March 8 2019 Washington

Rural electric coop leaders are in dc this week to make their case to usda for additional resources, in particular to build out their rural broadband infrastructure. RFD-TV’S Sarah Mock Reports.

Electric coops are investment powerhouses in rural america.

“We’re owned by our members. That makes us a great economic engine. Being rural America’s largest asset means that’s an asset that they can leverage and have.”

Despite a new report finding that electric coops national support over 600,000 jobs and contribute $88 billion to the us economy—experts say that in low density rural areas, coops looking to invest in expanding broadband coverage for their members still tend to be 10-20% short on capital. Though the USDA, through it’s $600 million reconnect program, aims to help.

“The possibility of getting some of that paid through grants, not 100%, but a portion to make it feasible. Reconnect is a great start, a great program, but we’re talking about billions that need to be spent, not just $600 million.”

Holcum says the economics are overwhelming in favor of more federal investment, especially given a recent purdue study which found that every dollar invested in rural broadband leads to four dollars in return over 20 years.

“We’re going to spend $100 million on infrastructure, the community is going to gain by $500 million of benefit. The federal government can step in and say we’re going to give you the 10 or 20% it takes to overcome that risk, the Federal government is sitting on an opportunity to make a $20 million investment and see a $500 million impact in rural America, I don’t know of a better investment out there.”

Tipmont is making a $100 million investment to deliver broadband to 23,000 rural members in Indiana, and others are following suit, saying for their communities, there’s no other option.

“Those that have high speed internet are going to thrive and grow, those that don’t are going to dry up and eventually go away.” “It’s a bigger risk not to make the investment than to make it for the future of our community.”

The Federal Communication Commission, through their connect america fund, has taken the lead on federal broadband investment, but coop leaders say FCC funds won’t be enough. They want to see USDA drive rural broadband investments going forward, and applauded secretary perdue’s call for a moonshot on rural connectivity. For RFD-TV, I’m Sarah Mock in Washington

Ron Holckum, Tipmont Remc President And CEO In Linden, Indiana

Sarah Mock
Washington Bureau Chief, RFD-TV
@Sarah_K_Mock

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