Internet provider obtains $3.1 million fiber-optic grant

Internet provider obtains $3.1 million fiber-optic grant

 

DMCI Broadband will receive funds to increase fiber-optic internet connection in Hillsdale and Branch counties.
Courtesy | Facebook

DMCI Broadband, a wireless internet provider, will receive a $3.1 million grant and a $3.1 million loan to increase fiber-optic internet in Hillsdale and Branch counties.

“Extending broadband out to rural areas of Michigan and the nation enhances educational opportunities and also helps to ensure that rural residents have access to needed telemedicine,” said Brandon Fewins, the Rural Development State Director for the U.S. Department of Agriculture.

The official announcement came on Oct. 27, as part of the USDA’s $759 million venture to expand high-speed internet access across the country. The initiative allocates $59 million to rural Michigan communities, according to a Michigan USDA press release.

DMCI’s project is one of four projects in the state and seeks to connect 2,899 people, 94 farms, 56 businesses, and four educational facilities to the fiber-optic network, according to the press release.

The grant funding comes from the Biden administration’s ReConnect Program, which seeks to expand internet connectivity to unserved or underserved people in rural areas across 11 states, according to Agri-Pulse.

“This is really following up on the Biden administration’s commitment to bridging the digital divide for rural America,” Fewins said.

Fewins said one can apply for a 100% grant, a 100% loan, or a combination, but this deal combines the options. 

DMCI Connections has been a fixed wireless provider since 2006, operating from 51 towers across Hillsdale, Branch, and southern Calhoun counties, according to David Cleveland, owner and managing partner of DMCI. 

“Right now, our infrastructure is built out wirelessly, and we serve those customers via antennas on the outside of their homes that connect to one of our towers,” he said. “If we pass their home down the street, they will have the opportunity to jump off the wireless system to the fiber optic system, which is capable of much higher speeds, up to 1,000 Mb.”

Cleveland said he submitted his application in February and heard back about his acceptance to the program in September. He said he should be able to put the grant money to work in short order.

“The intent is for this money to be used very quickly, and for these projects to be ongoing this fiscal year,” Fewins said.

As part of its agreement to receive funding, DCMI will build 90 miles of fiber-optic connections over the next five years.

“It will be a continuous build-out on our existing network,” he said. “It will be a multi-year project. There are many miles to go.”

There are multiple projects already going on, but supplies have been hard to come by, Cleveland said. 

“The supply and demand system is very upside down,” Cleveland said. “Demand is very strong, and foreseeably will be for the next six or seven years as these grants continue to play out.”

DMCI recently received 90,000 feet of plastic duct for the optic fiber, a supply it had been waiting on since February.

“We have had several projects that had been stalled waiting for duct,” he said. “We got a bunch of work to do yet this fall to get some of the prep work for this program.”

Cleveland said his team will begin building out the fiber-optic connection from the company’s two core connections, one at its offices north of Reading and one in Bronson.

“We are building out in a lot of different directions from these two cores,” he said.

While the two cores are already connected together wirelessly, Cleveland said his company hopes to join them via fiber by the end of 2023 or in early 2024.

“It will not get us down every street. The reality is that with the ruralness of our area, some roads will only have two to four houses in a mile,” Cleveland said. “The long term of our network is going to be a mixed network where it will be a fiber-wireless hybrid system.”

Part of the requirements for the government money is to go to places that do not have cable companies or access to 100 Mb downloading speed currently, such as small towns like Camden and Cambria.

“We are building to the areas that either have some of our wireless systems or only have frontier digital subscriber line, which is much slower.”

DMCI will offer a variety of plans, with increased speed for an additional cost. Cleveland said he thinks he will get more customers with the increased speed plans.

“I believe there will be a lot of pick-up in areas where our towers are too far away,” he said. “We are going to build right through those areas that are weak points for us.”

While other fiber-optic providers in the Hillsdale area usually service commercial businesses and only build connections in areas with high demand, Cleveland said DMCI’s mission is unique.
“Our approach is quite a bit different,” he said. “We seek to serve the unserved in rural areas the best that we can.”

Cleveland said the team at DMCI looks forward to starting this new chapter.

“Being a rural provider for a long time and providing service to thousands of customers already, we are very excited to move forward into the next step of continuing to grow our internet service and provide better services to all our customers in Hillsdale, Branch, and southern Calhoun counties,” Cleveland said.

Loading