Tag: "farmers mutual telephone coop"

Minnesota Counties Help Fund Cooperative Broadband Projects for Economic Development

Posted December 20, 2018 by Katie Kienbaum

Even if a local government isn’t ready or able to build its own broadband network, there are still ways they can help bring the benefits of better connectivity to their community. Over the past few years, several counties in Minnesota have partnered with local electric and telephone cooperatives to expand high-quality Internet access as an economic development strategy. In many instances, county governments have offered financial support to the local co-ops, in the form of grants and loans, to connect their rural residents with high-quality fiber networks, often supplementing federal subsidies or statewide Minnesota Border-to-Border Broadband Development grants.

Projects Across the State

Minnesota counties have taken a variety of approaches when it comes to helping cooperatives finance broadband deployment projects.

Some, such as Cook County in the far northeastern corner of the state, provided grants to local co-ops. Cook County began its partnership with Arrowhead Electric Cooperative back in 2008 when both entities contributed to a broadband feasibility study. At the time, the county suffered from the worst connectivity in the state, and many people still relied on dial-up. In 2010, Arrowhead was awarded a $16.1 million combined grant and loan from the stimulus-funded Broadband Initiatives Program (BIP) to build a fiber network in Cook County. The county government offered Arrowhead a $4 million grant for the project, funded by the voters’ reauthorization of a 1 percent sales tax that was due to expire. In return, Arrowhead agreed to provide services such as Internet access to county buildings at no cost.

Yet more local governments have opted to loan money to co-ops to expand broadband access in their county. Both Big Stone County and Swift County chose this route after Federated Telephone Cooperative received a $3.92 million...

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Cooperatives Build Community Networks

Posted July 17, 2017 by Hannah Trostle

co-op fiber map 12 2019 updated

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.

Quick Links:

Why Rural Cooperatives
Rural Public Policies 
Electric Cooperatives
Articles and Interviews 
List of Fiber Projects 
Telephone Cooperatives
Articles and Interviews 
The First Internet Cooperative
Videos 
More Resources
List of Gigabit Cooperatives 
Community Broadband Bits...
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Lac qui Parle Video: "Come For The Jobs, Stay For The Lifestyle"

Posted June 10, 2017 by Lisa Gonzalez

Lac qui Parle County in western Minnesota has some of the best connectivity in the state. As part of the county’s efforts to get the word out about opportunities in the region, their new Facebook video highlights access to great Internet access and hopes to draw more citizens to the region.

"Come for the Jobs. Stay for the Lifestyle"

Pam Ellison, Economic Development Director for the County, describes the network that is available across the county to businesses and residents. High-quality Internet access is a way to retain businesses, attract new endeavors, and entice people to fill new positions.

Back in 2009, the county began working with Farmers Mutual Telephone Cooperative to find a way to improve Internet access. Through their collaboration, the two entities received a 2010 American Recovery and Reinvestment Act (ARRA) to deploy Fiber-to-the-Home (FTTH) connectivity and replace antiquated dial-up. At the time, about 52 percent of premises were still using their telephones to connect to the Internet.

Lac qui Parle had approached incumbent providers, but none were interested in upgrading in the sparsely populated region. Farmers Mutual Telephone Cooperative had deployed in other communities in western Minnesota and had the experience required in such a rural area. The project’s $9.6 million ARRA combined grant and loan allowed the project to be completed by the summer of 2014. Read more details about the network and the story in Lac qui Parle County in our 2014 report, All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access.

Check out Lac qui Parle County’s video:

Another Coop Story: Wiatel Wires Western Iowa

Posted December 22, 2015 by Hannah Trostle

Iowa, known across the country for its agriculture, is known in other circles for its exciting community broadband projects. Earlier this year President Obama visited Cedar Falls to praise its municipal network and to support other efforts to improve rural high-speed Internet access. One of those efforts is Wiatel. This small telecommunications coop is beginning a $25 million project to upgrade its network from copper to fiber throughout its entire service area.

Fiber Connectivity

The cooper network that Wiatel uses now is sufficient for basic phone service, but upgrading to fiber will future-proof the network and provide better Internet speeds. The coop is based out of Lawton, a small town of about 1,000 people, but the coop serves an area of 700 miles. Wiatel hopes to start burying the fiber cables in the summer of 2016. Once the project gets started, officials from the cooperative estimate they will connect all residential and business customers to fiber within 24-30 months.

Wiatel is part of a long-growing movement as rural coops build fiber networks or upgrade to fiber to improve services for members. Just check out the Triangle Communications coop in Montana, the Paul Bunyan Communications coop in Minnesota, or Farmers Telecommunications Cooperative in Alabama. They’re providing next-generation connectivity at reasonable prices to rural communities often ignored by the large incumbent telephone and cable companies.

Coops: An Alternative

Without an immediate return on investment, large corporate providers have little incentive to build in sparsely populated areas. Traditional corporate providers must answer to shareholders seeking short term profits. Cooperatives are owned by the people they serve, giving their shareholders a practical, real, tangible interest in the success of the endeavor and the community it serves....

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USDA Broadband Funding for Rural Projects; Coops On Top

Posted October 6, 2015 by Hannah Trostle

This past July the USDA announced over $85 million in funding for rural broadband projects across seven states. The projects, many awarded to rural cooperatives, aim to bridge the digital divide and expand economic opportunities. For those interested in federal funding opportunities, NTIA has just released this guide [pdf].

Rural areas are often passed over by big telcos because they are considered less profitable. Farming, however, is a high-tech industry, and Agriculture Secretary Tom Vilsack believes that Internet access is as necessary as electricity in rural areas:

"Broadband is fundamental to expanding economic opportunity and job creation in rural areas, and it is as vital to rural America's future today as electricity was when USDA began bringing power to rural America 80 years ago. ...  Improved connectivity means these communities can offer robust business services, expand access to health care and improve the quality of education in their schools, creating a sustainable and dynamic future those who live and work in rural America."

The USDA has awarded more than  $77 million in Community Connect Grants for rural broadband projects (since 2009). This July, the USDA loaned $74.8 million and awarded another $11 million in Community Connect Grants. Here is the current round-up of the USDA’s most recent loans and grants:

Alaska

Arctic Slope Telephone Association Cooperative Inc. will connect Point Hope subscribers and prepare for an undersea fiber line with a $1.4 million grant.

Minnesota

Garden Valley Telephone, one of the largest coops in Minnesota, will continue to expand its FTTH service area with a $12.63 million loan. On average, the coop serves two households per square mile.

Consolidated Telephone, another coop, will perform upgrades and add a new fiber ring to allow for greater bandwidth with a $12.27 million...

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Minnesota Border to Border Broadband Awards Announced

Posted February 11, 2015 by Lisa Gonzalez

The Minnesota Office of Broadband Development recently announced the recipients of the Border to Border Broadband grants, funding established by the state legislature in 2014 to facilitate rural broadband projects. Seventeen public and private entities will share a total of $19.4 million in Greater Minnesota.

According the the Department of Employment and Economic Development (DEED) press release, the projects will help bring better connectivity to 6,095 households, 83 community institutions, and 150 businesses in areas of the state considered unserved or underserved. This funding pays for up to 50 percent of the cost of each project. 

The need in rural areas of the state is intense; 40 projects submitted applications for a total of $44.2 million in requests. Among the recipients are some familiar projects.

RS Fiber Cooperative is awarded $1 million for its FTTH project in Renville County and and parts of Sibley County. We wrote a case study on the RS Fiber project in our report All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. According to the press release:

Total project costs are $3.32 million; the remaining $2.32 million (70 percent local match) will be provided by a line of credit that R-S Fiber Telcom has committed and partner equity. This project is part of a larger cooperative project estimated at $38.46 million that will upgrade broadband services to several thousand locations in the region. Hiawatha Broadband Communications will provide operational capacity. 

Federated Telephone, sister cooperative to Farmers Mutual Cooperative will also receive an award for a project in Big Stone County:

Federated Telephone Cooperative, Big Stone County. Awarded $3.92 million to construct broadband infrastructure that will make service available to 1,072 unserved premises. The full project cost is $7.92 million; the remaining $4 million (51 percent) in matching funds will be raised through tax abatement bonds, with the county loaning the bond proceeds to Federated. This project will cover the north half of Big Stone County, as well as the western tract that...

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All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access

Posted January 8, 2015 by Lisa Gonzalez

Update: Read an updated version of this report, published in July 2021, here, titled Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf]. It revisits all of the below communities to see how they fared over the intervening years, while adding new counties, communities, and, for the first time, two local Internet Service Providers.

Original Report: Minneapolis, MN —In 2010 the Minnesota legislature set a goal: universal access to high speed broadband throughout the state by 2015. As 2015 approaches we know that large parts of Greater Minnesota will not achieve that goal, even as technological advances make the original benchmarks increasingly obsolete.

But some Minnesota communities are significantly exceeding those goals. Why? The activism of local governments.

A new report by ILSR, widely recognized as one of the most knowledgeable organizations on municipal broadband networks, details the many ways Minnesota’s local governments have stepped up. “All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access” includes case studies of 12 Minnesota cities and counties striving to bring their citizens 21st century telecommunications.

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

Read how these and other communities took control of their own connectivity and their community vitality. Some did it alone while others established partnerships; each chose the path they considered the best for their own community.

Minnesota Local Governments Advance Super Fast Internet Networks

Posted March 19, 2014 by Christopher Mitchell

Local governments in Minnesota have been at the forefront of expanding fast, affordable, and reliable Internet access - often in some of the most challenging areas of the state. ILSR has just released a policy brief to explore some of these approaches: Minnesota Local Governments Advance Super Fast Internet Networks.

The full report is available here.

The brief examines five communities that have taken different approaches to expanding access, from working with a trusted local partner to creating a new cooperative to building community-wide FTTH networks.

Lac qui Parle County has worked with Farmers Mutual Telephone cooperative to bring fiber networks to those who had been stuck on dial-up. Finding itself in a similar situation with no reliable partner, Sibley County is creating a new coop to work with.

Scott County built a fiber ring to connect community anchor institutsion to dramatically expand access to high capacity networks and lower telecommunications budgets. That network has helped to lure several major employers to the area by leasing fiber to them.

Windom and Monticello have built FTTH networks in extremely challenging conditions. Though Windom is far smaller than most have believed is feasible to build such a network, it has thrived and is now connecting many of the small towns surrounding it. It was essential in retaining jobs in the community that would have been lost without it and has attracted new jobs to the region. Monticello is a younger network and has remarkably benefited the community even as it has struggled financially due to dirty tricks from the telephone and cable companies.

The policy brief makes some policy recommendations while focusing on some local solutions to difficult problems in ensuring all Minnesotans have fast, affordable, and reliable Internet access.

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