Windstream has the distinction of being one of the worst providers we have ever covered from consumers' perspective, but in rural areas many people have little or no choice. The latest Windstream debacle involves a Nebraska farmer, an outrageous price quote, and a local company that is taking on the project for about one-ninth of Windstream's estimate.

Ars Technica recently introduced us to Nelson Schneider, CTO of the Norman R. Schneider Family Trust Farm in Ceresco, Nebraska. Like many other farms today, the Schneider business needs fast, reliable connections for a variety of reasons including checking ever changing grain prices. Schneider had Windstream's DSL for $80 per month, but his promised speeds of 1.5 Mbps were clocked at 512 Kbps download and 256 Kbps upload, making business online impossible.

When he attempted to take advantage of the business class speeds Windstream advertised online, the company dismissed him. Schneider had to file a complaint for false advertising with the FCC just to get Windstream to negotiate. He wanted fiber, was willing to pay for construction costs, and considered it an investment in the vitality of the farm. 

Windstream told him it would cost Schneider $383,500 (gulp) to install 4.5 miles of fiber from his property to its facilities in town. Even though Windstream's fiber network map shows they run fiber about one-half mile away, they insisted he would need to connect to the facility farther away. When he asked about connecting to this closer line, Windstream refused to connect him. The company would not provide a reason when Ars asked for a reason.

Even though Schneider was prepared to pay thousands of dollars to bring fiber to his farm, such a preposterous quote and Windstream's refusal to commit to anything higher than 10 Mbps symmetrical were too much. He contacted Northeast Nebraska Telephone Company when he learned that they had been connecting local farms with fiber. Soon an NNTC executive visited the farm and the two talked about the possibilities. The final estimate was $42,000 or about one-ninth what Windstream demanded and now NNTC is working with Schneider to make the project easier:

Northeast agreed to let Schneider pay...

Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.

After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]

CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services. 

CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.

Co-Mo and United waged successful challenges for similar CAF awards to AT&T and Windstream. CenturyLink...

We reported in February that the FCC sought "expressions of interest" from entities that want a share of Connect America funds. The agency sought feedback on the need and desire for projects across the country from entities that have not traditionally received universal service funds. The FCC received over 1,000 expressions of interest.

Minnesota leads the U.S. in proposed projects. According to a recent MPR News Ground Level article, 62 expressions of interests come from Minnesota. Projects vary in size; some focus on a small number of homes while others plan to bring services to many people.

All of the proposed projects address gaps in rural broadband service. MPR noted that several of the expressions of interest describe community experience with CenturyLink, Frontier, and Mediacom. The RS Fiber cooperative wrote:

“The communities have approached all three providers [CenturyLink, Windstream, and MediaCom] and asked them to work with the communities to build the fiber network. They all refused. Then the communities offered to put up the money to construct the network and the providers could operate and eventually own the network. None of them were interested.”

The MPR article reports the FCC will likely offer approximately $86 million to the three incumbents to bring broadband to unserved and underserved areas. If they refuse, a long line of interested parties are waiting.

Minnesota's desire for broadband caught the attention of state lawmakers. A bill to earmark funds for rural broadband was introduced earlier this session and has received bipartisan support. From the MPR article:

Even if the Minnesota projects go nowhere with the FCC, they already may have had an impact here in the state.

For the first time, lawmakers here are considering whether to spend money on broadband infrastructure, and the idea has backing from Gov. Mark Dayton. But “there was concern from the governor and others there might not be enough interest,” said...

Yet again, lobbyists from AT&T, Windstream, and Cincinnati Bell are lobbying state elected officials under the false guise of improving communications in Kentucky. In a Richmond Register opinion piece, Mimi Pickering from the Rural Broadband Policy Group revealed the practical consequences of Senate Bill 99.

Republican Senator Paul Hornback is once again the lead sponsor on the bill. As usual, backers contend the legislation moves Kentucky communications forward. Last year, Pickering and her coalition worked to educate Kentuckians on SB 88, that would have eliminated the "carrier of last resort" requirement. We spoke with Pickering about the bill in Episode #44 of the Broadband Bits podcast. They had a similar fight in 2012.

In her opinon piece, Pickering describes the practical effect of this policy change:

It would allow them to abandon their least profitable customers and service areas as well as public protection obligations. But it is a risky and potentially dangerous bet for Kentuckians. Kentucky House members should turn it down.

Everyone agrees that access to affordable high-speed Internet is a good thing for Kentucky. However, despite what AT&T officials and their numerous lobbyists say, SB 99 does nothing to require or guarantee increased broadband investment, especially in areas of most need.

AT&T Kentucky President Hood Harris claims that current Kentucky law prevents the company from investing in new technology. As Pickering points out, AT&T refused to build in unserved areas when offered federal funds. Those funds came with minimum obligations; AT&T was not interested.

The bill appeared to be on the fast track to passage, breezing through the Senate Economic Development, Labor, and Tourism Committee only ten days after being introduced. According to the...