Electric cooperatives are increasingly creating local solutions to rural connectivity woes. Many have built networks that rival those in the best connected cities in the U.S. Rather than waiting for disinterested national providers, cooperatives and their members have found workable solutions.

In south-central Missouri, the Sho-Me Power Electric Cooperative is once again exercising the power of community network projects. The Houston Herald reports that Sho-Me Technologies, the communications subsidiary of the co-op, is deploying a fiber-backed, fixed wireless project to connect businesses in Houston, Missouri.

Houston, We’ve Got A Problem

Houston (population: 2,000) is the capital of Texas County, Missouri -- yes, Missouri. Home to about 25,000 people, the rural county has poor connectivity; about 90 percent of the county’s population doesn't have access to high-speed Internet service of 25 Mbps download and 3 Mbps upload. The Houston Herald reports that speeds of up to 10 Mbps download are the norm in Texas County. Upload speeds are even slower.

The situation has been rough for small businesses in Houston, where they could not perform routine updates without impeding service. For instance, the local dentist office, Family Dentistry, could not accept Microsoft updates for its network without disrupting daily operations at the practice.

Downtown Houston Finds The Local Co-op Solution

Christopher recently took some time to visit with John Hockenberry on The Takeaway from PRI and WNYC. The conversation covered municipal networks, big cable and telephone monopolies, and how local community initiatives for better connectivity are raising the bar in rural areas.

WNYC wrote about the show: 

Net neutrality advocates got some bad news when Ajit Pai was tapped by President Donald Trump to be chairman of the Federal Communications Commission — it appears that Pai wants to largely reverse the Obama administration's approach to the Internet.

Large telecommunications monopolies have been digging their heels in, but some citizens are fighting back. The Takeaway considers the broadband debates that currently are taking place with Christopher Mitchell, the director of Community Broadband Networks at the Institute for Local Self Reliance.

Listen to the interview; it’s about 4 minutes.

In January, Governor Bill Haslam announced that he and Senator Mark Norris would introduce legislation to provide grant funding and tax credits to private companies in order to expand rural connectivity in Tennessee. In a recent Knoxville News Sentinel, Christopher took another look at more subsidies to large private providers and how that strategy has worked out so far.

We've reprinted the op-ed here:

Christopher Mitchell: State needs better broadband, not subsidies

If you were tasked with improving the internet access across Tennessee, a good first start would be to examine what is working and what’s not. But when the General Assembly debates broadband, it frequently focuses on what AT&T and Comcast want rather than what is working.

Broadband expansion has turned into a perennial fight between Tennessee’s municipal broadband networks and advocates of better connectivity on one side and AT&T and Comcast on the other. On one side is a taxpayer-subsidized model, while the other depends solely on the revenues of those who choose to subscribe. But which is which?

AT&T has received billions of taxpayer dollars to build its networks, whereas Chattanooga, Tullahoma and Morristown, for example, financed their fiber-optic networks by selling revenue bonds to private investors and repaying them with revenues from their services. The big telephone companies are massively subsidized, whereas municipal networks have generally not used taxpayer dollars.

It is true that after it began building, Chattanooga received a Department of Energy one-time stimulus grant for $111 million, but that was actually less than AT&T is getting from just one federal program in Tennessee alone – over $125 million from the Connect America Fund. And most of the money to Chattanooga went into devices for its smart grid that have since led to massive job gains.

These community networks offer modern connectivity. Chattanooga offers 10,000 Mbps to anyone in its territory. AT&T is getting enormous checks from Uncle Sam to deliver 10 Mbps. Comcast will soon offer 1,000 Mbps, but only for downloads. If you are a small business trying to upload lots of data, Comcast won’t get you there.

The city of West Plains, Missouri, is now offering high-quality fiber connectivity up to 1 Gigabit (1,000 Megabits) per second to local businesses. The community is also exploring the possibility of a pilot project to a limited area of households as the city considers whether or not to also offer Fiber-to-the-Home (FTTH).

No Time To Dawdle

According to City Administrator Tom Stehn, the decision to move forward was prompted by the state legislature: first last year's HB 2078 and now by SB 186, which will be heard in committee tomorrow, Feb. 14th. City leaders decided to preserve their local authority by establishing a broadband utility and expanding a plan to improve local connectivity. Since they are up and operating now, they expect to be grandfathered in under the language of the statute.

Open For Business

The network is now serving the West Plains Senior Center and the Ozarks Small Business Incubator. Ozarks Medical Center may soon be on the network and, according to Stehn, the city is still deploying the network but wants to let local businesses know that it is up and running. Access from incumbent providers is available in West Plains, but prices are high and some local businesses report rates up to three times those paid for similar needs in urban areas. City leaders see the network as an economic development tool that will attract new businesses and will help control prices for existing businesses and keep rates in check for residents.

West Plains is home to approximately 12,000 people and the county seat in Howell County. The town is in the center of the county, which is located on the southern border. Missouri State University has a campus at West Plains with a number of Associate degree programs and the community has an airport, the Heart of the Ozarks Fairgrounds, and several private schools in addition to the public school system.

High-quality connectivity from the local cooperative is attracting economic development to rural Minnesota. Consolidated Telecommunications Company (CTC), began developing a fiber-optic network in the Brainerd area in the early 2000s; as the cooperative has expanded the network, businesses are getting fast, affordable, reliable connectivity.

Connected Satellites

A recent Brainerd Dispatch article highlighted several businesses that credit the local workforce and the network for their decision to build satellite offices in the Brainerd area. In addition to “battle-tested sales people who can establish relationships with customers and can ‘close the deal,’” GovMint.com’s Director of Sales Jim Martin told the Dispatch:

Equally important is the area's fiber optic network, a high-speed Internet connection that allows the sales staff to access the company's giant customer and product database, and efficiently complete online sales forms.

…

Martin said the company relies on its computer system for call routing, customer information, online orders and sales leads that come through the Internet. GovMint.com's sales staff makes 150-300 customer calls a day.

"The system has to be reliable or Jim's phone starts ringing," Martin said. "The service we have in Crosslake is very fast and very reliable."

The company sells rare and unique coins and has headquarters in Burnsville, Minnesota; the satellite office employs 25 people. The company has doubled revenue over the past five years and needed to expand so established the office in Crosslake, near Brainerd and on the CTC network.

Great For The State

The Minnesota Department of Human Services chose Brainerd for its service center in part because they needed access to a network that could handle its technology demands. Applications are processed digitally with high bandwidth applications that require access to large state databases. Fiber-optic technology is the obvious choice to handle the work efficiently. There are 160 employees now working in the state’s DHS service center.

In December 2016, the Congressional Research Service office released two reports on federal funding programs to improve high-speed Internet access. One report focuses on Tribal lands, and the other report provides an overview of the digital divide in general.

Dollars for the Digital Divide

Researchers Lennard G. Kruger and Angele A. Gilroy collaborated on Broadband Internet Access and the Digital Divide: Federal Assistance Programs. Kruger is a specialist in Science and Technology Policy and Gilroy is a specialist in Telecommunications Policy. The report provides an overview of ongoing efforts, including recently enacted legislation.

Kruger and Gilroy define the digital divide as between those who have access and those who do not. In particular, they focus on the dynamic between urban and rural areas, especially with regard to different income levels. The researchers consolidate previously released information on the digital divide and provide an analysis of current programs, including grants through the Appalachian Regional Commission. The researchers conclude by detailing all recent legislation. Check out the report for more information.

Status of Tribal Broadband

Kruger also wrote Tribal Broadband: Status of Deployment and Federal Funding Programs. This report follows up the Government Accountability Office’s 2016 report, Additional Coordination and Performance Measurement Needed for High-Speed Internet Access Programs on Tribal Lands. 

Drawing on information from both the GAO’s report and the FCC 2016 Broadband Progress Report, Kruger relays key facts about Internet access and federal funding. In particular, Kruger notes in the report that there is no dedicated federal funding earmarked to improving Internet access on Tribal lands:

This is the transcript for episode 235 of the Community Broadband Bits Podcast. Lee Brown and John Williams from Erwin, Tennessee, join Christopher Mitchell to talk about the incremental build out of a Fiber-to-the-Home network. Listen to this episode here.

Lee Brown: The great thing about municipal broadband is it allows each community to decide what's right for them. We're in the greatest place of all time is being able to make that decision to do what's right for your community.

Lisa Gonzalez: This is episode 235, of the Community Broadband Bits Podcast from the Institute from Local Self-Reliance. I'm Lisa Gonzalez. We wanted to interview folks from Erwin, Tennessee for some time, now, and this week we're lucky to have them. The community, population around 6,000, has been building out a Fiber-to-the-Home system incrementally for the past few years. In addition to improving connectivity for residents and local businesses, the network has improved operations for the municipality's other utilities. Today, Christopher talks with Lee Brown, general manager of Erwin Utilities, and John Williams, fiber engineer. Lee and John, describe how the community had carefully considered what was best for them, before pursuing a fiber network. As it turns out they had considered fiber for a while before the circumstances were right to deploy. They started with a pilot program, and the network continues to grow. John and Lee offer Erwin's rational for the incremental approach, and share the way the network has improved services for all utility customers. Not only those that take Internet access services. Now, here's Christopher talking with Lee Brown, general manager, and John Williams, fiber engineer from Erwin Utilities in Erwin, Tennessee.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell, and today I'm speaking with two gentlemen from Erwin, Tennessee. We'll start with Lee Brown, the general manager of Erwin Utilities. Welcome to the show.

Lee Brown: Thanks, Chris. We appreciate being able to be part of this, today.

Christopher Mitchell: We also have with us, John Williams a fiber-optic engineer for Erwin Utilities. Welcome to the show.

For the next month, everyone can access the most recent webinar from the Schools, Health & Libraries Broadband Coalition (SHLB). The topic is "Partnerships and Rural Broadband Needs" and the webinar is the second in SHLB’s Grow2Gig+ webinar series. After February 10, 2017, the webinar will only be available to SHLB members.

SHLB Executive Director John Windhausen headed up the discussion which included information from Joanne Hovis, President of CTC Technology & Energy, ILSR’s Christopher Mitchell, and Mark O’Connor, Senior Vice President from Carlson Wireless.

The group discussed challenges in rural communities, the role of Community Anchor Institutions (CAIs), the potential of TV White Space technology for wireless connectivity in rural areas, and potential partnership models. John Windhausen also presented SHLB's recent American Broadband Connectivity (ABC) Proposal for the Trump Administration. 

You can access the archived video on the SHLB website or watch it here.

The next webinar in SHLB’s Grow2Gig+ series will be "Subsidies for Community Anchor Institutions," to be scheduled in mid-February.

The mythical Paul Bunyan was enormous. Paul Bunyan Communications’ GigaZone appears to be following his example as it continues to expand throughout northern rural Minnesota. The cooperative recently announced that they are expanding the upgrade once again, bringing Gigabit per second (Gbps) capacity to their members via the Fiber-to-the-Home (FTTH) network. This time, members in the communities of Kelliher and Northome will have access to the upgrade.

The Big Gig

The expansion brings gigabit network to more than 1,700 additional locations; this will bring Paul Bunyan’s GigaZone footprint to more than 29,400 locations. The network covers more than 5,000 square miles in Beltrami County and also reaches areas of Cass, Hubbard, Itasca, Koochiching, and St. Louis Counties.

In November 2016, the cooperative began offering service on the Red Lake Nation, which makes it one of only a few tribal communities with high-quality Internet access. Paul Bunyan provides gigabit connectivity to local schools for affordable rates and has been awarded the Leading Lights National Award for most Innovative Gigabit Broadband Service.

A Long Time Coming

Paul Bunyan Telephone began in 1950 when the residents in very rural northern Minnesota either had no telephone service, or received it from their townships, which meant they had to share lines with up to nine other customers. As a prerequisite to obtaining a loan from the Rural Telephone Administration (RTA) through the Rural Electric Administration (REA), the Co-op Board had to purchase and operate an existing system. They started with the privately owned Kelliher Telephone Company along with the Hendrickson Township Telephone system. In addition funds they had obtained by selling memberships in the cooperative, the board directors agreed to mortgage their own property as collateral so another local cooperative and a local bank would loan Paul Bunyan Telephone enough to purchase both telephone systems. It was a risk, but it paid off.