It isn't very often we have the chance to share stories from the "Last Frontier," but a cooperative in the Valdez area is making news with a planned upgrade to fiber this summer.

DSL to Fiber

According to the Valdez Star, Copper Valley Telecom (CVT) subscribers will be enjoying a switch from old copper DSL Internet access to Fiber-to-the-Home (FTTH) when CVT upgrades its system. The new technology will also improve telephone service.

"Once complete, all voice and data will be delivered to the home over fiber optic line and the new electronic interface," CVT said. "Modems will also be replaced."

"There is no cost to the customer for the fiber installation," [CEO Dave] Dengel stated. "Customers will not be asked to pay for the new fiber or the electronics required for voice and Internet access."

Increasing Role of Co-Ops

CVT has served co-op members for more than 50 years with telephone service in the Valdez area and also serves the Copper River Valley and Cordova. Co-ops are bringing high-quality Internet access to rural areas across the U.S. and we expect to see more upgrades as existing co-ops switch to fiber. Co-ops know that their future depends on the future of their members because they are members, too.

As CVT Chief Executive Officer, Dave Dengel, put it, "By upgrading our network from copper to fiber, Copper Valley Telecom is preparing the community for the future."

As Burlington, Vermont, searches for a buyer for Burlington Telecom, the local residents and business owners continue to remain engaged in the future of their beloved Fiber-to-the-Home (FTTH) network. Most recently, they made it clear that their first priority is finding a local company to own and operate the fiber network.

VT Digger reported that, according to a survey conducted by the BT Board of Advisors:

Several residents have said they would like to see Burlington Telecom sold to a locally owned co-operative and that their greatest concern is the utility being sold to one of its larger competitors such as Comcast, AT&T or FairPoint.

From the report:

Though the City is precluded by the terms of its settlement Agreement with Citibank from continuing to own the Asset, a carried equity interest is permitted. It is important that all ownership options be explored and considered in light of the legal requirements and the City’s goals for BT. However, the BTAB [Burlington Telecom Advisory Board] agrees with the vast majority of interested participants in this process that the sale of BT to one of its existing, national competitors would likely not be in the overall best interests of the City. 

At a recent meeting, David Provost, chair of the advisory board said, “The best option from our perspective is finding a buyer with ties to the local community that will allow the city to have a minority stake in Burlington Telecom."

A Troubled Past, An Uncertain Future

After years of cover-ups by the city's past leadership, CitiBank eventually sued Burlington for $33 million. The parties settled and, as part of the settlement, Burlington transferred ownership to Blue Water LLC, a company formed by Burlington businessman Trey Pecor. In exchange, Blue Water provided $6 million in bridge financing to allow the city to settle the lawsuit with Citibank. The city is still leasing the network temporarily but the ultimate goal is to find a partner to purchase the network. 

As Minnesota's Legislature decides on funding for the state's Border-to-Border Broadband Development Grant Program, local media is calling on state leaders to prioritize local connectivity in the Capitol Chambers. This year, Governor Dayton's office is recommending allocating $100 million to the program.

Blended Is Better

In the past, the Border-to-Border Broadband Development Grant Program has granted funding to areas of only the greatest need, which has resulted in Internet infrastructure deployment in very rural areas. That's great for municipalities, businesses, and residents in those areas who certainly need and deserve better connectivity. Towns where there is some coverage, such as old DSL networks, have typically not qualified. As a result, rural areas of the state are developing "donut holes" of inadequate connectivity. In the long term, this could spell disaster for these towns because businesses have no reason to locate in places where they can't get the Internet access they need for operations. A blended approach will allow investment in both unserved areas and areas where some networks already exist so centers of economic activity can still compete with their neighbors.

Chris provides more information on the blended approach, and on one possible solution for rural communities, in this nicely produced video created by Capitol Almanac:

Once again, local communities in Colorado chose to shout out to leaders at the Capitol and tell them, "We reclaim local telecommunications authority!"

Nine more towns in the Centennial State voted on Tuesday to opt out of 2005's SB 152. Here are the unofficial results from local communities that can't be any more direct at telling state leaders to let them chart their own connectivity destiny:

Akron, population 1,700 and located in the center of the state, passed its ballot measure with 92 percent of votes cast supporting the opt-out.

Buena Vista, also near Colorado's heartland, chose to approve to reclaim local authority when 77 percent of those casting votes chose to opt out. There are approximately 2,600 people in the town located at the foot of the Collegiate Peaks in the Rockies. Here is Buena Vista's sample ballot.

The town of Fruita, home to approximately 12,600 people, approved the measure to reclaim local authority with 86 percent of votes cast. Now, when they celebrate the Mike the Headless Chicken Festival, the Fruitans will have even more to cheer.

Orchard City, another western community, approved their ballot measure when 84 percent of voters deciding the issue chose to opt out. There are approximately 3,100 people here and a local cooperative, the Delta-Montrose Electric Association (DMEA) has started Phase I of  its Fiber-to-the-Home (FTTH) network in the region. According to an August article in the Delta County Independent, Delta County Economic Development (DCED) has encouraged local towns, including Orchard City, to ask voters to opt out of SB 152. With the restriction removed, local towns can now collaborate with providers like DMEA.

A Missouri electric cooperative has set out to bring fast, affordable, reliable connectivity to its members. Barry Electric Cooperative began deploying its Fiber-to-the-Home (FTTH) network on February 1st throughout Barry County. 

Barry Electric Cooperative is on track to enact its 5-year fiber network plan, mixing aerial and underground deployment, in eight phases. To manage the operation, the cooperative has created a subsidiary called goBEC. 

Fiber in the Sky and Under the Feet

goBEC’s manager JR Smith explained to the Cassville Democrat:

"Our plan is to give every BEC member the availability to high-speed broadband service by installing a fiber optic cable directly into each home and business. That will be close to 1,100 miles of fiber."

Although a daunting task, goBEC already has a head start. It’s already overcome two recurring hurdles in the deployment of new fiber networks: Rights-of-Way regulation and utility pole access. Barry Electric Cooperative owns all the utility poles and has access to the necessary Rights-of-Way for the project. While underground deployment can protect fiber optic cable from squirrels and storms, connecting the cables to utility poles can speed-up network deployment. The cooperative will bury some fiber underground when necessary, but its service territory is large. goBEC wants to move quickly to get members connected ASAP so will bury and hang fiber.

Co-op members have been asking for better Internet access since 2010, and the cooperative hopes to have the first phase completed by late Fall 2016. They will offer triple-play (phone, TV, and high quality Internet access). All speeds are symmetrical, so speeds are the same on the download and the upload.

The co-op plans to make the most of the new speed enabled by FTTH. From the Democrat:

Smith said pricing is not yet available, but the lowest Internet service package will be 250 megabytes per second, and there will be broadband Internet service offered.

"That is 250Mbps up and 250Mbps down, he said. "Our highest Internet package will be 1 [gigabyte per second].

A growing number of electric coops are providing Internet access to residents and businesses in areas of the country where big providers don't offer services. It’s not a big leap because many electric coops already use fiber for communication between electric substations. Expanding in order to offer high quality Internet access is a logical next step.

In Nevada, the Valley Electric Association (VEA) is bringing Fiber-to-the-Home (FTTH) to members in 2016 and helping create new jobs in Pahrump and Fish Lake Valley. The coop's subsidiary Valley Communications Association (VCA), will operate the network.

Details on speeds and rates are yet to be determined, but the coop plans to offer Internet access up to 1 gigabit.

Community Job Creators

Currently, VEA employs 107 full-time staff and has 31 new job openings; they intend to add a total of 38 positions over the next year. The subsidiary VCA employs 10 full time and contract employees and anticipates adding another 50 employees by the end of 2016.

Municipal networks draw in new businesses and bring new life to communities. For instance, the network in Chanute, Kansas, helped draw in a new manufacturing facility with 150 jobs from Spirit AeroSystems in 2012. And in Thomasville, Georgia, the municipal network revitalized the downtown bringing more than 200 jobs to Main Street. With the addition of high-speed Internet access, this community in Nevada is well positioned for economic development.

From Small Coop to Big Dreams

In 1965, the VEA started off as a small rural coop, but now it has expanded to serve over 45,000 people across 6,800 square-miles of service area. Tom Husted, VEA's CEO, expressed his expectations for the new fiber network: 

“It’s going to add jobs, enhance communications and revolutionize Internet service in our territory.”

Minnesota's Paul Bunyan Communications' is bringing better connectivity to homes and businesses across northern rural Minnesota via fiber. The cooperative is also helping local school districts save precious dollars while obtaining the Internet access kids need for a 21st century education.

The cooperative recently announced it is now serving all schools in the GigaZone, the area served by its fiber network, and every school can upgrade to gigabit Internet services at no extra charge.

From the announcement:

"The GigaZone will provide the school districts Gigabit Internet speeds throughout the school day so educators and students alike can use the Internet faster and more efficiently. This upgrade is being provided at no extra charge so districts can stay within their budget and prepare their students for the future and the new technologies it will bring," said Steve Howard, Paul Bunyan Communications IT & Development Manager.

Recent studies reveal that rural schools grapple with high rates for Internet access, often because there is only one provider who takes advantage of their solo position. Paul Bunyan Communications is one of the many telecommunications cooperatives that serve rural regions that are owned by the people they serve. Like municipal networks, cooperatives typically display a concern for the community rather than maximizing profit.

Paul Bunyan is continuing to expand its current GigaZone coverage area. The coop now serves over 14,000 locations in rural Park Rapids, Lake George, Trout Lake Township east of Grand Rapids, most of Grand Rapids, and portions of Bemidji. The goal is to cover the 5,000 square mile service area now served by the cooperative.

Another rural communications cooperative is upgrading its current system to a Fiber-to-the-Home (FTTH) network. South Central Communications (SCC), is in the process of deploying fiber to all of its 23 member communities in Utah and the few it serves just across the Arizonia border. The cooperative started as South Central Utah Telephone Association in 1953.

An Investment For Today And Tomorrow

Construction began in 2015 and should be completed by the end of 2016, reports the Southern Utah News. Kanab, population 4,300, is the first community to receive the upgrade from the coop's DSL network to the new fiber infrastructure. All of Kanabs schools, municipal facilities, libraries, homes, and businesses will connect to the network, SCC President and CEO Michael East told the News:

“We are making this investment because we believe it will contribute to the economic vitality of our community and allow us to serve this great place we call home with the best communications network available today.”

During the initial build, connections to the new fiber will be free of charge. If customers pass on the offer the first time around decide to connect later, they will be charged an installation fee. FTTH connectivity typically increases home values, so even if customers decide to pass on taking fiber service, there is no down side to connecting to the network.

FTTH Internet access from SCC is available in 5 Megabits per second (Mbps), 15 Mbps, or 50 Mbps for $34.95, $54.95, and $64.95 per month respectively. Gigabit per second (Gbps) access is available for $89.95 per month.

It's About More Than Profit

SCC is one of an increasing number of rural cooperatives offering fast, affordable, reliable connectivity to communities where big corporate providers don't invest. Publicly owned networks, like cooperatives owned by the people who use them, have an interest in the well-being of the community, rather than only in extracting profit from subscribers. 

Electric coops empowered communities during rural electrification in the 1930s, connecting people to power grids. Now electric coops have the opportunity again to empower communities through affordable, high-speed connectivity. In Colorado, the Delta-Montrose Electric Association (DMEA) is moving forward with a pilot project for a Fiber-to-the-Home (FTTH) network.

Unanimous Decision for Fiber

In late December 2015, the DMEA Board of Directors gave the green light to start the pilot project. The move to provide connectivity comes as no surprise. DMEA considered providing middle mile connectivity for a long while before coming to the decision to instead deploy FTTH. If the coop had chosen to develop the middle mile network, they would not have connected members’ homes, but instead would have built infrastructure connecting to the larger Internet. 

Many projects funded with American Recovery and Reinvestment Act (ARRA) stimulus funds were built as middle mile networks. At the time, policy makers theorized that middle mile projects would encourage private sector last mile providers to complete the link to subscribers. Over time, this theory has proven too optimistic. Municipalities and smaller private providers are connecting to middle mile networks in some places, but the large scale build out expected from big name providers is just not happening.

For DMEA, FTTH is their solution: building a larger network and taking the fiber directly to members’ homes. Virginia Harman, DMEA spokesperson, described the decision to do FTTH as a reaction to member demand. In a recent survey, members highlighted the importance of high-speed Internet access for their homes. The goal now is to build the network in a sustainable way.

Phased Approach to Connectivity