A recent case study from the Community Broadband Networks initiative at the Institute for Local Self-Reliance (ILSR) finds that rural North Dakotans are more likely to have access to fiber connectivity and gigabit-speed Internet than those living in urban areas. This may surprise many of us city dwellers, who are often stuck with large monopoly providers and their expensive, unreliable Internet access.

The case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota, highlights the efforts of 15 local companies and telephone cooperatives who came together to invest in rural North Dakota and build gigabit fiber networks across the state. Their success is traced back to the companies' acquisition of 68 rural telephone exchanges from monpoloy provider US West (now CenturyLink) in the 1990s. The local providers then leveraged federal funds to connect rural residents and businesses with some of the most extensive and future-proof fiber networks in the country.

Download the case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota [pdf].

The case study features several maps and graphs that demonstrate North Dakota's widespread, high-quality connectivity, including this map of fiber coverage in the state.

Some key lessons from the case study:

• When US West, the regional telephone monopoly, didn't believe their rural North Dakota networks would be profitable, the local providers saw an opportunity to acquire US West’s rural territories in the state and to expand their services.
• More than three quarters of rural North Dakotans have access to fiber broadband today, compared to only 20 percent of rural residents nationally. Over 80 percent of North Dakota's expanse is covered by fiber networks.
• National telecom monopolies refuse to invest in rural areas even though they receive billions in subsidies, while local co-ops and companies continue to innovate and build better networks for their communities.

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Not only has the ongoing Covid-19 pandemic exposed our nation’s dire lack of medical equipment and protective gear, but it has also shone a light on the inadequacy of our rural broadband networks.

A recent CNN article, “Why rural Americans are having a hard time working from home,” by Harmeet Kaur, explores the many struggles that rural households face now that jobs, schools, and everything else has moved online and their outdated broadband connections can’t keep up.

“We Should Be Embarrassed”

CNN reports that while only 1.4 percent of urban Americans don’t have access to broadband speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload, more than a quarter of rural households don’t have broadband available to them. And almost three quarters don’t have access to faster upload speeds of 25 Mbps.

These disparate stats are currently on display at parking lots across the country, as families without adequate home connectivity are forced to drive to open Wi-Fi hotspots and sit in their cars while completing assignments for school and work.

The article shared how one teacher in rural Virginia has turned her school’s parking lot into her new office:

Every Sunday since the coronavirus lockdown started, Stephanie Anstey drives 20 minutes from her home in Grottoes, Virginia, to sit in her school's near-empty parking lot and type away on her laptop. Anstey, a middle school history teacher, lives in a valley between two mountains, where the only available home internet option is a satellite connection. Her emails can take 30 seconds to load, only to quit mid-message. She can't even open files on Google Drive, let alone upload lesson modules or get on a Zoom call with colleagues.

“We are the country that created the internet,” Christopher Mitchell, Director of the Community Broadband Networks initiative, said in the article. “We should be embarrassed that millions of people have to drive to a closed library or a fast food restaurant in order to do their jobs or do their homework.”

High Costs, Slow Speeds

The CNN article points to a number of reasons for the dearth of high-quality Internet access throughout rural America.

Deploying broadband infrastructure is expensive in urban and rural communities, but in sparsely...

There’s a belief out there that households don’t really want or need more than a basic broadband connection, much less gigabit connectivity. This mistaken impression especially affects rural areas, where observers point out that a resident may have more fingers on their hand than Megabits per second (Mbps) on their current Internet connection, so surely they’ll be satisfied with a bump up to broadband speeds of 25 or 50 Mbps.

However, in our experience at MuniNetworks.org, demand for high-speed connectivity is actually quite robust in rural areas where the infrastructure exists. We’ve heard from rural cooperatives that many of their fiber network subscribers opt for higher speed tiers and that gigabit take rates near 30 percent in some instances. This suggests rural areas are much more likely than more urban areas to opt for tiers above the lowest cost option.

Even if the majority of rural subscribers don’t need the very highest broadband speeds, it’s important to note that the demand is there and will certainly continue to grow. As federal and state governments invest in rural broadband deployment, they must ensure that the networks they’re subsidizing can meet current and future needs.

Co-ops Feed Need for Speed

Back in January, Telecompetitor reported that Curtis Wynn, CEO of Roanoke Electric Cooperative in North Carolina, shared on a press call that two thirds of the co-op’s broadband subscribers selected a speed tier above the lowest and cheapest option of 50 Mbps. This isn’t because the co-op’s members have extra money to burn. “We’re one of the poorest areas of the nation. We have a lot of low-income individuals who are our members,” Wynn told a reporter in 2019.

Last month, we spoke with representatives from another electric cooperative, Oklahoma Electric Cooperative (OEC), for episode 398 of the Community Broadband Bits podcast. They told us that many of their members also choose to subscribe to above-baseline speeds. The co-op only...

Two more electric cooperatives recently announced plans to build Fiber-to-the-Home (FTTH) networks to connect their rural members in the southeastern United States with high-quality Internet access.

The co-ops, Mississippi County Electric Cooperative (MCEC) in Arkansas and Monroe County Electric Power Association (EPA) in Mississippi, will partner with Conexon to manage network design, buildout, and implementation. Conexon has worked with dozens of rural electric cooperatives across the country to deploy broadband access to better serve their member-owners.

Rural communities in the southeast have long struggled with unreliable, unaffordable connectivity, and the current Covid-19 pandemic is further amplifying the health, education, and economic disparities that result from inequitable Internet access. But rural cooperatives, in the region and beyond, are stepping up to meet their members’ broadband needs.

Arkansas Co-op Continues Through Crisis

Late last month in a Conexon press release, MCEC announced that it was launching a new subsidiary, MCEC Fiber, to offer its members Internet access with speeds up to one Gigabit per second symmetrical. With its new 600-mile fiber network, MCEC will join several other electric co-ops in Arkansas, including Ozarks Electric Cooperative and Craigshead Electric Cooperative Corporation, that have invested in broadband infrastructure for their communities.

MCEC President and CEO Brad Harrison said in the release:

We have long seen the need of our members and communities for reliable and fast internet service, given that it has become a necessity in many parts of life . . . This network is important for our community, and Conexon opened our eyes to the fact that not only could we provide the service, but we could offer a gold-plated solution...