Alabama is looking to boost broadband builds in the state through the construction of a new middle-mile network, awarding an $82.45 million grant to a coalition of eight electric cooperatives to get the job done.
The so-called Fiber Utility Network is set to connect nearly 3,000 miles of new and existing fiber infrastructure in Alabama. Completion of the project is expected to take around three-years. Companies receiving funding for the build include the Central Alabama, Coosa Valley, Covington, Cullman, Joe Wheeler, North Alabama, PowerSouth and Tombigbee Electric Cooperatives.
Once complete, the new network will provide easier access to fiber backhaul across the state, which is critical for last-mile residential builds. C Spire, which is expanding its fiber network in Mississippi and Alabama, previously highlighted access to backhaul as a key hurdle for its rural builds.
“This will really put us at the forefront of broadband in Alabama, and it will help us expand much quicker and at a more economical cost,” state Senator Clay Scofield said in a statement. Scofield is also chairman of the Alabama Digital Expansion Authority board.
Alabama’s decision to award the project to electric co-ops reflects the growing role such entities are carving out for themselves in the broadband market.
In February, Fiber Broadband Association CEO Gary Bolton noted rural electric co-ops are the fastest growing segment of broadband providers. In Tennessee, for instance, nearly half of the $447 million the state awarded this month for rural broadband expansions went to co-ops.
But in addition to providing last-mile connectivity, co-ops are also stepping up to provide middle-mile services. In both Arkansas and Indiana, co-ops have banded together to create statewide fiber networks.
Federal legislators are starting to take notice. Last month, a pair of U.S. Senators debuted a new bill which calls for the country to lean on the existing electrical grid to deploy middle-mile fiber infrastructure.