This is the transcript for episode 268 of the Community Broadband Bits Podcast. Jon Chambers of Conexon once again joins the show. This time Jon dives into the details of the Connect America Fund program and discusses the upcoming Connect America Fund auction. Listen to this episode here.

Jon Chambers: Rural Americans, have the same aspirations, the same needs, the same uses of the Internet as everyone else. It shouldn't surprise anyone when I say, rural Arkansans, rural Missourians subscribe to gigabit services too. It does surprise people. It surprises people at the FCC, it surprises policy makers. Doesn't surprise people who live and work and spend their lives in rural America.

Lisa Gonzalez: This is episode 268 of The Community Broadband Bits Podcast from The Institute For Local Self-Reliance, I'm Lisa Gonzalez. As the question of how best to bring high quality Internet access to rural America becomes more pressing, rural cooperatives are rapidly taking a leading role. This week's guest, Jon Chambers, works with electric cooperatives that decide they want to offer high speed connectivity. Jon spent time working for the FCC and has a special understanding of how the agency approaches review and funding for telecommunications. In this conversation, he and Christopher talk about the Connect America Fund. Learn more about Jon's firm, visit their website at conexon.us. Now, here's Christopher and Jon Chambers from Conexon.

Christopher Mitchell: Welcome to another edition of The Community Broadband Bits Podcast. I'm Chris Mitchell at The Institute For Local Self-Reliance. Today, I'm once again with Jon Chambers, a partner at Conexon. Welcome back to the show Jon.

Jon Chambers: Thank you Chris. Thanks for inviting me.

Christopher Mitchell: You've been on the show multiple times recently, talking about how rural electric cooperatives can basically solve this problem for all of rural America. Do you want to briefly remind us what Conexon is?

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.”

Electric cooperatives have the potential to build next-generation networks to provide high-speed Internet service, and they are stepping up to the plate. In episode 26 of the Building Local Power podcast from the Institute for Local Self-Reliance (ILSR), Nick Stumo-Langer sits down with Christopher Mitchell and Hannah Trostle to discuss how electric cooperatives are improving Internet access in rural communities. 

From Washington to Missouri, many rural folks already have high-speed Internet service through cooperatives. Hannah describes how the cooperatives did that, and then Christopher dives into some of the barriers to local investment. Check out a summary of their research on the resource page Cooperatives Build Community Networks -updated monthly. 

This conversation also builds on Building Local Power podcast episode 12 with Karlee Wienmann. Hannah and Karlee discuss how cooperatives work on both Internet access and renewable energy. That episode is available at ILSR.org along with all the other Building Local Power podcast episodes.

Listen to Nick, Hannah, and Christopher in episode 26, Connecting Rural America: Internet Access for All.  

Just south of Mount San Jacinto in southern California, several small communities hope for better Internet access. The local cooperative has submitted a plan to build a next generation network fiber network further into Riverside County.

Anza Electric Cooperative wants to expand its Fiber-to-the-Home (FTTH) network through another 200 square miles of its service territory. This $3.7 million project should connect another 1,200 residents to the growing network.

New Project Proposed by Anza Electric

Currently, Anza Electric is drumming up funding for the proposed project. The co-op already has about $1.5 million to put toward the venture and is now requesting a $2.2 million grant from the state.

This network, called Connect Anza, will bring high-speed Internet service to several small, rural communities in Riverside County: Pinyon Pines, Garner Valley, and Mountain Center. High-speed Internet service of 50 Megabits per second (Mbps) will be $49 per month; service is symmetrical so upload and download speeds are the same. Residents will also be able to get phone service from the co-op for another $20 per month. Local fire stations and the Ronald McDonald camp for children with cancer will receive free Internet access through this project. 

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Anza Electric Built a Network

The deployment continues Anza Electric’s previous project to connect more than 3,000 underserved households around Anza, California. The previous project was pushed forward by the overwhelming support of the electric cooperative’s member-owners, residents who receive electric service from the co-op.

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.

Throughout the country, telephone and electric cooperatives have found ways to bring affordable, high-speed Internet service to rural residents. This resource page is a one-stop shop for facts and figures on cooperatives and thier role in offering high-speed Internet service. 

From Alabama to Oregon, cooperatives have taken on the challenge of bringing fast, affordable, reliable, connectivity to rural America. This page highlights model projects and discusses what state governments can do to support cooperatives' efforts to connect rural America.

We feature electric cooperative fiber optic projects, cooperatives offering gigabit (1,000 Mbps) service, and the first Internet cooperative - RS Fiber in Minnesota. As of July 2017, almost 90 cooperatives offer gigabit service to their members, and more than 50 electric cooperatives have programs or projects to improve connectivity.

Check out all the information, including several of our podcasts and videos, on our cooperatives resource page.

Suggestions, comments, or questions? Drop H. Trostle an email at htrostle@ilsr.org.

Image of the barn courtesy of backituptech on pixaby.

Huntsville, Alabama, already has high-speed Internet service through Google Fiber, but the surrounding rural areas must look to their local cooperative for better connectivity. Tombigbee Electric Cooperative has started an ambitious Fiber-to-the-Home (FTTH) project to eventually cover its entire service area over four counties in northwestern Alabama.

In a press release, Tombigbee Electric announced that their Freedom FIBER network will start providing Internet service in the towns of Hamilton and Winfield in September 2017. It’ll take about a year to get the new network to everyone in the designated build out area.

Much Needed Connectivity

Hamilton is the seat of Marion county with about 7,000 residents; 20 miles to the south, Winfield has a population of 5,000. As of June 2016, about 75 percent of the population in Marion County does not currently have access to FCC-defined 25 Megabits-per-second (Mbps) download speeds.

With Freedom FIBER, residents will have a choice between two tiers of Internet service: 100 Mbps for $49.95 per month or 1 gigabit (1,000 Mbps) for $79.95 per month. The co-op will also offer phone service for an additional $29.95 each month. The fiber network will be much more reliable than CenturyLink’s DSL network, which is currently the only choice in the towns.

An Incremental Plan

On the border of Tennessee and Kentucky, an electric cooperative looks to a more connected future. The Tri-County Electric Cooperative that operates across state lines is preparing to build a state-of-the-art network for high-speed Internet service throughout Trousdale County, Tennessee. This will be the first year of construction for the cooperative after several years of planning.

Tri-County Electric plans to soon begin services to Trousdale County, the smallest county in Tennessee. Many of the county's 8,000 residents' choice is limited to Comcast and AT&T, and Tri-County Electric's Vice-President and General Manager Paul Thompson noted that people in the county often only subscribe to about 6 Mbps download and 1 Mbps upload. With a steady membership base of 50,000 spread across two states and a close relationship with the county, the electric co-op is in a good position to move forward with the Fiber-to-the-Home (FTTH) project. The cooperative intends to offer an affordable base package that provides faster, more reliable connectivity than what the incumbents are willing to offer the rural communities.

Funding From The Feds

Since 2014, Tri-County Electric Cooperative has actively pursued financing for a FTTH network in the county. The co-op applied for a grant through the Rural Broadband Experiments program managed by the Federal Communications Commission. They did not receive any funding, but the process resulted in a tangible plan.

The process of applying for the grant built up community support for the project and enabled the co-op to identify key assets. As part of the grant application, they noted which census blocks they expected to connect and what community anchor institutions, such as schools, libraries, and government buildings, could be included. The Trousdale County government even passed a resolution giving explicit permission for Tri-County Electric to build and operate a FTTH network.