OTZ Telephone Cooperative, Inc.

(Kotzebue) – Thursday, March 17, 2022 OTZ Telephone Cooperative is happy to announce that it has received $30 million in low-cost financing for its Broadband Buildout Project to bring high speed internet to communities in the Northwest Arctic Borough. The funding was received from the United States Department of Agriculture (USDA) Rural Utilities Service (RUS) through the Substantially Underserved Trust Area or “SUTA” Program; this program is available to telecommunication companies serving tribal lands.

The Broadband Buildout Project will provide a network of up to 33 new microwave antennae towers from the Northwest Arctic Borough to the Dalton Highway. The system will connect to existing fiber-optic lines at the Dalton Highway. With this financing, it is OTZ Telecom’s intention to begin construction this summer (2022) and complete the full project in 2023. Engineering design is nearing finalization and the receipt of land access agreements are in process. Receipt of Rights-of-Way (ROWs) for tower installation on Bureau of Land Management and U.S. Fish and Wildlife Service lands will require the project to complete an Environmental Analysis (EA) according to the National Environmental Policy Act (NEPA). NEPA evaluations are on-going and public notices will be issued for opportunities for public input consistent with the Act’s requirements.

Benefits of this project will include providing internet access to OTZ’s customers/members in each of the NWAB communities with broadband speeds (25mbs download/3mbs upload and unlimited data access packages) consistent with rural lower 48 standards; providing system redundancy and improved reliability; enhanced telehealth and emergency response capability for the region; and improving economic development opportunities.

The Food, Conservation and Energy Act of 2008 (2008 Farm Bill) regulates the SUTA funds which are intended to serve areas that have a high need for assistance and are lacking an adequate level or quality of service. In addition to Telecommunications Infrastructure, the program assists with other utilities such as energy, water and waste disposal.

OTZ is a member-owned cooperative based in Kotzebue. Any revenues from its operations are directly input into improvements to its systems or to maintain or reduce its rates for services. OTZ is committed to price transparency and high-quality service to its member customers.