Missouri is one of the states where electric cooperatives are taking the lead in bringing high-quality Internet access to rural areas. This week, we talk with Jack Davis, Vice President of IT and Special Projects at Pemiscot-Dunklin Electric Cooperative. The co-op is in the midst of deploying Fiber-to-the-Home (FTTH) to members in their service area, located in Missouri’s “Bootheel” region.
The mostly agricultural area consists of three counties that extend down from the southeast corner of Missouri and is surrounded by Arkansas, Tennessee, and Kentucky. The co-op brought electric service to homes in the region in the 1930s and Jack and his colleagues are performing a similar service today by bringing broadband to a region where large corporate ISPs haven't invested much in infrastructure. In this interview, he describes what Internet access is like for people in the region before the cooperative decided on the project, and how strong support from residents and businesses has helped the cooperative determine the services to offer.
Jack and Christopher also discuss how the geography and environment influenced engineering and design plans, how locals are responding to the new service, and potential plans for growth in the region. In this conversation, you’ll also hear about some of the partnerships that Pemiscot-Dunklin has forged with other cooperatives in order to offer better services to cooperative members.
Cooperatives around the country have built on their long legacy of delivering essential infrastructure by starting to deliver next-generation Internet services. Here, we cover the basics of cooperatives in rural areas and then discuss the details of electric and telephone cooperatives that have already branched out into Internet service. Finally, we highlight the first fiber optic cooperative provider, and discuss how other communities have better Internet service through building their own networks.
Cooperatives are part of the fabric of rural America. The member owners control the cooperative: each person receiving service is a member of the cooperative and can directly vote in elections for the Board of Directors or even become a member of the Board.
Starting in the 1930s, the U.S. Department of Agriculture supported communities as they created more than 900 electric cooperatives across the country. In the 1950s, the federal government again supported communities building telephone networks, crisscrossing the country with telephone cooperatives to connect rural communities.
Each technology brought new markets, revitalized economies, and revolutionized industries. Cooperatives have a long history of building and maintaining essential infrastructure and providing excellent service in rural communities. Now they have the chance to do that again by building next-generation networks for Internet service.
Rural Public Policies
Rural areas face a number of challenges that urban and suburban communities do not. Low population density coupled with rough terrain can make building infrastructure challenging. Added to these factors, rural communities may not have access to the same financial resources as larger towns and cities do.
Image
Cooperatives, however, have made infrastructure projects work in rural communities for nearly a century. They have access to funding from their membership base, local banks, and often the federal government. Some state governments have expanded their broadband grant and loan programs to include electric cooperatives. Other states have clarified laws and policies to recognize that electric cooperatives can build fiber networks for Internet service using their current infrastructure. A few states have even removed legislative hurdles that stymied investments by electric cooperatives. Technically, the 1996 Telecommunications Act, Section 253, prohibits states from stopping any co-op from offering Internet service, but co-ops in many states are loathe to challenge state law in court.
North Carolina
In 2019, the state removed restrictions that prevented electric cooperatives from using USDA funding for non-electrical purposes, such as broadband networks. Our 2016 report, North Carolina Connectivity: the Good, the Bad, and the Ugly, highlighted how this roadblock kept the state’s electric co-ops from providing service to many rural communities.
Tennessee
During the 2017 legislative session, this state has clarified the language in its laws to allow electric cooperatives to build networks for Internet service.
Indiana
Cooperatives already have access to utility poles, easements, and Rights-of-Way in the communities that they serve. Indiana, however, needed to clarify that electric co-ops can use this access to provide Internet service, so it passed the FIBRE Act. Other states, including Georgia, Maryland, and Texas, have since followed suit.
Minnesota & Colorado
Minnesota and Colorado have made funding easier to access for cooperatives interested in providing Internet service. Both states have designed grant programs that promote local solutions to connectivity problems. In Minnesota, cooperatives provide most of the Fiber-to-the-Home Internet service thanks in no small part to that grant program.
Overbuild Or Underbuild?
In Community Broadband Bits Podcast Episode 91, Christopher Mitchell and Lisa Gonzalez discusses strategies for building Internet infrastructure in rural are. What do communities need to thrive?
More than 900 rural electric cooperatives provide electricity to about 12 percent of the U.S. population. Their service area, however, covers more than half of the total land, nearly 2 million square miles. About 90 rural electric co-ops have embarked on fiber optic projects to increase Internet access for their members.
Several of these electric cooperatives started by building fiber optic lines to substations and large demand centers to increase the reliability of the electric system through better monitoring. This could then form the backbone of a network for Internet service to businesses and residents.
Articles and Interviews
We have written many articles and collected several reports detailing how electric cooperatives have tried to increase Internet access in their communities. These stories show the many different ways electric cooperatives have structured partnerships and programs for their members.
Image
Several electric cooperatives provide Internet service themselves. Some started pilot projects, while others built out to their entire service area. The Fiber-to-the-Home project by Valley Electric Association boosted the local economy in Pahrump, Nevada. The co-op has already added 31 new jobs because of the fiber service.
Others partner with an existing telephone cooperative or telephone company. Ouachita Electric in Arkansas is one of the many cooperatives to have done this. By combining their resources and expertise, this partnership is able to extend electric and Internet service throughout much of southern Arkansas.
Many electric cooperatives work together, such as Sho-Me Power in Missouri and LS Networks in Oregon. These cooperatives have provided connectivity for local ISPs and businesses, and now are looking to connect residents.
In episode 229 of the Community Broadband Bits podcast, Jon Chambers, the former head of the FCC Office of Strategic Planning and Policy Analysis, describes how electric cooperatives have the potential to bring Internet access to unserved rural America.
Mel Coleman, president of NRECA and CEO of North Arkansas Electric Cooperative, joined the podcast in episode 243 to discuss how the electric co-op had improved Internet access for its members and what other cooperatives are doing.
This is a list of the rural electric cooperatives that have programs and projects to increase connectivity in their service areas. They do not all provide Fiber-to-the-Home. Some only offer fiber connections to businesses or provide wireless last mile connections while others focus on dark fiber and fiber transport services for other Internet Service Providers. (Total: 109) (Last updated: 12/2019)
Electric Cooperative
State
Project
Central Alabama Electric Cooperative
Alabama
FTTH (announced)
Joe Wheeler Electric Membership Corporation
Alabama
FTTH (announced)
North Alabama Electric Cooperative
Alabama
FTTH
Tombigbee Electric Cooperative (freedom FIBER)
Alabama
FTTH
Wiregrass Electric Cooperative
Alabama
Fiber backbone (under construction) — collaboration with cable company to connect members
Arkansas Valley Electric Cooperative (WAVE Rural Connect)
Arkansas
FTTH
Craighead Electric Cooperative Corporation (Empower)
Arkansas
FTTH
North Arkansas Electric Cooperative (NEXT)
Arkansas
FTTH
Ouachita Electric Cooperative (ARIS)
Arkansas
FTTH — collaboration with telephone company
Ozarks Electric Cooperative (OzarksGo)
Arkansas
FTTH
South Central Arkansas Electric Cooperative (South Central Connect)
Arkansas
FTTH
Anza Electric Cooperative (ConnectAnza)
California
FTTH
Plumas-Sierra Rural Electric Cooperative (Plumas-Sierra Telecommunications)
California
FTTH & wireless with fiber backbone
San Luis Valley Rural Electric Cooperative (Ciello)
Colorado
FTTH
Delta-Montrose Electric Association (Elevate Fiber)
Colorado
FTTH
Southeast Colorado Power Association (SECOM)
Colorado
FTTH
Yampa Valley Electric Association (Luminate Broadband)
Colorado
FTTH
Blue Ridge Mountain EMC
Georgia & North Carolina
FTTH
Habersham Electric Membership Corporation (Trailwave; North Georgia Network Cooperative)
Georgia
FTTH; FTTB and Schools
Jefferson Energy Cooperative
Georgia
FTTB — collaboration with Pineland Telephone Cooperative
Illinois Electric Cooperative
Illinois
FTTH
Jo-Carrol Energy (Sand Prairie)
Illinois
FTTH & wireless with fiber backbone
Jackson County Rural Electric Membership Corporation (Jackson Connect)
Indiana
FTTH
Johnson County Rural Electric Membership Corporation
Indiana
FTTH — collaboration with NineStar Connect
NineStar Connect (merger between Central Indiana Power and Hancock Telecom)
Indiana
FTTH
Orange County Rural Electric Membership Corporation
Indiana
FTTH
South Central Indiana Rural Electric Membership Corporation
Indiana
FTTH
Tipmont Rural Electric Membership Corporation (Wintek)
Indiana
FTTH
Allamakee-Clayton Electric Cooperative (AC Skyways)
Iowa
Wireless with fiber backbone
Maquoketa Valley Rural Electric Cooperative (MVLink)
Iowa
FTTH
Bulter Electric Cooperative (Velocity)
Kansas
FTTH
Warren Rural Electric Cooperative Corporation
Kentucky
FTTH pilot projects (announced) — collaborations with North Central Telephone Company and Franklin Electric Power Board
Great Lakes Energy (Truestream)
Michigan
FTTH
Midwest Energy Cooperative (Midwest Energy and Communications)
Michigan
FTTH
Tri-County Electric Cooperative (HomeWorks Connect)
Michigan
FTTH
Arrowhead Electric Cooperative (True North Broadband)
Minnesota
FTTH
Meeker Cooperative Light and Power Association (Vibrant Broadband)
Minnesota
Wireless with fiber backbone — collaboration with Mabel Cooperative Telephone Company and Spring Grove Communications
MiEnergy Electric Cooperative
Minnesota
FTTH & wireless with fiber backbone
Mille Lacs Energy Cooperative (XStream Internet)
Minnesota
FTTH — collaboration with telephone cooperative CTC
Roseau Electric Cooperative
Minnesota
FTTH (announced) — collaboration with local telephone company
Alcorn County Electric Power Association (ACE Fiber)
Mississippi
FTTH (announced)
Coast Electric Power Association (CoastConnect)
Mississippi
FTTH (announced)
Delta Electric Power Association
Mississippi
FTTH
Monroe County Electric Power Association (M-Pulse Fiber)
Mississippi
FTTH (announced)
Natchez Trace Electric Power Association (NT Spark)
Mississippi
FTTH
Northcentral Mississippi Electric Power Association (Northcentral Connect)
Mississippi
FTTH
Northeast Mississippi Electric Power Association (North East Fiber, LLC/NE SPARC)
Mississippi
FTTH
Pearl River Valley Electric Power Association (PearlComm Fiber)
Mississippi
FTTH (Announced)
Prentiss County Electric Power Association
Mississippi
FTTH (announced)
Singing River Electric Power Association (Singing River Connect)
Mississippi
FTTH (pilot)
Southern Pine Electric Power Association
Mississippi
FTTH
Tallahatchie Valley Electric Power Association (TVI-Fiber)
Mississippi
FTTH (announced)
Tippah Electric Power Association
Mississippi
FTTH (announced)
Tishomingo County Electric Power Association
Mississippi
FTTH
Tombigbee Electric Power Association
Mississippi
FTTH (announced)
Barry Electric Cooperative (goBEC)
Missouri
FTTH
Callaway Electric (Callabyte Technology)
Missouri
FTTH — collaboration with Kingdom Telephone Cooperative
Co-Mo Electric Cooperative (Co-Mo Connect)
Missouri
FTTH
Grundy Electric Cooperative (Mid-States Services)
Missouri
FTTH
Pemiscot Dunklin Electric Cooperative (Pemiscot Dunklin Fiber)
Missouri
FTTH
Ralls County Electric Cooperative (Ralls Technologies)
Missouri
FTTH
SEMO Electric Cooperative (GoSEMO Fiber)
Missouri
FTTH
United Electric Cooperative (United Fiber)
Missouri
FTTH
Crawford Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Gascoasage Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Howell-Oregon Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Intercounty Electric Cooperative Association / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Laclede Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Se-Ma-No Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Southwest Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Webster Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
White River Valley Electric Cooperative / Sho-Me Power Electric Cooperative (Sho-Me Technologies)
Missouri
FTTB & Transport Services
Valley Electric Association (Valley Communications Association)
Nevada
FTTH
Continental Divide Electric Cooperative (Red Bolt Broadband)
New Mexico
FTTH
Kit Carson Electric Cooperative (Kit Carson Internet)
New Mexico
FTTH
Delaware County Electric Cooperative
New York
FTTH — collaboration with local telephone companies
Otsego Electric Cooperative (OEConnect)
New York
FTTH
French Broad Electric Membership Corporation
North Carolina
FTTH
Lumbee River Electric Membership Corporation (Bluewave Communications NC)
North Carolina
FTTH — collaboration with Horry Telephone Cooperative
Roanoke Electric Cooperative (Roanoke Connect)
North Carolina
FTTH
Consolidated Electric Cooperative
Ohio
FTTH
East Central Oklahoma Cooperative (ecoLINK)
Oklahoma
FTTH (under construction)
Lake Region Electric Cooperative (Lake Region Technology & Communications)
Oklahoma
FTTH
Northeast Oklahoma Electric Cooperative (Bolt Fiber Optic Services)
Oklahoma
FTTH
Oklahoma Electric Cooperative (OEC Fiber)
Oklahoma
FTTH
Consumers Power (Peak Internet)
Oregon
FTTP (open access network) — collaboration with Pioneer Consolidated and Stayton Cooperative Telephone Company
Central Electric Cooperative (LS Networks)
Oregon
FTTB, Schools, & Transport Services
Douglas Electric Cooperative (Douglas Fast Net; LS Networks)
Oregon
FTTH; FTTB, Schools, & Transport Services
Hood River Electric Cooperative (CACHE Communications; LS Networks)
Oregon
FTTH; FTTB, Schools, & Transport Services
Umatilla Electric Cooperative (LS Networks)
Oregon
FTTB, Schools, & Transport Services
West Oregon Electric Cooperative (LS Networks)
Oregon
FTTB, Schools, & Transport Services
Sullivan County Rural Electric Cooperative
Pennsylvania
FTTH (announced)
Tri-County Rural Electric Cooperative
Pennsylvania
FTTH (announced)
Mid-Carolina Electric Cooperative (Carolina Connect)
South Carolina
FTTH
Newberry Electric Cooperative (Carolina Connect)
South Carolina
FTTH — collaboration with Mid-Carolina Electric Cooperative
Appalachian Electric Cooperative
Tennessee
FTTH
Cumberland Electric Membership Cooperative (Cumberland Connect)
Tennessee
FTTH (announced)
Forked Deer Electric Cooperative (Forked Deer Connect)
Tennessee
FTTH
Gibson Electric Membership Corporation (Gibson Connect)
Tennessee
FTTH
Holston Electric Cooperative (Holston Connect)
Tennessee
FTTH
Meriwether Lewis Electric Cooperative (MLConnect)
Tennessee
FTTH
Sequachee Valley Electric Cooperative (SVEConnect)
Tennessee
FTTH
Tri-County Electric Cooperative
Tennessee
FTTH
Volunteer Electric Cooperative (Twin Lakes, powered by VEC)
Tennessee
FTTH — collaboratin with Twin Lakes Telephone Cooperative
Bandera Electric Cooperative (BEC Fiber)
Texas
FTTH
Grayson Collin Electric Cooperative (Grayson Collin Communications)
Texas
FTTH
Guadalupe Valley Electric Cooperative
Texas
FTTH
Jackson Electric Cooperative (MyJEC.net)
Texas
FTTH & wireless with fiber backbone
Taylor Electric Cooperative (Access Fiber)
Texas
FTTH
Victoria Electric Cooperative (Infinium)
Texas
FTTH & wireless with fiber backbone
BARC Electric Cooperative (BARC Connects)
Virginia
FTTH
Central Virginia Electric Cooperative (Firefly Broadband)
Virginia
FTTH
Craig-Botetourt Electric Cooperative
Virginia
FTTH (announced)
Mecklenburg Electric Cooperative (EMPOWER Broadband)
Virginia
FTTH
Prince George Electric Cooperative (Ruralband)
Virginia
FTTH
Columbia Rural Electric Association (Columbia iConnect)
Washington
FTTH Pilot Project
Orcas Power & Light Cooperative (Rock Island Communications)
Washington
FTTH
Chippewa Valley Electric Cooperative (Ntera)
Wisconsin
FTTH — collaboration with telephone cooperative Citizens Connected
Telephone Cooperatives
There are about 260 telephone cooperatives in the United States. Many provide Internet service as a natural extension of their existing infrastructure. Many started out by providing dial-up and DSL services, but only recently have begun to transition to Fiber-to-the-Home. Some have already transitioned to an all-fiber network, having upgraded everyone in their territory to fiber.
The Rural Broadband Association (NTCA) has a gigabit certification program in order to draw attention to how many small telephone companies cooperatives have built these next-generation networks.
Articles & Interviews
We have featured a number of these cooperatives on our website. Some cooperatives choose to work with local governments or electric cooperatives while others focus on providing service alone. Below is just a small selection of the many cooperatives that have built Fiber-to-the-Home networks.
Episode 188 of the Community Broadband Bits Podcast features Eric Cramer, the President and CEO of Wilkes Communications/RiverStreet Networks. He explained how the telephone cooperative has built a Fiber-to-the-Home network throughout several counties in northern North Carolina.
Cooperatives are not just telephone and electric. There is now a workable model for Internet cooperatives created from scratch. RS Fiber in Minnesota is the first cooperative formed for the express purpose of providing reliable, high-speed Internet service.
Yampa Valley Electric Association (Luminate Broadband)
Colorado
Electric
Yucca Telecommunications Systems
New Mexico
Telephone
Community Broadband Bits Podcast Episodes
Listen to our collection of Community Broadband Bits Podcasts to learn firsthand about how electric cooperatives have made the decision to provide Internet service.
What does it take for a telephone co-op in North Carolina to provide FTTH? President and CEO of Wilkes Communications and RiverStreet Networks explains
Rural electric co-ops have started delivering high quality Internet access to their member-owners and our guest this week on Community Broadband Bits episode 229 is dedicated to helping these co-ops to build fiber-optic networks throughout their territories. Jon Chambers is a partner at Conexon and was previously the head of the FCC's Office of Strategic Planning and Policy Analysis.
Jon is a strong proponent for ensuring rural residents and businesses have at least the same quality Internet access as urban areas. We talk about his experience and frustration at the FCC, which was content to shovel money at telcos for the most basic infrastructure rather than setting higher expectations to ensure everyone had decent Internet access. We talk about how Co-Mo rolled out fiber to its members without federal assistance, inspiring electric cooperatives around the nation to follow suit.
In our discussion, I reference Jon's blog post "FCC to Rural America: Drop Dead." In it, he cites some of the reactions in the FCC from his advocacy for real rural solutions rather than signing big checks to big telcos for delivering slow and unreliable Internet access. One of quotes from a Democrat: "Republicans like corporate welfare, so we’re going to give money to the telephone companies to keep the Republicans on the Hill happy."
Neither political party comes off looking very good when it comes to rural connectivity, which fits with our impression. But Jon confirms another of our experiences when he says that when he works with rural communities, politics doesn't come up. They just focus on solutions.
Time to celebrate the work of rural cooperatives that bring high-quality Internet access to residents and businesses forgotten by national corporate providers. October is National Cooperative Month! Let’s celebrate some of the accomplishments of those cooperatives providing next-generation connectivity.
We pulled together a list of cooperatives who were actively advertising residential access to a Gigabit (1,000 Mbps) at the end of 2015. These cooperatives rang in 2016 with Gigabit speeds, inspiring others to improve rural connectivity throughout the U.S.
To assemble the list, we used Federal Communications Commission (FCC) Form 477 data from December 2015 to find all the providers advertising a residential Gigabit download speed. This generated a list of about 200 providers. Those providers were then manually sorted into “cooperative” or “not cooperative” based on publicly available information. If you would like to make a correction or suggestion concerning this list, please email [email protected]
In the 1930s, rural communities joined together through electric cooperatives to bring electricity to their homes and businesses. Today, rural electric co-ops may have the power to bring Internet access to these same communities.
Yadon and Bracken looked into 30 private sector Fiber-to-the-Home (FTTH) providers in Indiana and 16 rural electric co-ops providing Internet service around the nation. After predicting engineering costs, the researchers highlighted a dozen Indiana rural electric co-ops that could serve as regional hubs of connectivity.
The researchers developed a specific process for rural electric co-ops interested in providing Internet access. In summary, they propose:
“For REMCs [Rural Electric Membership Cooperatives], the process begins with a commitment to a middle-mile, smart grid fiber deployment connecting their substations, followed by a phased-approach business model with strategic growth focusing on last-mile customer density. Exploring local business partnership underwriting opportunities, examining the use of an efficient regional network design and combining multiple federal funding programs are the keys to rural broadband deployment success down the road.”
We don’t necessarily agree with these proposals. Our Christopher Mitchell has written many times about how middle mile cannot solve the last mile problems. The incremental approach based on customer density can repeat some of the same problems we’ve seen with cable and telephone companies - skipping over the most rural and smallest localities. Relying on federal funds is not always necessary. In fact, the researchers point to the success of a co-op that continued on after being denied a federal grant.
This 4th of July weekend invites us to celebrate the accomplishments of our country. But, 23 million people in rural areas remain without high-speed Internet access.
Rural areas cannot stay unconnected. Agriculture has become a high-tech endeavor, and high-speed Internet access is necessary. Cooperatives, those democratic institutions formed by rural farmers years ago, are becoming an answer.
The Founding Fathers considered rural communities the life-blood of the country. In 1785, Thomas Jefferson, in a letter to John Jay, stated that:
“[C]ultivators of the earth are the most valuable citizens. they are the most vigorous, the most independent, the most virtuous, & they are tied to their country & wedded to it’s liberty & interests by the most lasting bands.”
High-Speed Internet Access Supports Agriculture
The Missouri Farmer Today recently wrote ofthe sorry state of rural Internet access for one family-owned business in Missouri, the Perry Agricultural Laboratory. They process soil samples and perform other agricultural testing for both local and international customers but the best connections available are via satellite. The lab constantly goes over its data cap and sometimes cannot send their reports to customers across the globe if the weather interferes with their signal. A high-speed cable runs along the edge of the property, but the company would have to pay $40,000 to connect to it.
Ozarks Electric Cooperative has a plan to bring fast, affordable, reliable connectivity to northwest Arkansas and northeast Oklahoma.
Fast, Affordable, Reliable Connectivity At Last
OzarksGo, a wholly owned subsidiary of the electric co-op, will provide Fiber-to-the-Home (FTTH) Internet service with symmetrical speeds of up to a Gigabit (1,000 Megabits) per second. The fiber network will cost $150 million to build over the next six years.
ArkansasOnline and local news station KSFM reported on the future network. The residential FTTH service will have no data caps and OzarksGo will offer additional services, such as telephone and video. At the end of the project, all co-op members will have access to the network's services.
According to the FCC 2016 Broadband report, 25 percent of all Arkansas residents don't have access to broadband (defined as 25 Megabits per second (Mbps) download and 3 Mbps upload). In Oklahoma, the FCC puts the numbers higher at 27 percent. Rural areas are even higher with 48 percent lacking in Arkansas and 66 percent missing out in Oklahoma. Considering the data collection process depends on self-reporting by ISPs, those numbers are considered low. The number of households that do not have access to federally defined broadband, especially in rural areas, is higher.
Soon though, these Arkansas and Oklahoma residents will have access to fast, affordable Internet access. General manager for OzarksGo Randy Klindt, who previously worked on Co-Mo Electric Cooperative's FTTH network, explained in the video below that the price for a Gigabit will be less than $100, which is an entirely opt-in service.
Rural electric cooperatives have decades of experience in providing essential services. Now several are looking to improve Internet access in unserved and underserved regions. In central Missouri, Barry Electric Cooperative and Co-Mo Cooperative have already started by providing Fiber-to-the-Home (FTTH) Internet service. Another Missouri electric co-op, Callaway Electric Cooperative, is also getting into the business.
Callabyte Technology will offer symmetrical Internet access speeds (i.e. the same upload and download speed). They will also offer telephone and video service as a triple-play package. Their “basic” speed is 100 Megabits per second (Mbps), four times faster than the FCC’s current download speed for the definition of broadband (25 Mbps download and 3 Mpbs upload). Prices are competitive:
$65 for 100 Mbps
$75 for 500 Mbps
$95 for a Gigabit (1000 Megabits) per second
In the fall of 2015, they began a pilot project in a small section of Callaway Electric Cooperative’s service area, which took place in the Stonehaven Subdivision near Fulton, Missouri. Telecompetitor reported that the project had a 50 percent take rate.
This past July the USDA announced over $85 million in funding for rural broadband projects across seven states. The projects, many awarded to rural cooperatives, aim to bridge the digital divide and expand economic opportunities. For those interested in federal funding opportunities, NTIA has just released this guide [pdf].
Rural areas are often passed over by big telcos because they are considered less profitable. Farming, however, is a high-tech industry, and Agriculture Secretary Tom Vilsack believes that Internet access is as necessary as electricity in rural areas:
"Broadband is fundamental to expanding economic opportunity and job creation in rural areas, and it is as vital to rural America's future today as electricity was when USDA began bringing power to rural America 80 years ago. ... Improved connectivity means these communities can offer robust business services, expand access to health care and improve the quality of education in their schools, creating a sustainable and dynamic future those who live and work in rural America."
The USDA has awarded more than $77 million in Community Connect Grants for rural broadband projects (since 2009). This July, the USDA loaned $74.8 million and awarded another $11 million in Community Connect Grants. Here is the current round-up of the USDA’s most recent loans and grants:
Alaska
Arctic Slope Telephone Association Cooperative Inc. will connect Point Hope subscribers and prepare for an undersea fiber line with a $1.4 million grant.
Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.
After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]
CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services.
CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.