Peñasco Valley Telephone – FTTH – Eddy, Otero, Lincoln and Chaves Counties
Project Overview Peñasco Valley Telephone Cooperative (PVT) is committed to expanding broadband connectivity to unserved rural communities within its service area. This project will deploy high-speed, fiber-optic broadband infrastructure to address the digital divide, providing reliable and fast internet access to rural households, businesses, and community institutions. By focusing on areas lacking sufficient broadband access, the initiative aims to support modern digital services in education, healthcare, and economic development. Technology PVT will implement a Fiber-to-the-Premises (FTTP) network using XGS-PON technology, delivering high-speed, symmetrical gigabit internet with low latency. The network is designed to be scalable to meet current and future demands. By leveraging fiber-optic technology, PVT ensures reliable, high-capacity internet infrastructure for unserved areas. Service Offerings The project will offer a range of broadband services, including: • 1 Gbps/1 Gbps Symmetrical Speed for residential customers at $99.26, providing high-demand households with fast, reliable internet. • 100 Mbps x 20 Mbps at $70.65 for everyday residential use, ensuring robust connectivity. • Additional packages such as 100 Mbps x 100 Mbps and 300 Mbps x 150 Mbps for varying speed and performance needs. • Low-Income Option: 100 Mbps x 20 Mbps for $50/month to eligible households, helping bridge the digital divide. • Participation in the ACP successor program to support low-income households with broadband access. While the service package pricing submitted with the application does not include a 2 Gbps offering, PVT has the technical capability to deliver multi-gigabit service, including a 2 Gbps package across the BEAD project areas These offerings aim to provide affordable, high-speed internet for residential and low-income households. Targeted Communities The BEAD project will focus on rural and remote areas in Eddy, Otero, Lincoln, and Chaves Counties, where broadband access is limited or nonexistent. The project targets 13 PAUs, including two high-cost areas (Cloudcroft 03 HC and Loving 01 HC), which face deployment challenges due to high costs and low population density. The project will reach 2,204 locations, including 1,552 unserved and 633 underserved areas, encompassing low-income households, small businesses, farms, and critical institutions like schools and healthcare facilities. The network will span 524.1 miles of fiber, bringing high-speed broadband to communities that have lacked reliable internet access for a long time. Need for Grant Support Without grant funding, the high capital costs of deploying fiber in sparsely populated rural areas would hinder private investment. The grant support will: • Offset the cost of fiber deployment, particularly in rural areas with challenging geography. • Reduce affordability barriers by offering subsidized service options, ensuring underserved communities can access reliable internet. • Enable digital equity initiatives, ensuring all residents and businesses, including those in difficult-to-reach areas, can participate in the digital economy. Matching Contribution and Sources PVT will provide a total cash contribution of $10,243,852, representing 21.65% of total eligible project costs. This entire match will be provided in cash from PVT’s operating funds. Two high-cost PAUs (Cloudcroft 03 HC and Loving 01 HC) are exempt from the matching requirement, which reduces the overall required match percentage for the project. Deployment Timeline The project will follow a phased approach: • Year 1: Engineering, permitting, and procurement of materials • Year 2: Initial fiber construction and first service activations • Year 3: Full-scale deployment and network optimization • Year 4: Project completion, customer sign-ups, and service expansions PVT will ensure compliance with grant deadlines, maintaining timely project execution. Strategies for Long-Term Technical Sustainability To ensure long-term technical sustainability, PVT will implement the following strategies: • Proactive Network Maintenance & Upgrades: Regular monitoring and timely upgrades to the XGS-PON fiber-optic network to support higher bandwidth demands. • Scalable Architecture: The network's scalable design allows for easy upgrades to higher speeds with minimal disruption, utilizing technologies like dynamic bandwidth allocation and 100 Gbps backhaul. • High-Quality Customer Support: A skilled technical team will provide ongoing support, ensuring smooth upgrades and high customer satisfaction. • Redundancy & Disaster Recovery: Backup systems and disaster recovery plans will minimize downtime and restore services quickly in case of failure. These strategies ensure the network remains adaptable, efficient, and capable of supporting future growth. Strategies for Long-Term Financial Sustainability To ensure long-term financial sustainability, PVT will focus on the following areas: 1. Revenue Diversification: Expanding service offerings to businesses and enterprises to reduce reliance on residential customers. 2. Competitive Pricing: Offering pricing models that balance affordability and profitability, attracting customers while maintaining financial health. 3. Operational Efficiencies: Implementing cost-saving initiatives, automating processes, and efficiently managing resources through technical and support teams. 4. Financial Monitoring: Regularly reviewing financial performance and adjusting pricing and cost structures as necessary to maintain profitability. 5. Positive Cash Flow: Achieving positive cash flow by Year 5, offsetting early-stage investments with growing customer adoption to ensure self-sustainability. By deploying state-of-the-art fiber technology and a forward-thinking operational strategy, PVT will create a sustainable broadband solution that fosters economic growth, education, telehealth, and digital inclusion across its rural communities.