Plans for Holston Electric Cooperative to offer television service as part of its Fiber-to-the-Home (FTTH) network deployment are on pause following allegations from the east Tennessee co-op that broadcasting company Nexstar Media Group refused to engage in “good faith” negotiations over retransmission consent agreements.

Holston Electric Cooperative established its broadband subsidiary, HolstonConnect, in late 2017 after a state law change removed restrictions on rural electric co-ops. Currently, HolstonConnect is in phase one of its FTTH project, which will bring high-quality Internet access to underserved communities in Rogersville, Surgoinsville, and nearby areas. Subsequent deployments will connect the remainder of the cooperative’s service territory, partially aided by federal funding from last year’s Connect America Fund phase II reverse auction.

From the start, the co-op planned to offer a “triple play” of broadband, voice, and video services. However, failure to come to an agreement with Nexstar, one of the nation’s largest station operators, over access to essential local channels has delayed the delivery of television services to HolstonConnect subscribers. In early March, Holston filed a complaint against Nexstar with the Federal Communications Commission (FCC), arguing that the broadcasting company demanded exorbitant fees and unfair station tying arrangements during negotiations with the co-op.

“Failure to Negotiate in Good Faith”

To carry popular television programming, networks must sign cable retransmission consent agreements with regional station operators. The FCC requires that these companies behave in “good faith” and make tangible efforts to engage in negotiations.

Two pieces of recently introduced legislation in North Carolina’s General Assembly show a potential to help grow broadband in rural areas. In the past, state lawmakers have kept publicly owned Internet networks tightly reined in to protect cable and telephone monopolies operating in the state, but the restrictions may be loosening as state leaders recognize the need for more options.

The FIBER NC Act

The long list and leadership positions of sponsors attached to H 431 indicate that the FIBER NC Act shows promise. It’s four primary sponsors include the Rules Committee Chair and a Finance Committee Chair, which also bodes well for the future of H 431. Our friends at the North Carolina League of Municipalities (NCLM) tell us that they expect a similar companion bill with equal muscle behind it to come from the Senate.

The FIBER Act would change existing barriers to allow municipalities and local government the authority to invest in publicly owned broadband infrastructure in order to work with private sector partners. The bill also includes procedures that local governments must follow if they decide to pursue a public-private partnership, including conducting a feasibility study, and proper notification and execution of meetings. Within the language of H 431, the authors include specific instructions for publication and advertisement that describe the opportunity to lease the infrastructure.

Bipartisan support of the bill and the fact that almost 50 House Members, in addition to the four sponsors, have signed on add to the optimism that H 431 has a bright future. Folks at NCLM have expressed strong support for the bill and are galvanizing constituents to encourage elected officials to move H 431 forward. 

It’s first stop is the Committee on Energy and Public Utilities. If it passes there, H 431 will move on to Finance and then to the Rules Committee.

Read the full language of H 431 and follow it’s progress.

Untying Cooperative Hands

In an effort to find ways to connect some of the state’s most disconnected communities, RiverStreet Networks and North Carolina’s Electric Cooperatives recently announced that they will work together for a series of pilot projects across the state. The initiative has the potential to discover new options for high-quality Internet access for residents and businesses in areas that have been left behind by national Internet service providers.

Going All Out 

North Carolina’s RiverStreet Networks is bent on bringing high-quality connectivity to people living and working in rural North Carolina. After expanding their physical infrastructure through deployment, the communications cooperative started to acquire other fiber networks in various areas across the state. Most recently, RiverStreet merged with TriCounty Telephone Membership Corporation. 

For RiverStreet, branching out among areas of the state were there is no high-speed Internet access is an opportunity to tap into an underserved market, not only an underserved population. It’s become obvious in recent years that rural communities want high-quality Internet access at least as fervently as in densely populated areas where big corporate ISP already have a monopoly. After upgrading their own members, RiverStreet was looking for growth; partnering with electric cooperatives is the next step to reaching more subscribers.

Listen to RiverStreet’s Greg Coltrain and Christopher discuss the merger and RiverStreet's plans to bring broadband to rural North Carolina:

Senator Janice Bowling has become a broadband hero in rural Tennessee and on the pages of MuniNetworks.org. Year after year, she introduces legislation aimed at expanding local authority to allow communities the ability to improve connectivity. She’s back this year with several bills aimed at expanding fiber in rural areas. 

Seeking Better Connectivity…That’s All

Like Bowling’s past legislation, related bills SB 489, SB 490, and SB 494 grant municipal electric utilities the authority “to provide telecommunications service, including broadband service” and specifies that they can do so beyond their electric service area. This change in the current law would allow places like her own community of Tullahoma to expand to serve neighboring towns. There is no fiscal impact from the Senator’s bills.

Bowling has seen firsthand how access to fiber optic infrastructure, such as Tullahoma’s LightTUBe, lifts economic development, improves educational opportunities, and helps a local community reduce costs. The city has thrived since investing in the network in 2009, while many of the communities that have had to rely on subpar service from the larger incumbents have limped along. 

SB 489 also extends authority for municipalities to collaboration for telecommunications and broadband service, to ease any uncertainty about public-private partnerships.

In the past year, communities and cooperatives in Texas have been making gallant efforts to better connect local residents and businesses with high-quality Internet access. Now, they may get a little help from the State Legislature.

Helping Co-ops

Earlier in this session, Senator Robert Nichols introduced SB 14, a bill that will allow electric cooperatives that hold easements obtained for electric service infrastructure the ability to extend those easements to broadband infrastructure. The bill replicates the FIBRE Act, a 2017 Indiana bill that opened up possibilities for rural cooperatives in that state.

Nichols told KLTV that he has high hopes for his bill:

“I’m getting a lot of support because all of the other plans for broadband that have been proposed use subsidies,” said Nichols. “This one asks the state for nothing, it asks the federal government for nothing.”

He also told KLTV that the Governor’s office has expressed support for the proposal.

Read the text of the bill.

Similar to Indiana’s FIBRE Act, the extension of the easement applies to those that already exist. By enacting making the change, cooperatives that already have infrastructure in place will save time in deploying fiber optic networks because they won’t need to obtain a second set of easements from members who’ve already granted them for electricity infrastructure.

In addition to offering broadband to members sooner, cooperatives who are able to take advantage in the change in the law will also save financially. Personnel costs, filing, and administrative fees add up when a co-op must obtain multiple, sometimes dozens or hundreds, of legal easements. Occasionally, a property owner doesn’t consent to an easement right away. This change in the law will prevent hang-ups in deployment due to uncooperative property owners that can jeopardize a project.

Back Home Again in Indiana

Missouri’s Bootheel is the ultimate southeast corner of the state, extending south and surrounded on three sides by lands in Arkansas, Tennessee, and a smattering of Kentucky. The area’s known for having fertile soil and vibrant agriculture but now that Pemiscot-Dunklin Electric Cooperative  is deploying Fiber-to-the-Home (FTTH), it's also becoming known for high-quality Internet access.

The Region and Lack of Connectivity

Jack Davis has worked in several fields. His tech career started when most people in the area reached the Internet via dial-up connections; at the time he worked as a network administrator for a local dial-up ISP in the 1990s. His second career was in agriculture and now he’s back in the tech field. Davis’s multiple work experiences have given him insight into the increasing broadband needs of rural residents who either farm or work in some other aspect of the agriculture industry.

When Davis went back into tech, he joined Pemiscot-Dunklin because the electric cooperative, which had never had IT staff before, needed to fill a long-existing personnel gap. With approximately 8,800 connected meters, the cooperative is a modest-sized organization. Approximately 20 percent of their load goes toward irrigation, revealing the important role agriculture plays in the region. Internet access in rural areas is limited to fixed wireless. Cooperative members who used to subscribe to the wireless service typically found top speeds were around 3 - 4 Megabits per second (Mbps) download and much slower upload speeds.

Time for an Upgrade

Pineland Telephone Cooperative is known for providing Fiber-to-the-Home (FTTH) services in southeast Georgia’s rural areas between Savannah, Augusta, and Macon. Now the co-op’s subsidiary Pineland Communications is expanding south and west into Americus, where they plan to provide fiber connectivity to local businesses.

Partnering for Pineland

In January, Pineland began deploying fiber to the delight of potential commercial subscribers. The project should start offering gigabit Internet access, voice, security, and computer services to local businesses this fall. Pineland is considering expanding to residential connections in Americus and Sumter County in the future. Pineland invested $2 million toward the project and local donors also contributed.

The project was spearheaded by the One Sumter Economic Development Foundation and began with a feasibility study three years ago. In August 2018, when the Foundation and Pineland announced the project, Rene Smith from the Foundation told WGXA:

"For our businesses, it means an opportunity to access high speed data -- which we see as vital for business success as well as education for our young people in this community. We feel like it's vital for our future."

 In addition to the feasibility study from the Foundation, the local hospital authority also contributed by selling property for the central office to Pineland at market value. Sumter Electric Membership Corporation, Georgia Electric Membership Corporation, Georgia System Operations Corporation, and Georgia Transmission Corporation all assisted with the project. As a result of the efforts of all the entities involved, Americus can market itself to potential new employers as Gig-Certified.

Coming to Americus 

Midwest Energy and Communications (MEC) offers Fiber-to-the-Home (FTTH) in large pockets of southeast and southwest Michigan, north central Ohio, and a sliver of north central Indiana. Recently, the small rural town of Milton, Michigan, awarded the cooperative $75,000 to deploy fiber to approximately 80 homes in the community.

That Last Five Miles

According to the South Bend Tribune, the funds are being used to install the last 5-mile stretch of fiber that will complete a larger vision to connect the township’s entire 3,800 residents to high-quality Internet access. Mostly agricultural Milton Township is located in Cass County along the Indiana border. Construction is underway and may be completed as early as this spring.

Rates from MEC include:

$49.95 per month for 25 Megabits per second (Mbps) upload and download

$59.95 per month for 50/50 Mbps

$79.95 per month for 100/100 Mbps

$119.95 per month for 1 gigabit upload and dowload (1,000 Mbps)

When the Southwest Michigan Planning Commission and Connect Michigan assessed connectivity in the region almost seven years ago, Cass County was considered “below average” for Internet access in Michigan. Since that time, the Planning Commission has provided resources and information for local communities interested in taking steps toward better local connectivity; working with electric cooperatives and providing grants and loans have helped over time.

Midwest Energy

In addition to providing Fiber-to-the-Home (FTTH) Internet access for members in their service area, MEC is also working with Lyndon Township by providing Internet access over the town’s publicly owned fiber network. MEC also offers propane, a popular form of household heat in rural Michigan.

The cooperative begin in 1937 as one of the many rural electric cooperatives formed by locals to bring lights to the families in areas unserved by private sector electric providers. The cooperative added propane service in 1998.

Check out this short video on the history of MEC: