Kay Ivey awards $82.45 million in broadband grants to Middle-Mile project

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Photo Credit: Kay Ivey

On Tuesday, Gov. Kay Ivey awarded an $82.45 million grant to help make statewide broadband service availability more attainable for more people across Alabama. Ivey made the announcement at the Central Alabama Electric Cooperative headquarters building just North of Prattville.

“Achieving full broadband coverage is a journey, not a short trip, and today is an important step toward completing that journey,” Gov. Ivey stated. “The Alabama Middle-Mile project – the infrastructure setting part of this journey – is going to lead our state to be the model for the nation when it comes to providing broadband capabilities. In 2022, being able to be connected at home, work, or on the go is absolutely necessary, and this is certainly key to making that a reality.”

Gov. Ivey explained that the funds will be used by Fiber Utility Network, a corporation formed by eight rural electric cooperatives to fund a “middle-mile” broadband network that will have a statewide impact. The eight co-ops include Central Alabama, Coosa Valley, Covington, Cullman, Joe Wheeler, North Alabama, PowerSouth, and Tombigbee.

Ivey was joined at the event by state leaders, including Speaker of the House Mac McCutcheon (R-Monrovia), President Pro Tem of the Alabama Senate Greg Reed (R-Jasper), State Senate Majority Leader Clay Scofield (R-Guntersville), Senate Minority Leader Bobby Singleton (D-Greensboro), State Rep. Randall Shedd (R-Baileytown), and Alabama Department of Economic and Community Affairs (ADECA) Director Kenneth Boswell.

“The project is the springboard to supplying broadband services for rural residents, businesses, educational facilities, and other community anchors,” said Director Boswell. “I commend the Fiber Utility Network for their willingness to undertake this necessary step to ensure more Alabamians have access to these services.”

ADECA is administering the award through its Alabama Digital Expansion Division, which the Legislature created in order to identify projects that will expand broadband access in Alabama.

“In terms of broadband, this is a great leap forward,” said Sen. Scofield, chairman of the Alabama Digital Expansion Authority board. “Governor, you really are America’s broadband governor, and we can’t thank you enough.”

“Connectivity is really the great equalizer,” Scofield continued. “This will really put us at the forefront of broadband in Alabama, and it will help us expand much quicker and at a more economical cost.”

“This project is probably the most significant step we’ve taken to get high-speed internet access to everyone in Alabama,” said Rep. Shedd, who serves as co-chairman of the Alabama Digital Expansion Authority board.

“I could not be any more excited,” Sen. Reed told reporters. “I would like to congratulate the Governor, Sen. Scofield, and Director Boswell. This is the largest thing we could do for our infrastructure.”

“This is a tremendous step in the right direction to digitally connect all of Alabama, especially the Black Belt,” said Sen. Singleton. “I am proud to stand with Governor Ivey to award these needed funds to elevate these communities and provide a service that will have an impact on the entire state.”

“Thank you, Governor, for always including rural Alabama in your vision for the state,” Singleton said. “This is a game changer.”

The Alabama Middle-Mile Network project involves filling in gaps in broadband expansion which will hopefully result in more cost-effective and feasible ways to provide broadband service availability to residents in rural areas.

Tom Stackhouse is the president of the Fiber Utility Network.

“The eight electric cooperatives that make up the Fiber Utility Network are honored to be a part of building a middle mile network to bring internet service closer to those Alabamians,” said Stackhouse. “We want to thank Governor Ivey and the staff at ADECA for the vision, leadership, and assistance to make this a reality.”

Chris Rush is the President of Marshall Medical Center – a hospital in North Alabama.

“There are two crucial elements to health care. The first is having quality care, top-quality doctors, nurses, staff, and technology, and also the ability to access that care. In a lot of places and areas, that is not possible,” Rush said. “It is easier to connect through telemedicine with a specialist in a network located at a central urban hospital like we are with the Huntsville Hospital system. I would like to express my gratitude to Governor Ivey, Senator Scofield, and others.”

The Fiber Utility Network will create a middle-mile network connecting almost 3,000 miles of existing and new fiber infrastructure within three years. When complete, the network will provide improved access to unserved areas for the last-mile projects that provide actual broadband availability to homes, businesses, and schools. Once connected, residents will have the ability to become a customer of the last-mile broadband providers.

Funds for the project are being provided through the American Rescue Plan Act. The use of those funds was approved earlier this year by the Alabama Legislature.

Alabama still has over a billion dollars in ARPA funds yet to appropriate.

Reed said that the Legislature will address further funding for broadband, “As quickly as the legislature can address this issue.”

“I told a reporter that we should spend all of it on this,” Shedd said. “That’s what it is going to take.”

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