“Recovery is Under Way,” Thanks to Rural Broadband

On Tuesday, July 26, Rural Utilities Service Administrator and long-time rural advocate Jonathan Adelstein visited the farm of Bill and Carol Schmidt in Rudd, Iowa, where he gave an enthusiastic speech about the vast benefits of broadband for rural farms, businesses, residents and communities. The Schmidt’s farm is located in North Central Iowa and served by OmniTel Communications, a recipient of RUS funding for rural broadband. According to Adelstein, OmniTel has become a model RUS recipient as the company is utilizing the funding, along with private capital, to deploy Fiber-to-the-Home (FTTH) capable of 20 Mbps in its service area. Adelstein noted that the residents and businesses in OmniTel’s North Central Iowa service area now have broadband speeds and quality on par with people who live in Washington, DC and New York City. I listened in on the speech from my home in DC, and I was really inspired by Adelstein’s dedication to ensuring that all rural areas have outstanding broadband service like the Schmidt farm in Rudd, IA has.

Adelstein particularly emphasized the benefits of broadband for agriculture, but he also argued that it is necessary for education and health care in rural areas. He described the benefits of distance learning for rural youth, warning that young people will not stay in (or return to) rural areas if there is no broadband. Today’s and tomorrow’s farmers need to be able to check and participate in real-time markets and utilize precision farming technologies to reduce waste and increase efficiency, and Adelstein argued that “we can’t do it without broadband.”

Adelstein credited OmniTel’s $35m rural FTTH project as a “platform for jobs” and “sustainable economic growth.” He argued that in order for this country to compete globally, we must invest in broadband infrastructure. He explained that RUS has invested over $3.5b for more than 300 rural broadband projects impacting 7 million Americans—Adelstein believes it is necessary to invest in “every corner” of America rather than just outsourcing jobs to other countries.

Despite the current economic difficulties, Adelstein seemed hopeful for the future for rural areas and even said that “recovery is under way.” He compared the current broadband challenged to the great rural electrification efforts in the last century, arguing that like electrification, broadband opens the doors for unlimited possibility in increasing agriculture efficiency. It will also help the US to better compete with growing global economies like China, for example.

During the Q&A session, Adelstein answered some questions about the FCC’s USF reform plans. He believes that it is time to upgrade USF for broadband, but that it can be done in ways that benefit rural America. He noted that some companies and components of the fund are not efficient, and support should be dedicated to places that have no broadband at all. He was asked about the problem of large carriers not providing broadband in rural areas, and he responded that the “rural-rural divide” is just one of the many things that the FCC is looking at in USF reform. He said that we should learn from the success of companies like OmniTel which has invested in fiber that will meet the needs of its rural customers for years to come. Adelstein also commended the Obama Administration for the recent creation of the White House Rural Council. He explained that the Rural Council is designed to bring attention to the unique needs of rural areas and coordinate rural policies.

Over the past few months I have heard inspiring and empowering speeches about the importance of rural broadband from a variety of political leaders, including Secretary of Agriculture Tom Vilsack, Senator Mark Begich (D-AK), Representative Lee Terry (R-NE), and even FCC Chairman Julius Genachowski, who visited a small rural community in Nebraska back in May for a hands-on view of how rural broadband has transformed an isolated rural area through new jobs and economic growth. I think it is clear that many decision makers understand the pressing need for ensuring ubiquitous rural broadband of equal speed and quality as urban/suburban broadband, but the challenge lies in figuring out how to ensure investment in broadband infrastructure in low-density, high-cost and allegedly “unprofitable” areas. I hope Adelstein’s visit to Rudd, Iowa draws attention to the significant progress that RLECs like OmniTel have made in tackling this great twenty-first century infrastructure challenge. I am definitely happy to have strong leaders like Adelstein fighting for rural America and rural broadband.