Posted by: Ann Treacy | May 24, 2012

USF changes hindering growth in rural Minnesota: A view from Hubbard County

Yesterday Minnesota Public Radio featured a story on Paul Bunyan Communications, located in Bemidji. Paul Bunyan has been working on expanding fiber in their area – and have received recognition for the efforts, especially as a cooperative. Co-ops and independent telecommunications companies have been instrumental in helping reach the far corners of the state with broadband. They are one of several providers that feel as if they will be hurt by the changes in federal funding – the shift from Universal Service Reform (USF) to Connect America Fund (CAF).

As MPR reports…

Bemidji-based Paul Bunyan Communications, which provides service to some 28,000 phone customers, is slowing down an aggressive expansion of fiber optic cable because the Federal Communications Commission is shifting how it allocates money in what is known as the Universal Service Fund.

The company could receive from $3 million to $5 million less from that fund each year as more money flows instead to such large carriers as AT&T and Verizon, a company spokesman said.

I’ve heard the same sentiment from other folks, such as at the CLE Day on Broadband last week. The Local Exchange Carriers (LECs) feel as if they are paying into a system from which they can’t make a withdrawal. At that meeting Joseph Cavender from the FCC explained that the recent changes are the first of several phases, indicating that the next round of changes may help LECs. I think that feels like cold comfort right now – first because it doesn’t help today. Second, because that just leads to more uncertainty and it’s difficult to build (or sustain) a business plan or make investments based on uncertainty – as seems to be the case with Paul Bunyan.

It’s hard on the companies; it’s hard on the communities as well. A recent report from the University of Minnesota Extension (Economic Contribution of Telecommunications Companies Serving Greater Minnesota) indicates that the total economic contribution of the telecommunications industry serving Greater Minnesota in 2011 was an estimated $1.3 billion. So anything that hampers growth will hamper the economic impact. Also with the negative impact and uncertainty communities are not getting broadband.

David W. Collins, Executive Director of Hubbard County Regional Economic Development Commission has sent a email to several folks outlining the potential problems with these changes on his community and asking policymakers and community leaders to consider the impact…

We need your help!

The Hubbard County Regional Economic Development Commission (HCREDC) for several years has been trying to bring high speed broadband services to ALL of our rural areas. Approximately 4,000 homes and businesses within the Park Rapids (MN) phone exchange currently are not served, and have to rely on satellite or dial up service. These options are unacceptable. Bringing state of the art, underground fiber optic cable to these areas is vital to our future economic growth for numerous reasons, a few of which are:

1) the ability for consultants and others to operate / manage their business from home;
2) students / parents / teachers / schools being able to communicate and student being able to complete assignments (they are currently at a disadvantage compared to other students);
3) resorts being able to take reservations and market themselves, plus the ability of guests to communicate while visiting;
4) people want to live in this area, but are choosing to purchase real estate only where broadband is available;
5) medical care / monitoring plus emergencies;
6) the list goes on and on.

After communicating with several industry providers in our area, the HCREDC partnered with Paul Bunyan Communications (cooperative, based in Bemidji) and supported efforts to obtain a Rural Utility Service loan (RUS loan) thru the United States Department of Agriculture (USDA). This effort was successful and Paul Bunyan Communications was awarded a $17 million loan in September 2011 to build out fiber to each home in the Park Rapids area. It was expected that work would begin immediately with fiber going into the ground beginning Spring of 2012, with project completion estimated to be early 2014.

HOWEVER, in late October and again in November, the Federal Communications Commission issued an order to “reform” universal service fund (USF) and intercarrier access compensation. This “reform” would cost local telecoms millions of dollars annually in lost revenue. It would dramatically change the business model for these telecoms from a system that has worked and been in place for years. The “reform” would significantly reduce their annual revenues and in almost all cases eliminate their ability to invest in rural broadband / phone infrastructure. It is my understanding that one of our local area telecoms stands to lose over $3 million annually due to this “reform”, which would be implemented over the next 9 years. This “reform” will make it extremely difficult for these businesses to repay existing loans, let alone invest in further developing a broadband infrastructure in rural areas.

This is not just a Hubbard County problem. It is not just a Minnesota problem. It is a problem for rural areas nationwide!! This “reform” will negatively impact the development of rural broadband infrastructure nationwide. Imagine if rural areas did not have land phone lines or electricity? We are basically talking about the same issue for our times! And this is much more important than keeping rural post offices open!!!

But back to Hubbard County. The build out of fiber in our area has been for the most part “put on hold” because of the “reform” and its impact locally. Tough for Paul Bunyan Communication (or anyone else in our area) to build out a $17 million broadband infrastructure when the revenue model is being so drastically changed.

So, we are asking that:

1) our congressional delegation (Senator Klobuchar, Senator Franken, Congressman Colin Peterson & Congressman Chip Cravaack) make this issue a top priority; [See note from Klobuchar/Franken]
2) we need our congressional delegation work to have the FCC order nullified or reversed or amended in a way that our project could proceed;
3) and we may need our congressional delegation to extend the deadline for using the $17 million dollar RUS loan authorization. Time is ticking away on us as this issue is being “discussed” in Washington. The “reform” issue needs to be resolved, but when that happens we still need to be able to access the $17 million RUS loan;
4) the Association of Minnesota Counties to actively become involved in this issue. Perhaps by asking each county to pass a resolution of support, and by actively engaging their Minnesota and Washington lobbyists and political action network;
5) Bill Richards, Richards Policy Group, representing Governor Dayton & Minnesota, become actively involved in resolving this issue;
6) Impact 20 / 20 (Northwest Minnesota Foundation) to become involved and mobilize their network;
7) Blandin Foundation Broadband Initiative become involved and mobilize their network;
8) Governor Dayton and his staff to make this a priority and communicate the same to the Richards Policy Group and entire MN Congressional delegation;
9) that the Rural Broadband Alliance (based in Washington, D. C.) continue to work with us towards a satisfactory solution.

Apparently challenges to the “reform” have been, or will shortly be, filed in the 10th Circuit Courts (Denver). However, this route to remedy the situation could take years at best. Congressional action is needed and needed now. The intent of the USDA’s RUS program is solid, the FCC needs to keep its USF and inter-carrier access fees in line with and supportive of that intent.

I offer the content of his email almost in its entirety as a roadmap for anyone who has similar concerns.

Leave a Comment

Posted in Broadband Applications, Community Networks, FCC, MN, Policy, Rural, Vendors

Posted by: Ann Treacy | May 23, 2012

How much broadband do the schools need? At least 100 Mbps by 2014

Thanks to Mary Ann Van Cura for keeping me abreast of schools and their broadband needs this week. The good news is – the schools and students are using broadband. The bad news is the demand surpasses the need (and/or affordability).

Here’s a picture painted from a recent report (The Broadband Imperative: Recommendations to Address K-12 Education Infrastructure Needs) from the State Educational Technology Directors Association (SETDA).

Broadband is Essential

It is a simple fact that access to high-speed broadband is now as vital a component of K-12 school infrastructure as electricity, air conditioning, and heating. … In fact, out-of-school access to broadband by students and teachers is now arguably as important to the overall quality of the student learning experience as access at school.

Broadband Supply is Inadequate

While a 2010 Federal Communications Commission survey of E-Rate funded schools found that most had access to some form of broadband service, nearly 80% of respondents reported that their broadband connections were inadequate to meet their current needs. Outside of school, home broadband adoption rates have all but stalled since 2009, leveling off at roughly 65%.

STEDA made four recommendations:

  1. Recommendation 1: Move to Address K-12 Broadband Infrastructure Needs. The set a target for 2014-2015 of at least 100 Mbps per 1,000 students/staff for an Internet connection and at least 1 Gbps per 1,000 students/staff for the WAN.
  2. Recommendation 2: Ensure Broadband Access for Students and Educators
  3. Recommendation 3: Build State Leadership
  4. Recommendation 4: Advocate for Federal Funding

I want to interject a note here from a recent The DLTCL Electronic Newsletter that brings home the importance of Federal funding…

The Federal Communications Commission recently released information outlining the fund demand for the July 1, 2012, E-rate year. Here are some (sobering) highlights.

  • Total demand for 2012 is $5.237 billion. This is an increase of 21.5 percent from the demand for 2011 of $4.310 billion.
  • Demand for Priority 1 funding (telecommunications and Internet services) is $2.444 billion. For the first time in the program, the Priority 1 demand exceeds the $2.3 billion in funding available, without rollover funds. (Each year there are some funds not used from previous years. It is estimated that for 2012 this “rollover” may be about $400 million.)
  • Demand for Priority 2 funding (internal connections) at a 90% discount is $1.379 billion.

What does all this mean? Assuming no major changes in the above figures, all eligible Priority 1 applications will be funded. However, most Priority 2 applications cannot be funded. State E-rate coordinators were in Washington recently and met with Federal Communications Commission (FCC) and Schools and Libraries Program staff to review various E-rate issues, including the 2012 fund demand. Federal officials do not know how they will address the funding issue, although FCC regulations say that when there are not enough funds, they are to prorate discounts. (Note: DPI has routinely filed comments with the FCC requesting that the discounts be reduced to address this funding issue.)

It is expected that schools and libraries will start to be notified of approved applications for the July 1 funding year later in May.

Clearly access is a bottleneck, at home and at the schools. I think that the numbers can be overwhelming for most people. What’s the difference between 100 Mbps or 1 Gbps? The SETDA report does a nice job of explaining what a school can do with various speeds; I’ve abridged the scenarios below. To put it into perspective think about which experience you’d like to see your kid or your future employee to have. In other words – how are we preparing future workers?

Basic Connectivity for Supplemental Enrichment – 10 Kbps per student/staff broadband connection

Students are scheduled to visit a central lab to access locally-run software applications, go online to conduct research for term papers, and compose occasional papers and presentations. Faculty and staff might use the network primarily for email and to post newsletter updates.

Emerging Reliance on Online Educational Tools and Resources – 50 Kbps per student/staff broadband connection

The school implements a partial 1-to-1 laptop program (9th and 10th grades only) and encourages its students to use their devices to access the web for more dynamic content, collaborate with other students, download videos, and receive and post assignments on the school’s learning management system.

Transformation to a Technology-Rich Learning Environment – minimum of 100 Kbps per student/staff broadband connection

Students actively use their laptops in class to access rich, multimedia-enhanced educational content from the Internet. They post their content (including audio and video podcasts) to school learning management systems, access their e-textbooks and get their assignments online, and collaborate daily across the network with other students via wikis and other Internet-based applications.

Leave a Comment

Posted in education, Policy, Research

Posted by: Ann Treacy | May 22, 2012

Are rural MN businesses using the Internet to market themselves? Not yet!

Thanks to Hans Muessig for the heads up on his new research on rural Minnesota businesses and their use of broadband: Assessing the Digital Presence of Rural Minnesota Businesses: Basic Methods & Findings, specifically they look at use of website and social media to promote business. Hans, at University of Minnesota Extension worked with Tara Daun to investigate cyber finger prints of businesses located in MIRC (Minnesota Intelligent Rural Communities) communities and a group of control communities. They didn’t ask businesses about their use – they did primary research to see if those businesses could be found online…

As part of a larger, ongoing research project, this paper discusses the digital presence of rural businesses in 23 communities. We define digital presence as any locally controlled webpages, social media, or GooglePlace pages devoted to an entity, i.e., a private business, nonprofit, or government office, within a community. Overall, the digital presence of 85 townships and cities were assessed.

Here are the results:

Across the 23 communities, an average of 42.6 percent of businesses had a website. On average, 9.9 percent of businesses in each community used social media. More businesses showed activity on their GooglePlace pages. No major difference was found between the control and intervention communities for website and social media use.

The research seemed to pinpoint a few reasons that communities seemed to have more businesses online that their cohort communities

  • MIRC communities saw slightly higher use of GooglePlace pages. UMN MIRC business training sessions focus on GooglePlace.
  • Businesses in growing communities have a higher proportion of websites, are more likely to use social media for business, and have a higher proportion of GooglePlaces with owner verification and content.

The report adds that since the study was inclusive, not random, in nature that it doesn’t necessarily reflect all of rural Minnesota – but it does include 23% of rural businesses. So I suspect the rest of the state would follow suit. Check out the actual report if you want to see the list of specific communities and how they fared.

One fun follow up – the researchers used business listing from InfoUSA (a tried a true market research tool) to get lists of businesses. While the raw data from the report if not available to the general public, they have shared it with the individual communities so that efforts can be made to approach businesses to encourage them to learn more about effectively using the Internet to market themselves. As Hans wrote to me, “the important thing is that this is information that can help communities make “informed, intentional, positive choices about their future.”

Leave a Comment

Posted in Research, economic development, Rural, MN, Digital Divide, MIRC

Posted by: Ann Treacy | May 21, 2012

Monticello successful? Depends how you measure it.

Last week the Freedom Foundation of Minnesota ran an article on FiberNet in Monticello. They painted a picture of a project that wasn’t successful…

The City of Monticello has put bondholders on notice that the municipal broadband network once hailed as a national model is unable to meet its financial obligations with revenue generated from FiberNet Monticello customers. Instead, city leaders now will discuss how to restructure payment of $26 million in revenue bonds to save the faltering broadband network.

A financial report prepared for the Monticello City Council meeting on May 14th acknowledges that FiberNet “continues to operate at a loss. For the quarter, FiberNet lost around $100,000, not including its 2012 debt payments.”

A blunt letter sent to Wells Fargo Bank in March indicates the City does not have an obligation to continue making up the losses incurred by FiberNet.

I contacted Jeff O’Neill, the city administrator at Monticello for his take on an update. He touches upon some of the issues we’ve heard in the past: the budget has taken a hit starting with obstacles caused by the lawsuit brought against the project at the onset of the initiative. Also they have seen some fierce competition from other providers. But I think it’s interesting to take a look how a community network can and should measure success. Obviously finances is part of the equation – but providing the community with the infrastructure it needs to succeed is another part.

Here’s what Jeff had to say…

When evaluated as a whole, FNM has been wonderful for the community.  As requested by its citizens, FNM has delivered.   The system is performing well with FNM staff and HBC getting great reviews from customers.  The community is benefitting from telecommunication service at a level and cost that is the envy of the nation.  With telecommunication costs  dropping 35-60% since the inception of FNM, the savings to the community are enormous.  This savings and improved performance is certainly a huge plus for the local economy and supports the goal of  job creation.

When measured from a purely profit and loss basis,  original business plan has been impacted significantly by the one year delay created by the TDS lawsuit along with a variety of impacts resulting from the great recession.   Also, the presence of an army of Charter door to door salespeople selling 30 meg internet, all video channels and four movie channels for $59.90 has blunted the growth of FNM subscription rates.    Please note however that FNM subscription rates are actually quite good (Appros 39% of Single/two family) and we have a strong and steady base of customers that continue as FNM customers due to fair prices and great service. These customers have turned away Charter salespeople on multiple occasions.   Some have mentioned that they will not take the Charter deal as doing so would be self-defeating and like cheating against themselves and their neighbors who voted for building the system.

Over one quarter of businesses in the community are using services (120+) and the number continues to grow.  Overall, business and residential citizens in the community are saving millions due to the reasonable prices by FiberNet combined with the drastically low prices by Charter.   The original David and Goliath story ended with the sling of a single rock… this modern day version is ongoing… Monticello is fighting the good fight and doing what it can to enhance financial viability through cost cutting and development of new revenue sources.  We are confident that these business development efforts will ultimately off-set the economic damage resulting from the lawsuit and unbelievable competitive pricing.

 

Leave a Comment

Posted in Community Networks, FTTH, MN, Rural

Posted by: Ann Treacy | May 19, 2012

Broadband used to entice new residents to Winona

While it seems as if most of the world is looking for a job, Winona, Minnesota is looking for workers – and the MIRC broadband project is helping them to attract new residents, as noted in Small Biz Trends…

Winona has a unique problem that the $100,000 local grant is also addressing: the city needs to attract more workers to fill the jobs it has. Grant money is being used to create free wireless portals around the city that are comparable to similar offerings in urban centers.

With two universities, a technical college, and a history of entrepreneurial efforts, this scenic river town is long on innovation. The number of global companies that trace their roots to the city of 27,000 is notable by any standard, with many still headquartered there today. Global giants like Fastenal, Hal Leonard, Peerless Chain, Watkins, RTP and others.

Higher education, health care, arts and culture have risen to meet the needs of Winona‘s innovative business community, and now widely available broadband technology adds a crucial piece of the progressive puzzle. With slow population growth, the city needs more workers so local companies can continue to flourish.

Technology, business, and medical jobs are available, in a place modern job-seekers might not think to look. A place that’s historic, contemporary, innovative, culture-rich, and a welcome alternative to the big-city grind. And now, well connected to the rest of the world.

Notes: for more on modern-day Winona, go to www.cityofwinona-mn.com. Grant money was also used in Winona to provide computer training to 60 Hmong refugees, and home computers to 40 Hmong refugee families, in partnership with PCs for People.

Leave a Comment

Posted in economic development, MIRC, MN, Rural

Posted by: Ann Treacy | May 19, 2012

PCs for People in Bemidji

We’ve been tracking PCs for People on their world tour (well Minnesota MIRC tour), bringing their tricked out computer refurbishing vehicle out to different locations to accept computer donations from local folks, fix them up and leave them for local folks who need computers. Bemidji is one of their latest stops.

Here’s a quick look at their trip from the Bemidji Pioneer…

To help with this problem, the United Way of Bemidji Area partnered with PCs for People, a nonprofit organization that collects and refurbishes used computers for seniors and low income individuals. …

PCs for People computer technicians Scott Lumbar and Christian Rugel have been working on the computers since Wednesday night and are scheduled to work until their deadline, preparing the 88 computers. Hill’s Plumbing and Heating donated the work space for the two to work.

Rugel said that each computer is a unique project, which causes some computers to take longer than others….

The computers will be done by Saturday, when people who have qualified to receive a computer will come in, receive brief instructions on the computer and be on their way.

Leave a Comment

Posted in Digital Divide, MIRC, MN

Posted by: Ann Treacy | May 18, 2012

Comcast Caps: suddenly Xfinity move makes even more sense

Last week Comcast got a lot of attention for giving priority to its online video service Xfinity. That move makes even more sense (from a Comcast business perspective) and becomes more worrisome (from a Net Neutrality perspective) given Comcast’s recent decision to charge users who go over a monthly data limit.

To be fair the limit seems pretty generous – 300 gigabytes for basic Internet plans.According to the Minneapolis Star Tribune, only 1 percent of U.S. Internet users use that much data in a month.  (Although I could see a family of 5 going through that quickly enough – especially if viewing HD video.) And the charge is not exorbitant $10 for every 50 gigabytes over that limit. And this does replace a lower cap (250 gigabytes/month) that led to customers getting cut off rather than charged. But it’s the precedent that seems to be the issue here – especially since the Xfinity video service does not count against that monthly limit.

As is often the case the most interesting part of the story is the comments section. Some folks are happy that the “basement nerds” will pay their share. Some worry that this is a slippery slope and that soon customers will be charged for every download. Some feel that this is a reaction to folks getting video from places other than traditional TV/cable. And some just want to talk about the favorite or most hated politicians/businesses/neighbors.

2 Comments

Posted in Policy, Vendors

Posted by: Ann Treacy | May 18, 2012

Broadband at School and Home in Benton County: the rule not the exception

I have been collecting stories on how people in Minnesota use the Internet since 1995. Back in the day there were two great stories that folks always brought up when talking about Internet in the schools. First – students getting to watch live knee surgery from their desks. Second – some sick or injured high school senior getting to attend the prom/graduation/big football game remotely. Great stories – but they highlighted the fact that the Internet was something new and different. It was exceptional.

This week, the St Cloud Times paints a different picture of Internet in the schools. The Internet/broadband now permeates every aspect of education – from teaching to education administration. Now it’s the classroom, school and student without access that have become the exception – and not in such an exceptional way…

Broadband is being used in Minnesota schools for student testing, reports to the state, portals for parents to track their child’s work, and for students to take online classes, according to a December report from the Governor’s Task Force on Broadband. Professional development for teachers is another area where broadband access can reduce costs.

“I think people don’t always realize … how essential Internet access is to the business of doing education. It’s no longer nice to have,” said Mary Mehsikomer, technology integration development and outreach facilitator for TIES, which is an education technology collaborative.

“It’s just as important as having electricity and water. It’s really become a core component of the whole business of delivering instruction and also managing school districts.”

The good news is that as the article points out – most schools and the majority of students have access. The bad news is that they often don’t have sufficient access. There are programs that are out there supporting connectivity, especially for schools. The FCC’s E-Rate program subsidies offset about $20 million to $25 million in Minnesota every year, about half of what it costs schools. On a more local level, Foley Schools recently received funding (via Blandin Foundation’s MIRC program) to install more wireless units in the school for school and community use.

And the Internet isn’t just for K12…

“Internet access has gotten so vitally important for college students,” said Vi Bergquist, chief information officer of St. Cloud Technical and Community College. “It’s almost a must.”

“Some people wouldn’t be able to get an education if we didn’t offer online classes,” she said.

At the college, registration is done only online and some classes are offered online, she said.

The college accommodates students who don’t have access at home with open computer labs, which is good but I think insufficient for many students. The article mentions a college student who was trying to take an online class using only her mobile phone. (That’s some dedication to the effort!)

So while progress is being made on the school front, progress is still lagging for home access in some areas and with some demographics…

“Some (parents) don’t realize what the kids can’t do,” he [Marc Johnson, director of ECMECC] added. “They don’t know they have access that just isn’t robust enough.”

As a community we should be asking what our kids can’t do due to limited technology – and is the cost of that lost opportunity greater than the cost of providing ubiquitous opportunity. (Both in terms of broadband connections and computers – as a parent of three students I can attest that the cost of the equipment can easily trump cost of connectivity.) There are lower-cost options available from Comcast and CenturyLink ($9.95/month and reduced rate computers for qualifying families) but that only helps in Comcast/CenturyLink coverage areas.

Leave a Comment

Posted in Digital Divide, education, MIRC, MN, Rural

Posted by: Ann Treacy | May 18, 2012

Free webinar from Blandin: Online Tools from Working Family Resource Center

Next Tuesday the Blandin Foundation is hosting a free webinar as part of the Minnesota Intelligent Rural Communities (MIRC) project. The webinar is open to everyone and the topic seemed like it might be of interest to many readers…

We’ll be hearing from Beth Quist, Executive Director of the Working Family Resource Center. She will tell us about Working Family Resource Center, an organization dedicated to strengthening individuals, families and communities by providing resources to support individuals as they manage the often competing demands of work and family.

Here are the details:

Time: May 22, 2012 from 12pm to 1pm
Location: Online
Join: https://blandinfoundation.ilinc.com/join/rbvfcfs Primary Dial-In: 1-866-910-4857 Passcode: 361345

Leave a Comment

Posted in Conferences, MIRC, MN

Posted by: Ann Treacy | May 17, 2012

Minneapolis Digital Inclusion Report

The City of Minneapolis recently released the results of their Digital Community Survey. The survey is interesting in that you can track some high level stats – but the focus is really on the community/neighborhood perspective.

One quick high level stat – how important is it to you to have computer and Internet access at home?

Take that question and drill down by neighborhood and you can see how the details shine a light on areas that could possibly benefit from digital inclusion programs and/or public awareness campaign:

Now consider if you were looking to relocate to Minneapolis – and this was the one piece of information you had. Which neighborhood would you choose? Or from a more positive perspective, if you were looking to close the digital divide in Minneapolis, where would you start? If you drill down into the survey, you should be able to dissect interest and experience with technology by neighborhood, which would be of even more help when planning a digital literacy program. You would know what folks were using for computers (smartphones, library computers, tablets, nothing?), you’d know what they were already doing (email, text, web) and could build a program to meet those needs and more. It’s a very thorough report. Here’s the summary of findings…

Survey questions captured Minneapolis residents’ opinions and preferences related to technology, as well as their access to computers and the Internet. Overall, residents thought somewhat favorably of technology in Minneapolis, saw computers and the Internet as important, had a computer and Internet access and accessed the Internet regularly (most commonly via a high‐speed connection). Residents generally found help for any computer or Internet issues through a variety of means and participated frequently and comfortably in many basic digital activities, including emailing and using social media. However, meaningful differences were seen across the 11 communities that comprise Minneapolis as well as among different sociodemographic characteristics.

But again I think much of the value (to folks in the city) is in the detail.

Leave a Comment

Posted in Digital Divide, MN, Research

Posted by: Ann Treacy | May 17, 2012

CLE Day on Broadband: Full Notes

Today I attended a full day of Continuing Legal Education sessions on Broadband. It was very interesting. I tried to take full notes (below); I will also try to give some general impressions:

  • The focus is on consumer savings, jobs and economic development
  • The FCC is aware that changing funding mechanisms presents issues for incumbents and other businesses. That’s why they are trying a gradual approach. But there are winners and losers (although who they are depends on who you ask).
  • The last chapter of FCC has yet to be written and that’s making it difficult for businesses to plan
  • There is still a focus on the US and comparing Minnesota to other states. Folks weren’t asking a lot about international perspective.
  • Privacy was one issue where international perspective came up. The EU and other areas puts a premium on privacy; the US does not.
  • Minnesota is unique in that broadband has become a county-level issue.

Full Notes… Read More…

Leave a Comment

Posted in Conferences, FCC, MN, Policy

Posted by: Ann Treacy | May 16, 2012

Report Highlights Smart Rural Communities – including Halstad & Spring Grove MN

Last month, the NTCA (National Telecommunications Cooperative Association) published a collection of case studies highlighting some best-of class stories for use of broadband technology in rural communities. The goal is…

This paper will explain the economic and societal gains enabled by broadband, and describe how different rural service providers and the communities they serve have embraced the challenges and opportunities of new technology.

They take a look at Education, Health Care, Agriculture, Electronic Government, Public Safety, Utilities and the Consumer’s Home. Each chapter includes a statement of need (generally backed up with statistics and citations), some specifics on what communities and providers ought to be thinking about moving forward and a couple of case studies taken from real rural communities.

I think this report can be used to compel a community to take a closer look at broadband. It could offer some advice on goals. And, as it’s been developed by the NTCA and therefore uses examples from local telecommunications providers, I think this could be used to engage local provider through examples of success approaches by counterparts in similar areas.

I would like to pull out two Minnesota examples used in the report – both highlight best practices in Education…

Halstad MN – Discovery Education Drives Use

Based in Halstad, Minn., independent telecommunications cooperative Halstad Telephone Co. (HTC) maintains an Ethernet, fiber‐based network that provides broadband service to each of the four K–12 schools in its territory. HTC is part of the Northwest Minnesota Special Access, a consortium of 18 rural telephone companies that connects 126 schools and 43 libraries in the state. Students often use a remote video connection to take advanced placement, foreign language and other specialty courses from a teacher located in another facility. The network is linked to the University of Minnesota, Crookston, enabling high school students to enroll in college courses via a video conferencing application.

Although the network has been in place for many years, HTC recently observed an exponential increase in online activity. In 2010, HTC arranged provision of Discovery Education service to its four local K–12 schools at the company’s expense for one year. Under the terms of the arrangement, instructors and students have access to Discovery Education’s multimedia and interactive content within the school building. Content includes audio files, images and videos, as well as interactive elements such as online quizzes, educational games, and math and science lab simulations. The rural communications provider reports that the various school systems engaged in this endeavor each have a 6 Mbps to 30 Mbps symmetrical connection, and due to the popularity of multimedia content, the various capacities are maxed out at least once per day. HTC also stated that combined with the increasing use of tablets, it expects many schools to double their broadband speed requirements within the next two years.

Spring Grove MN – Devices Drive Use

Headquartered in Spring Grove, Minn., rural provider Spring Grove Communications (SGC) enables its citizens to learn on cutting‐edge technology devices. SGC partnered with its local school district to outfit students with the latest laptops and tablets. Apple iPads are used in all of the elementary classrooms, and every seventh through 12th grader has an Apple MacBook Air available to him during the school day. If a student wishes to take home a MacBook Air, he has the option of renting one for $15 a month. Many of the families renting laptops have never had a computer in their home. The program engages students on a dynamic, digital online platform, providing for learning anytime and anywhere. It also is educating students and teachers alike about how to use this technology and the importance of broadband in today’s economy.

In addition to the student aspect of education innovation, virtual learning is a driver of economic development for small, rural towns. Under the traditional education system, a teacher is limited to open positions within driving distance of her home. With virtual education, a teacher residing in a rural area is able to teach from home and reach students across the state, district lines or the globe.

Leave a Comment

Posted in Building Broadband Tools, economic development, education, Government, Healthcare, MN, Rural

Posted by: Ann Treacy | May 15, 2012

ARRA projects about to get scrutinized by Congressional Subcommittee – including Lake County

The ARRA Broadband project is getting called to the principal’s office tomorrow. Yesterday the Subcommittee on Communications and Technology announced a Hearing on Broadband Loans and Grants.

Here’s the situation as stated in the Subcommittee memorandum…

More than three years after the American Recovery and Reinvestment Act of 2009 (ARRA) allocated $7.2 billion for broadband grants and loans, the jury is still out whether taxpayers are getting their money’s worth. Despite claims of ARRA projects being “shovel ready,” recipients of 233 National Telecommunications and Information Administration awards worth $4 billion have spent just $1.6 billion of it so far. Less than a dozen of the projects have been completed. Six of the awards worth $124.5 million have been returned or revoked. Recipients of 320 Rural Utility Service Awards worth $2.4 billion have spent $968 million. Five projects have been completed. As of July 2011, $124 million in grants and $35 million in loans have been rescinded or revoked. Allegations also persist that NTIA and RUS funds are not bringing broadband to unserved areas but instead are subsidizing competitors to overbuild privately financed networks.

Here are the numbers:

NTIA
Budgeted $4 billion
Spent $1.6 billion
Revoked $124.5 million
11 projects completed

RUS
Had $2.4 billion
Spent $968 million
Revoked $159 million
5 projects completed

Congress is convening a panel of experts to talk about what’s happening, the panel includes:

  • The Honorable Larry Strickling, Assistant Secretary for Communications and Information and Administrator, NTIA
  • The Honorable Jonathan Adelstein, Administrator, RUS
  • The Honorable Todd Zinser , Inspector General, U.S. Department of Commerce
  • Mr. David Gray, Deputy Inspector General, U.S. Department of Agriculture

Causes of Current Problems

Telecompetitor notes that there are some extenuating circumstances that have made finishing projects more difficult…

The telecom industry has cited several factors (not mentioned in the memo) to explain the apparent spending slowness such as an often long approval process for environment impact studies or a shortage of fiber cabling that resulted when the April 2011 tsunami took a key vendor offline. No doubt Strickling and Adelstein will review some of these factors at the hearing.

I’ve heard from folks that both are real issues – but I’ve heard that from projects that are otherwise on track and seemingly making progress. I don’t know that the main concerns here are the projects that are running somewhat behind – but rather the projects that seem to still be hovering around the starting blocks.

Causes of Future Problems

The memo itself outlines another issue that I think may be even bigger moving forward; the FCC has made substantial changes to USF, thereby requiring changes in business plans of many ARRA grant/loan recipients…

More problems may lie ahead. The FCC has recognized the need to reform the USF’s high-cost program for a decade, with proposals in 2008 and a reiteration of that view in the 2010 National Broadband Plan. The RUS nonetheless apparently guaranteed loans under the BIP and its Telecommunications Infrastructure Loan Program on the assumption that applicants would continue to receive the same level of high-cost USF funding for the life of each loan. Now that the Commission is reforming the high-cost program, the RUS has asked loan recipients to revise and resubmit their financial projections to demonstrate sustainability.

It will be interesting to see how the Subcommittee and panel of experts addresses those issues. It’s a byproduct of the funding coming out before the National Broadband Plan – perhaps an unintended consequence but not unforeseeable.

Minnesota Projects Mentioned

Finally, two Minnesota projects were mentioned specifically in the memo. First the Leech Lake Reservation Business Committee in Minnesota declined its $1.7 million grant on the grounds that it would not be able to meet its grant requirements. And the Lake County project…

Nevertheless, industry observers have suggested that the BTOP’s and the BIP’s infrastructure loans and grants have been used to overbuild existing systems rather than extend service to unserved areas. The Government Accountability Office confirmed these suggestions at the Feb. 10, 2011, subcommittee hearing, noting that the NTIA and the RUS had performed “due diligence” with respect to overbuilding but “made a decision to go forward nonetheless” with projects that would overbuild existing facilities. Indeed, the Energy and Commerce Committee’s Subcommittee on Oversight and Investigations is already investigating recently publicized allegations by cable company Mediacom that the Lake County government in Minnesota is not only using $66 million in BIP funding to overbuild Mediacom, but committed fraud by misleading the RUS in its application.

The Lake County project has had its share of ups and downs. (Some might note that disruptions from incumbents may be one reason some projects are running behind.) Last we heard Lake County celebrating new location in Two Harbors. I did notice that their last couple of meetings had been cancelled.

The Subcommittee meeting will be held tomorrow, May 16, 2012, at 10:00 a.m. in room 2123 of the Rayburn House Office Building. I haven’t seen any notice of online broadcast.

Leave a Comment

Posted in Funding, MN, Policy

Posted by: Ann Treacy | May 15, 2012

Public-Private Partnership in Dakota County – Key is Collaboration

I spoke last week with David Asp, Fiber Administrator and Network Engineer at Dakota County. David is a great networker in at least two ways. First, he knows how to design and build a broadband network that is efficient and effective. Second, he knows how to work with a network of people to increase efficiency and effectiveness of the broadband network. (I like to think that folks like David will keep us out of the predicament that West Virginia found themselves in – applying for federal funds to build broadband where it already existed.)

I know that many people were impressed with Dakota County’s presentation at the April Minnesota Broadband Task Force meeting, especially their one-stop-shop for right-of-way permission. It’s a glimpse at the kind of seemingly common sense approach they take to streamlining processes in Dakota County. I say seemingly because I know a ton of work must have gone into assessing the policy and procedure for each type of application and finding a way to make them work on a common online form.

It was interesting to talk with David about other projects happening in Dakota County and beyond – from the physical layer up through applications.

Here’s a sample of what’s happening:

Metro County Fiber Interconnect

Dakota County met with several other counties (Anoka, Carver, Hennepin, Olmsted, Ramsey, Scott and Washington) and Hiawatha Broadband (HBC) to discuss Metro County Fiber Interconnect. They are working on an MPLS network between all 8 counties, which will be completed by the end of June. MN.IT (formerly OET) is driving the work and will provide private network space that was allocated to each county.

The counties are working together with HBC to find ways to cost-effectively expand their fiber networks. The goal is to make the best use of existing conduit and connections, rather than building from scratch. The counties and local government agencies get to improve infrastructure. It makes the most sense to map out existing infrastructure, map out plans for future development and pool the pockets of funding to build only when necessary and pull extra strands of fiber (or post equipment on towers) whenever possible.

Homeland security, disaster recovery and transportation have been a few of the possible pockets for funding. While the infrastructure clearly supports those goals- the investment is helping in other areas as well.

This underlying layer of physical connectivity has allowed the counties to streamline processes and build new applications that save money for tax payers. Looking at the infrastructure alone, building up this mesh network among counties has allowed different entities to terminate T1 connections – those connections were costing up to $1500/month. Also each expansion is bringing increasing rural area closer to high speed broadband.

Reducing Government Operations Costs

One of the ways Dakota County has been able to use ubiquitous broadband is their SIP phone system. SIP phones use voice over IP. There are several advantages – first they are like super-sonic phones and work well for videoconferencing. David mentioned that staff in Dakota County is just as likely to meet video videoconference, even while in the same building, because of lack of conference room and convenience of videoconferencing.

Second, the phones work anywhere they can get online. So if you have relocated or have a meeting in another building, your phone still works. In case of a disaster, whole offices can be moved pretty seamlessly to new locations – the phones and computers will work. Dakota County recently moved  3,800 phones to the new SIP system.

The County is looking at virtual desktop options, where much of the interworking and content would live in the cloud, while the desktop is really just a portal to the information. There are some similar advantages to SIP phones, in that the content becomes decentralized and can be accessed remotely – but also virtual desktops should not require the same sort of upgrades as regular desktops (and laptops) require today.

Applications in the Field

Dakota County just doled out 3500 IP addresses to traffic signals across the county. They are used to track stoplights and pedestrian crossings. Good – but I must admit I didn’t really understand all of the implications until talking to David. The stoplights are tracked. The buses are tracked. So the stoplights can speed up or slow down a bus when necessary – ensuring that buses aren’t falling off schedule and grouping together. Also the lights can be tracked and through artificial intelligence will learn to direct traffic as necessary – reducing red lights for the bulk of travelers, saving both time and money. And of course smart appliances like this could be helpful in an emergency or disaster recovery situation.

Next Steps for Dakota County

The next step for Dakota County is sharing infrastructure and technology with area businesses. That is where working with folks such as HBC helps.

The County doesn’t necessarily want to get involved with providing broadband services to the end customer – but they are willing to invest and collaborate so that broadband is available. Again is feeds into supporting the tax bases and providing the services that area business and residents want and need.

Connecting with businesses and nonprofits is the next step for Dakota County. Some counties/communities may not be at the same stage – and for those folks David was also kind enough to share a series of documents that he has used coordinating various parties in public-private partnerships. The hope is that these might become templates or fodder for other counties looking at fiber options.

Agreements Between Partners – Templates

Board Documents

Working with Vendors

Rights of Way

Leave a Comment

Posted in Building Broadband Tools, Community Networks, FTTH, Government, MN

Posted by: Ann Treacy | May 14, 2012

Minnesota Public Safety Broadband Wireless Data Network Requirements Study

A while ago I wrote about a webinar I watched on FirstNet. You may remember…

The FirstNet plan is to build a broadband network for police, firefighters, emergency medical service professionals, and other public safety officials. FirstNet is really just getting going – but there are some plans. First plan is for FirstNet to work with state, local and tribal governments. A goal is to create an interoperable, cohesive, countrywide network. That being said, states can opt-out of FirstNet. Apparently the plan (and I’m gleaning this from the webcast) is for FirstNet to come to the states with an assessment of what the state has and what they need. And RFP will be created from these assessments.

A Minnesota Public Safety Broadband Wireless Data Network Requirements Study has recently been released…

This comprehensive study was conducted through 2010-2012 to assess the needs of public safety wireless broadband in Minnesota. It is available in five sections, which each focus on a different interest area in public safety broadband. This study will form the foundation of Minnesota public safety broadband planning efforts and our interaction with national entities such as Firstnet.

I thought it might be helpful to share the recommendations from the report…

  1. Establish a body under the Statewide Radio Board to officially sanction public safety broadband planning activities and to represent the State before the FCC, NTIA, Firstnet, and standards bodies including 3GPP.
  2. Develop a Minnesota Public Safety Wireless Broadband Plan based upon its existing planning activities and current research.
  3. Develop applications and data interoperability standards, including standardized SDKs, APIs, and network interfaces as well as media codecs, signaling formats, and container formats.
  4. Execute formal MOUs with potential partners for the public safety broadband network to clearly identify all feasible avenues for alternative financial models for both construction and maintenance of the network.
  5. Expand public safety broadband planning on a regional basis to ensure interoperability with adjacent states and the provinces of Manitoba and Ontario.
  6. Work actively in larger planning and standards-setting with organizations including the FCC Technical Advisory Board, PSCR, NPSTC, 3GPP, and Firstnet to support development of national standards and a national network model that fully support the needs of the state of Minnesota.
  7. Continue requirements research and planning efforts including expansion of its existing financial models, network design, network requirements, and user needs.
  8. In the near term, construct a small public safety wireless broadband pilot network to identify transition and implementation issues specific to Minnesota, collect live user data, and serve as test-bed for innovative end-user applications.
  9. In the long term, facilitate, through whichever means best meet the needs of our public safety community, integration into the national safety broadband network that introduces operational and technological efficiencies and enhances the performance of public safety services in the state of Minnesota to maximize the protection of human health, property, and safety.

Leave a Comment

Posted in Government, MN, Policy, Research

Older Posts »

Categories

Follow

Get every new post delivered to your Inbox.

Join 333 other followers