Partnerships With Electric Utilities Can Help Expand Broadband Access

Investor-owned utilities, typically large, publicly-traded electricity distributors, can play a critical role in bringing broadband services to rural and underserved areas by allowing providers to use their existing infrastructure to provide the middle mile network for making high-speed internet connections. Rural areas present a challenge for broadband providers: These regions tend to be more costly and less profitable to serve than densely populated urban and suburban areas. Connecting rural communities requires middle and last-mile networks. However, building middle mile infrastructure in these regions often requires laying down thousands of miles of fiber, an expensive undertaking and risky investment if there is not a last-mile provider willing to connect those households and small businesses. That’s where investor-owned utilities (IOUs) can step in. These electricity distributors issue stock and serve about 72 percent of all electric customers nationwide. Today, IOUs are incorporating fiber optic cables into their smart grid modernization projects, which are renovating electric grid infrastructure to improve efficiency and reliability of electric operations. As IOUs build out their fiber networks to improve their electric service capabilities, they often have additional capacity that can also be used to provide or facilitate broadband service. This article is part of a series that looks at three approaches to expanding broadband access to rural areas that lack sufficient service.

[Anna Read is senior officer and Lily Gong is an associate at the Pew Charitable Trusts' Broadband Access Initiative.]