Project Grant 4840MM978

PURPOSE: CONCHO VALLEY ELECTRIC COOPERATIVE, INC. (CVEC, INC.) PROJECT TO EXTEND MIDDLE MILE BROADBAND INFRASTRUCTURE TO UNDERSERVED AREAS OF TOM GREEN AND COKE COUNTIES IS INTENDED TO ACCOMMODATE THE POPULATION GROWTH THAT CONTINUED IN RURAL TEXAS. THIS POPULATION INFLUX IS INCREASING THE DEMAND FOR FAST, RELIABLE BROADBAND CONNECTIVITY ACROSS THE STATE. NEW AND EXISTING CUSTOMERS REQUIRE MORE MIDDLE MILE BANDWIDTH TO PROVIDE ACCESS TO TRUE BROADBAND SPEEDS AS THEY RELY ON THE INTERNET TO WORK FROM HOME, ATTEND VIRTUAL CLASSES, SHOP, PARTICIPATE IN TELEHEALTH SERVICES, USE NEXT-GEN 911 SERVICES, AND IN ALL THE OTHER WAYS A STABLE, FAST INTERNET CONNECTION HAS BECOME A NECESSITY TO MODERN LIFE. EXISTING MIDDLE-MILE INFRASTRUCTURE IS NOT MEETING THIS DEMAND IN THE AREA, PROVIDING SUBSTANDARD SPEEDS, NETWORK CONGESTION, AND VERY LITTLE REDUNDANCY. ACTIVITIES TO BE PERFORMED: THE APPLICANT WILL CONSTRUCT 89.9 MILES OF FIBER (A COMBINATION OF AERIAL AND BURIED), PLACED PRIMARILY ALONG EXISTING PRE-DISTURBED RIGHTS OF WAY, TO REACH UNSERVED AND UNDERSERVED AREAS IN TOM GREEN AND COKE COUNTIES IN TEXAS. THIS RESULTING FIBER NETWORK WILL BE AVAILABLE ON A NONDISCRIMINATORY BASIS TO LAST MILE PROVIDERS UPON COMPLETION, THE PROJECT PLAN CALLS FOR A 2-YEAR PERFORMANCE PERIOD. EXPECTED OUTCOMES: IN ADDITION TO PROVIDING LAST MILE SERVICE TO ITS OWN MEMBERS, CVEC, INC. COMMITS TO OFFERING THIS MIDDLE-MILE NETWORK TO OTHER MIDDLE AND LAST MILE PROVIDERS IN THE AREA ON A NONDISCRIMINATORY BASIS WHERE TECHNICALLY FEASIBLE. THIS INCREASED BANDWIDTH WILL ALLOW LAST MILE PROVIDERS TO INCREASE UPLOAD SPEEDS FOR END-USERS, STRENGTHEN THE NETWORK AGAINST SINGLE POINTS OF FAILURE, PROVIDE REDUNDANCY, AND COMPLETE THE FIBER RING AROUND TOM GREEN AND COKE COUNTIES. THE APPLICANT INTENDS TO MAKE DARK FIBER LEASES AVAILABLE WITHIN THE GENERAL RANGE OF $200 PER MILE PER MONTH. CVEC HAS HAD PRODUCTIVE CONVERSATIONS WITH CONTERRA, A FOR-PROFIT MIDDLE-MILE PROVIDER IN THE AREA THAT PRIMARILY USES ITS NETWORK IN SAN ANGELO TO SERVE SCHOOL DISTRICTS, ABOUT MUTUALLY BENEFICIAL IRU SWAPS AND CONTERRA USING CVEC, INC.'S PROPOSED MIDDLE MILE PATHS TO PROVIDE REDUNDANCY TO THEIR NETWORK. CENTRAL TEXAS TELEPHONE COOPERATIVE HAS ALSO EXPRESSED INTEREST IN USING THIS NETWORK TO BOLSTER THEIR OWN SERVICE OFFERINGS AND HAS PROVIDED A LETTER OF SUPPORT. INTENDED BENEFICIARIES: THE PRIMARY BENEFICIARIES OF THIS NETWORK ARE THE RESIDENTS OF TOM GREEN AND COKE COUNTIES, AND BY EXTENSION THE BUSINESS COMMUNITY THAT OPERATED ON THEIR BEHALF. AS THE POPULATION GROWS THE BUSINESS OPPORTUNITIES TO SERVE THAT POPULATION FOLLOW, PROVIDED THEY CAN COST EFFECTIVE OPERATE IN THE REGION. COST EFFECTIVE RELIABLE CONNECTIVITY IS A KEY CONSIDERATION FOR THE BUSINESS COMMUNITY. THE POPULATION OF SAN ANGELO, TEXAS, WHICH IS THE LARGEST POPULATION CENTER IN THE PROPOSED APPLICATION AREA AND IS WHERE THE PROPOSED ROUTES ORIGINATE TO CARRY MIDDLE-MILE INFRASTRUCTURE TO MORE RURAL AREAS OF THE STATE, GREW BY OVER 7% FROM 2010 TO 2020, INCREASING FROM 93,200 TO 99,893 IN THAT TEN-YEAR TIMEFRAME. THE POPULATION OF TOM GREEN COUNTY ROSE BY ALMOST 9% OVER THIS SAME TIME PERIOD. THIS POPULATION INFLUX IS INCREASING THE DEMAND FOR FAST, RELIABLE BROADBAND CONNECTIVITY ACROSS THE STATE. BASED ON FCC FORM 477 FIXED BROADBAND DEPLOYMENT DATA (JANUARY- JUNE 2021) 28.14% OF THE CENSUS BLOCKS IN THIS APPLICATION (TOM GREEN AND COKE COUNTIES) ARE UNSERVED. SUB RECIPIENTS ACTIVITIES: THERE ARE NO SUB RECIPIENTS IDENTIFIED FOR THIS GRANT.