Podcast Summary
High-speed internet in small towns: Investing in high-speed internet a decade ago has led to thriving small towns and increased business opportunities, making it a necessity rather than a luxury. The federal government's $42 billion Bead program aims to bring this essential infrastructure to rural areas.
Small towns like McKee, Kentucky, which had the foresight to invest in high-speed internet a decade ago, are now thriving and attracting visitors from all over. Internet access is no longer a luxury but a necessity, and the federal government's $42 billion Bead program aims to bring this essential infrastructure to rural areas. The Lone Star Bed and Breakfast in McKee, run by Greg and Rita Lakes, is a prime example of how high-speed internet has transformed a small business. The couple, who met at Eastern Kentucky University and returned to their roots, have seen a surge in business, with many guests coming to work remotely. Despite the challenges of running a small business, they have managed to leverage the internet to improve their bottom line. The Bead program, which focuses on broadband, equity, access, and deployment, is an attempt to bring this transformative technology to more rural areas in the US.
PRTC's early fiber investment: Early investment in high-speed fiber internet enabled PRTC to evolve from a telephone cooperative to a modern communications provider, offering faster and more reliable services, and significantly contributing to their success in rural areas where larger companies are less present.
The People's Rural Telephone Cooperative (PRTC) in McKee, Kentucky, has transformed from a small telephone cooperative into a provider of television and internet services, all thanks to their early investment in high-speed fiber internet. This investment, made in 2008, was crucial for the growth of the Lakes business in the area, enabling remote work and online bookings. PRTC, originally established in the 1930s as an electric cooperative and later expanded to telecommunications in the 1950s, serves rural areas where larger internet companies are less present. With a median household income significantly lower than the state average, PRTC's affordable and reliable broadband services have been instrumental in improving the local economy and quality of life. Keith Gabbard, the CEO of PRTC, started working there in 1976 and has seen the company evolve from a telephone cooperative to a modern communications provider. The early adoption of fiber internet allowed PRTC to offer faster and more reliable services, setting them apart from competitors and contributing to their success.
Federal funding for rural broadband infrastructure: Federal grants and loans from the American Recovery and Reinvestment Act were crucial for rural telecommunications company PRTC to build fiber internet infrastructure in mountainous, sparsely populated areas during the Great Recession, saving the company $49.5 million per mile compared to current costs.
The rural telecommunications company, PRTC, was able to build out fiber internet infrastructure in two counties during the Great Recession with the help of federal grants and loans from the American Recovery and Reinvestment Act. The terrain in these counties, which are mountainous and sparsely populated, made laying fiber extremely difficult and expensive. At the time, it cost approximately $50,000 per mile, but now it costs around $7.2 million per mile. Without federal funding, PRTC likely would not have been able to provide fiber internet to these communities. The company is now expanding to other nearby counties, but the process is more costly and time-consuming due to the need to hire more staff and potentially apply for additional funding. PRTC's mission is to provide essential services to its community and break even in the long run, rather than making large profits.
Broadband labor shortage: The implementation of broadband infrastructure in rural areas faces a major challenge due to a shortage of skilled laborers to install and repair fiber optic cables, impacting both rural and urban areas.
High-quality broadband internet has significantly transformed the economic, educational, and healthcare landscapes of rural areas, as demonstrated in the small Kentucky county where PRTC implemented it over a decade ago. Despite having fewer resources compared to today, this service brought about improvements that surpassed those of neighboring towns. For Keith, who has dedicated nearly 50 years to the company, this project resonated deeply as a way to give back to his community. However, the implementation of broadband infrastructure faces a major challenge: a shortage of skilled laborers to install and repair fiber optic cables. This issue affects both rural and urban areas, making it a significant hurdle in achieving universal high-speed internet access.
Rural transformation through technology: Technology and government programs have transformed rural areas like Jackson County, enabling new opportunities, bringing people together, and promoting growth.
Technology and connectivity have transformed rural communities like Jackson County, opening up new opportunities and bringing people from diverse backgrounds together. The speaker, who grew up in the area and started as a copper and coax cable installer, shared his experience of transitioning to fiber optics and being amazed by its capabilities. He also noted how the influx of people from different parts of the country has become more common due to the availability of high-speed internet. This transformation, driven by government programs like the Bipartisan Infrastructure Law and the Inflation Reduction Act, is bringing about significant growth and change to these once isolated areas.
Local implementation of long-term policy changes: The success of long-term policy changes depends on local implementation and commitment to serving the community, rather than who is in power.
The success of long-term policy changes and investments, like the Bead program, depends less on who is in power and more on the people implementing the work on the ground. Companies like PRTC in McKee, Kentucky, with deep local knowledge and a commitment to serving their community, have an advantage over larger corporations in attracting investment and improving the quality of life for their residents. Despite the financial pressures and tough decisions that come with such investments, the drive to make a positive impact on the community remains a powerful motivation. This local pride and mission to serve customers, rather than just making millions, sets co-ops like PRTC apart in the competitive telecommunications landscape.