Throughout the October Broadband Communities Magazine conference, folks kept repeating this sentiment: some partnerships are smooth and others have rough patches. At the conference, we heard from several electric cooperatives who had partnered with other cooperatives to provide next-generation connectivity to their communities.

We specifically want to highlight the work of two North Carolina electric cooperatives: Lumbee River EMC and Blue Ridge Mountain EMC. They were both included in our report North Carolina Connectivity: The Good, The Bad, and The Ugly. Each co-op took the bold step of building a Fiber-to-the-Home (FTTH) network throughout sparsely populated regions. At the conference, we were able to learn first-hand about their experiences.

Despite the Distance: Lumbee River EMC & HTC

HTC Chief Executive of Marketing Brent Groome described how the two cooperatives collaborated despite being nearly an hour away from each other. Their work together has involved a commitment to similar values and dedication to improving rural communities. (Lumbee River EMC’s representative was unable to attend the conference as much of the service territory had suffered flooding from the recent hurricane.)

Lumbee River EMC’s entry into Internet service brought fiber connectivity to southeastern North Carolina. The co-op provides electricity to more than 50,000 members. In 2010, the USDA provided Lumbee River EMC with nearly $20 million in funding to install fiber. A state law, however, imposes certain restrictions on electric co-ops and USDA funding. The electric co-op had to find another company with the drive and expertise to provide Internet service.

The results of a study are in and its authors recommend Stark County invest in a regional middle mile fiber-optic network, establish a broadband authority, and take other significant steps to keep the county from falling behind in today’s economy.

The Fourth Utility

The county has relied heavily on manufacturing and retail in the past but as those opportunities dry up, young people are moving away and the future is in jeopardy. Healthcare is another strong industry in the region, but access to high-quality connections is now a must-have for hospitals and clinics. Elected officials also recognize that diversifying the local economy to lure companies that offer higher paying positions will bring new blood to Stark County.

In order to attract new commerce to Stark County, Ohio, they formed a Broadband Task Team (SCBBTT) in the fall of 2014. They have adhered to the philosophy that connectivity is a “fourth utility” and should be treated like electricity, water, gas, or sewer systems. In May, the SCBBTT hired a consultant to perform a feasibility study; the firm presented its findings and recommendations on October 12th.

Consultants Offer Results, Recommendations

Consultants analyzed the amount of fiber in the county and reviewed the state of connectivity for businesses and residents and found both lacking.

Incumbents include local provider MCTV, which offers cable TV, Internet access, and phone services over its coaxial fiber network. Charter Communications, which recently acquired Time Warner Cable assets in the area, and AT&T offer cable and DSL but the feasibility revealed that there is very little fiber connectivity for residents or businesses.

They recommend that the county employ a six-pronged approach:

Garrett County is the westernmost county in Maryland. High in the Allegheny Mountains of the Appalachian Mountain Range; winters are harsh and forest covers 90 percent of the county. Before the county deployed a fiber-optic network, high-quality connectivity was hard to come by for schools, libraries, and other community anchor institutions. By making the most of every opportunity, Garrett County has improved efficiencies for the many small communities in the region and set the stage to improve connectivity for businesses and residents.

Rural, Remote, Ready For Better Connectivity

The county is more than 650 square miles but there are no large urban centers and over time a number of sparsely populated areas have developed as home to the county's 30,000 people; since 2000, population growth has stagnated. Many of the tiny communities where businesses and residents have clustered are remote and do not have public sewer or water. These places tend to have a high number of low-income people. 

Unemployment rates are volatile in Garrett County, fluctuating with natural resources extraction industries. As the coal and lumber industries have waned, many jobs in Garrett County have disappeared. Garrett County Memorial Hospital and Beitzel industrial construction employ over 300 people and are the county’s largest employers. 

All of these characteristics make Garrett County unattractive to the large Internet Service Providers (ISPs) that want to maximize investment and focus only on densely populated urban areas. Verizon offers DSL and Comcast offers cable in limited areas but many people rely on mobile Internet access and expensive satellite Internet access.

It Started With BTOP Fiber

In 2010, the State of Maryland received over $115 million in grant funding through the Broadband Technologies Opportunities Program (BTOP). With a matching $43 million from state and in-kind contributions, Maryland deployed the One Maryland Broadband Network (OMBN). In August 2013, the middle mile fiber-optic network was complete, stretching 1,324 miles across the state connecting 1,068 CAIs.

In the 1930s, rural communities joined together through electric cooperatives to bring electricity to their homes and businesses. Today, rural electric co-ops may have the power to bring Internet access to these same communities.

A recent Broadband Communities Magazine article highlights this potential for rural electric co-ops. In the article, Dr. Robert Yadon and D. Bracken Ross of the Digital Policy Institute at Ball State University explain the results of their recent study. 

Electric Co-Ops as Regional Networks

Yadon and Bracken looked into 30 private sector Fiber-to-the-Home (FTTH) providers in Indiana and 16 rural electric co-ops providing Internet service around the nation. After predicting engineering costs, the researchers highlighted a dozen Indiana rural electric co-ops that could serve as regional hubs of connectivity.

The researchers developed a specific process for rural electric co-ops interested in providing Internet access. In summary, they propose:

“For REMCs [Rural Electric Membership Cooperatives], the process begins with a commitment to a middle-mile, smart grid fiber deployment connecting their substations, followed by a phased-approach business model with strategic growth focusing on last-mile customer density. Exploring local business partnership underwriting opportunities, examining the use of an efficient regional network design and combining multiple federal funding programs are the keys to rural broadband deployment success down the road.”

We don’t necessarily agree with these proposals. Our Christopher Mitchell has written many times about how middle mile cannot solve the last mile problems. The incremental approach based on customer density can repeat some of the same problems we’ve seen with cable and telephone companies - skipping over the most rural and smallest localities. Relying on federal funds is not always necessary. In fact, the researchers point to the success of a co-op that continued on after being denied a federal grant.

Pioneering Electric Co-Ops are Models

When communities decide to proceed with publicly owned infrastructure, they often aim for open access models. Open access allows more than one service provider to offer services via the same infrastructure. The desire is to increase competition, which will lower prices, improve services, and encourage innovation.

It seems straight forward, but open access can be more complex than one might expect. In addition to varying models, there are special challenges and financing considerations that communities need to consider.

In order to centralize our information on open access, we’ve created the new Open Access Networks resource page. We’ve gathered together some of our best reference material, including links to previous MuniNetworks.org stories, articles from other resources, relevant Community Broadband Bits podcast episodes, case studies, helpful illustrations, and more.

We cover: 

• Open Access Arrangements
• Financing Open Access Networks
• Challenges for Open Access Networks
• U.S. Open Access Networks
• Planned Open Access Networks

Check it out and share the link. Bookmark it!