As an increasing number of rural cooperatives make the decision to offer high-quality connectivity in their service areas, communities where local telephone and electric cooperatives already provide Fiber-to-the-Home (FTTH) are seeing benefits today. Paul Bunyan Communications, offering broadband in Minnesota’s northwest region, has lured a new employer who will bring at least 150 new jobs to the area.

Nonprofit Building In The North

On March 16th, the nonprofit Delta Dental announced that it has decided to invest in a new operations and technology center in Bemidji, located about four hours and 200 miles north of the Twin Cities. The seat of Beltrami County, Bemidji’s population is around 14,300 and the community is the largest place for commerce between Duluth and Grand Forks, North Dakota. The Bemidji area is also home to three Native American Reservations and rests on the shore of Lake Bemidji. Several national and state parks and forests, along with a recreation area, attract tourists looking to escape the Twin Cities for more natural surroundings.

Paul Bunyan Communications started in Bemidji as the Paul Bunyan Telephone Cooperative when a group of local citizens organized as a cooperative after purchasing a small private telephone system and another municipal telephone system in a nearby town. After expanding over the years and taking the initiative to offer Internet access, cellular service, video, and several other services, the entity has shifted to become Paul Bunyan Communications in 2010.

The cooperative has been expanding the FTTH network ever since as The GigaZone. It’s received grants from the Minnesota Border-to-Border Broadband Program to help fund the expansions. As of December 2017, GigaZone connections reached more than 29,400 premises and covered more than 5,000 square miles in Beltrami County, also entering five additional counties.

For the past seven months, SEMO Electric Cooperative has been working on phase one of construction of a new fiber optic network in southeast Missouri. They recently announced that subscribers are hooked up and taking advantage of Fiber-to-the-Home in rural Scott County and in the towns of Miner, Advance, and Bloomfield.

A Necessity In Society

This is the first of five phases of a $40 million project that the cooperative decided to pursue in 2017. The co-op board saw that providing high-quality Internet access to was filling a demand that incumbents are not meeting, locals want, and assists the community. Homeowners, schools, and local businesses need broadband. Loyd Rice, the administrator of engineering services for SEMO Electric:

“Now we get to build out something that has become a necessity in society. The ability to have a broadband service that is effective now changes the whole quality of life for those folks. It’s definitely a necessity at schools. You can work from home.”

Like other electric cooperatives that have found value in offering broadband service, SEMO has certain advantages in both deployment and operations. Rice noted that they're finding that cost to construct are lower than expected because they’re able to build along existing infrastructure. “And so six seven months into now, we’re probably half to three-fourths the way through our first phase of the actual build,” he told CBS 12 KFVS.

Keeping Locals Updated

As they deploy GoSEMO Fiber, the cooperative provides video updates on its YouTube Channel, the GoSEMO website, and on FaceBook and Twitter. In addition to messages that provide updates on the progress of deployment, staff provides information on equipment. The videos are short and to the point. Here’s the latest, posted on March 11th, 2018:

On May 8th, voters in Sharon Township, Michigan, will decide whether or not they want to pursue an initiative to invest in a publicly owned fiber optic network. People in the community of less than 2,000 people don’t expect the national ISPs to bring them the connectivity they need, so they will decide if they should take another approach to connect every one with high-quality Internet access.

Like Nearby Lyndon

Sharon Township residents and businesses find themselves in the same type of situation Lyndon Township faced before they decided to take action to develop a network. There is limited wired Internet access in the community, but it’s almost always slow DSL from Frontier or AT&T. Many people must rely on expensive and unreliable satellite for service. Comcast also claims to have a small presence in Sharon Township.

When township supervisor Peter Psarouthakis tried to connect with representatives from incumbents to talk about improving services, he couldn’t reach anyone who could make decisions. Next, community leaders asked smaller companies to serve their areas, but "They told us they have no plans to operate in our township because we don't have enough people, and the return on investment isn't going to be there for them.”

Pressing On

When residents and business owners completed a survey in 2013 as the community considered what route to take, 70 percent of respondents said that their current ISP did not meet their needs; 95 percent expressed an interest in alternative choices for Internet access. Since then, community leaders have hired a consultant to develop a feasibility study and Sharon Broadband Yes, a grassroots group advocating for a fiber network, has formed to educate the public.

Senator Janice Bowling has long been a champion for rural broadband in Tennessee. On March 6th, her bill SB 1045 came before the Tennessee Senate Commerce and Labor Committee and the members chose not to advance the bill. Once again, big telephone and cable company interests win out over the needs of rural Tennesseans.

Download SB 1045 here.

Information Session 

Sen. Bowling presented information about the bill at a February 27th meeting of the committee. She introduced SB 1045 last year and it was added and removed from committee hearing schedules several times; HB 1410, the companion House bill from Rep. Weaver, encountered similar treatment. SB 1045 would allow municipal networks and cooperatives to provide broadband service beyond their service areas. Communities that don’t have municipal networks, will regain local authority to invest in Internet infrastructure.

Explaining The Need

In her February 27th presentation, Sen. Bowling described how rural areas in the state are crippled in various ways by the lack of high-quality connectivity. She provided a map that visualizes the disparities between rural areas, communities with fiber optic networks, and urban areas.

She described the need for fiber for economic development:

In rural Tennessee, if we have what is called an industrial park, and we have electricity…you have running water, you have some paved roads, but if you do not have access to fiber at this point, what you have is an electrified cow pasture with running water and walking trails. It is not an industrial park.

When the folks in Kitsap County, Washington’s Lookout Lane neighborhood banded together and used a Local Utility District (LUD) to get better connectivity, they were thinking about their own homes, not about setting a precedent. A little over a year later, other groups of neighbors are following their lead.

Sick Of Slow Connections

The Lookout Lane community formed their LUD and worked with the Kitsap Public Utility District (KPUD) to expand its open access network to their neighborhood because they were stuck with slow CenturyLink DSL. Residents didn’t feel that they were getting what they were paying for at $60 per month and 1 Megabit per second (Mbps) on average download speed. Now they have options up to 1 gigabit symmetrical via the publicly owned open access network.

Forest Ridge Estates, which is adjacent to Lookout Lane, has formed an LUD and is already connected to fiber installed by KPUD, according to Angela Bennick from the Northwest Open Access Network (NoaNet). Bennick says that there are two other neighborhoods that are considering a similar approach. KPUD is a member of NoaNet, whose open access fiber infrastructure connects that of other public utility districts across the state so people, businesses, and institutions in Washington can have high-quality connectivity.

Property owners pay for the connections themselves, but can pay off the cost upfront, over a 20-year period, or a combination of the two. Connections were from $10,000 - $14,000 in Lookout Lane, but depend on a variety of factors; property owners usually consider the investment an added value to their home. In order to establish an LUD, a neighborhood needs a majority of homeowners to sign a petition to establish the LUD.

In rural northeast Oklahoma, the city of Sallisaw, Oklahoma, built a high-speed fiber network to their residents and then expanded Internet access their rural neighbors with fixed wireless. Sallisaw’s Internet department, DiamondNet, now serves about 2,600 customers in northeastern Oklahoma.

To learn how the city does all of this, I sat down with Keith Skelton and Robin Haggard in the City Manager’s Office in the heart of the small town in late November 2017. Residents of the city have had high-speed Internet service over a Fiber-to-the-Home (FTTH) network for more than a decade, but city officials have not rested on their laurels. They jumped at the chance to bring connectivity to their rural neighbors.

We learned about the network’s history in 2014, when Christopher spoke with Skelton and Telecommunications Superintendent Danny Keith, for episode 114 of the Community Broadband Bits podcast. He described how much of the community relied on dial-up before Sallisaw invested in DiamondNet. The network began serving the community in the early 2000s. For more on the history of DiamondNet, including the challenges they overcame as a small community, check out the podcast.

Connecting Rural Neighbors

Across the country, many fixed wireless providers have attempted to bring high-speed Internet service to rural communities. Some have found success, while others have struggled. In 2015, a small fixed wireless provider decided to get out of the business in Oklahoma. The company donated the tower to Sallisaw, which took on the challenge of providing rural connectivity.