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Announcement

CVFiber and NEK Broadband Merge

Effective August 16, 2024, NEK Broadband & CVFiber have united resources, expertise, and a shared commitment to deliver exceptional high-speed internet services to our 71 communities. Working together, we will be better able to support economic growth, community development, and digital equity across the Northeast Kingdom and Central Vermont.

Press Release: CVFiber Announces 500th Customer Connected

Press Release: Peacham Cafe Celebrates Becoming NEK Broadband’s 500th Customer

Execution Copy Final NEK CV MERGER AGREEMENT.docx – signedDownload
Legislation

Preliminary Plan

NEK Broadband and CVFiber announced a preliminary plan on June 1, 2024 to join the two Communication Union Districts (CUDs) under 30 V.S.A 3052a, a recent addition to the law under S.199.

The two CUDs share the same operating partner, Waitsfield Champlain and Telecom (WCVT), and the same construction companies, Eustis Cable Enterprises (Eustis) and Advantage Utilities LLC (Advantage), and the same construction management partner, National Rural Telecommunications Cooperative (NRTC). With similar designs and preconstruction processes, a merged entity between CVFiber and NEK Broadband is a natural fit.

We have a strong alignment in commitments to providing:

1. Universal service to all underserved locations in our member communities, and

2. The most efficient and cost-effective method to support the delivery of services to benefit our member towns.

Organizational Alignment

There is also a strong alignment with mutual business interests. It is critical to have cash flow and customer revenue to successfully apply for a joint application for the Broadband Equity Access and Deployment Program. It is also crucial to accessing the revenue to the bond market if and when that becomes necessary. Each CUD also has an organizational interest in gaining efficiencies for the expedient completion of the grant commitments to provide universal service to our towns.

Working Group Process

Throughout the merger process, we’ve found further alignment through the establishment of six working groups who have been meeting regularly to get us to the finalization of the merger plan. They focused on finance, communications/branding, construction/operations, legal, human resources, and governance and included subject matter experts from both CVFiber and NEK Broadband.

BEAD Program

The Broadband Equity Access and Deployment Program (“BEAD”), is a national program that allocates $42.5 billion to expand access to high-speed internet across the country. The state of Vermont’s allocation is $228.9 million. Roughly $219 million of that amount is anticipated to be available for construction of unserved areas meaning areas that have no access to 25/3 Mbps. 


By coming together prior to the pre-proposal BEAD period, which is anticipated to start on August 24th (subject to change), we will be applying  together as a single entity with a combined customer count, number of passings, and miles to be built.

Merger Impact

We’re looking at the same build schedule in the Northeast Kingdom and Central Vermont. CVFiber has completed its 2024 construction season and is currently installing in parts of Calais, East Montpelier, Middlesex, and Worcester. Pockets of Woodbury installations are expected to begin in early September. NEK Broadband is actively installing in segmented areas of Lunenburg, Concord, Waterford, Barnet, Peacham, Danville, Walden, St. Johnsbury, Kirby, Lyndon, Wheelock, Sutton, and Burke. Additional eligible addresses for installation are expected to launch this fall in the towns of Groton, Lowell, Newport Town, Westfield, Troy, Glover, Barton, and Westmore and by the end of the year in Hardwick and Greensboro.

Funding is the biggest unknown factor. More areas will be eligible to start construction as we determine additional sources of funding before the BEAD application is awarded, likely in 2025. Stay tuned for announcements on upcoming launches in Central Vermont and the Northeast Kingdom.  

Both regions are keeping their respective ARPA grants and town ARPA grants. All of those obligations from the grant funding perspective will remain in place exactly the same as they are. We will maintain separate grant agreements into the foreseeable future. We will not be merging those agreements unless we have the full support and vote of the Governing Board. 

Work with our partners will remain in place. We have been working on how to streamline, create efficiency, and lower the costs of these partnerships as we now work together as one merged entity.

Combined we will have 71 member towns within the Northeast Kingdom and Central Vermont regions. This means we will have a Governing Board of 71 members along with each town’s alternates. The initial merged Executive Committee will consist of the 9 members from NEK Broadband’s Executive Committee and 7 members from CVFiber’s Executive Committee. The size of the Committee is expected to decrease over time to 11 members. The Committee will strive to operate on the principles of consensus. The Executive Committee will continue to work with the Executive Director to manage the day-to-day operations of the merged CUD in accordance with the Bylaws. 

Invested funds and administrative costs will be combined. An integrated organization will give us the ability to access the bond market faster when together. Existing inventory will be used jointly to maximize effectiveness.

We do have a long-term intent to move to one brand, but for now, we will maintain both the CVFiber and NEK Broadband brands. We will remain focused on what is really key for the BEAD application process over the course of the next 6-9 months. A new, exciting brand launch will be planned incorporating the brand foundation, pillars, service goals, and operating principles from both organizations. 

The newly merged organization will be conducting an analysis of rates which may impact pricing in the future. Merging resources allows the newly merged CUD to be more efficient.  Prices in the CVFiber area may see modest increases to ensure  long-term sustainability as we develop customers and grant resources.  As a merged entity we will be able to become more sustainable, and our goal will be to be able to lower prices to benefit residents and businesses throughout our 71 towns. 

NEK Broadband has a ReConnect5 loan application that is pending with the US Department of Agriculture Rural Utility Service. It’s a $13.6 million loan and a portion of that can serve as a match to our upcoming BEAD application.  The Reconnect5 loan has a 2% interest with no payments for the first 3 years. We’re currently in the running for that loan with 50% of that loan in the CVFiber area. One of the main rules for this loan is that 90% of the area needs to have less than 25/3 Mbps access and not many areas in Vermont qualify for that.  However, the majority of three towns in the Northeast Kingdom (Peacham, Groton, Ryegate), and three towns in CVFiber (Cabot, Marshfield, and Plainfield) are eligible for the financing program. 

What can you expect from NEK Broadband and CVFiber for the remainder of 2024?

Installations stay apace.

Are you located in an area where service is available? Have you selected your internet package for CVFiber or NEK Broadband? If you have, you’re on the list for a site survey, followed by scheduling for your home or business install.

Construction continues.

CVFiber has concluded its 2024 construction season with design planning underway for 2025. Construction continues for NEK Broadband with additional launches expected in 2024. Stay tuned for updates. 

Grant funding persists.

As a local non-profit municipality, grant funding applications provide essential funds to provide internet access to more homes and businesses throughout our regions.

Interested in signing up?

Visit get.nekbroadband.org or cvfiber.net to check availability. Eligible homes and businesses in current service areas can sign up for an internet package which puts you on the site survey list; or you can identify your interest in future service for when our merged organization builds to your address.

Contact Us

Email us with any questions or concerns at .

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Announcements

NATIONAL LEADERS LEARN FROM VERMONT’S RURAL BROADBAND STRATEGIES 

May 20, 2025

For Immediate Release May 20, 2025 Contact:  Ellie de Villiers, Executive Director, Maple Broadband (802) … read more about NATIONAL LEADERS LEARN FROM VERMONT’S RURAL BROADBAND STRATEGIES 

Additional $8 Million Available for Vermont’s Broadband Buildout

November 21, 2024

Funds Added as VCBB Completes Distribution of Nearly $245M from ARPA  Montpelier, Vermont – Vermont Community … read more about Additional $8 Million Available for Vermont’s Broadband Buildout

NEK Broadband Receives a USDA Community Connect Grant for Groton as it Launches its USDA ReConnect Grant across 25 towns

October 31, 2024

Island Pond, VT – NEK Community Broadband dba NEKCV, a communications union district in northeast and central Vermont … read more about NEK Broadband Receives a USDA Community Connect Grant for Groton as it Launches its USDA ReConnect Grant across 25 towns

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P.O. Box 4012
St. Johnsbury, Vermont 05819

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Partial funding for development of this website made possible by a Rural Business Development Grant through the Northern Community Investment Corporation from USDA Rural Development.



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