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WiredWest: a Cooperative of Municipalities Forms to Build a Fiber Optic Network

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In 2010, communities in rural western Massachusetts began a group that would evolve into the WiredWest Cooperative. Over the past six years, the group, formed to bring better last-mile connectivity to the unserved and underserved areas of the state, has faced a number of challenges. Most recently, disagreements with the Massachusetts Broadband Institute (MBI), the state agency tasked with distributing funds for last-mile connectivity, have threatened WiredWest's regional cooperative model.

In a new report released by the Berkman Center, authors David Talbot, Waide Warner, and Susan Crawford share the story of these communities' attempt to band together to establish a fiber-optic network.

In WiredWest: a Cooperative of Municipalities Forms to Build A Fiber Optic Network, we learn not only how this region came together, but how they developed their business plan and procured funding, how they anticipate the network to affect affordability, and the ways they have adjusted the plan as circumstances required. The authors also take the time to share some history of cooperatives, and address how the cooperative model - used in the past for electricity and telephone - can benefit the communities in rural western Massachusetts.

Key Findings from the report:

A New Cooperative Model for Fiber to the Farm - Community Broadband Bits Podcast Episode 198

When we launched this podcast in 2012, we kicked it off with an interview from Minnesota's farm country, Sibley County. We were excited at their passion for making sure every farm was connected with high quality Internet access. After the project took a turn and became a brand new cooperative, we interviewed them again in 2014 for episode 99, but they hadn't finished financing. They broke ground 2015 and today we discuss the model and the new Institute for Local Self-Reliance (ILSR) case study that details how they built it. City of Winthrop Economic Development Authority Director Mark Erickson and Renville-area farmer Jake Rieke are both on the board of RS Fiber Cooperative and they join us to explain how their model works. 

We at ILSR believe this model could work in much of rural America, in any community that can summon a fraction of the passion of the citizens from Sibley and Renville counties. Having watched this project for all the years it was being developed, I cannot express how impressed I am with their dedication. And because they own it, I'm thrilled to know that no one can take it away from them. 

This show is 35 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

RS Fiber: Fertile Fields for New Rural Internet Cooperative

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A new trend is emerging in rural communities throughout the United States: Fiber-to-the-Farm. Tired of waiting for high-quality Internet access from big companies, farmers are building it themselves. 

Communities in and around Minnesota’s rural Sibley County are going from worst to best after building a wireless and fiber-optic cooperative. While federal programs throw billions of dollars to deliver last year’s Internet speeds, local programs are building the network of the future. 

In “RS Fiber: Fertile Fields for New Rural Internet Cooperative,” the Institute for Local Self-Reliance (ILSR) and Next Century Cities documents a groundbreaking new model that’s sprung up in South Central Minnesota that can be replicated all over the nation, in the thousands of cities and counties that have been refused service by big cable and telecom corporations.  

Tired of Waiting: Farmers Build Their Own Fiber-Optic Co-op

21st century farms require 21st century connectivity. Denied access by telephone and cable companies, they created a new model. 

In the report you’ll meet: 

  • Mark Erickson, of the city of Winthrop. Erickson is the local champion that has breathed life into RS Fiber. Without the project, the city of Gaylord would have not attracted the forthcoming medical school. “We have that opportunity because of the Fiber-to-the-Home network. Without it, no medical school.”
  • Linda Kramer, of Renville County. Kramer’s family farm relies on the Internet to upload soybean and wheat reports to business partners. DSL connections are simply not fast enough to handle the massive amount of data agricultural businesses need in order to stay competitive with the Farming Industrial Complex that is the reality of the 21st Century. 
  • Jacob Rieke, a 5th generation family farmer. Rieke’s motivation for backing the project was his pre-school aged daughters. Not wanting to put them at a disadvantage to their peers in other cities, he considered moving to a different location in order to have access to Internet.

From the technologies to the financing, rural communities can solve their problems with local investments. 

Alaska Co-Op Upgrading to Fiber

It isn't very often we have the chance to share stories from the "Last Frontier," but a cooperative in the Valdez area is making news with a planned upgrade to fiber this summer.

DSL to Fiber

According to the Valdez Star, Copper Valley Telecom (CVT) subscribers will be enjoying a switch from old copper DSL Internet access to Fiber-to-the-Home (FTTH) when CVT upgrades its system. The new technology will also improve telephone service.

"Once complete, all voice and data will be delivered to the home over fiber optic line and the new electronic interface," CVT said. "Modems will also be replaced."

"There is no cost to the customer for the fiber installation," [CEO Dave] Dengel stated. "Customers will not be asked to pay for the new fiber or the electronics required for voice and Internet access."

Increasing Role of Co-Ops

CVT has served co-op members for more than 50 years with telephone service in the Valdez area and also serves the Copper River Valley and Cordova. Co-ops are bringing high-quality Internet access to rural areas across the U.S. and we expect to see more upgrades as existing co-ops switch to fiber. Co-ops know that their future depends on the future of their members because they are members, too.

As CVT Chief Executive Officer, Dave Dengel, put it, "By upgrading our network from copper to fiber, Copper Valley Telecom is preparing the community for the future."

Sun Prairie Utilities' Pilot Project Shows Way to Better Connectivity

Welcome back to Sun Prairie, Wisconsin. This town has brought to light the shocking stories of slack service from incumbent providers, the complicated decisions of community representatives, and the hopeful beginning of a fiber-to-the-home (FTTH) network

The City Council has just approved $16,000 to hire an engineering consultant for the estimated $27-35 million citywide plan. 

In the Pilot Project, So Much Demand!

In July 2015, City Council approved the $624,000 plan for the pilot project, but several factors brought the actual cost up to about $653,000. The pilot project area included the neighborhood Smith's Crossing, the Main Street Corridor, and the TIF District 9 area. 

Sun Prairie Utilities first slated the project for completion in early December, but that underwent several delays. For instance, an over-booked contractor started on the project a month later than expected. Meanwhile, rocky soil conditions and high-demand slowed the pace of construction while raising costs. The Sun Prairie Utilities Manager Rick Wicklund will present the final costs for the pilot project this month. 

The original budget had assumed a 30 percent take-rate that would see a positive cash flow in three years. In actuality, 54 percent of households in the pilot project area are requesting the services.

Forty-three percent have requested the 100 Megabits per second (Mbps) for $49.98 each month while 11 percent want the higher-speed service of 250 Mbps for $69.98 each month. The capital expenditure of these unexpected last mile connections brought the cost up, but the extra revenue from these connections will certainly help offset those costs. 

Pilot Project Teaches Lessons

Local Media Covers The MN "Donut Hole" Phenomenon: Video, Editorial

As Minnesota's Legislature decides on funding for the state's Border-to-Border Broadband Development Grant Program, local media is calling on state leaders to prioritize local connectivity in the Capitol Chambers. This year, Governor Dayton's office is recommending allocating $100 million to the program.

Blended Is Better

In the past, the Border-to-Border Broadband Development Grant Program has granted funding to areas of only the greatest need, which has resulted in Internet infrastructure deployment in very rural areas. That's great for municipalities, businesses, and residents in those areas who certainly need and deserve better connectivity. Towns where there is some coverage, such as old DSL networks, have typically not qualified. As a result, rural areas of the state are developing "donut holes" of inadequate connectivity. In the long term, this could spell disaster for these towns because businesses have no reason to locate in places where they can't get the Internet access they need for operations. A blended approach will allow investment in both unserved areas and areas where some networks already exist so centers of economic activity can still compete with their neighbors.

Chris provides more information on the blended approach, and on one possible solution for rural communities, in this nicely produced video created by Capitol Almanac:

Sweet Sixteen: Waverly Utilities Hooks Up First Fiber Customers

This week in Waverly, Iowa, the local electric utility, Waverly Utilities, hooked up the first customers for its new Fiber-to-the-Home (FTTH) network. It’s been a long time coming for the town of 10,000 people. 

16 Years Ago: A Vision

The community first had the idea back in 2000 when they voted to form a municipal telecommunications utility after incumbent providers proved a letdown.  Reacting to the vote, those incumbent providers improved their networks a bit, so Waverly Utilities decided to hold off on building a fiber network. 

In 2013, residents and businesses found that the incumbent providers were again not providing necessary connectivity. Taking matters into their own hands, they pushed to create a new, publicly owned network. By 2015, the community had secured revenue bonds for the $12 million project.

Today: A Reality

Waverly Utilities already has 1,100 customers signed up to receive the service, and more homes and businesses will be connected over the next three months. By July 1st, Waverly Utilities’ network will be fully operational, delivering the next-generation connectivity that residents have long been waiting for.

For more about Waverly's project, take a few minutes to listen to Chris interview Mike Litterer, who was serving as Interim General Manager of Waverly Light and Power in 2013. He talked with Chris during Episode #53 of the Community Broadband Bits podcast.

More Colorado Communities Shut Out State Barriers At The Voting Booth

Once again, local communities in Colorado chose to shout out to leaders at the Capitol and tell them, "We reclaim local telecommunications authority!"

Nine more towns in the Centennial State voted on Tuesday to opt out of 2005's SB 152. Here are the unofficial results from local communities that can't be any more direct at telling state leaders to let them chart their own connectivity destiny:

Akron, population 1,700 and located in the center of the state, passed its ballot measure with 92 percent of votes cast supporting the opt-out.

Buena Vista, also near Colorado's heartland, chose to approve to reclaim local authority when 77 percent of those casting votes chose to opt out. There are approximately 2,600 people in the town located at the foot of the Collegiate Peaks in the Rockies. Here is Buena Vista's sample ballot.

The town of Fruita, home to approximately 12,600 people, approved the measure to reclaim local authority with 86 percent of votes cast. Now, when they celebrate the Mike the Headless Chicken Festival, the Fruitans will have even more to cheer.

Orchard City, another western community, approved their ballot measure when 84 percent of voters deciding the issue chose to opt out. There are approximately 3,100 people here and a local cooperative, the Delta-Montrose Electric Association (DMEA) has started Phase I of  its Fiber-to-the-Home (FTTH) network in the region. According to an August article in the Delta County Independent, Delta County Economic Development (DCED) has encouraged local towns, including Orchard City, to ask voters to opt out of SB 152. With the restriction removed, local towns can now collaborate with providers like DMEA.

It Takes a Village: Yellow Springs, Ohio Grassroots Group Wants Fiber

In the Village of Yellow Springs, Ohio, Springs-Net has created quite a stir among the 3,500 people. This grassroots group of villagers is advocating for a municipal network. Last year, they hosted a community Fiber Forum featuring our own Chris Mitchell. Now, they’re continuing the push for better home Internet access.

Springs-Net released a white paper on a possible municipal fiber network, bringing the results to the Village Council on February 16th. Although cautious of leaping into a large project, the Village Council recognized the benefits a network could have for the town and agreed to meet with the group in April to discuss next steps to improving connectivity.

Working From Home? Yellow Springs Says "Yes"

At the February 16th Village Council meeting, Scott Fife represented Springs-Net to provide an overview of the findings in the white paper. A retired Director of Information Technology at Centerville City Schools, Fife concentrated on information most relevant to the needs of the Yellow Springs community. 

According to Fife, over the last 15 years, the local business community has grown to include over 195 home-based businesses, an increase of 35%. In addition, the number of home-based engineering or scientific workers has increased 69% during the same period. Fiber connectivity could boost these existing businesses while attracting new ventures to the Village. 

Mancos Voters The Latest To Decide Local Authority In Colorado

Mancos, a rural community of about 1,300 in rural southwest Colorado, hopes to join over 50 other communities across the state that have reclaimed local telecommunications authority. On April 5th, the town will decide whether to exempt itself from SB 152, Colorado's 2005 state law that removed local choice from municipalities and local governments.

Located at the base of the Mesa Verde National Park, Mancos is best known for outdoor recreation and as the gateway to the park, home to the historic Mesa Verde Cliff Dwellings. Rangeland and mountains surround the community.

The Pine River Times Journal reports that Mancos is looking to utilize 3,300 feet of fiber optic assets already in place. The fiber now connects municipal facilities but community leaders want to have the option to use the network for businesses, residents, or to provide Wi-Fi to visitors. SB 152 precludes Mancos from using their publicly owned fiber for any of those purposes without first opting out.

On March 9th, the Town Board of Trustees approved a resolution encouraging voters to pass the ballot initiative that will reclaim local authority. They have information about the ballot question and what it will mean for the community on their website.

“It’s an anti-competition bill [SB 152],” [Mancos Town Administrator Andrea Phillips] said. “[Exempting out] gives us a lot more leeway.”

Mancos has no specific plans to develop a municipal fiber network but, like many other communities that opted out last November, they want the ability to do so or to work with a private sector partner. Nearby Dolores is collaborating with Montezuma County; the two have contracted jointly for a feasibility study. 

According a March 16th Pine River Times Journal article, Dolores and Montezuma County will put the issue to voters in November. Jim McClain, IT Manager for the county said: