Co-ops Win FCC Funds for High-Speed Internet

Equipping rural America with “future-proof” high-speed Internet will soon be underway or expanded at five electric cooperatives with financial backing from the Federal Communications Commission.

Chad Ritchie, Midwest Energy engineering manager, installs a terminal that converts light from fiber into electric signals that can be read by telephones and computers inside. (Photo By: Midwest Energy Cooperative)

“We are delighted that the FCC has awarded Connect America Funds to rural utilities with rural telecom networks to achieve broadband in this area,” said Dave Sabala, general manager of Douglas Electric Cooperative in Roseburg, Ore.

Douglas EC and four other co-ops were named by the FCC March 4 among 12 successful bidders in the Rural Broadband Experiments program.

Northeast Rural Services, a subsidiary of Northeast Oklahoma EC in Vinita, Okla., will receive $7.4 million. Douglas Fast Net, a wholly-owned subsidiary of Douglas EC, will receive $2.3 million.

Lake Region Technology & Communications LLC, in Hulbert, Okla., is in line for $591,987. BARC Electric Cooperative in Millboro, Va., will receive $239,918 and Midwest Energy Cooperative, as Midwest Connections, in Cassopolis, Mich., will receive $211,532.

More funds for rural broadband are expected to be granted through the Connect America Fund. The application process begins later this year.

“This is a huge victory for Midwest and our members. While it’s only a small portion of our request, it validates our efforts and motivates us to work even harder to bring a broadband solution to our geography,” said Bob Hance, Midwest Energy’s president and CEO.

Douglas EC will use the FCC funds to bring fiber optic service to 2,495 locations. “Getting fiber to a rural American home is a really big deal,” said Sabala. “It future-proofs that home for any additional broadband capacity it may need.”

Lake Region Technology & Communications started a fiber-to-the-home pilot project in 2013 to gauge the feasibility of bringing high-speed broadband to members.

“The LREC board believes that it is the mission of the cooperative to provide this much critical service to our members, just as providing electric service was in the 1930s,” said Hamid Vahdatipour, the co-op’s CEO.

“The cooperatives are best suited for this service. We have the poles and rights of way. We also have billing and customer service structure in place. Access to this funding mechanism will make a project that was not deemed feasible, now feasible.”

BARC CEO and General Manager Michael Keyser said the co-op was “very excited” about the FCC award that will “enable us to serve high-cost and remote locations, which is common across our territory. It is our goal that one day every BARC member will have access to world-class Internet speeds.”

The FCC made these additional awards after a number of provisionally chosen winners defaulted.

“The FCC is demonstrating its awareness that there are other, alternative providers of broadband service that are willing to step up and invest in these projects that are so vital to our rural communities,” said Martha Duggan, NRECA senior principal, regulatory affairs. “With these awards and others, the FCC continues to show its commitment to closing the digital divide in America.”

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Tags: Broadband, FCC, NRECA, Telecom