I think it was mainly based on the BDC “fabric”, subject to challenges.

 

From: AF <[email protected]> On Behalf Of Adam Moffett
Sent: Monday, August 25, 2025 9:45 AM
To: 'AnimalFarm Microwave Users Group' <[email protected]>
Subject: Re: [AFMUG] rural areas and fiber

 

Wow.  I wonder what data they went by for service locations.  

NY State was going by whether the location had an electric meter.  This sounds 
more like using 911 addresses.

 

-Adam

 

  _____  

From: AF <[email protected] <mailto:[email protected]> > on behalf 
of Ken Hohhof <[email protected] <mailto:[email protected]> >
Sent: Monday, August 25, 2025 10:32 AM
To: 'AnimalFarm Microwave Users Group' <[email protected] 
<mailto:[email protected]> >
Subject: Re: [AFMUG] rural areas and fiber 

 

Illinois had already made a preliminary BEAD award for this area before the 
“benefit of the bargain” reset.  I think the state’s reference cost was $15K so 
I used that number but for remote areas it could have been a lot more.  Because 
the award wasn’t finalized and reviewed by NTIA we don’t know who it was going 
to what the dollar amount was.  It remains to be seen what happens now, I guess 
we should know by the end of the year.

 

Oh, and I forget who commented about every chicken coop having an address, that 
is somewhat true, there are buildings that will never need broadband but that 
are listed as locations eligible for BEAD subsidy.  Some pig farms, every pig 
shed is a location, and every grain bin.  We are on some commercial grain 
elevators, and while they only have one address, every bin and building is a 
broadband serviceable location, you’d think it was a subdivision.

 

Even with the 75% subsidy from BEAD, your concerns about revenue covering OPEX 
are valid IMHO.  Especially if some of these locations won’t actually need 
service.  One could hope that both the states and the bidders are strategizing 
so that money losing areas are coupled with more profitable areas so that 
overall the bidder will succeed.

 

From: AF <[email protected] <mailto:[email protected]> > On Behalf 
Of Josh Luthman
Sent: Monday, August 25, 2025 9:17 AM
To: AnimalFarm Microwave Users Group <[email protected] <mailto:[email protected]> >
Subject: Re: [AFMUG] rural areas and fiber

 

>If we, as a society, feel that those properties need broadband then there 
>would have to be something that functions more like USF, where those rural 
>properties are subsidized by a fee paid by the city dwellers. 

 

This is literally RDOF.

 

On Mon, Aug 25, 2025 at 10:08 AM Adam Moffett <[email protected] 
<mailto:[email protected]> > wrote:

Fifteen thousand per house at 1 house per mile would be pretty optimistic for 
this area (NY State).  The poles on those roads tend to be old, and the telco 
attached at a time when nobody was too concerned about the clearance rules.  
With make-ready on a rural road, you tend to get up to $50k/mile.  You can go 
underground, but we have a bunch of challenges with that too.

 

Regardless, it would be hard to make a viable business out of that scenario.  
It's all well and good if the government helps you get the capital, but opex is 
your problem.  If we, as a society, feel that those properties need broadband 
then there would have to be something that functions more like USF, where those 
rural properties are subsidized by a fee paid by the city dwellers. 

 

Your description of old farms and farmhouses is very familiar.  Family farms 
still exist, but often in the form of a corporation owned by the family.  I 
think that's to avoid inheritance tax because the corporation doesn't die.  
Give your shares to the next generation when you retire rather than waiting 
until you die.  The exception is dairy farms.  With all the dairy subsidies we 
still have lots of dairy farms with 100 cows or less.  Out of our >600,000 
dairy cows in the state, the average herd size is 1200ish.  

 

One thing that I don't know if you experience in other states is you get the 
occasional "farm" around here that's actually just some millionaire's tax 
shelter.  Some of the expenses for their palatial estate can become expenses 
for their struggling farm business.  

 

P.S.: One thing I do like about this group is nobody has ever asked me where NY 
keeps the cows with all the buildings around.

 

-Adam

 

 

  _____  

From: AF <[email protected] <mailto:[email protected]> > on behalf 
of Ken Hohhof <[email protected] <mailto:[email protected]> >
Sent: Saturday, August 23, 2025 12:13 PM
To: 'AnimalFarm Microwave Users Group' <[email protected] 
<mailto:[email protected]> >
Subject: [AFMUG] rural areas and fiber 

 

In some areas we serve where houses are a mile apart and the nearest town with 
a Walmart is 15 miles away, people tell me that when a homeowner dies (many are 
in their 70’s and 80’s), they won’t even list the house because nobody wants to 
live in the middle of nowhere.  It will be abandoned, or torn down to and 
turned back into farmland.  We no longer have small family farms with the farm 
family living in a house on the land, because you need to farm so many acres to 
make a profit.  If a farmhouse is near a town, it may become a rental house, 
but not when it’s 10 miles from the nearest town or school.

 

But I expect some company will be awarded $15K+ each to pass these houses with 
fiber.  If it takes 4 years to complete, the house might not even be occupied 
by then, and in any case, the 80 year old occupant probably doesn’t care if 
they have gigabit Internet.

 

So will fiber make these houses suddenly desirable, and work from home people 
will move there from the cities, towns and suburbs?  Reviving these rural areas 
where the younger generation has moved away?  I guess that’s the vision, I’m 
not sure I buy it.  Well and septic and propane, quarter mile driveway to plow 
in winter, but blazing fast Internet, and you can have horses and chickens.

 

Will they start building subdivisions out there once fiber is available?  I’m 
not buying it.  Am I wrong?

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