North Carolina Co-op Awarded $24 Million ReConnect Grant for Rural Fiber

As we reported back in September, the bulk of applicants to the USDA's ReConnect Loan and Grant Program came from publicly owned projects. Cooperatives, local governments, and tribal government projects comprised more than half of the applications. Awards are now being announced and one of the largest awards so far is going to a North Carolina cooperative to provide fast, affordable, reliable connectivity in southeast North Carolina.

ReConnecting Star

Star Telephone Membership Corporation will be awarded a grant of almost $24 million to develop Fiber-to-the-Home (FTTH) service to more than 8,700 households, 10 educational facilities, around 20 businesses, and three community facilities within a 739 square mile area. Subscribers will be able to sign-up for speeds that begin at 100 Megabits per second (Mbps) download.

At a November 6th event at Star Distribution Center in Clinton: 

Jeff Shipp, vice president of operations for Star Communications, said projects will take place in the Herring exchange in the northern region of Sampson County, which also loops around the middle portion of Sampson County. The second is the Six Runs area part of county towards Turkey and the third is Harrells, in the southern region. Other projects are scheduled for Bladen County as well.

“We’re very excited about this,” Shipp said. “We’re excited for our members and for our community. We have the lowest density in the entire state in our area, roughly around 3.8 subscribers per mile. We would have to budget $25,000 per mile to put fiber in the ground. That’s why a grant such as this from USDA is so important. We’re also fortunate enough to receive additional funding from the state this year for an area in Bladen County to assist with fiber as well.”

Star Telephone Membership Corporation

The cooperative was created when two smaller co-ops merged in 1959. Since then, the entity has been serving the rural areas in and around Clinton, North Carolina, and has been one of the early adopters of FTTH for members, many who are farmers.

“This is really a big, big day in Sampson County,” [Congressman David] Rouzer said. “These grants don’t happen that often. This is a big deal. Star Communications and everyone who’ve been involved in the application process for this grant — you should really be proud.”

As a lawmaker, Rouzer said availability and access to broadband is a complaint he often hears from constituents. After Hurricane Matthew, he spoke to farmer during a roundtable discussions [who] said one of his biggest problems was not the storm, but not having access to the Internet on three-quarters of his farm.

“That just underscored for me the importance and the work that we need to do to continue to expand to broadband connectivity here in eastern North Carolina … not just in eastern North Carolina, but all over rural North Carolina and all of rural America.”