A recent case study from the Community Broadband Networks initiative at the Institute for Local Self-Reliance (ILSR) finds that rural North Dakotans are more likely to have access to fiber connectivity and gigabit-speed Internet than those living in urban areas. This may surprise many of us city dwellers, who are often stuck with large monopoly providers and their expensive, unreliable Internet access.

The case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota, highlights the efforts of 15 local companies and telephone cooperatives who came together to invest in rural North Dakota and build gigabit fiber networks across the state. Their success is traced back to the companies' acquisition of 68 rural telephone exchanges from monpoloy provider US West (now CenturyLink) in the 1990s. The local providers then leveraged federal funds to connect rural residents and businesses with some of the most extensive and future-proof fiber networks in the country.

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Download the case study, How Local Providers Built the Nation’s Best Internet Access in Rural North Dakota [pdf].

The case study features several maps and graphs that demonstrate North Dakota's widespread, high-quality connectivity, including this map of fiber coverage in the state.

Some key lessons from the case study:

There’s a belief out there that households don’t really want or need more than a basic broadband connection, much less gigabit connectivity. This mistaken impression especially affects rural areas, where observers point out that a resident may have more fingers on their hand than Megabits per second (Mbps) on their current Internet connection, so surely they’ll be satisfied with a bump up to broadband speeds of 25 or 50 Mbps.

However, in our experience at MuniNetworks.org, demand for high-speed connectivity is actually quite robust in rural areas where the infrastructure exists. We’ve heard from rural cooperatives that many of their fiber network subscribers opt for higher speed tiers and that gigabit take rates near 30 percent in some instances. This suggests rural areas are much more likely than more urban areas to opt for tiers above the lowest cost option.

Even if the majority of rural subscribers don’t need the very highest broadband speeds, it’s important to note that the demand is there and will certainly continue to grow. As federal and state governments invest in rural broadband deployment, they must ensure that the networks they’re subsidizing can meet current and future needs.

Co-ops Feed Need for Speed

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In the spring of 2019, Houston, Missouri, sent out a call to citizens to share their thoughts on whether or not they'd like to subscribe to Internet access from a municipal network. Less than a year later, the city of around 2,000 people has forged ahead and has hired an engineering firm to begin work on their multi-phase fiber optic project.

Phase One is a Go

Economic Development Director in Houston Rob Harrington says that the city hopes to have the first phase — an eighteen-mile fiber ring that connects city facilities — completed and functional by the end of the summer.

Houston owns and operates a municipal electric utility, which is a big plus for communities interested in better connectivity through publicly owned fiber optic network infrastructure. The Houston Herald reports that the city’s electric utility has brought in additional revenue that, over the last fifty years, has contributed to public improvements in Houston. Houston is the seat of mostly rural Texas County, located in south-central Missouri; the community is about 3.7 square miles.

Another factor in Houston's favor: the city owns the utility poles, which will reduce make-ready time and reduce final cost. A feasibility study, which reported a favorable situation in Houston for a publicly owned Fiber-to-the-Home (FTTH) system, suggested all but about three miles of the first phase of the infrastructure could be deployed on poles. Sewer lift stations, water towers, and other city facilities will connect, which will allow Houston to reduce telecommunications costs. The city will use reserves to fund the first phase of the project.

Residents and businesses in Windsor, Massachusetts, are on the cusp of high-quality Internet access delivered on their publicly owned fiber optic infrastructure. After years of coping with slow, unreliable connectivity, this spring will herald in Fiber-to-the-Home (FTTH) Internet access in the town of fewer than 900 people.

It's Almost Here

About a year ago, we reported on the community's project. They received grants from the FCC and from the state toward the $2.3 million fiber optic network. Like several other communities in western Massachusetts, including Plainfield, Alford, and Otis, Windsor will own the infrastructure while Westfield Gas+Electric (WG+E) provides Internet access via the network through its WhipCity Fiber. WiredWest, the regional collaboration of towns which began as a cooperative network but evolved in recent years to be an ISP and network operator, will manage operation of the network for Windsor.

While grants have helped to drastically reduce the cost of deployment to Windsor, the community will still need to contribute to cover the remaining costs. The Berkshire Eagle reports:

Today, a key financial question for the Windsor project concerns the cost of getting service from the network to homes, the final link known as a "drop." With help from an additional state grant and the town's own resources — $300,000 tapped from a stabilization fund — the first $2,000 in the cost of a drop will be covered.

[Select Board Member and Municipal Light Plant Manager Doug] McNally expects that 85 percent of Windsor subscribers will not have to pay personally to have drops reach their homes. Gov. Charlie Baker approved reimbursing Windsor $750 for each drop, lessening the expense for the town and its new network's customers.

Paul Bunyan Communication’s fiber network, GigaZone, continues to expand in Minnesota and is now offering gigabit connectivity in the Big Falls area. The cooperative is one of an increasing number of co-ops, both telephone and electric, that are picking up the slack in rural areas where large, corporate Internet access companies don't find the case for investing in communities that are not densely populated.

The cooperative has a history of expansion thanks in part due to their own contributions and grants like the Minnesota Border-to-Border grant. They also have offered to upgrade every school within its service area to gigabit Internet speeds with no extra charge and the presence of high-quality Internet access from Paul Bunyan Communications has contributed to economic development in the region. 

Members who are already subscribers but not yet signed up for gigabit service can choose to upgrade and can add more options:

GigaZone service options include unprecedented Broadband Internet speeds of up to 1000 Mbps – a Gigabit. Members who subscribe to GigaZone Broadband can also add PBTV Fusion and/or low cost unlimited long distance service. All current service options also remain available to cooperative members within the GigaZone.

Current routers may not be able to support the capacity increase and to help, the cooperative is offering their own Wi-Fi router to subscribers. The router is free to all new GigaZeone customers for the first six months, with a minimal charge thereafter.

Check out the GigaZone availability map to see where the service is available and where the co-op plans to deploy in the future.

The city of Fairlawn, Ohio, has less than 8,000 residents, but daytime population swells to around 40,000 because the Akron suburb is a hotspot for commerce. When city leaders decided to develop the FairlawnGig broadband utility in 2015, they knew that it was necessary to retain businesses and they were right - the fiber optic infrastructure is spurring economic benefits. People who live in and around Fairlawn, however, are also reaping the rewards. In a video released by Corning about the city's investment, we learn more about both business and residential subscribers who make the most of the city's broadband utility.

Success in the Numbers

In addition to increased home resale values of 8.7 percent the first year and 8.2 percent in year two, 257 new jobs have come to the community within the FairlawnGig footprint. There are 15 new businesses in the community, in part because commercial subscribers can sign up for 10 gigabit per second connectivity. For Enterprise subscribers, 100 gigabit service is available. There are factors that contribute to the boon, of course, but before the municipal network utility, potential businesses cited Fairlawn's poor Internet access as a reason for locating elsewhere.

Subscribers in the community pay around 7.5 cents per Megabit per second (Mbps); in the past they paid around $4.23 per Mbps from the incumbent. Residential subscribers can sign up for service that they describe as "half the cost and twice the speed" and can get Internet access of up to a gig.

Testament

In this video, you'll see resident and City Council person Barb Potts describe how her children and grandchildren have tested the limits of the gigabit service, which comes through with flying colors. 

Several residents that also run businesses in Fairlawn, praise the city's foresight in making the investment. They appreciate local leadership's efforts to improve economic opportunities and develop a utility that provides an affordable and reliable critical service such as Internet access. By implementing a project that brings a much-needed improvement to the region, city leaders have boosted their credibility along with local connectivity.