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$62.3 million to be invested in bringing broadband to Alabama’s rural areas

HAMILTON — A group of public officials and business executives gathered in Hamilton on Thursday to announce four investments by the U.S. Department of Agriculture (USDA) totaling $62.3 million. The investments are all aimed at improving broadband access in Alabama’s rural areas.

The two most substantial investments, at $29.5 and $28.2 million respectively, are 50/50 loan grant combinations being given to Tombigbee Electric Cooperative and Millry Communications.

The Tombigbee investment will affect Marion, Lamar, Fayette, Franklin, Winston and Walker counties. The Millry portion will affect Choctaw and Washington counties.

Per the USDA, the investment will total $62.3 million. The funds are aimed at creating high-speed broadband infrastructure. The USDA estimates it will improve internet connectivity for more than 8,000 rural households, 57 farms, 44 businesses, 17 educational facilities, 14 critical community facilities and three health care facilities in rural Alabama.

Two smaller investments are being made in National Telephone of Alabama (TEC) and Farmers Telecommunications Cooperative.

The TEC investment is a $2.7 million 50/50 loan-grant combination serving Colbert County. The Farmers investment is a $2 million loan that will affect unserved areas in Jackson and Dekalb counties.

Present at the announcement were U.S. Department of Agriculture (USDA) Deputy Under Secretary for Rural Development Donald “DJ” LaVoy, Tombigbee Electric Cooperative CEO Steve Foshee, Alabama Department of Economic and Community Affairs Director Kenneth Boswell, along with representatives from Millry Communications, National Telephone of Alabama (TEC) and Farmers Telecommunications Cooperative.

“Beyond connecting us to our friends and family, high-speed broadband internet connectivity, or e-Connectivity, is a necessity, not an amenity, to do business, access opportunities in education and receive specialized health care in rural America today,” LaVoy said.

In March 2018, Congress appropriated $600 million to the USDA with the intent of expanding rural broadband access in rural America. Agriculture Secretary Sonny Perdue unveiled in December of 2018 the “ReConnect” program by which rural areas could apply for the allocated resources. The USDA says they “received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding.”

The $62.3 million announced for Alabama on Thursday makes up over 10% of the total money spent by the program.

ReConnect dispenses grants, loans and grant/loan combinations to private sector providers in rural communities. The ReConnect money goes to building high-quality broadband infrastructure in areas with inadequate internet service. The USDA defines insufficient service as connection speeds of less than 10 megabits per second (Mbps) download and 1 Mbps upload.

The funds for the program originated in the House Appropriations Subcommittee on Agriculture. A subcommittee on which Rep. Robert Aderholt (AL-04) sits.

Citing Congress being in session, Aderholt appeared at the announcement via a pre-recorded video. He said he was glad the program would “help close the ‘digital divide’ that isolates so many parts of rural America.”

“This program is beginning to pay dividends in rural Alabama and America,” he said of ReConnect.

“USDA also recognizes the strong leadership of Senator Shelby in making these funds available for rural communities in Alabama and across the country,” USDA Alabama Rural Development Director Chris Beeker told Yellowhammer.

“Expanding freedom FIBER broadband to residents across northwest Alabama meets a critical e-Connectivity need,” said Steve Foshee, president and CEO of Tombigbee Communications. “From students having the ability to complete their schoolwork, to our neighbors in need of receiving adequate healthcare, freedom FIBER broadband will help improve the lives and communities of rural northwest Alabama.”

Foshee also emceed the event and was praised by name by each of the other speakers for his tenacity and commitment to providing internet for his area.

Several groups of school children were bused in for the announcement and sat in the audience.

ADECA Director Boswell said to the young people in attendance, “You’ll be able to travel the world at your fingertips, no more having to go to McDonald’s for the hotspot.”

Two employees at the McDonalds nearest the site of the announcement confirmed to Yellowhammer that students from local schools frequented the establishment after school to use the internet.

Annis Jordan spoke at the event on behalf of Millry Communications. Millry provides service in Washington and Choctaw counties. Jordan said Millry had wanted to invest in high-speed broadband for the last 10 years, “but the financial analysis then and throughout the years since did not allow us to proceed until this year.”

State Rep. Tracy Estes (R-Winfield) said a substantial part of the coverage will be in his district, and complimented Steve Foshee for his work in bringing the project to fruition.

He told Yellowhammer, “This is a big day for rural Alabama. Too many times, we’re left watching on the sidelines.”

Fred Johnson, the CEO of Farmers Telecommunications Corp, praised Aderholt in his remarks, calling the dean of Alabama’s U.S. House delegation “the one person most largely responsible for the funding of this program.”

Joey Garner, a VP of TEC, one of the companies receiving an investment, said, “We are thrilled with the opportunity to increase our fiber internet network in Alabama with the assistance of this federally-funded grant. TEC is committed to our local service areas, our customers, and our employees, and we look forward to these great opportunities and additions in 2020.”

State Rep. Proncey Robertson (R- Mount Hope) also represents areas that will be covered after the announced investment. He said in a text to Yellowhammer, “High-speed internet is as important today as electric power was in the 1930s.”

U.S. Rep. Bradley Byrne (AL-01) said in a statement to Yellowhammer, “Today’s announcement is fantastic news for Alabama. This significant investment from USDA of $62.3 million in high-speed broadband infrastructure across rural Alabama is critical for economic development, education, healthcare, and quality of life in our state.”

One of the students in the audience was Natalie Langley. She told Yellowhammer that her house benefitted from a previous Tombigbee expansion of high-speed internet.

“It was bad before,” she said of her old internet connection, “my mom spent a lot of money on cellular data before we could get fiber.”

In remarks to reporters after the event, Undersecretary LaVoy praised the cooperation between Alabama’s public officials and businesses that brought the announcement to fruition.

“This is the model, what we have in communities like this,” he said, gesturing to those around him. “I would say Alabama is at the forefront of being able to make what we want to see happen.”

Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@new-yhn.local or on Twitter @HenryThornton95.