As a result of Conexon’s efforts, more than 150 co-ops are in the early stages exploring the opportunity to bring economic, educational and societal advantages to their communities and the members they serve with nearly 40 designing and constructing networks today. Contact us for a zero-cost Electric Cooperative consultation.
Central Virginia Electric Cooperative
Broadband Subsidiary: Firefly Fiber Broadband
Two years into Central Virginia Electric Cooperative’s (CVEC) broadband deployment, the project is on track and successful by most measures. The co-op is maintaining a build-out rate of between 20 and 25 miles of fiber and signing up between 80 and 100 customers per week. Take rates, both from co-op members and non-member subscribers are hovering anywhere from 40 to 50 percent.
One of the key contributors to the project’s success was CVEC’s participation in the Conexon co-op consortium bidding for 2018 Connect America Fund (CAF) II auction funds. The resulting $28 million positions co-op subsidiary, Firefly Fiber Broadband, for profitability in an astonishing two-to-three years on a $100 million project.
“The CAF money changed our economic picture significantly.”
“We felt very comfortable that Conexon could help us set up the process and structures to make sure we were in compliance, and we were very successful in the auction in large part to Jonathan Chambers knowledge and insights.
“Having that revenue guaranteed for the first 10 years gives us the breathing room to work through growing pains. The biggest benefit is that it offsets the losses in the first few years when otherwise we would be building significant debt to the co-op.”
- Gary Wood, CVEC president and CEO