Chippewa Valley Electric Cooperative (CVEC) and local communications cooperative Citizens Connected are joining forces to improve Internet access in rural northern Wisconsin.

Collaborating For Connectivity

The two cooperatives recently announced that they will invest in fiber infrastructure to connect residents, businesses, and schools through a new entity called Ntera. Construction will start in Holcombe, population around 300, because it’s one of the communities with the worst Internet access within the CVEC service area. Construction in Holcombe should begin this fall.

Ntera will offer 1 Gigabit per second (1,000 Mbps) connectivity to premises in addition to voice and video. Rates have yet to be determined. CVEC’s service area includes approximately 7,500 premises within five counties. Citizens Connected has already invested in fiber infrastructure passing more than 3,200 premises.

Holcombe is a census-designated place in the town of Lake Holcombe, where the population is a little more than 1,000. Even though they’d like to, Lake Holcombe schoolteachers don’t offer devices to students because so many of them don’t have Internet access at home. Superintendent Jeff Matin says that more than half of the students don’t have Internet access because it isn’t available in their home or just too expensive.

The Lake Holcombe schools will use $80,000 in E-rate funding and state grants to connect to existing fiber in the community that will be incorporated into the larger network. Although the school district is obtaining funding to connect, the cooperatives are funding the network investment themselves. They have not yet released a final estimate for the cost of the project. School officials look forward to the educational opportunities the new fiber will bring:

Mastin is eager to have the improved broadband in the Holcombe area. Right now, there is Internet in the school building only.

“We’ll be able to have our community having easier access to the Internet,” Mastin said. “We could give (students) more devices to allow them to connect to it. It’s definitely needed for education in the 21st century.”

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Vernon Communications Cooperative (VC Co-op), serving much of rural Vernon County, Wisconsin, was recently named a Certified Gig-Capable Provider by NTCA-The Rural Broadband Association. VC Co-op joins a growing list of rural cooperatives that are offering gigabit connectivity to members in places where national Internet service providers don’t want to invest in infrastructure. The certification requires that "gigabit technology is currently commercially available within 95 percent of one or more exchanges within [the provider's] serving territory and that such service can be provided without new trenching or stringing new aerial facilities."

Why Do Co-ops Always Start? To Fill A Need

VC Co-op started as a telephone cooperative in 1951 when local farmers collaborated, obtained funding from the Rural Electrification Act, and formed the Vernon Telephone Cooperative. After partnering with other telephone companies in the region to establish Internet service in the early 1990s, VC Co-op also began offering long distance voice and television services in 2001.

VC Co-op has also made a name for themselves by offering twelve community television channels that broadcast various local events, including school sports and concerts, local weather, and even radio shows.

By 2008, VC Co-op had finished upgrading their network in the county seat of Viroqua (pop. 4,400), replacing copper lines with fiber. Viroqua has taken advantage of the fiber in ways that touch almost all aspects of daily life. In addition to public safety, healthcare, and education, local businesses using fiber connectivity have been able to grow beyond the limits of Viroqua. All the while, the VC Co-op has served the community with the same spirit we see from other cooperatives.

Organic Valley, a farmers cooperative with headquarters in Vernon County, suffered a catastrophic fire in 2013. Without missing a beat, VC Co-op connected 21 temporary locations to house Organic Valley employees and established a connection for the farmers cooperative in another building.

VC Co-op is in the...

Like other states with significant rural populations, local communities in Indiana have been working to come up with ways to improve connectivity for residents and businesses. Two more areas in Indiana can expect better connectivity as county government invests for economic development and a rural electric co-op decides its time to offer Internet access to members.

Jackson County Rural Electric Membership Corporation

In the south central section of the state, Jackson County Rural Electric Membership Corporation (REMC) serves members in ten counties. Their members don’t live in areas in and around the larger towns in the region because most of those premises already had electric service when REMC obtained a federal loan to electrify the area in 1937. Their service area covers about 1,400 square miles and they serve 24,200 members.

In June, the cooperative announced that it had approved a five-year plan to provide Fiber-to-the-Home (FTTH) connectivity to every member in its service area. In their press release, REMC compared the project to rural electrification, which launched the cooperative, and wrote: 

Several factors were taken into consideration: enhancing the quality of life for members, agricultural and agribusiness needs, providing an enhanced path for education and healthcare opportunities, keeping our communities economically viable, and developing a plan where no REMC member is eft out. All of these facts fall under Cooperative Principle #7: Concern for Community.

A Big Project

REMC will invest approximately $5.43 million for the project’s first phase; the entire project will cost $20 million in Jackson County alone. The investment for REMC’s entire service area will be $60 million. Co-op officials estimate the project will be cash positive in three years and will be completely paid for in 16 years.

In June, Jackson County Council unanimously approved a tax abatement for the cost of phase 1, which establishes the backbone for the system and snakes through most of the counties in REMC’s service area. Phase 1 will also include an opportunity to test the network by connecting approximately 990 members in order to work out problems before offering services to members across the entire network.

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Cooperatives around the country have built on their long legacy of delivering essential infrastructure by starting to deliver next-generation Internet services. Here, we cover the basics of cooperatives in rural areas and then discuss the details of electric and telephone cooperatives that have already branched out into Internet service. Finally, we highlight the first Internet fiber optic cooperative and discuss how other communities have better Internet service through building their own networks.