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Telephone Co-op Appeals to Electrics for Fiber Partnerships

Randy Sukow Mar 14, 2019

NRECA invited Kristi Westbrock, CEO and general manager of Consolidated Telephone Co. (CTC) in Brainerd, MN, to tell her story. CTC has been engaged in broadband partnerships with Minnesota electric cooperatives for a decade and it has been a good experience. She would love to do it again.

“CTC wants to help you if you’re a thousand miles, 1,500 miles, whatever away,” Westbrock (pictured right) said during a TechAdvantage session this week in Orlando, FL. “If you’re working with a consultant today on a project, that’s work we could do from an operator perspective for you … Our business is not consulting; our business is partnering.”

Westbrock works with Mille Lacs Energy Cooperative in Aitkin, MN, and Arrowhead Electric Cooperative, Lutsen, MN, to provide fiber-based home broadband. Mille Lacs EC is located near CTC’s telephone service areas while Arrowhead is a three-plus hour drive away. Distance has not been an impediment to CTC in providing knowledge, experience and other assets to a successful telco/electric partnership.

CTC and its partners were in the spotlight last June during a U.S. Department of Agriculture “listening event,” where USDA gathered information to plan its current ReConnect grant and loan pilot program. The reaction to the way the Minnesota telco and electric cooperatives worked together made an impression to the point that USDA is actively encouraging such partnerships.

“Why would you do that? Well, the most important thing is to get the services delivered and keep them being delivered. Once you build it, you have to service it. It’s not always the easiest thing to try to support Wi-Fi at home or interact with the FCC and understand all those rules and nuances,” said Jannine Miller, a USDA senior advisor, during an earlier NRECA session. “Telecom companies and telecom cooperatives understand all these. That is their business model. If you’re able to find one and work a partnership properly that has mutual benefits, this is an incredible way to go.”

So why are electric/telco broadband partnerships still relatively rare? Westbrock described how was when CTC entered the Arrowhead and Mille Lacs partnerships: “We just got along.” Their common goals for their businesses and their communities helped them get past issues like financing, revenue sharing and other potential barriers.

“I think we are losing some of our philosophy of what cooperatives are supposed to be doing together,” Westbrock said. “It is really important as we build out networks that co-ops should be coming together. I know there is opposition on both sides of that, but for us, we can tell you that it works really well.”

Westbrock advised simply setting up a meeting and exploring how closely the co-ops’ goals and views of community needs match. They just might find themselves working up ideas for addressing those needs in a grassroots project. And for any electric and telephone cooperatives that decide a partnership makes sense, Miller said that CTC is ready and willing to do what it can to help them get started.

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