Long Prairie (MN) partners with CTC for FTTH

The Institute for Local Self Reliance reports on Long Prairie…

In embarking on its journey to improve local Internet access six years ago, Long Prairie (pop. 3,300) ended up partnering with one of the most aggressive fiber network builders in the state – Consolidated Telephone Company (CTC) – on a solution that meets local needs. The two finished a ubiquitous Fiber-to-the-Home build in 2018, with CTC now owning and operating the network.

They ran into issues, including uncooperative incumbents…

In 2015, Long Prairie tried to qualify for the Minnesota Border to Border Broadband Development Grant Program to solve connectivity issues. Part of the grant included doing speed tests to show the incumbents were not providing 25/3 service locally, but less than half that speed. Unfortunately for the community, those tests and the application were challenged by the incumbents and thrown out – another funding wave went by with no luck.

This remains a huge barrier for a lot of communities working to bring the connectivity in their communities up to or beyond the federal definition of 25/3. Incumbents report that they are providing 25/3 when they aren’t, but won’t make updates to improve their network. This takes communities out of the running for state and federal dollars to build networks that work for them.

They found a solution that included a city issued bond and cooperative provider…

The city issued a bond to finance the project and CTC and Long Prairie entered into a series of agreements beginning in 2016, the first of which was that CTC would assume responsibility for the construction of a citywide Fiber-to-the-Premise (FTTP) network and make payments on the $3.7 million loan over the course of 10 years.

The second agreement was that CTC would lease the network from the city over those 10 years to provide services to businesses and residents. The final agreement was the right of first refusal to purchase the network. At the end of 10 years, CTC would automatically take ownership, or at any time during the lease agreement once the loan was paid off.

CTC was able to build the 111-mile network from 2017-2018, passing 1,303 locations.

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