Taking the Broadband Leap: 6 Benefits for Electric Cooperatives

Electric cooperatives have played an important role over the last century by bringing communities together to provide an essential utility. Many of these cooperatives still exist today-and are now stepping up to deliver broadband to their members.

According to the Federal Communications Commission (FCC), approximately 14.5 million U.S. citizens lack access to high-speed broadband internet. They are primarily located in rural and remote areas, which have been underserved by traditional players. This has created a "digital divide" between urban and rural communities-putting communities at risk of economic decline if people and businesses are forced to migrate elsewhere just to get online.

By helping to bridge this gap, electric cooperatives are setting their communities up for economic and social vitality. Motivated primarily by the opportunity to deliver long-term value versus short-term gains, cooperatives are in a unique position to offer differentiated broadband services that benefit members and the cooperative alike. These community benefits include:

1. Operating according to core principles. Electric cooperatives operate according to seven core principles and values. These principles include commitments to working for the sustainable development of their communities, which today includes broadband.

2. Closing the digital divide. Electric cooperatives already have an established infrastructure of power lines and utility poles that can be utilized to support broadband deployment. This makes it more cost-effective to bring broadband service to underserved areas that traditional providers have deemed to be economically unviable.

3. Contributing to socioeconomic development. Reliable broadband can help communities overcome economic, education, health, and social disparities. Broadband provides access to essential services such as telemedicine and remote learning, and it enables full participation in the digital economy.

4. Providing accountability and transparency. Electric cooperatives are generally more transparent about their operations and decision-making processes. This transparency can lead to better communication with broadband subscribers about service offerings, maintenance, and upgrades.

5. Taking greater social responsibility. Electric cooperatives are owned and operated by the residents they serve, giving their community a say in how they are run. This creates a stronger commitment to meeting the specific needs of the community.

6. Engaging with subscribers across the community. By being deeply rooted in their communities, electric cooperatives have greater interaction with potential customers, and benefit from "word-of-mouth" marketing and greater brand loyalty.

More cooperatives are taking the broadband leap to realize these benefits, and more. Take Tombigbee Fiber. Founded in 2019 by the member-owned cooperative Tombigbee Electric Power Association, they used the Calix broadband platform to connect thousands of households across north Mississippi with a major fiber-to-the-home (FTTH) initiative. By their second year, Tombigbee achieved cash-flow positivity, and in three years, they reached substantial profitability.

Staying true to their cooperative values, Tombigbee has invested their success back into the communities they serve. Today, they also deliver community-wide Wi-Fi that radically improves life for students, educators, families, and first responders in rural Mississippi.

Electric cooperatives can drive a sustainable broadband strategy that grows value for their communities, helping members work, learn, and thrive in the digital age.

Find out how Calix is helping electric cooperatives bring advanced broadband networks to their communities-download our eBook "How Electric Cooperatives Can Unlock the Next Broadband Frontier."