Electric co-ops are ready to compete in broadband market

The National Rural Electric Cooperative Association (NRECA) is urging Congress to increase minimum uplink standards for broadband networks funded by the federal Broadband Equity, Access and Deployment (BEAD) program. The association says a minimum requirement of 100 Mbps symmetrical would benefit electric co-ops as they compete with larger providers for BEAD grants, since regional co-ops are more likely than nationwide providers to invest in high-speed broadband for rural residents. Electric co-ops are governed by boards typically comprised of their members, the same people who rely on the co-ops to power their homes and businesses. As more boards ask co-ops to build broadband networks, they are often asking for fast fiber. Money from electricity customers can’t be used to subsidize broadband builds, but electric co-ops can create telecom subsidiaries, which can hire the people who work for the co-op to deploy fiber. Another advantage for electric co-ops is that they typically own the power poles, so they don’t have to pay lease fees in order to hang fiber.