During this legislative session, state lawmakers in several states passed bills that allocated funds to broadband deployment and planning programs. In many states, elected officials are listening to constituents and experts who tell them that they need fast, affordable, reliable connectivity to keep their communities from dwindling. States that refuse funding to public entities, however, block out some of the best opportunities to connect people and businesses in rural areas. In places such as Michigan, Tennessee, and Virginia, states need to trust their own people to develop necessary broadband networks.

The Great Lakes State: Not Great at Supporting Local Broadband

Michigan’s HB 5670 caught the attention of community broadband advocates when it was introduced by Representative Michele Hoitenga in 2018. The bill was firmly anti-municipal network and after some investigation, it became clear that Hoitenga received guidance from lobbyists from big cable and telephone monopolies. HB 5670, with its sad definition of “broadband” and attempt to fork over state funds to big national ISPs didn’t go anywhere alone after word spread.

Folks from the Michigan Broadband Cooperative (MBC) and other constituents in rural Michigan voiced their concern and the bill seemed to disappear. In reality, the House folded the language into SB 601, a large appropriations bill, which has now become law. Section 806 lists the types of entities that are eligible to receive grants from the $20 million set aside for infrastructure -- public entities are specifically eliminated.

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Last August, Pineland Telephone and Jefferson Energy Cooperatives in Georgia began developing a project together to bring fiber connectivity to businesses in the small towns of Louisville (pop. 2,200) and Wrens (pop. 2,000). This February, the partners finished construction and celebrated with a ribbon cutting ceremony. The event marked marked another instance in which cooperatives are working together to improve connectivity in rural areas.

The project began in Louisville last summer when the cooperatives realized they could team up to reduce costs and improve Internet access for businesses in Jefferson County. In a July 2018 press release, Pineland Telephone commented:

“Rural America lacking the broadband service needed to compete globally is on everyone’s radar, with Georgia and national legislation being considered so that improvements can be developed. Instead of waiting on funding and policies that may not come, cooperatives working together determined a way to make advancements in the communities in which they serve.”

Pineland’s Dustin Durden told the Augusta Chronicle that both cooperatives deployed fiber simultaneously. Jefferson Energy worked on construction between Bartow and the Louisville area, which were then connected to Wrens, while Pineland began with fiber within the town of Louisville and then worked within Wrens. Working together, they were able to finish the project in about 18 months.

As Durden explains in this Facebook video, Pineland, Jefferson, and the city of Louisville are using the infrastructure to make free Wi-Fi available in the community’s downtown park:

Fiber for Electric Efficiencies and Expansion

Jefferson Energy sees several uses for the new infrastructure:

Great Lakes Energy (GLE) is considering expanding their Truestream fiber Internet access and voice service to more rural areas in the northwestern region of Michigan’s lower peninsula. In a recent news release, the electric cooperative announced that they began sending engineers to their Boyne service area to collect necessary information for analysis as they explore possible deployment in the area.

Growing One of the Largest

Last summer, we reported on the co-op's pilot project in the Petosky service area and their long-term plans to bring gigabit Fiber-to-the-Home (FTTH) connectivity to their 125,000 members. The cooperative decided to begin with residential service and potentially expand to business subscriber offerings in the future.

Subscribers from the pilot area have reported positive feedback. Brian Bates, who is also the owner of Bear Creek Organic Farm in Petosky, posted speed test results on the Truestream FB page and commented:

“Truestream is more than 400 times faster than speeds we were able to get with our previous Internet provider. And for 75% less money with no contract and unlimited everything!”

By January, approximately 9,000 potential subscribers had registered interest via the Truestream website.

Better Broadband Coming to Boyne

Boyne City is located directly south of the city of Petosky and the GLE Boyne service area includes parts of five counties in the surrounding region. GLE will conduct a second field study this fall if results of the first study are favorable.

“If the findings are positive,” said [Lacey Matthews of GLE Communications and Communications], “Great Lakes Energy may budget for expansion of the fiber network in 2020, pending approval by the Great Lakes Energy Board of Directors in late 2019.”

Innovation today requires a high-speed Internet connection, and in rural areas, that often means a fiber optic network owned by a local government, a cooperative, or a local business. It’s no surprise then that when the Rural Innovation Initiative was looking for rural communities with good connectivity and an interest in innovation-based economic development, it turned to cities served by locally owned broadband networks. Out of the nine communities initially selected to participate in the Rural Innovation Initiative, more than half have a local Internet access provider instead of a national ISP.

Initiative Bridges Rural Opportunity Gap

The Rural Innovation Initiative is a new program created by the Center on Rural Innovation (CORI) and Rural Innovation Strategies, Inc. (RISI), with funding and support from the U.S. Economic Development Administration (EDA). Launched at the end of last year, the initiative works to “bridge the opportunity gap in rural America by helping communities build the capacity to create resilient, innovation-based jobs.”

For the first part of 2019, CORI and RISI selected nine cities and community partners to take part in what they describe as a “fast-paced technical assistance sprint,” which will help participants develop innovation hubs as an economic development strategy. The initiative will also prepare communities to apply for federal funding opportunities, such as EDA’s Regional Innovation Strategies program. More than 100 rural communities from 40 states applied for the program, which is free for participants. Selection criteria included location in a census-designated rural county, access to New Market Tax Credits and Opportunity Zones, partnerships with higher education and local nonprofits, and existing high-speed broadband networks — Fiber-to-the-Home (FTTH) in particular.

CORI and RISI, in partnership with EDA, will offer further technical assistance to communities through the Rural Innovation Initiative after this initial project complete. To learn more, watch a webinar about the program from December 2018.

Volunteer Energy Cooperative (VEC) and Twin Lakes Telephone Cooperative began collaborating in the fall of 2017 to bring high-quality connectivity to folks in Bradley County, Tennessee. Based on the results of a successful pilot project, the cooperatives have expanded gigabit connectivity to more areas. With a recent grant award, the partners will continue to offer the service to more rural Tennessee residents and businesses.

Catching Up on the News

When we last reported on VEC and Twin Lakes, they had announced that they would be launching the pilot in Bradley County. Residents and businesses in Bradley County have long felt slighted by the state’s restrictive laws that prevent Chattanooga’s EPB Fiber from expanding into their county. Over the years, Bradley County and Chattanooga officials have searched for ways to serve Bradley County, but the state’s insistence on protecting large incumbent monopolies by preventing expansion have left Bradley County folks without fast, affordable, reliable connectivity.

VEC and Twin Lakes commenced the pilot in the Camelot subdivision of the Bigsby Creek Road area of Bradley County. In a February 2018 blog post describing the first customer’s experience, subscriber Mrs. Charles Hollifield said, “We had no problem with the installers. They were on time and friendly. We chose the 25 Mbps because we do not download much but it works well. We haven’t had it quit once since we got it.” 

Since then, the initial pilot area passed 120 homes in the first pilot area. Later in the summer of 2018, VEC passed 545 more residences in two additional communities. Last fall, VEC received $1 million from the Appalachian Regional Commission (ARC) to apply toward expanding fiber to approximately 730 premises in in Meigs and Hamilton Counties.

State Assists With Deployment

In an effort to find ways to connect some of the state’s most disconnected communities, RiverStreet Networks and North Carolina’s Electric Cooperatives recently announced that they will work together for a series of pilot projects across the state. The initiative has the potential to discover new options for high-quality Internet access for residents and businesses in areas that have been left behind by national Internet service providers.

Going All Out 

North Carolina’s RiverStreet Networks is bent on bringing high-quality connectivity to people living and working in rural North Carolina. After expanding their physical infrastructure through deployment, the communications cooperative started to acquire other fiber networks in various areas across the state. Most recently, RiverStreet merged with TriCounty Telephone Membership Corporation. 

For RiverStreet, branching out among areas of the state were there is no high-speed Internet access is an opportunity to tap into an underserved market, not only an underserved population. It’s become obvious in recent years that rural communities want high-quality Internet access at least as fervently as in densely populated areas where big corporate ISP already have a monopoly. After upgrading their own members, RiverStreet was looking for growth; partnering with electric cooperatives is the next step to reaching more subscribers.

Listen to RiverStreet’s Greg Coltrain and Christopher discuss the merger and RiverStreet's plans to bring broadband to rural North Carolina: