Less than two years after Mississippi lifted its ban on electric cooperative broadband networks, at least 15 of the 25 co-ops in the state have announced plans to provide Internet access to members, with more on the way.

“I would venture to say that there is a higher percentage of co-ops launching [broadband] projects in Mississippi at one time than anywhere else in the country,” said Randy Klindt, partner at Conexon, a consulting firm that is working with several co-ops in the state.

The months in between were marked by two major changes. First, in January of 2019, the Mississippi legislature passed a law that enabled co-ops to create broadband subsidiaries to connect their members. Then a year later, the pandemic hit, highlighting the urgent need for better connectivity and turning the steady stream of cooperative interest in broadband into a veritable flood.

In response to the global health crisis, the state leveraged federal CARES Act money to establish a grant program to fund electric co-op broadband deployment. Through the program, Mississippi awarded $65 million to 15 electric cooperatives to build high-quality Fiber-to-the-Home networks in some of the state’s most disconnected and rural communities, dramatically ramping up the pace of the co-ops’ broadband projects.

“When we started two years ago, I would’ve guessed that you would have had maybe five systems out of 25 in the state that would be to the level where we are now,” Coast Electric Power Association (EPA) President and CEO Ron Barnes said in an interview. “Most people would tell you they were surprised by the speed,” he added.

Opening the Floodgates

Internet access has been lagging in rural Mississippi for years. The state came in at 42 in BroadbandNow’s most recent connectivity rankings. According to the Federal Communications Commission (FCC), at least 35% of rural Mississippians do not have access to the Internet at broadband speeds.

Rural communities served by the North East Mississippi Electric Power Association (NEMEPA) should be enjoying high-quality Internet access from their co-op next year, if plans proceed as expected. The co-op Board of Directors voted on September 17th to move forward with plans to develop a Fiber-to-the-Home (FTTH) network to their entire service area.

Thank you, Legislature

According to their press release, the 2019 change in state law to relax restrictions on electric cooperatives was the factor that encouraged NEMEPA to aggressively pursue the possibilities. With strong support from the state Public Service Commission, state lawmakers embraced the change and passed HB 366, the Mississippi Broadband Enabling Act. The bill removed decades-old language that required co-ops to use infrastructure only for delivery of electric service. Electric cooperatives will now allow be able to legally offer Internet access, a much-needed change for rural areas.

The cooperative worked with Conexon, the firm headed up by Randy Klindt and Jonathan Chambers, which has worked with numerous electric cooperatives like NEMEPA to design and develop broadband networks. 

NEMEPA has already commissioned two feasibility studies, which independently determined that the project will be viable as long as they can achieve a minimum take rate. A recent survey indicated that the need is so great in their region that members’ enthusiasm for their services will surpass the benchmark. NEMEPA plan to connect all 25,000 members within their 920-square-mile service area through a subsidiary.