“A moment in history.”
That is how Gov. Jay Nixon described the potential significance of Tuesday’s announcement that the state and Ralls County Electric Cooperative (RCEC) and other electric co-ops are partnering to significantly expand broadband Internet service in Missouri.
“We are convinced that this once-in-a-lifetime opportunity. If we’re successful at it, it will be one of those transformative moments in the economy in the state of Missouri,” said the governor, citing the potential impact broadband access could also have on education and health care.
For that significance to be realized, the state and its partners, Sho-Me Power and Sho-Me Technologies, must secure the $142.3 million in federal recovery funds specifically designated for increasing the availability of broadband. If the application is funded, the state would provide more than $25 million in matching funds while Sho-Me Technologies would contribute $8.375 in fiber lines along the new network. Notification regarding the federal money is expected late this year.
If the federal funding is secured, it would help pay to lay 2,500 miles of fiber-optic cable and construct 200 new broadband towers across the state. The overall initiative, which is part of the five-year MoBroadbandNow Project, would expand broadband accessibility to 91.5 percent of Missouri’s residents. Currently the projected accessibility is only 79.7 percent.
“I think we’ve put together a great application that is very competitive,” said Nixon. “It’s a proposal we’re behind.”
In Northeast Missouri, RCEC has applied to the federal government for recovery act funding for its project. In support of the RCEC’s application, the state has pledged up to $950,000 in matching funds to help cover the cost of equipment for the “last-mile” service provider.
Nixon estimates that it will take five years for the Internet project to be completed throughout Missouri. He added that Northeast Missouri would be on the “front burner” if the project moves forward.
Dan Strode, general manager and CEO of RCEC, believes the service upgrade to 1,100 miles of its service area can be done in 18 months.
“We believe that’s an obtainable goal,” he said.
In terms of service, once the upgrades are completed consumers will have 10 to 20 megabites available. Currently rural customers may have one megabite available, while some in town could have up to three megabites.
“This will be true high-speed Internet,” said Bill Bryan, chief information officer with the state’s Information Technology Services Division. “It will have the capacity to meet the needs of consumers for years to come.”
Bringing a high-speed broadband connection into currently underserved or unserved areas is a major step for rural Missourians, according to Strode.
“The sky will be the limit. If you need modern communications it will literally be available to you,” he said. “We’re really excited about what we’re going to be able to do for rural Ralls County.”
Noting that RCEC provides Internet service to some in Hannibal, George Walley, executive director of the Northeast Missouri Economic Development Council, says the benefits won’t just be seen in rural areas.
“This project is very important to Hannibal’s development,” he said.