Since August 2016, the small community of Pinetops has been on the verge of losing their best connection to the 21st century - high quality Internet access. The North Carolina Legislature has a chance to change all that this session with legislation that will carve out an exception to restrictive state laws that prevent a local municipal provider from serving this rural town.

The State Blocks Service

When the U.S. Court of Appeals for the 9th Circuit reversed the FCC’s preemption of state law restricting geographical reach of broadband from municipal electric utilities, Pinetops was in a pickle. Nearby Wilson had extended its Greenlight high capacity Fiber-to-the-Home (FTTH) service to the tiny community where residents and businesses were still slumping on DSL, dialing up, or not connected at all. The court’s reversal required the city of Wilson to risk losing their ability to serve their own community if they continued to do business as a provider for Pinetops.

The only way Pinetops and another customer outside Wilson County - Vick Family Farms - could continue with Greenlight was when the City Council voted to continue temporary service at no charge. Elected officials made the decision based on the expectation that legislators would introduce proposals to carve out exceptions for both Pinetops and the Vick Family Farm, commercial potato farm also located outside of Wilson County. Last week, they made good on that promise.

Reps Step In To Help

This is the transcript for Episode 244 of the Community Broadband Bits podcast. Christopher Mitchell speaks with Tom Stehn of West Plains, Missouri, on how the community is encouraging economic development. Listen to this episode here.

Tom Stehn: Businesses look to expand, move to other locations. There's usually five questions they ask, and one of them is always what kind of broadband do you have?

Lisa Gonzalez: This is episode 244 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. West Plains, Missouri, located in the south central part of the state, is situated in the Ozarks, and known for its beautiful terrain, forests, and vistas. Despite attracting outdoor enthusiasts, the community has suffered some economic losses in recent years and is taking steps to boost economic development. Recently the city began offering high quality connectivity to local businesses. Tom Stehn, City Administrator, talks to Christopher this week about the city's foray into municipal Internet infrastructure. Tom describes how the city's plan to update municipal services led them to discover that local businesses also wanted better connectivity. He describes the city's project, their plan, and how they're starting out slowly to address any challenges they encounter along the way.

Christopher Mitchell: Hey everyone. I just wanted to thank you for listening and helping out to create a stronger Internet ecosystem, making sure everyone has high quality access. Please tell your friends, tell others who might be interested, about this show. If you have a chance to rate us on iTunes, please do. Several people already have. We really appreciate all of the comments, and we really appreciate you taking the time to listen to us.

Lisa Gonzalez: Now here's Tom Stehn, City Administrator, of West Plains, Missouri, talking with Christopher about the community's municipal fiber project.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell. Today I'm talking with Tom Stehn, the City Administrator of West Plains in Missouri. Welcome to the show.

Erwin Fiber is growing in stages and now that the utility in Erwin, Tennessee, has completed phase three of its Fiber-to-the-Home (FTTH) deployment, about half of its electricity customers have access to high-quality Internet access. That’s not all - phase four this spring will bring gigabit connectivity to more rural customers in two nearby mountain communities.

Reaching Out In Steps

All told, Erwin Fiber more than tripled its service area in 2016. A December grant from the Appalachian Regional Commission (ARC) will allow the utility to complete the spring build out, which will serve an additional 680 homes and 30 businesses. The Temple Hill and Bumpass Cove areas located in the mountains outside of downtown Erwin will have access to Erwin Fiber's symmetrical Internet access. Due to the remote character of these neighborhoods, people here had little prospect of obtaining high-quality Internet access from other providers. The 35-mile expansion will cost approximately $400,000.

November’s expansion added 2,200 homes and businesses, while a similar effort last March included 1,300 homes and businesses. Both expansions came after the community successfully experimented with a 2015 pilot project in which the city’s electric utility connected an initial 1,200 customers. The utility needed the infrastructure for the electric system other utilities; it was the right to to invest in the equipment for high-speed connectivity and phone service 

Not An Impluse

The municipality of about 6,000 people had considered the investment some 15 years prior but couldn’t afford the investment until recent years when the cost of deployment decreased. In January, Christopher interviewed Lee Brown and John Williams from Erwin Utilities who discussed the community’s project and explained how the fiber infrastructure is benefitting all the utility customers, even those who don’t subscribe to FTTH services.

How do we connect rural America? Unreliable, slow Internet service with data caps is the norm for much of the country. Even though the federal government gives billions of dollars to large telecom companies, North Carolina is one of the many states that still has an urban and rural digital divide.

Western North Carolina Public Radio (WCQS) recently spoke with our Christopher Mitchell about local ways to improve rural Internet access. While Christopher spoke of electric cooperatives, two other initiatives are also seeking creative solutions in the western half of the state.

Potential Service from Electric Cooperatives

Communities across the U.S. are already bringing better connectivity to their homes and businesses. Specifically, Christopher pointed to the growing number of electric cooperatives providing Internet service: 

“When you look at the threat communities face from not having broadband Internet—the way people are moving away, and fewer people are willing to move in—these electric membership corporations really have to think about what they can do to make sure there’s a high quality of life.”

In our 2016 North Carolina Connectivity report, we explored the work of two local electric cooperatives, Lumbee River and Blue Ridge Mountain. They collaborated with telephone cooperatives to provide high-speed Internet service in the several rural counties near Georgia.

Spotlight on Local Solutions

The WCQS article reported on two more local initiatives: the community network in Highlands, North Carolina, and the nonprofit Land of Sky Regional Council. 

Back in 2015, the people of Highlands saw that poor Internet access was hurting their community. They quickly built the Altitude Community Broadband network. Highlands Internet Technology Director Matt Shuler told WCQS: 

Minnesotans are known for their penchant for politics, their belief in strong local communities, and their love of getting together. As high-quality connectivity becomes a critical component of every day life, people who live in rural areas of Greater Minnesota are coming together in St. Paul on March 15th. The Minnesota Broadband Coalition is sponsoring the first Rural Broadband Day on the Hill.

A Panel And A Press Conference

Registration for citizen lobbyists filled quickly, but there will be a Broadband Issues Legislator Panel at 9:15 central time in Room N 500 of the State Office Building. It will include Representatives Layman, Garofalo, Baker, and Johnson, Senator Simonson, DEED Office of Broadband Development Director Danna MacKenzie and will be moderated by Steve Kelley, Sr Fellow Humphrey School of Public Affairs.

There will also be a press conference at 10 a.m. moderated by Steve Fenske, from the Minnesota Association of Townships. Speaking at the press conference will be several rural Minnesotans, including local broadband leaders:

Morristown Utilities Commission (MUC) and Newport Utilities (NU) in Tennessee have taken the first monumental step in partnering to bring high-quality connectivity to NU customers. Both entities passed resolutions for an interlocal government agreement that will bring MUC’s FiberNET to Newport.

A Win-Win

“This is hopefully going to be a win-win for both Newport and MUC, that we would provide services for them to put a three-way package into at least part of their service area,” MUC Chairman George McGuffin said. ‘‘This is essentially the first step, as far as agreements.”

The plan will allow MUC to expand its “light services,” which includes FiberNET, to NU’s service area in several phases. The first phase will allow more than 8,000 potential subscribers, or 47 percent of Cocke County households, to obtain FiberNET services. Phase One is scheduled to be completed in 2017; the partners also expect to begin Phase Two construction during the second quarter.

FiberNET

Morristown and its gigabit network FiberNET have been on our radar for a long time. We’ve written about how this community, a relatively early adopter of the Fiber-to-the-Home (FTTH) network, has saved the community in several ways. By lowering electric costs with a smart meter program and by generally lower Internet access costs for government, businesses, and residents, FiberNET is saving Morristown in the tens of millions. The network is also attracting new jobs and contributing to city coffers through payment in lieu of taxes (PILOT).

Listen to General Manager and CEO Jody Wigington talk to Christopher about Morristown’s decision to invest in Internet infrastructure. He visited us for episode 35 of the Community Broadband Bits podcast in 2013.

Friends For Light

Jonathan Chambers from Conexon works with rural electric cooperatives as they bring high-quality Internet access to rural America. When he spoke with Christopher for episode 229 of the Community Broadband Bits podcast last November, he had some choice words to say about how the FCC chose to continue to subsidize big telcos for little return.

They Propose "A Huge Mess"

In a recent post on the Conexon blog, Chambers analyzes “The New Trumpfone Program,” and reveals how proposed Connect America Fund (CAF) subsidies, when applied to real world data, creates outrageous financial waste. While providers can receive up to $17,500 per location in CAF funding, when applied to a per subscriber formula, the figure is $100,000:

There are no U.S. communities where satellite or fixed wireless provides broadband to 100% of the homes and small businesses. Not 80% either, which is the FCC assumption. Not 50% or 25% or 15% or 10% or even 5%. The FCC has data on this. Let’s say, for this arithmetic exercise, that a satellite or fixed wireless subscriber achieves a 15% market share of telephone and broadband service in a rural community.

A 15% market share while receiving $17,500 for every location in an area translates into over $100,000 per subscriber. Should there be insufficient competitive pressure in the auction, the $17,500 per location is a realistic outcome, as is the likelihood of $100,000 per subscriber by some technologies.

Reimburse Per Subscriber

Chambers offers a sensible solution to save CAF funds and direct public dollars in the right direction: reimburse providers for actual subscribers, rather than by location.

Electric cooperatives are increasingly creating local solutions to rural connectivity woes. Many have built networks that rival those in the best connected cities in the U.S. Rather than waiting for disinterested national providers, cooperatives and their members have found workable solutions.

In south-central Missouri, the Sho-Me Power Electric Cooperative is once again exercising the power of community network projects. The Houston Herald reports that Sho-Me Technologies, the communications subsidiary of the co-op, is deploying a fiber-backed, fixed wireless project to connect businesses in Houston, Missouri.

Houston, We’ve Got A Problem

Houston (population: 2,000) is the capital of Texas County, Missouri -- yes, Missouri. Home to about 25,000 people, the rural county has poor connectivity; about 90 percent of the county’s population doesn't have access to high-speed Internet service of 25 Mbps download and 3 Mbps upload. The Houston Herald reports that speeds of up to 10 Mbps download are the norm in Texas County. Upload speeds are even slower.

The situation has been rough for small businesses in Houston, where they could not perform routine updates without impeding service. For instance, the local dentist office, Family Dentistry, could not accept Microsoft updates for its network without disrupting daily operations at the practice.

Downtown Houston Finds The Local Co-op Solution