RS Fiber Cooperative, HBC Form Long-Term Agreement

For Immediate Release

06/12/2019

Gaylord, MN – RS Fiber Cooperative (RS Fiber) has announced the formation of a long-term operating relationship with Hiawatha Broadband Communications (HBC), giving RS Fiber the opportunity to meet and expand on the original goals for the project.

RS Fiber hired HBC to build and operate the gigabit fiber-to-the-premise (FTTP) network when the project was launched three-years ago to bring high-speed broadband to Renville and Sibley Counties. RS Fiber and HBC recently struck a partnership agreement where HBC will provide funding for the continued operation and growth of the network.

To build the network, RS Fiber acquired financing through several sources. Many financial institutions deem the construction of broadband networks as high risk, resulting in higher interest rates. After the network is built and customer numbers grow, the lender risk is reduced allowing for more favorable interest rates. This past year, RS Fiber has been working to restructure its high interest loans in an effort to create a longstanding and sustainable Cooperative. The culmination of that work has resulted in an arrangement between RS Fiber and HBC that strengthens their business relationship for years to come and keeps the RS Fiber mission and vision intact.

“We knew we had the right vision and great support from the cities and townships in our project area,” said Kevin Lauwagie, Chairman of the RS Fiber Board of Directors. “We have held strong to the commitment we made to our patrons and residents of our region. This relationship with HBC will help us continue to provide advanced services that rural Minnesota deserves.”

“This network and RS Fiber’s commitment to rural broadband is right in line with HBC’s vision and values” stated HBC President, Dan Pecarina. “We are committed to small town and rural broadband deployment, so operating this network with our RS Fiber friends provides the opportunity to advance this much needed service.”

RS Fiber has completed construction of gigabit FTTP networks in 10 communities located in Renville, Sibley, McLeod, and Nicollet Counties of west central Minnesota. RS Fiber has also used this rich fiber network to connect to tall structures such as towers and grain elevators to provide high speed fixed-wireless services to the rural areas of the region.

RS Fiber currently serves more than 2,200 customers, with plans to rapidly expand its customer base. “Fiber-Optic networks provide more speed, capacity, and reliability and those features will help drive more innovative services to RS Fiber customers,” stated Pecarina.

“We are already seeing tremendous economic growth within the RS Fiber communities, like the medical school coming to Gaylord” added Lauwagie, “along with education, telemedicine, and precision agriculture benefits.”

RS Fiber will soon be announcing several new service options for customers to enhance their video, telephone, and broadband Internet experience. RS Fiber is also looking to expand its network to bring the benefits of the high-speed broadband to more rural residents and businesses in the region.

About us: RS Fiber Cooperative is a community driven effort to deliver a high-speed fiber-optic connection to Sibley County and portions of Renville, Nicollet, and McLeod Counties. The project has brought fiber-optic Internet, Video, and Phone services to ten cities and fixed wireless broadband to seventeen townships. The RS Fiber mission is: “To provide each and every customer with an exceptional service experience that you can only expect to receive from a local business, while providing you with access to the benefits of the most advanced fiber optic network in the US”