Valley Telephone Cooperative-FTTH-Hidalgo and Luna Counties 93% Coverage
Valley Telephone Cooperative (VTC) is a member-owned telephone cooperative that has been providing service since 1962. VTC delivers telephone and internet services to over 2,400 members and over 3,900 additional customers outside the cooperative's serving areas. VTC has 2,200 miles of fiber deployed and currently serves members/customers in Cochise, Graham, Greenlee, and Santa Cruz Counties across Southeastern Arizona, and Hidalgo, Grant and Luna Counties across Southwestern New Mexico. VTC proposes to expand its Fiber-to-the-premise (FTTP) network to reach 303 unserved and underserved locations and 40 Community Anchor Institutions (CAIs) across four project areas in Hidalgo and Luna Counties (93% coverage application). The project will involve the deployment of approximately 297.86 miles of fiber infrastructure, with an estimated 85% of the route constructed underground and 15% aerial. This expansion will deliver scalable, high-capacity broadband service to some of the region's most rural and remote communities. a) Technology: VTC is deeply committed to delivering high-quality broadband services to its members. At the core of this infrastructure is XGS-PON (10-Gigabit-capable Symmetrical Passive Optical Network) technology, which enables symmetrical gigabit speeds and is inherently scalable to 10Gbps and beyond. This next-generation standard offers a tenfold increase in capacity over traditional GPON, supporting higher bandwidth per subscriber and significantly improving network efficiency. XGS-PON's symmetrical architecture is particularly well-suited for modern and future applications that demand both high download and upload speeds - such as remote work, Telehealth, cloud computing, and real-time collaboration. Its low latency performance and high throughput make it ideal for supporting 5G backhaul, next-generation wireless technologies, and mission-critical services for both residential and commercial users. The underlying fiber infrastructure deployed by VTC is designed with ample headroom for future upgrades, leveraging Dense Wavelength Division Multiplexing (DWDM) and over provisioned fiber strands to accommodate long-term growth. This ensures that as user demand evolves, VTC can seamlessly scale service tiers without the need for disruptive overhauls - delivering a future-proof platform that meets the connectivity needs of today and tomorrow. b) Service Offerings: The cooperative will provide high-speed broadband services, including symmetrical gigabit internet for residential, business, and CAIs. These services will support critical applications such as remote education, telemedicine, and home-based businesses, while also being scalable to meet future demand. c) Need for Grant Support: Grant support is essential to the success of this project due to the substantial costs associated with deploying fiber infrastructure in the unserved and underserved rural and remote areas of southern New Mexico. These regions often present challenging terrain and low population density, which significantly increases the per-location cost of broadband deployment. As a mission-driven cooperative, VTC prioritizes community benefit over profit. While VTC is committed to bridging the digital divide and delivering high-quality, future-proof broadband services, the financial return from these sparsely populated areas is insufficient to justify the capital investment without support. BEAD funding is therefore critical to making this project viable. This investment will help close the connectivity gap and ensure that residents and businesses in these areas can fully participate in today's digital economy - supporting education, healthcare, economic development, and public safety. d) Matching Contribution and Sources: VTC will contribute matching funds from member capital and cooperative reserves, reinforcing its commitment to broadband infrastructure in its service area. e) Deployment Timeline: The deployment of the broadband network will occur over several phases, with the following timeline summary: Phase 1: Planning, Permitting, and Site Preparation (0-6 months) – Securing necessary permits, preparing rights-of-way, and finalizing agreements with local authorities and stakeholders. Phase 2: Network Construction and Fiber Installation (6-18 months) – Deploying fiber optic cables, constructing network infrastructure, and connecting key points of the network. Phase 3: Testing, Activation, and Service Rollout (18-25 months) – Conducting final testing, activating services for the first wave of customers, and beginning broader service coverage. Phase 4: Ongoing Maintenance and Expansion (25+ months) – Providing ongoing support for the network, addressing maintenance needs, and expanding coverage into additional underserved areas based on demand. f) Strategies to Support Long-Term Technical and Financial Sustainability: To ensure long-term technical and financial sustainability, VTC will employ the following strategies: Sustainable Funding Model: As a cooperative, VTC reinvests revenues generated from member subscriptions and services into the network. Network Scalability: The FTTP network is designed with scalability in mind, allowing for upgrades to higher-speed technologies such as 25G-PON and beyond, in response to growing demand. Redundancy and Reliability: The network will include redundant components such as backup power systems and geographically diverse interconnection points to ensure high availability and minimize downtime during service interruptions. Community Ownership and Engagement: As a member-driven organization, VTC will engage with its community to ensure the network meets local needs and adapts as they evolve. Collaboration with Other Providers: VTC has adopted an open-access model that enables wholesale broadband services,  such as cellular backhaul, enterprise connectivity, and support for public sector networks. By leveraging its robust FTTP infrastructure, VTC can provide high-capacity, low latency transport services to mobile network operators and other wholesale customers. This approach not only increases network utilization and creates diversified revenue streams, but also strengthens the overall sustainability of the network, while supporting the deployment of advanced technologies like 5g and smart community applications. Ongoing Community Support: The cooperative will continue to provide affordable service options and support local businesses, schools, and healthcare institutions, ensuring the network is an integral part of the community’s infrastructure for years to come. In conclusion, by leveraging its cooperative structure, VTC is uniquely positioned to prioritize the long-term interests of its members and the communities it serves. VTC is committed to building a broadband network that not only addresses the immediate connectivity needs of unserved and underserved areas, but also ensures enduring sustainability, technical resilience, and future scalability. Through strategic investment in XGS-PON-based FTTP infrastructure, VTC is laying the foundation for a network capable of supporting next-generation applications and services for decades to come.