For millions of Americans in rural communities, high-speed internet is still out of reach. While urban areas continue to benefit from ever-faster speeds and competitive broadband markets, rural households and businesses are too often left behind, facing unreliable service, high costs, or no access at all.
This digital divide isn’t just inconvenient, it’s a barrier to education, economic growth, healthcare access, and overall quality of life.
One of the most effective and sustainable answers to this problem is already embedded in rural America – electric cooperatives. With a unique business model built on community ownership and trust, co-ops are leading the way in bringing fiber broadband to the places that need it most.
And what makes their efforts even more powerful? Member ownership.
Electric co-ops have a long, proud history of solving the infrastructure challenges that private industry has failed to address. Just like they brought electricity to underserved rural communities in the 1930s, today they are stepping up to deliver fiber broadband with the same mission-driven mindset.
Here’s why they’re particularly well-positioned to succeed:
Established infrastructure for easier deployment
Co-ops already maintain an exclusive network of poles, substations, and rights-of-way to deliver electricity. This infrastructure can often be leveraged for fiber deployment, significantly reducing the complexity and cost of construction.
This “make-ready” advantage can mean faster rollouts, fewer permitting challenges, and a more efficient use of resources — a critical factor for communities seeking federal broadband funding or rural broadband funding to accelerate their projects.
Deep community relationships and local knowledge
Co-ops are community-centered by design. They know their members, not just as customers but as neighbors, friends, and family. That trust and familiarity make it easier to communicate project plans, gain support, and troubleshoot challenges on the ground.
This boots-on-the-ground presence makes co-ops uniquely responsive to local broadband needs, which is often a requirement when applying for FCC broadband funding.
Mission over profit
Unlike commercial internet service providers (ISPs), co-ops don’t operate to generate profits for shareholders. Their mission is service. This allows co-ops to prioritize long-term value and universal access over short returns.
As a result, co-ops are often willing to serve areas that for-profit companies have deemed unprofitable, ensuring no community is left behind, and making them strong candidates for programs offering rural broadband funding.
The power of member ownership
At the core of every electric cooperative is the principle of member ownership. Co-ops are governed by the very people they serve. Members elect the board of directors, influence key decisions, and share in the benefits of the organization’s success.
In the context of rural broadband, this ownership model is a game-changer.
Increased accountability and responsiveness
Because co-ops are owned by their members, they are directly accountable to their communities. This helps to ensure decisions, such as broadband investments, are made with the community’s long-term interests in mind.
Unlike national ISPs, which may prioritize profits or major markets, co-ops listen and respond to local voices — a strength that can improve their eligibility for federal broadband funding opportunities.
Stronger community buy-in and take rates
When members feel a sense of ownership over a broadband project, they’re more likely to support it. This often translates into higher adoption rates, greater enthusiasm, and stronger grassroots promotion. In many areas, local support has helped fiber projects exceed their take-rate goals in record time.
Higher take rates also improve the financial sustainability of the broadband business, making the model more attractive for other co-ops, and more competitive for FCC broadband funding grants.
Long-term investment and reinvestment
Rather than being extracted by investors, any profits generated by a co-op’s broadband initiative are reinvested into the network, used to lower rates, or returned to members through capital credits.
That reinvestment benefits the whole community and contributes to a virtuous cycle of infrastructure improvement, affordability, and service quality, aligning perfectly with the goals of rural broadband funding programs.
Real-world impact
Fiber isn’t just a luxury; it’s a foundational utility for rural communities in the 21st century. Whether it’s a farmer using precision agriculture tools, a small business selling products online, or a student attending virtual classes, fast and reliable internet is critical.
And, because co-ops are focused on long-term value, they invest in fiber-to-the-home (FTTH) networks that are built to last. Unlike cable or DSL, fiber provides symmetrical speeds, low latency, and virtually unlimited bandwidth, future-proofing communities for decades to come.
When a community-owned network delivers that level of service, the benefits ripple far and wide:
- Education – Students gain access to digital learning tools, online classes, and research resources.
- Healthcare – Telehealth becomes a reality for residents who previously had to travel miles for care.
- Economic development – Local businesses expand their reach, attract talent, and compete globally.
- Quality of life – Residents enjoy streaming, smart home tech, remote work, and more, all without leaving their hometowns.
A model that works
The rural broadband challenge is complex, but the solution doesn’t have to be. By partnering with electric co-ops, communities gain more than a new internet service provider. They gain a long-term ally dedicated to their success.
At Conexon, we’ve helped dozens of electric cooperatives launch and manage successful fiber broadband subsidiaries, bringing gigabit-speed service to hundreds of thousands of rural Americans. Our approach focuses on partnership, not profit. We guide co-ops through every step of the journey, from network design and grant strategy to construction and customer support, including navigating federal broadband funding, FCC broadband funding, and rural broadband funding processes.
If your co-op is ready to explore what a fiber broadband future could look like, we’re here to help.
FAQs
1: What is federal broadband funding?
Federal broadband funding refers to grants and programs provided by the U.S. government to expand high-speed internet access, especially in underserved rural areas.
2. How can rural broadband funding help my community?
Rural broadband funding can be used for network construction, equipment purchases, and other costs associated with delivering internet to remote areas.
3. What is FCC broadband funding?
FCC broadband funding is financial support from the Federal Communications Commission, often awarded through programs like the Rural Digital Opportunity Fund (RDOF), to improve broadband infrastructure in unserved and underserved regions.
4. Why are electric co-ops strong candidates for these programs
Electric co-ops have existing infrastructure, strong community ties, and a service-driven mission, making them ideal applicants for federal, rural, and FCC broadband funding opportunities.
5. Why is Conexon the right partner for co-ops?
Conexon has partnered with over 400 electric co-ops, launched more than 100 fiber-to-the-home projects, and delivered service to millions of rural Americans. Their proven model ensures projects are financially sustainable and community-focused.