This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?

In addition to municipal networks and rural cooperatives, Native American Tribal Governments have been instrumental in recent years in bringing better connectivity to rural areas. Many large incumbent providers won’t serve tribal lands because, as with other rural areas, they don’t consider the investment profitable. As a result, some of these communities have exercised their own resourcefulness and invested themselves through a range of creative solutions.

In order to share discoveries and methodology, the Internet Society has organized the Indigenous Connectivity Summit in Santa Fe, New Mexico. The event started this morning and runs through tomorrow. The agenda includes presentations from all types of experts who’ve worked on tribal community networks and topics cover business models, advocating, digital tools, and a range of other matters.

Check out the agenda here.

We realize this is last minute, but the folks at the Summit are live streaming the event so you can still almost be there.

You can also watch the event on Facebook.

In rural New Mexico, about 80 miles west of Albuquerque, sits the small town of Grants. This community of 9,000 people is the seat of Cibola County, but 77 percent of Grants' residents live without high-speed Internet access. Thanks to two intrepid electric cooperatives, however, the town is now set to receive a next-generation network.

Continental Divide Electric Cooperative is teaming up with Kit Carson Electric Cooperative on a 3-year plan to bring a high-speed, fiber network to Grants. Local economic development groups are excited for the telecommuting and entrepreneurial opportunities.

Steady Journey Leads to Cooperative Cooperation

Continental Divide Electric Cooperative spent several years investigating how to improve Internet service. In 2014, they were rejected for a grant to build a proposed $77 million Fiber-to-the-Home (FTTH) network. By 2016, the cooperative devised another plan: partner with another organization to pursue better Internet access. The co-op members voted in May of that year to amend the bylaws to try that route. 

With the bylaws amended, the cooperative was then free to partner with Kit Carson Electric Cooperative, which built a fiber network in northern New Mexico a few years ago. Now, Kit Carson has the opportunity to share its experience. The cooperatives will connect homes and business in the town of Grants as they build out the network to connect Continental Divide's electrical substations. 

A recent series of in-depth articles from Education Week brings to light a persistent aspect of the digital divide: the lack of fast, affordable, reliable connectivity in rural schools. Throughout the country, schools struggle to pay exorbitant fees for aging copper networks. Teachers and students are cut off from digital learning opportunities as whole regions fall farther behind. Education Week brings these issues to the forefront - and community-owned institutional networks could be the answer.

The Education Week articles describes the harsh impact of these grim statistics. The nonprofit EducationSuperHighway found that for rural schools, the median price for connectivity is more than double that of urban or even suburban schools. Although the number of students without access to sufficient bandwidth has been cut in half since 2013, at least 21 million students do not have access to adequate connections. 

In extremely rural communities, large service providers do not have an incentive to build high-speed networks, and small private providers often cannot take on those high upfront costs. This leaves communities with no choice, but to pay skyrocketing rates for slow, unreliable Internet access over aging infrastructure.

East and West: Students Face Similar Challenges

The articles present two compelling case studies of Calhoun County, Mississippi, and Catron County, New Mexico, to tell the story of how high-speed connectivity is so often out-of-reach for rural schools.

Two schools in sparsely-populated western New Mexico split 22 Megabits per second (Mbps) of bandwidth for $3,700 per month. An increase to 50 Mbps wouldn’t require  new fiber, but the upgrade would cost an extra $1,003.47 each month. The local provider has a de facto monopoly in the region so the schools have no choice but to pay the going rate; with no competition they have no leverage for negotiating. According to the New Mexico Public School Facilities Authority, monthly rates range from $1.35 to $3,780 for each Mbps of speed across the state.

In May, Chris introduced you to Sean Moody from Santa Fe's Economic Development Division, to explain how the community was investing in a new fiber link to better serve the local business community. With a little competition, Santa Fe officials expect more choice, better connectivity, and improved services.

CenturyLink controls the community's only connection to the Internet and the line bringing access to the web into the downtown district. Santa Fe's $1 million investment creates another path to encourage other providers to compete. Residents in Santa Fe pay approximately $50 per month for average speeds of 5 Megabits per second (Mbps) while nearby Albuquerque pays the same for 10 Mbps.

The situation may soon change.

On Monday, December 14th, the community will celebrate the investment as they "Flip the Switch and Connect Santa Fe to the Future." The event will take place at the Santa Fe City Offices and will begin at 9 a.m. Mayor Javier M. Gonzales will flip the switch at 10 a.m. to activate Santa Fe’s very first gigabit-speed Internet connection.

From the announcement:

Mayor Gonzales and the City’s Economic Development Division invite you to celebrate activating the first gigabit district in Santa Fe through Santa Fe Fiber, the City’s innovative broadband infrastructure project.

...

On Monday, December 14th from 9 until 11 AM Mayor Gonzales will be joined by special industry guests to flip the switch and experience first-hand the power and potential of gigabit-speed Internet delivered over the City’s newly completed fiber optic backbone. The community is invited to bring devices and try out the new speed!

The City of Santa Fe is taking first steps to improve the community's Internet choice, quality, and availability. Recently, the City announced that it has chosen a partner for a middle mile investment and will move forward with the $1 million fiber deployment project.

CenturyLink and Comcast serve Santa Fe, home to approximately 70,000 people. Residents and businesses both complain about slow speeds and relatively high costs. Residents pay $50 per month for average speeds of 5 Mbps while nearby Albuquerque pays the same price for 10 Mbps, according to the Santa Fe New Mexican.

CenturyLink owns the sole fiber hut connecting the community with the Internet. The company also owns the line bringing access to the web to downtown, giving it control over data transmittal in the city. A city press release, reprinted at SantaFe.com in May 2013 described the problem:

Every home and most businesses already have two physical routes to the Internet: A telephone line and a television cable...But in spite of this abundance of pathways, there is a crucial missing link in the infrastructure, an enduring legacy of the former telephone monopoly. This missing link spans from the central telephone office to a location about two miles away where several fiber optic cables emerge from the ground after traversing many miles of road, railroad and countryside from remote junctions across the state. Absent this two-mile link, local providers have only one way to connect to the outside world, and must pay a steep toll on the data transmitted over it. 

The City recently announced that it would work with local ISP Cyber Mesa to build an independent line from downtown to CenturyLink's fiber hut. The City hopes the line will introduce much needed competition, encouraging better service and prices.

We recently learned about Aztec, New Mexico's, free downtown Wi-Fi  so we decided to contact Wallace Begay, the IT Director, to find out more. This desert community of about 6,600 people not only offers the free service, but uses its fiber to serve government, schools, and even four-legged residents.

Begay tells us that in 1998 the city and school system coordinated to install the original fiber and the entities share ownership. The school wanted better, affordable connectivity for students while the city wanted economic development opportunities. Community leaders used E-rate funding and a Gates Foundation grant to construct the original fiber aerial route.

The town provides water, wastewater, and electric services through municipal utilities with its SCADA system. The public library and all ten Aztec Municipal School facilities connect to the fiber network. Municipal government facilities also use the network.

Even though the city is a co-owner, it took several years for municipal offices to get on the fiber network. Aztec City Council originally decided to install the fiber network as a way to bring in revenue by leasing dark fiber, not as a way to connect offices. When Begay started at the city in 2001, administrative offices still used dial-up connections. Twenty dial-up accounts (and the crawling speeds associated with them) added up to $500 each month.

At the time, Qwest (not CenturyLink) was the provider in Aztec and could only offer microwave or copper connections. Connecting 13 facilities at 1.4 Mbps would have cost the city $1,200 each month. Begay used $500 from the electrical enterprise fund to purchase equipment and pay for tech labor to move municipal offices on to the existing network. The city electrical enterprise fund pays for expansions and updates. The network is now about 12 miles.