosier Energy.

Because of the strong community support and the benefits for local businesses and residents, the Orange County REMC Board of Directors approved the FTTH project, Orange County Fiber, in May 2018.

In a recent edition of the Electric Consumer, published by Indiana electric co-ops, Deaton explained:

“All of these factors are found under the seventh cooperative principle ­— concern for community...This was a major decision to expand the services we provide to prepare us to meet the current and future needs of our members.”

Orange County Fiber

A newly operational dark fiber network, built by the city of Valparaiso, Indiana, is already proving to be a hot commodity for area businesses and institutions. Since going live in May of this year, ValpoNet has received dozens of inquiries from companies and organizations looking to build upon its unlit backbone.

From Idea to Implementation

The municipality had always intended to build the fiber system in order to support local businesses. City officials also came to recognize that a strong fiber backbone was well worth the investment, will continue to support new technologies, and will support emerging technologies from local entrepreneurs and tech companies. 

Valparaiso first considered building its own strong, redundant fiber network after a large data company said it was wary to expand in the region after weather related outages impacted the incumbent provider network. To ensure data flowed securely and to reduce or eliminate outages, ValpoNet installed a dark fiber loop with “carrier diversity and redundancy.” 

ValpoNet has no plans to become a municipal ISP but hopes to entice private sector ISPs as part of a competitive open access model. Currently, the 25-mile network houses 288 strands of fiber. It runs mainly north-south along IN-49, and also circles around the denser circumference of the city.

You can listen here to our discussion of the origins of ValpoNet with Valparaiso’s Development Director, Patrick Lyp, who is the city’s point person for the network.