Central Missouri’s Callaway Electric Cooperative began offering high-quality Internet access in 2016 by collaborating with a local telephone cooperative. Since then, it’s subsidiary, Callabyte Technology, has continued to expand its services to members in local rural communities in its service area. Recently, the people of the small community of Holts Summit learned that the project is headed their way.

Anticipating Better Broadband

Holts Summit residents and businesses can expect to receive the opportunity to sign up for Callabyte services in 2018. Business development supervisor for the cooperative, Rob Barnes told attendees at a recent Alderman meeting that the co-op would likely divide the deployment into three phases due to the size of the town. Holts Summit is about 3.5 square miles and home to 3,700 people.

The community of Holts Summit obtains electric service from Ameren Missouri, rather than Callaway Electric; Holts Summit and the cooperative are developing a non-exclusive franchise agreement just as they would a private sector provider that wished to offer video services in Missouri. Businesses and residents in the town currently use satellite Internet service and cable Internet access from Mediacom.

"We've got a number of citizens that would like to start a home-based business, but won't because they don't have reliable internet right now," [City Administrator Rick] Hess said. "So this will be great for businesses."

Ever Growing Service From Co-ops

Calloway Electric Cooperative has been reaching an expanding list of communities and intends to provide service all of Calloway County. They offer Internet access, voice, and video bundles and people in their service area are signing up for all three.

“We are still surprised that the landline service is something people still are taking,” Barnes said. “But as you get out into the rural portions of Callaway County, cellphone service still doesn’t work very well.”

Callobyte stand-alone residential Internet access is available for 100...

In southern California, the city of Manhattan Beach is considering creating a municipal broadband network to extend quality, affordable broadband to its residents and businesses.

Advocating for Quality Internet 

Talk of the network surfaced from Information Technology director Sanford Taylor’s "Fiber Master Plan." Beyond providing better broadband, the network would support “Smart City” projects: synchronized street lights, community cameras, and parking meters that allow drivers to find parking spots through an internet app.

Taylor previously worked for the city of Long Beach where he helped spearhead their fiber network. Municipalities typically pay exorbitant prices for large-scale high-speed Internet. Long Beach had been paying around $14,000 per month before Taylor transitioned from traditional ISPs to a wholesale option costing only $1,100 per month.

Nearby Santa Monica has had success with their publicly owned network, which connects businesses, community centers, and has helped improve the functionality of municipal systems like traffic signals and cameras. The Long Beach I-Net facilitates city operations by providing connectivity to municipal facilities but doesn't connect businesses or residents. A private firm, Inyo Networks, developed a citywide fiber-to-the-home (FTTH) network in the nearby town of Ontario; Taylor and Public works director Stephanie Katsouleas have been studying the arrangement closely. They are also visiting other communities that are investing in publicly owned Internet infrastructure, including Beverly Hills.

Taylor issued a Request for Proposals recently and just that small signaling of network independence had ISPs scrambling, resulting in the city obtaining service through a different incumbent provider with more bandwidth at nearly half the cost. 

Manhattan Beach is conducting a...

This is the transcript for Episode 280 of the Community Broadband Bits podcast. Christa Wagner Vinson, Deborah Watts, and Alan Fitzpatrick join Christopher Mitchell at the Atlanta airport to discuss the work of NC Hearts Gigabit and how they're organizing for local choice and better connectivity. Listen to this episode here.

Deborah Watts: And you know we need we need to get regulations in legislation that prevents local choice out of the way these people on the tractors the ones in the production rooms the ones in the businesses that can go to their representatives and say You all need to do something about this because I'm having difficulty running my business. I can't be competitive.

Lisa Gonzalez: You're listening to episode 280 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Christopher recently attended the broadband community's economic development conference where he was able to connect with this week's guests from North Carolina Christa Wagner Vinson, Deborah Watts, and Alan Fitzpatrick from the group and NC Hearts Gigabit joined Chris to talk about local choice and better connectivity in North Carolina and how they're using technology to bring people together. Catharine Rice from the Coalition for Local Internet Choice was also there in this conversation. You'll learn how and see how it's gigabit began. Who's involved. What they've accomplished their goals and you'll also hear some tips on the best way to get the word out and get organized. You can learn more about the group. Check out the collection of resources and even join up at their website and see hearts gigabit dot com. Here's Christopher with Christa Wagner Vinson, Deborah Watts, Alan Fitzpatrick, and Catharine Rice.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcasts. I'm Chris Mitchell with the Institute for Local Self-Reliance in Atlanta sitting on the runway of the Atlanta airport at the Broadband Communities Conference talking to you now with three folks from an organization called NC Hearts Gigabit I'm going to start by introducing Christa Wagner Vinson, the economic development consultant of the group. Welcome to the show.

Christa Wagner Vinson: Good...

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.

An updated version of this policy brief was released in June 2019. Download the updated version here.

Both versions of the report can be accessed from the Reports Archive Page for this report.

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...