Through strategic collaboration, Gallatin County has turned broadband expansion into a cornerstone of its economic strategy, supporting entrepreneurship and a dynamic tech sector. Local cooperatives are playing a key role in helping entrepreneurs. These efforts have created an environment where startups and small businesses can thrive, contributing to the region’s dynamic economic growth.
The state of Montana’s scenic wide-open spaces and low population density have long made it attractive to those seeking rugged outdoor amenities but unattractive to traditional internet service providers, which rely on dense populations to justify the infrastructure investment. As a result, access to reliable high-speed internet has been a challenge for Montanans. Many counties in Montana are unserved or underserved by broadband according to the most recent FCC definition of broadband service. Fixed wireless internet access has been widely deployed in Montana as it is one of the least expensive broadband technologies to implement. Fixed wireless networks use a series of antennas (as opposed to cables) to transmit data via radio waves. In optimal conditions, fixed wireless is capable of fast, symmetrical internet speeds. However, its fluctuating speeds due to network congestion and vulnerability to signal disruption from obstacles (like mountains and trees) and inclement weather limit its utility, especially for businesses requiring consistent, reliable, high-speed connectivity.
Rural cooperatives in Montana, including Gallatin County’s 3 Rivers and Blackfoot Communications, in addition to nonprofits like Yellowstone Fiber, have played a crucial role in developing fiber broadband infrastructure in the state, particularly in rural and previously underserved areas. Fiber optic broadband is the gold standard as it offers high symmetrical speeds without the signal degradation vulnerability of other technologies. It is also considered to be a future-proof infrastructure, as the high-volume data transmission capacity of the cable means that it can meet growing future demand without the need for replacement or upgrading. Fiber construction requires large, upfront capital outlays, and as such it can be difficult to make the short-term business case for fiber deployment in rural areas. However, maintenance costs can be lower in the long term, as it is typically only the electronics at the end of fiber runs that need replacement for upgrades.
Both 3 Rivers Communications and Blackfoot Communications are member-owned cooperatives that started in the 1950s to bring telephone services to the region. Cooperatives are member-owned associations that operate under different principles than for-profit businesses. With service rather than profit as a motive, cooperatives are more likely to move into rural areas and provide essential services like broadband. Founded in 1954 as a telephone cooperative by a group of ranchers, Blackfoot has grown into a leading provider of broadband services for residents and businesses. 3 Rivers was founded in 1953 and is now Gig-Certified, providing gigabit service to 95 percent of exchanges. As 3 Rivers Communications marketing director Don Serido said, “The cooperative seeks to provide our members the highest quality service at the most affordable rates.”
As communications technology evolved, these cooperatives have focused on keeping their communities caught up with the changing technological landscape, deploying fiber-optic infrastructure, particularly in rural areas. This has been a game-changer for communities that previously lacked reliable high-speed internet. 3 Rivers has been committed to bringing fiber-to-the-home (FTTH) technology to its members, and to covering close to 100% of its service areas. These significant infrastructure upgrades ensure that rural residents have access to the same high-speed internet as those in urban areas and that the infrastructure investments are as future-proof as possible. Figure 1 shows that fiber access – the fastest and most reliable form of broadband – in Gallatin County is better than the state of Montana and the nation as a whole. This fiber infrastructure is a long-term investment that can evolve with the technological advancements of a community.
Recognizing that reliable, high-speed internet is essential infrastructure, on par with roads and bridges, local leaders in Bozeman have initiated several projects to enhance connectivity across the county. One of the most significant efforts has been the creation of Yellowstone Fiber (formerly known as Bozeman Fiber), a nonprofit organization formed in 2015 by a coalition of local government entities, including the City of Bozeman, Gallatin County, and the Bozeman School District. Funded by a $4 million loan from eight local banks, Yellowstone Fiber built an open-access fiber ring that connects key public facilities, like government offices, local school districts, and commercial districts. This infrastructure has not only improved connectivity for businesses but also laid the groundwork for future expansion into residential areas.
In 2021, Yellowstone Fiber announced that it would be partnering with UTOPIA Fiber, a Utah-based provider that specializes in open-access networks, to build out a network that will serve Bozeman and extend into the more rural areas of Gallatin County. This plan was for an open-access network, meaning that Yellowstone Fiber would own the physical fiber network, and then various broadband service providers could lease access to this network to provide their internet services, increasing competition and ensuring higher quality broadband services to all members. There are currently four ISPs operating on Yellowstone’s fiber network. With a particular focus on community support and infrastructure development, one of Blackfoot’s key initiatives has been its support for schools and libraries across its service areas. Through programs like the Public Library Grant Program and significant donations and scholarships, Blackfoot has ensured that educational institutions have the connectivity and technology they need to thrive. By making high-quality internet available throughout all aspects of life and across the region, Blackfoot has seamlessly integrated broadband into the daily routines of the community, thereby promoting adoption as it becomes a natural part of people’s everyday activities. As Figure 2 shows, Gallatin County has high rates of broadband adoption. The share of households with broadband subscriptions is 91.4 percent, higher than those of similar counties, in Montana, and the nation. To support adoption, Blackfoot Communications also offers resources like educational videos to help customers use the internet effectively and safely. 3 Rivers has been recognized as a Smart Rural Community for spearheading initiatives to drive digital access, adoption, and economic development. High broadband adoption rates help ensure that broadband infrastructure is being utilized.
With a particular focus on community support and infrastructure development, one of Blackfoot’s key initiatives has been its support for schools and libraries across its service areas. Through programs like the Public Library Grant Program and significant donations and scholarships, Blackfoot has ensured that educational institutions have the connectivity and technology they need to thrive. By making high-quality internet available throughout all aspects of life and across the region, Blackfoot has seamlessly integrated broadband into the daily routines of the community, thereby promoting adoption as it becomes a natural part of people’s everyday activities. As Figure 2 shows, Gallatin County has high rates of broadband adoption. The share of households with broadband subscriptions is 91.4 percent, higher than those of similar counties, in Montana, and the nation. To support adoption, Blackfoot Communications also offers resources like educational videos to help customers use the internet effectively and safely. 3 Rivers has been recognized as a Smart Rural Community for spearheading initiatives to drive digital access, adoption, and economic development. High broadband adoption rates help ensure that broadband infrastructure is being utilized.
In Gallatin County, fiber broadband providers like Blackfoot Communications and 3 Rivers do more than just offer world-class internet access to help the community effectively utilize broadband, they also have invested in initiatives and services that leverage broadband to support new and existing businesses. In 2018, Blackfoot Communications sparked innovation by supporting the growth of Patient One, one of Montana’s first telehealth companies aimed at serving the indigenous communities in Northern Montana. This collaboration led to the creation of the C2M (Connecting to More) Beta accelerator. Launched as part of Blackfoot’s Smart Growth strategy, C2M Beta is an accelerator designed to support early-stage business startups.
C2M Beta brings together tech, business, and marketing experts to provide hands-on support to early-stage startups through their 12-week accelerator program. The cohort-based program provides entrepreneurs with hands-on learning opportunities and includes pairing each founder with an experienced mentor and connecting them with peers and investors. C2M Beta offers several online aids like a Startup Resource Guide and a blog that any entrepreneur can access in addition to their formal program. One of C2M Beta’s stated goals is to support startups that leverage technology, especially those related to healthcare, finance, and telecommunications. Through C2M Beta, Blackfoot empowers businesses to thrive and strengthens the region’s entrepreneurial ecosystem.
These programmatic investments are paying off, as Gallatin County’s business growth rate continues to climb, far outpacing other counties, the rest of the state, and even the U.S. (see Figures 3 and 4). Bozeman in particular is a locus for startups, and its robust fiber connectivity has been identified as a draw for entrepreneurs. When discussing the early days of his company, RightNow Technologies (founded in Bozeman in 1997 and acquired by Oracle in 2011 for $1.5 billion), serial entrepreneur and Montana Governor Greg Gianforte said “We had this idea that the internet removed geography as a constraint. When we started, that was a theory; it wasn’t a fact.” Theory has since become fact, and businesses in Bozeman and other remote areas can now leverage fiber connectivity to start businesses that can reach customers on national and global scales.
Between 2010 and 2021, Gallatin County saw a 33.6 percent growth in the number of business establishments (Figure 4). Gallatin County added 215 establishments in just one year between 2020 and 2021. These businesses include ag-tech companies like Simple Livestock, founded in 2020. Simple Livestock bills itself as “the ultimate resource for regenerative ranching” and serves as a platform to connect ranchers with resources and build a community of practice around regenerative ranching. Like many startups, Simple Livestock has gone through several iterations: they started out developing grazing software, then moved to establish an online platform for livestock sales before pivoting to their current model. Good broadband has been an essential component of their journey.
Other recent Bozeman startups include RamSync, which was founded in Bozeman in 2021. This “software as a service” company” creates powerful visualizations of networks for the organization and connection of knowledge, ideas, and thoughts” and allows team collaboration and group sharing of a knowledge base. Maro, another Bozeman startup founded in 2022, supports student mental health by offering an online platform to schools for screening and service referrals. New businesses in Bozeman are spurring innovation, creating jobs, and diversifying the economy. All of these startups are part of the growing tradable services sector that includes the tech sector. During the five years between 2017 and 2022, the county saw almost a 70 percent growth in the number of tech jobs. Figure 5 shows that Gallatin County has been able to pivot into the knowledge economy, with a higher share of jobs in the tradable services sector than Montana and the nation.
Knowledge economy jobs tend to pay well, and local ownership of businesses in the tradable services sector can increase prosperity in the community. Thus, effectively utilizing and leveraging broadband for economic development has led to higher incomes in the county. Gallatin County has seen an astounding 25.9 percent positive change in per capita income between 2020-2022 (Figure 6).
Gallatin County, particularly the city of Bozeman, Montana, has undergone a remarkable transformation over the past decade. Once primarily an agricultural hub, Bozeman is emerging as a leading tech hub among small towns in the U.S. As Gallatin County continues its commitment to developing a diversified economy, ensuring that broadband infrastructure is robust can help attract a variety of industries, including tech and remote work opportunities. Among the occupations with access to remote work, tech jobs have the most access to remote work (U.S. BLS, 2022). The share of employees working from home (remote work) in Gallatin County outpaces Montana and the nation (see Figure 7). Bozeman’s growth has been so rapid, driven in part by an influx of remote workers, that it has led to significant increases in housing costs and challenges with housing affordability that policymakers are now working to address. Despite these challenges, remote work offers access to economic opportunities in Gallatin County for newcomers and long-term residents.
Initiatives such as the Broadband for Montana Schools Program have been instrumental in connecting K-12 classrooms across the state to high-speed internet. This connectivity is crucial for supporting digital learning and ensuring that students in rural areas have access to the same opportunities as their urban counterparts, and for preparing the next generation of workers in an economy increasingly reliant upon digital literacy and tech skills. 3 Rivers works to broaden access to economic opportunity and tech talent development through their Youth Technology Grant, which offers grants of up to $20,000 to qualifying nonprofits for programming that will increase youth technology access and adoption in their service area. Blackfoot Communications also invests in technology education through their support of the August Institute, an “annual conference for educators that focuses on technology integration into core content areas,” and they have been a major donor to Missoula College, funding construction and providing technology to the school. Providing students with access to technology and education in its use is a critical step that can help students envision tech work as a possibility for their futures.
Various initiatives and value-added broadband services that help residents and businesses effectively utilize broadband are fostering long-run economic success and community well-being in Gallatin County. The infrastructure development undertaken by Blackfoot Communications, Yellowstone Fiber, and 3 Rivers Communications is helping to ensure broad access to the world-class fiber optic internet that businesses and workers need to thrive in today’s economy. Their support of educational institutions and programming will help to drive broadband adoption and enable a new generation of rural Montanans to participate in a growing high-tech economy. As Gallatin County’s tech economy grows, positive effects are rippling across the county. Broadband adoption increases GDP in counties, a measure of the size of the economy (Figure 8). Gallatin County has seen a 5.4 percent increase in GDP between 2020-2022. High rates of access to fiber broadband combined with high broadband adoption rates and effectively leveraging broadband will help to drive economic growth in Gallatin County for decades to come.
Greater Bozeman, Gallatin County, illustrates the transformative power of broadband expansion in rural America. Through strategic investments and innovative partnerships, the region has successfully leveraged broadband as a tool for economic development, fostering entrepreneurship, and improving quality of life across the county. As the region continues its mission to increase vibrancy and resilience, addressing the challenges of housing affordability and ensuring that broadband access reaches all corners of the county will be critical to sustaining this progress.