When Vermont passed legislation to establish "communications union districts" in 2015, funding options expanded for regional community network ECFiber. Since then, other states trying to expand access to broadband in rural areas have looked at the success of ECFiber as a possible model. Now, New Hampshire is considering establishing a similar option as a way for local communities to improve local connectivity.

Waiting for Session

Democratic State Senator Jeanne Dietsch from Peterborough has drafted legislation she intends to introduce in the 2020 session. The bill will allow communities to establish "communications districts" to develop broadband infrastructure, similar to the way they band together in order to create sewer districts for necessary infrastructure. The entities are able to finance projects by applying for grants, loans, issuing bonds, and charging user fees, but are not able to tax.

In a recent GovTech article, Dietsch said:

“We modeled it on New Hampshire sewer districts just because that is language that’s already familiar to our legislators, and it’ll be much easier for them to pass it that way than to try to make it look like Vermont.”

The lawmaker was reflecting on difficulties the legislature had passing Senate Bill 103, which allows municipalities to work together for "multi-town bonding projects." Special interest lobbyists, whose job it is to maintain ISP monopolies, leveled their efforts at the bill when it appeared fearing the competition it might bring. Dietsch wants to avoid a similar fight with the communications district proposal, so has carefully crafted the language of the bill.

If passed, the new authority will allow cities to develop the infrastructure in order to work with private sector partners. ECFiber offers fast, affordable, reliable Internet access directly to the public, rather than providing fiber optic infrastructure for Internet access companies to use.

ECFiber

The U.S. Department of Agriculture (USDA) recently awarded a $2.85 million grant to Forked Deer Electric Cooperative headquartered in Halls, Tennessee, and $9.75 million to Orangeburg County, South Carolina to develop broadband infrastructure. The awardees will use the ReConnect grants to construct or expand existing Fiber-to-the-Home (FTTH) Internet access to thousands of households, critical community facilities, and educational facilities.

A Reconnect Primer

In 2019, Congress allocated $600 million for the ReConnect Program to help expand high-quality Internet access to rural America. Applicants can apply for a 100 percent grant, 100 percent loan, or a grant-loan combination. The ReConnect Program provides funding to allow for-profit companies, rural cooperatives, local governments, and tribes to deploy broadband infrastructure under specific guidelines. The service area for qualified applicants must be rural communities with 90 - 100 percent of the population considered "underserved," defined as Internet access speeds of 10 Megabits per second (Mbps) download and 1 Mbps upload or lower.

As we reported in September, more than half of the applications submitted came from cooperatives and local governments.

Orangeburg County

Under the American Recovery and Reinvestment Act (ARRA), Orangeburg County was awarded federal stimulus funds in 2010 and added around $4 million of their own money for rural broadband projects. Shortly following the stimulus package award, the state legislature enacted a law discouraging simlar local investment. The law requires local governments to charge rates for broadband Internet services similar rates to those of private companies, even if service could be provided at a lower cost. This law effectively limits local broadband authority and discourages communities from developing publicly owned networks.

Despite raking in hundreds of millions in government broadband subsidies, Frontier Communications has failed time and time again to bring reliable, high-speed connectivity to the rural communities it serves. Instead of investing in network upgrades, Frontier has neglected its rural infrastructure to the detriment of its subscribers and the company’s own financials, with its worsening service quality paralleling its plummeting stock value.

Our new fact sheet, Frontier Has Failed Rural America, presents evidence of Frontier’s negligence and suggests that rather than continuing to trust Frontier, government officials should look to publicly owned and community-minded providers to connect rural residents, businesses, and institutions.

Download the Frontier Has Failed Rural America fact sheet [pdf].

Subsidies Can’t Fix Frontier

Federal and state government agencies have given Frontier nearly $2 billion to expand and upgrade its rural broadband networks. The company has received approximately $1.7 billion from the Connect America Fund Phase II federal subsidy program and millions more in grants from states like Minnesota and New York.

Even with the subsidies, Frontier ultimately failed to connect rural communities with high-quality broadband. The company has repeatedly chosen not to upgrade rural networks, leaving subscribers with poor, unreliable service that doesn’t fulfill their basic communications needs.

Frontier’s “Systemic Problems”

Our fact sheet, Frontier Has Failed Rural America, features events from the past five years that demonstrate Frontier’s inability to solve the rural broadband problem, including:

People who live out of urban areas enjoy beautiful scenery, quiet solitude, and fresh air. Traditionally, those qualities have come with sacrifice, which includes high-quality Internet access. Now that rural cooperatives are taking the initiative to develop networks, however, rural areas such as northern Minnesota are better served.

In this short video by the PBS and TPT Almanac team, Kaomi Goetz travels “up north” to visit with folks who live beyond the Twin Cities to see how things are changing and how we still need to make improvements.

It’s been a journey of discovery for the folks in "Villageville," our fictional rural community where Internet access isn't meeting the needs of residents or businesses. In Episode 5 of "From Crops to Co-ops: Small Towns Want Better Internet!", we learn more about the work rural cooperatives are doing for communities across the country.

Grumpy Gary and Entrepreneur Emily have met up in "Sizeable City," a nearby community that decided to invest in a municipal network. It has paid off in the usual ways -- better Internet access, more jobs, lowered telecommunications costs. In addition to enjoying some java and some jokes (we use the term loosely), they meet up with a representative from the electric cooperative to discuss high-quality Internet access options.

During the conversation, we hear more about the ways cooperatives are serving people in rural areas and why it makes sense that they're delivering fiber optic connectivity. Watch for more pop-up facts about municipal networks, cooperatives, and how both are serving rural communities. Listen to the cooperative's pilot project strategy and be sure to watch through to the end to hear about the final outcome in Villageville.

As with other episodes of "From Crops to Co-ops: Small Towns Want Better Internet!", you'll hear past and present voices from the Very Amateur Acting Troupe of the Community Broadband Networks Initiative along with other Institute for Local Self-Reliance talent (again we use the term loosely). We encourage you to share these videos to help spread the word about municipal networks, cooperatives, and the fact that rural communities don't have to be "stuck" with poor Internet access.

If you haven't seen episodes 1 - 4, check them out below, read the backstories, or view them all on our Videos page.

Share the series playlist, where you can see all the episodes from Villageville, U.S.A.

As we reported back in September, the bulk of applicants to the USDA's ReConnect Loan and Grant Program came from publicly owned projects. Cooperatives, local governments, and tribal government projects comprised more than half of the applications. Awards are now being announced and one of the largest awards so far is going to a North Carolina cooperative to provide fast, affordable, reliable connectivity in southeast North Carolina.

ReConnecting Star

Star Telephone Membership Corporation will be awarded a grant of almost $24 million to develop Fiber-to-the-Home (FTTH) service to more than 8,700 households, 10 educational facilities, around 20 businesses, and three community facilities within a 739 square mile area. Subscribers will be able to sign-up for speeds that begin at 100 Megabits per second (Mbps) download.

At a November 6th event at Star Distribution Center in Clinton: 

Jeff Shipp, vice president of operations for Star Communications, said projects will take place in the Herring exchange in the northern region of Sampson County, which also loops around the middle portion of Sampson County. The second is the Six Runs area part of county towards Turkey and the third is Harrells, in the southern region. Other projects are scheduled for Bladen County as well.

“We’re very excited about this,” Shipp said. “We’re excited for our members and for our community. We have the lowest density in the entire state in our area, roughly around 3.8 subscribers per mile. We would have to budget $25,000 per mile to put fiber in the ground. That’s why a grant such as this from USDA is so important. We’re also fortunate enough to receive additional funding from the state this year for an area in Bladen County to assist with fiber as well.”

Star Telephone Membership Corporation

The cooperative was created when two smaller co-ops merged in 1959. Since then, the entity has been serving the rural areas in and around Clinton, North Carolina, and has been one of the early adopters of FTTH for members, many who are farmers.

Minnesota Democratic Senators Amy Klobuchar and Tina Smith, alongside Republican State Representative Pete Stauber recently announced a $1.9 Million grant for broadband deployment in Aitkin County. Two local cooperatives will use the Community Connect grant from the U.S. Department of Agriculture (USDA), to deploy fiber optic infrastructure in order to spur economic development, business, telehealth, and educational improvements.

In a press release, Sen. Klobuchar said, "This crucial funding will connect these communities - bringing high speed Internet to even more Minnesotans. We must continue working to expand broadband access in our rural areas, a necessity for our families and businesses.” Sen. Smith commented, "I’m glad to see USDA investing in Aitkin County—including Mille Lacs Band of Ojibwe—to ensure rural Minnesotans aren’t left behind in our work to provide affordable and reliable service to everyone.”

Co-ops Cooperating

In 2016, Mille Lacs Energy Cooperative (MLEC) received a $1.76 million grant from the Minnesota Border to Border Broadband Program. MLEC partnered with Consolidated Telecommunications Company (CTC) and worked together to successfully create XStream Fiber, a Fiber-to-the-Home network (FTTH). The Border to Border Broadband Program grant allowed the co-ops to deploy XStream Fiber to 800 households, several businesses, and local institutional sites in Aitkin County. 

The Community Connect grant will allow the  partners to expand XStream Fiber to 235 more homes and businesses in Rice River Township, Spaulding Township, and tribal lands in Aitkin County, Minnesota.