Tag: "loan"

Posted March 19, 2019 by lgonzalez

Governor Jay Inslee started to promote his bill for better broadband earlier this year and, with any luck, Washington will have a solid foundation to expand broadband before the end of this year’s legislative session. SB 5511, a measure backed by the Governor, has sailed through the Senate, and has now appeared in the House. The bill establishes a State Broadband Office and earmarks funding for local broadband initiatives.

The bill is on the agenda for today's House Innovation, Technology & Economic Development Committee meeting at 10 a.m. PDT.

Difficult But Doable

In order to bring high-quality Internet access to all of Washington, millions and possibly billions of dollars of infrastructure investment are required. No one is certain how much completing the task will cost, and obtaining a better estimate will be one of the tasks of the State Broadband Office (SBO), which will be created by SB 5511. The bill allocates $1.2 million for the SBO.

Rural communities, economic development organizations, and tribes have all supported a measure to establish state investment in broadband infrastructure deployment across Washington. In January, Inslee met with leaders from communities across the state, including Colville Business Council member Susie Allen representing the Colville Tribes, to discuss the need for state funding:

“I have been working on broadband initiatives on our reservation for many years, but unfortunately, substantially, we still remain under-served and unserved, without broadband services,” said Allen. “The Colville Tribes have invested several millions of dollars to begin to meet this need, but we require assistance from the state and federal agencies to complete this work… The lack of broadband service creates not just an inconvenience, but poses real safety concerns throughout the reservation.”

The Colville Tribe has invested $6 million in order to connect the tribal government and under the terms of SB 5511, they would qualify to receive more funding in grants and low-interest loans.

The Tribe...

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Posted January 23, 2019 by lgonzalez

The federal government shutdown continues to drag on, but people heading up rural broadband projects are not waiting until it’s over to investigate federal funding sources. Tools like the ReConnect Opportunity Map from Cooperative Network Services (CNS) will help reduce some of the uncertainty and time required to prepare an application for this and other funding opportunities.

The GIS tool focuses on the ReConnect grant program’s criteria, which will allow users to quickly identify census blocks across the U.S. that are eligible for funding. CNS has also added special color-coding to display density of households and included information about those census blocks to help complete the applications. Examining density of households per road mile allows planners to more quickly prepare an application and establish a cost estimate. The map digs down even further to give information on housing units, which will help with refining deployment costs.

The tool also allows users to define deployment areas on the map and run reports that include census block identifiers, households, and populations per mile. Even if the specific identified area doesn’t qualify for ReConnect funding, the information can be used for other purposes, such as for a potential project that might qualify for other funding or might be of interest to an Internet access provider looking to expand in the area.

Check out this sample screenshot and the explanation below:

CNStool-screengrab_0.png

View a larger version of the screenshot.

This image of an area in Minnesota indicates census blocks that do not currently have broadband speeds over 10 Megabits per second (Mbps) download and 1 Mbps upload. The blocks are color-coded based on the number of housing structures per road mile (darker = more housing units per road mile). Small dark spots are structures. The number of households per road mile shading allows users to quickly identify areas that may make the most sense to target since road miles generally equate to fiber construction corridor miles.

More Than ReConnect

Another feature, the ability to reveal telecom exchange boundaries, can help applicants get a picture of what other ISPs operate in the area. Whether an...

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Posted January 10, 2019 by lgonzalez

Urban areas in North Carolina don’t have the same challenges obtaining high-quality Internet access as rural communities, but telephone and electric co-ops are taking more steps to change that imbalance. Cooperatives are filling gaps and finding opportunities where national ISPs don't see a high enough profit margin. Wilkes Communications/RiverStreet Networks and TriCounty Telephone recently merged to find those gaps and serve North Carolinians left behind.

Acquiring and Expanding 

In September 2018, TriCounty Telephone Membership Corporation merged with Wilkes Telephone Membership, the parent entity of Wilkes Communications and RiverStreet Networks. The cooperative also acquired Peoples Mutual Telephone Company and Peoples Mutual Long Distance Company, which took Wilkes into southern Virginia. 

When they added several other smaller companies, the cooperative continued to implement their strategy to bring broadband to rural communities without limiting themselves to one region. In addition to counties in central North Carolina, the cooperative now serves people along the north border, in a few south central counties, and in three counties far in eastern North Carolina that brush the eastern shore.

President and CEO Eric Cramer told the Journal Patriot in September that, where national ISPs turn away, Wilkes sees opportunity:

“Larger companies have abandoned these areas, so we think there is an advantage to grow there. A number of rural counties are looking to partner with companies like ours to help bring broadband like we’ve done here in Wilkes. .... These buildouts are much harder and take longer to produce results than acquisitions.”

Merging with TriCounty made sense because TriCounty had reached its potential due to size and scale limitations. TriCounty’s Vice President for business development Greg Coltrain recently told WNCT Channel 9 that the cooperative was considering the quickest way to bringing high-quality Internet access to rural North Carolina and achieve long-term success when they chose to merge with Wilkes:

"Our goal and our initiative is to find those areas, come up with an...

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Posted August 30, 2018 by lgonzalez

People and businesses in the small town of Hermann, Missouri, primarily rely on slow DSL for Internet access. There are also a few areas with cable connections available, and even a few parts of town where no ISPs offer service. This month, community leaders took decisive action to bring another option to town — they adopted a resolution to pursue federal funding for a publicly owned fiber optic network.

Let the People Decide

Late last year, Mayor Robert Koerber proposed a spring non-binding referendum to determine how strongly Hermann voters wanted to invest in the project. At the time, the Board of Alderman were considering a bond issue to cover the cost of deployment, which they estimated at $2.6 million. 

Koerber thought that a strong outcome in support of the project would help attract financing when it was time to begin the project. He also considered the issue something voters should weigh in on, due to the bonding question.

The Board of Alderman supported the idea, but other town matters, including finding a new tourism and economic development director, required immediate attention. Town leaders also decided to look for some one who could help educate the community about the pros and cons of the fiber optic project. Rather than move forward with the referendum town leaders decided in January to put off any vote for the time being.

Pursuing Funding

Prior to their mid-August Board meeting, Alderman in Hermann had the opportunity to meet with representatives from the USDA to discuss other funding possibilities. They determined during those conversations that they could apply for funding from the Rural Utilities Service, which us under the purview of the USDA, for loans to deploy the network. Deadline for their loan application is September 30th.

logo-hermann-mo.png When the Board of Alderman got together, they passed a resolution to authorize submission of their loan application. At the time they passed...

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Posted April 27, 2018 by lgonzalez

Nestled along the south eastern border of Maine are Baileyville and Calais. As rural communities situated next to Canada in the state's "Downeast" region, neither town is on a list of infrastructure upgrades from incumbents. With an aging population, a need to consider their economic future, and no hope of help from big national ISPs, Baileyville and Calais are joining forces and developing their own publicly owned broadband utility.

Baileyville and Calais

There are about 3,000 residents in Calais (pronounced "Kal-iss") and 1,500 in Baileyville, but according to Julie Jordan, Director of Downeast Economic Development Corporation (DEDC), many of those residents are aging and younger people find little reason to stay or relocate in Washington County. The community recognizes that they need to draw in new industries and jobs that will attract young families to keep the towns from fading off the map.

Most of the residents in the region must rely on slow DSL from Consolidated Communications (formerly FairPoint), while a few have access to cable from Spectrum (formerly Time Warner Cable); expensive and unreliable satellite is also an option and there's some limited fixed wireless coverage in the area. A few larger businesses that require fiber optic connectivity can find a way to have it installed, but Julie tells us that it's incredibly expensive in the area and most can't afford the high rates for fiber.

Economic Development Driven

logo-baileyville-me.png Organized in 2015, the nonprofit DEDC came together with the focus on recruiting new businesses to the area and to support existing businesses. As DEDC quickly discovered, unless the region could offer high-speed, reliable Internet infrastructure, attracting new businesses and helping existing businesses expand would be extremely difficult. They also determined that new families would not be interested in Baileyville or Calais without high-quality connectivity. "It was a no-brainer," says Julie, "you have to go fiber."

One of the largest regional employers, Woodland Pulp, need fiber in order to operate and as Julie describes, "they pay up the nose" for connectivity. All their equipment is computerized and they...

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Posted January 9, 2018 by lgonzalez

With only about 757,000 residents and more than 710,000 square miles North Dakota is ranked 53rd in population density among U.S. states, territories, and Washington DC. There may not be many people there, but North Dakota has some of the best connectivity in the United States. Why? Rural cooperatives and independent companies have made continued investments.

In episode 288, Christopher interviews Robin Anderson, Sales Manager for National Information Solutions Cooperative. Robin’s been working in the industry for years and has been involved in bringing better Internet access to rural areas in North Dakota. She has firsthand experience with the issues that arise during deployments and describes the camaraderie that grew naturally out of necessity when small, independent providers worked to achieve their goals to improve connectivity for cooperative members and rural subscribers.

Robin also touches on how federal loan funding helped so many of the cooperatives get started with fiber and how they took the next steps to self-fund as the demand grew. Christopher and Robin talk about the economics of fiber optic networks for cooperatives and the reasoning behind fiber investment in rural areas. They discuss some specific examples of the way collaboration in North Dakota has resulted in better networks.

Read the transcript for this show here.

This show is 28 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted November 6, 2017 by lgonzalez

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

Up until now, many of the community’s residents relied on expensive, unreliable satellite Internet access. The remote nature of Mount Washington kept incumbents from investing in cable and only a few had access to DSL. In 2013, the community formed a broadband working group and began...

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Posted October 10, 2017 by ChristopherBarich

On August 1, 2017, the Franklin County Infrastructure Bank awarded Grove City, Ohio a $2 million loan to support their construction of a municipal fiber optic network. 

The Grove City Plan

According to the city’s Request for Proposal (RFP), the city is focused on first establishing an institutional network (I-Net) and plan to expand it to serve local businesses over time. The initial fiber optic network will connect Grove City to the South-Western City Schools, the townships of Jackson, Prairie, Pleasant, and the Solid Waste Authority of Central Ohio (SWACO). The goal is to create a network with a baseline of ten gigabits symmetric service, ten times the speed of current connections provided by Spectrum (formerly Time Warner Cable).

According to Mayor Richard “Ike” Stage, the increase in network speed will attract businesses and will generate a 100 new jobs for the city. Josh Roth, Senior Program Coordinator for Economic Development and Planning, has said “that Grove City has committed to one hundred jobs over the next three years.”

During the August 1, 2017 general session, the Franklin County Board of Commissioners  passed the resolution to authorize the loan to the city of Grove City. 

Franklin County Commissioner Kevin L. Boyce celebrated the project:

“[T]he fiber optics really makes a difference because companies will look at whether to expand or move there [Grove City]. It could be a deciding factor. Those are jobs that are retained that you may not see."

For more information on the positive relationship between publicly owned Internet network infrastructure and reyaining or...

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Posted September 6, 2017 by htrostle

Get your applications ready! The United States Department of Agriculture  Rural Utilities Service (USDA RUS) is accepting applications for another round of loans for the Rural Broadband Access Loan and Loan Guarantee Program. This program provides loans of up to $20 million for rural connectivity. The window to apply opened September 1st, and the deadline is September 30, 2017.

Thousands To Millions Of Dollars For Rural Areas

The USDA RUS has at least $60 million available this funding cycle for this program. All loans will be between $100,000 and $20 million. The program will only consider funding projects that offer speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload.

For this program, the USDA RUS focuses on completely rural communities where at least 15 percent of households do not have high-speed Internet access. To be eligible, these rural areas cannot have more than two incumbent providers or have previously received USDA RUS funding. 

Although the program is specific to rural communities, most organizations are eligible to apply, including tribal governments, local governments, cooperatives, and corporations. No partnerships and no individuals may apply for funding, however, as the loans must go only to organizations.

This is only one of the Broadband programs that the USDA RUS manages. The agency also handles the Community Connect Grants and the Distance Learning & Telemedicine Program. The report “Broadband Loan and Grant Programs in USDA’s Rural Utilities Service” from the Congressional Research Services describes these programs in more detail.

Online Submission Only

The USDA RUS officially began accepting submissions September 1st and organizations have until September 30, 2017, to apply. If you are working in an area with poor Internet service, it’s important to note that this program only accepts applications through an online system. 

Through the online system, RUS staff can review applications and answer questions as they are developed. Once an application is complete and submitted, the staff cannot provide feedback and the organizations cannot edit their applications. 

Learn more...

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Posted July 4, 2017 by htrostle

On the border of Tennessee and Kentucky, an electric cooperative looks to a more connected future. The Tri-County Electric Cooperative that operates across state lines is preparing to build a state-of-the-art network for high-speed Internet service throughout Trousdale County, Tennessee. This will be the first year of construction for the cooperative after several years of planning.

Tri-County Electric plans to soon begin services to Trousdale County, the smallest county in Tennessee. Many of the county's 8,000 residents' choice is limited to Comcast and AT&T, and Tri-County Electric's Vice-President and General Manager Paul Thompson noted that people in the county often only subscribe to about 6 Mbps download and 1 Mbps upload. With a steady membership base of 50,000 spread across two states and a close relationship with the county, the electric co-op is in a good position to move forward with the Fiber-to-the-Home (FTTH) project. The cooperative intends to offer an affordable base package that provides faster, more reliable connectivity than what the incumbents are willing to offer the rural communities.

Funding From The Feds

Since 2014, Tri-County Electric Cooperative has actively pursued financing for a FTTH network in the county. The co-op applied for a grant through the Rural Broadband Experiments program managed by the Federal Communications Commission. They did not receive any funding, but the process resulted in a tangible plan.

The process of applying for the grant built up community support for the project and enabled the co-op to identify key assets. As part of the grant application, they noted which census blocks they expected to connect and what community anchor institutions, such as schools, libraries, and government buildings, could be included. The Trousdale County government even passed a resolution giving explicit permission for Tri-County Electric to build and operate a FTTH network. 

Although Tri-County Electric Cooperative did not receive that grant, the co-op continued to pursue different avenues for funding. This year, the co-op received a...

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