SAN ANTONIO, Texas—Electric cooperatives considering entering the broadband space heard firsthand how well the co-op business model stands up in a competitive industry at NRECA PowerXchange.

“You’ve got an 85-year reputation of providing excellent service,” said Keith Carnahan, CEO of Centerville, Tennessee-based Meriwether Lewis Electric Cooperative and MLConnect. “Our competitors don’t have that.”

Carnahan joined Darren Farnan, general manager of United Fiber, and Jeremy Hendrickson, broadband director at Okmulgee, Oklahoma-based East Central Electric Cooperative’s subsidiary, EcoLink, in sharing experiences and advice on a March 5 panel moderated by Nick Jones, senior manager of electric cooperatives at Calix.

United Fiber’s 34,000 subscribers are more than four times the number of members served by its parent, Savannah, Missouri-based United Electric Cooperative.

“We underestimate ourselves with competition,” said Farnan. “We have that member relationship and trust no other provider can really have.”

He noted that co-ops can leverage the value of local ownership, which allows subscribers to contact their broadband provider directly. “That’s something they are not used to getting,” he said.

ML Connect was nearly three years into its broadband buildout when the pandemic hit. The value of the venture “shined brightly on us,” Carnahan said. “The impact on our community was amazing.”

Now, electric co-ops providing high-speed internet to unserved areas may face greater competition, higher costs and pressure on the labor market and supply chain. The panel offered the following advice:

• Once you get the greenlight from your board, move as quickly as possible.
• Communicate with members on the pace of your build to help manage expectations.
• Hire broadband staff who understand the co-op mission to serve.
• Assist subscribers to ensure they receive the full value of the service.

East Central Electric Co-op celebrated its 85th anniversary in July 2023, “coming full circle by completing our membership fiber build,” said Hendrickson. Now EcoLink has about 15,000 broadband subscribers and nearly 4,200 miles of fiber and enjoys an overall take rate of 53%, which include the competitive internet markets in Tulsa County.

At first, these nonmember customers were unaccustomed to “the co-op advantage” of service excellence, he said. “That’s why we roll a tech out on a Saturday.”

Co-ops also offer broadband services that provide “peace of mind to their members,” said Jones, such as ways parents may protect their children online at no cost. “It’s significant that co-ops are continuing to look for and meet the needs of their members through broadband. That attention to the member experience will set cooperatives apart from the competition for the next 85 years, allowing their communities to thrive.”

NRECA Broadband is positioning co-ops as a crucial force in rural broadband. Visit cooperative.com/broadband to learn more and sign up.”