As electric cooperatives and municipal utilities continue to evaluate broadband as both a community service and a sound investment, the question is no longer if broadband should be considered, but how to determine whether it makes sense. For many utilities, that decision begins with a broadband feasibility study.
When executed properly, a feasibility study is not simply a financial snapshot. It is a comprehensive decision-making tool that helps utility leadership understand the true cost, risk, and long-term value of operating a utility-owned broadband network.
Before commissioning a feasibility study, utilities should understand the core metrics that drive broadband viability. Customer density is often the most important factor for electric cooperatives, particularly those serving rural territories. Municipal utilities, by contrast, tend to rely more heavily on the size of their ratepayer base to support operating costs. Existing competition also matters, especially the presence of fiber-to-the-home service. Other technologies, such as wireless or fiber-to-the-node, are not equivalent benchmarks when evaluating a full fiber deployment.
When these foundational indicators are favorable, utilities may find that engineering and consulting firms are willing to provide feasibility support at little or no upfront cost. When they are not, a paid study may be required. Overall, the value of a feasibility study lies in the clarity it provides before committing significant capital.
A comprehensive feasibility study should provide clear details of the full cost of building and operating a utility broadband network. Broadband infrastructure is capital-intensive, and the total investment can represent a substantial portion of a utility’s existing asset base. This comparison often makes utilities think twice, but it should be viewed in context.
Broadband can also serve as a revenue-generating business. Across the industry, cooperatives and municipalities have deployed broadband networks that generate strong returns, help minimize electric rate increases, and provide a funding source for grid modernization initiatives. A feasibility study should objectively assess whether those outcomes are achievable for a given utility.
Grant opportunities are also an important part of this evaluation. Federal and state broadband programs, especially those serving rural and underserved areas, can significantly affect project economics. A thorough feasibility study should identify relevant grant opportunities and take into consideration how they may affect overall financial viability.
Accurate feasibility analysis depends on detailed utility data. Utilities should expect to provide GIS information related to poles, underground rights-of-way, substations, meters, offices, and key devices. With this information, the study can reflect real-world construction conditions rather than assumptions.
It is also important to recognize that a broadband fiber network is not solely a customer-facing asset. The same infrastructure can support current and future utility operations, including SCADA, AMI, protective relays, and other field devices. A well-developed feasibility study considers both broadband service delivery and the long-term operational value of the fiber network.
Financial modeling is where feasibility becomes actionable. Utilities should expect projections that show how construction costs, operating expenses, revenue, and debt service evolve over time. These models should evaluate a range of customer take-rate scenarios rather than relying on a single assumption, allowing leadership to understand both risk exposure and upside potential.
How the results are communicated is just as important as the numbers. A feasibility study should be accompanied by meaningful discussion with utility leadership, providing the context needed to interpret the findings and consider next steps. Only after financial viability is established does it typically make sense to pursue market studies or broader customer engagement.
Beyond the analysis itself, the feasibility process gives utilities insight into the experience, transparency, and approach of the partner providing it. Clear assumptions, defensible data, and open discussion of risk are essential indicators of whether that partner is prepared to support the utility beyond the study phase.
For electric cooperatives and municipal utilities exploring broadband, working with an experienced partner that understands both communications infrastructure and utility operations is critical. A broadband feasibility study is more than an evaluation. It is the foundation for informed decisions that can shape connectivity, operations, and financial performance for decades to come.
To learn more about how ENTRUST supports broadband initiatives for co-ops and municipal providers, visit our Co-ops & Municipal Utilities Communications Services page: https://entrustsol.com/communications/co-ops-municipal-utilities/
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