Several rural communities have high-speed Internet service in Oklahoma, thanks to the hard work of the local electric cooperative. Headquartered in Hulbert, Oklahoma, Lake Region Electric Cooperative is already laying the necessary infrastructure for an extensive Fiber-to-the-Home (FTTH) network.

Lake Region Electric Cooperative offers FTTH service to more than 1,000 homes in the rural communities around the city of Tahlequah, Oklahoma. As with electrification, the cooperative is once again providing a much needed utility where no private company would go. This is the internetification of rural America.

Grounded In Community

Lake Region Electric Cooperatives is rooted in rural Oklahoma: it serves the rural communities east of the city of Tulsa and north of the city of Muskogee. The land is rocky, covered in trees, and surprisingly hilly. To get to the headquarters, one must go up a short dirt drive off the main road heading into the town of Hulbert. I dropped by the office to learn more about how the project started and spoke to Communications Specialist Larry Mattes and Fiber Coordinator Eshwar Prasad Beemraj.

For years, the Lake Region Electric Cooperative sent out a survey to its members, and each year, the co-op members wrote back that they needed Internet service. The large private provider in the area had not updated their infrastructure in decades. Like many electric co-ops, Lake Region had helped make Exede satellite Internet service available to their members, but it wasn’t enough. People came to board meetings and annual meetings to voice their concerns.

The co-op had to act and the staff developed a plan to bring the fastest Internet service that they could to the co-op members. They created pilot projects in two areas near the center of their service territory; both were a success. To manage demand for the service, the co-op uses the CrowdFiber platform to track which areas have the most interest. Members can pre-register for the service on the Lake Region Electric Crowd Fiber site and put down a small deposit of about $50.

A Natural Extension Of Service

Central Virginia Electric Cooperative (CVEC) has created a five-year plan to deploy a Fiber-to-the-Home (FTTH) network to premises within its distribution area. CVEC will begin with a one-year pilot program within a limited region in order to test and prepare for the wider initiative.

More Than Internet Access

CVEC’s plan for the new fiber infrastructure will include more efficient electrical operations across its entire distribution system. CVEC plans to install approximately 4,600 miles of distribution lines and offer services to all of its 36,000 members through a subsidiary. Because so many of its members live in rural areas, they don’t have access to high-quality Internet services. CVEC serves Albermarle County and portions of 13 other surrounding counties.

"CVEC believes that access to reliable, high-speed Internet today is becoming as important as access to electricity in 1937," said CEO Gary Wood. "Give the great need for connectivity, CVEC will leverage its fiber network to provide a broadband Internet solution that will serve the community now and for the future."

One look at the comments on the CVEC Facebook page reinforces the claim that CVEC’s members lack access to high-quality Internet service: 

“You’re lucky to have DSL.” 

“No Internet or cell service just two miles from the interstate has gotten old old old fast fast fast.” 

“With an Internet bill over several hundred dollars a month for relatively crappy service, I will happily spend my money with someone who actually cares!”

“Shut up and take my money.”

Another Go At Access

Other plans to bring Internet access to members have fallen through. At a recent meeting that included the Albermarle County Broadband Authority and the Village of Rivanna Community Advisory Committee, Wood described two other failed attempts by CVEC that depended on partnerships with other entities. One involved delivering broadband over power lines and the other ended in an inability for the cooperative and its partner ISP to reach an agreement.

Taylor Electric Cooperative, serving members in the Abilene, Texas region, is starting to offer Fiber-to-the-Home (FTTH) Internet access to members through its Access Fiber pilot project.

Four Phases Of The Pilot

Lance Maeda, Director of Information Technology at Taylor EC shared some details about the project that’s now serving a limited number of premises with plans to expand. The cooperative connected its first customer in early December 2017, about six months after the Board decided to pursue the project.

The cooperative is currently working on the first of four phases. This phase brings service to an apartment complex and two residential subdivisions, one of which is located adjacent to a Taylor EC satellite office where they will house electronics for the network. Engineers considered their plan a way to deploy this part of the network more cost effectively and more quickly. With this approach, they can concentrate on perfecting the service to members before moving on to the other phases.

They’ve recently finished the first subdivision where twelve members have signed up for FTTH services and are now focusing on the aerial connection to the apartment complex and the second neighborhood in the planned first phase. Homes in the second neighborhood are more sparsely located and, according to Maeda, Taylor EC will contend with a wide range of densities as they expand the project. Engineers have decided to house the fiber for the second half of the first phase in underground conduit where it will be protected from ice storms and tornados.

No Grants Or Loans

The cooperative received no grants or loans to fund the pilot, funding it entirely through operations; the cooperative is not ready to share the cost of the pilot project. At this point, the electric cooperative is not restricted to offering Internet access in specific areas, says Maeda, but telephone cooperatives that offer services in Texas can only offer Internet access in their own territories. Taylor EC is weighing the pros and cons of applying for FCC funds because accepting any funds might require also accepting limitations.

Customer Service, Natural Fit

Central Missouri’s Callaway Electric Cooperative began offering high-quality Internet access in 2016 by collaborating with a local telephone cooperative. Since then, it’s subsidiary, Callabyte Technology, has continued to expand its services to members in local rural communities in its service area. Recently, the people of the small community of Holts Summit learned that the project is headed their way.

Anticipating Better Broadband

Holts Summit residents and businesses can expect to receive the opportunity to sign up for Callabyte services in 2018. Business development supervisor for the cooperative, Rob Barnes told attendees at a recent Alderman meeting that the co-op would likely divide the deployment into three phases due to the size of the town. Holts Summit is about 3.5 square miles and home to 3,700 people.

The community of Holts Summit obtains electric service from Ameren Missouri, rather than Callaway Electric; Holts Summit and the cooperative are developing a non-exclusive franchise agreement just as they would a private sector provider that wished to offer video services in Missouri. Businesses and residents in the town currently use satellite Internet service and cable Internet access from Mediacom.

"We've got a number of citizens that would like to start a home-based business, but won't because they don't have reliable internet right now," [City Administrator Rick] Hess said. "So this will be great for businesses."

Ever Growing Service From Co-ops

Calloway Electric Cooperative has been reaching an expanding list of communities and intends to provide service all of Calloway County. They offer Internet access, voice, and video bundles and people in their service area are signing up for all three.

“We are still surprised that the landline service is something people still are taking,” Barnes said. “But as you get out into the rural portions of Callaway County, cellphone service still doesn’t work very well.”

Southeastern Missouri residents in three counties will soon have Fiber-to-the-home (FTTH) available through the Pemiscot-Dunklin Electric Cooperative. The new project marks yet another opportunity for rural residents and businesses to obtain high-quality connectivity from their electric service providers.

Regional Improvements 

Missouri specifically has been utilizing rural cooperatives as a means to connect people to improved Broadband Internet. Barry Electric Cooperative, Co-Mo Cooperative, Callaway Electric Cooperative, Ralls County Electric Cooperative, and Sho-Me Power Electric Cooperative have all begun connecting businesses and residents to their fiber networks.

Pemiscot Dunklin Fiber will serve the residents of Dunklin, Pemiscot and New Madrid counties. The co-op has yet to announce subscription prices, but will offer video, voice, and high-speed Internet access. They plan to provide symmetrical connectivity so subscribers can be participants in the online economy, not just consumers. DSL connections are available to much of the area with scant cable offerings.

Cooperative Power

Electric cooperatives have provided essential services to rural and underserved areas for many years, and recently they’ve begun to offer Internet service in an effort to ensure rural communities aren’t left behind.

Pemiscot-Dunklin Co-op was organized in 1937, one year after the Rural Electrification Act. The New Deal Era legislation provided federal money for the installation of electrical distribution centers. By 1950, the cooperative had lit up around 90 percent of the region. Ever since the 1950s, the area has contended with population decline as people move to urban areas for employment. Better connectivity spurs economic development, and the cooperative likely sees this investment as both a way to serve members and to make the region more desirable to businesses.

Mecklenburg Electric Cooperative (MEC) plans to partner with Mid-Atlantic Broadband Communities Corporation (MBC) to extend Fiber-to-the-Home (FTTH) to member residences and businesses in southern Virginia. MEC’s project is yet another effort from rural cooperatives to bring high-quality connectivity to regions that don’t have the same options as urban communities.

Another Electric Cooperative Expanding To Broadband Services

Mecklenburg Electric Cooperative (MEC) is a not-for-profit energy provider headquartered in Chase City, Virginia. MEC is a member of a regional electric cooperative Old Dominion Electric Cooperative (ODEC), which provides wholesale electric services to 11 member cooperatives in Virginia, Maryland, and Delaware. MEC is currently providing electric distribution service to residents, businesses, and other institutions in nine Virginia counties and five North Carolina counties. 

In September, MEC board of directors approved a plan to upgrade fiber optic network infrastructure to connect 27 substations and the three district offices. The upgrade will afford MEC the opportunity to implement a FTTH pilot project to connect member residences and businesses.

MEC plans to initially connect 47 miles of fiber to offices in Gretna and Chase City and seven substations. In the future, MEC would connect offices in Chase City, Ebony and Emporia. In total, the intended fiber optic network would pass within 1,000 feet of 3,000 member residences and businesses in 6 counties.

President & CEO of MEC John C. Lee, Jr.

“It would be inconceivable for us to deploy fiber that will pass right by the homes of many of our members and not make every effort to share that service with them, especially given that our members have waited patiently for access to the same high-quality internet service enjoyed by those in urban areas…they have waited long enough and they should never have to settle for less”

Rural communities across the United States are already building the Internet infrastructure of the future. Using a 20th century model, rural America is finding a way to tap into high-speed Internet service: electric and telephone cooperatives are bringing next-generation, Fiber-to-the-Home (FTTH) networks to their service territories. This policy brief provides an overview of the work that cooperatives have already done, including a map of the cooperatives' fiber service territories. We also offer recommendations on ways to help cooperatives continue their important strides.

Download the policy brief, Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era here.

Key Facts & Figures

Farmers first created utility cooperatives because large private companies did not recognize the importance of connecting rural America to electricity or telephone service. Now, these cooperatives are building fiber infrastructure.

Almost all of the 260 telephone cooperatives and 60 electric cooperatives are involved in fiber network projects. As of June 2016, 87 cooperatives offer residential gigabit service (1,000 Mbps) to their members.

Rural cooperatives rely on more than 100 years of experience. The cooperative approach does not stop with rolling out rural infrastructure, but ensures that their services remain viable and affordable. 

The majority of Montana and North Dakota already have FTTH Internet access, thanks to rural cooperatives. Even one of the poorest counties in the country (Jackson County, Kentucky) has FTTH through a telephone cooperative.

AT&T receives about $427 million each year in rural subsidies to bring Internet service to rural America, but AT&T does not invest in rural fiber networks. 

Moving Forward

Our policy recommendations offer an outline of how to build off of this work and further support rural cooperatives:

1. Design funding programs with cooperatives in mind. Recognize what requirements make sense for large organizations and what is unnecessary for cooperatives.

From the rolling Appalachian Mountains to bustling city streets, Kentucky has it all, including gigabit (1,000 Mbps) service from Fiber-to-the-Home (FTTH) networks. That’s right, Kentucky - the state that is often used as shorthand in America politics to talk about coal country and poverty - actually has some of the fastest, most reliable Internet service in the entire country. We put together this map using the latest data sets available from the FCC to highlight how much of rural Kentucky has the gold standard in high-speed Internet service.

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Cooperatives Cover Kentucky

This is just a brief snapshot using the June 2016 Federal Communications Commissions (FCC) Form 477 data set. This map shows all the FTTH infrastructure available in Kentucky according to the data submitted by ISPs. This data is reported on the census block level and may overstate coverage. Even so, the data reveals how cooperatives provide high-speed Internet service to much of rural Kentucky.

Another rural electric cooperative is set to bring high-quality connectivity via fiber optic infrastructure. Volunteer Energy Cooperative (VEC) in Tennessee will be investing in a pilot program in Bradley County by year’s end.

A Learning Process - The Pilot

When it comes to fast, affordable, reliable connectivity via publicly owned Internet infrastructure, Chattanooga is typically the first location on everyone’s lips. Unfortunately, neighboring Bradley County has struggled with chronically poor connectivity. Even though Chattanooga would very much like to expand their reach to serve Bradley County residents and businesses, restrictive state law prevents the city from helping their neighbors.

Last summer, VEC saw an opening when the state legislature changed existing barriers that prevented electric cooperatives from offering broadband access or from applying for state grants to deploy the infrastructure. VEC is currently in the process of preparing grant applications through the state’s economic development commission. 

The purpose of the pilot, according to VEC President Rody Blevins, is to determine the level of interest in Fiber-to-the-Home (FTTH) connectivity in Bradley County. Areas VEC chose for the pilot include homes where there is no service and premises were there are more than one option.

"We are doing that to discover how many would choose our services who have no options as well as those who do have a source for broadband service already available," Blevins said. "That helps us looking at the bigger financial model."

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"If we have real low response, that's going to hurt us," he added. "We are not for- profit, so this thing has to pay for itself overtime. If I show my board it will never pay for itself, we can't do it. But, I don't think that's going to be the case."

Blevins told the Cleveland Banner that the cooperative estimates the cost to cover 75 percent of Bradley County would be approximately $40 million. He went on to say that if 50 percent of households in the pilot areas chose to sign up, “we would be in pretty good shape.”