Monthly Archives: February 2010

Time to invest in science?

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House Bioscience and Workforce Development Policy and Oversight Division heard about how Minnesota, once a leader in the science industry, is falling behind. According to Session Daily, Dan Mallin, co-chair of the Minnesota Science and Technology Economic Development Project promoted funding the sciences…

Mallin said the state should establish and fund a permanent initiative to help facilitate growth among high-tech industries. In addition, he recommended the state provide tax credits for angel investment, research and development and similar activities.

Looking at a report prepared for DEED, it looks as if Science and Technology folks are recommending an initial appropriation of $500,000,
with subsequent recommended funding levels to be determined, the formation of a Science & Technology Advisory Committee and the following:

Implementation and augmentation of tax credits to induce new investment and job growth

  • Establishment of an “angel” investment tax credit for investors in early-stage
    companies.
  • Expansion of the research and development tax credit.
  • Establishment of a Small Business Investment Program (CAPCO) to induce insurance companies to invest in early-stage companies.

Fund mechanisms that attract and retain science and technology companies and individuals to Minnesota such as funding for incentives to capture new business growth.

However some members of the division are saying now is the wrong time. We simply don’t have the money to invest.

40 percent of Americans don’t have broadband

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The NTIA released a new report yesterday (developed by Northfield, Minnesota-based data and analytics company ID Insight!) that indicates that 40 percent of Americans do not have high-speed Internet access at home.

Ubiquity was a primary goal of the Minnesota Ultra High-Speed Broadband Task Force recommendations. All signs are pointing to it being a top priority for the US National Broadband Plan as well. So this is a shocking number. It’s worse for rural America. While 66 percent of urban households subscribed to broadband in October, that was true for only 54 percent of rural households, the survey found. Lack of access is cited as one issue.

However the survey also indicates (and this will not be surprising to regular readers), “households that do not have broadband, the survey found, 38 percent said they don’t need it or are not interested. Twenty-six percent said it is too expensive. Only 3.6 percent said they do not subscribe because it is not available where they live.”

Also as interesting as the research results – is the demonstration of the impact of the ID Insight’s broadband database, Broadband Scout. Here’s a little info on it:

BroadBand ScoutSM, the first national broadband connectivity and usage database, allows communities to meet broadband usage/availability data-reporting requirements, significantly cut NOFA 2 proposal prep time, and independently verify broadband data collected elsewhere.

Developed by Minnesota-based data and analytics company ID Insight, BroadBand Scout uses a unique analytical survey process of accessing the millions of records in ID Insight’s proprietary databases that were initially assembled to track Internet usage activity. By combining known Internet access information with address-related data, BroadBand Scout allows clients to see accurate, unbiased connectivity and usage at the most granular level. The data is also an effective way for broadband and wireless carriers to cost-effectively target new areas for service expansion and better research competitors. For more information, visit www.IDInsight.com/broadband.asp.  

More on Google Networks

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There’s a lot of scuttlebutt on the proposed Google Network(s). Some communities, such as Duluth/Twin Ports have jumped all over it. In fact they have a rally to support the effort tomorrow (Thursday) from 4-9:00 at the UMD CED Tech Village. Others have been thinking more than doing. Here are what a few folks are saying…

MultiChannel News calls it “an expensive lobbying move”. The network would run into the tens of millions of dollars and with few details presented industry folks are wondering about the earnestness of the Big Gig networks. People are really watching to see what an impact this has on the FCC and the National Broadband Plan. As you may recall they also made some bold moves in 2008 surrounding the broadband 700 Mhz spectrum auction to drive open access. (Yet, Google did not actually buy anything at the spectrum auction.

“The Google plan is short on details, with no information on capital spending, and, in our view, should primarily be seen through the lens of regulatory posturing,” Sanford Bernstein senior analyst Craig Moffett wrote in a research report. “We do not view Google’s announcement as a serious threat to the broadband businesses of either the cable or telecom operators.”

The New York Times said much of the same pointing out that…

But Google’s promise to build the demonstration network is also the latest example of the Internet search company using its money and industry clout to help shape the future of the Internet to its liking.

The Wall Street Journal points out that Google isn’t the first to build an ultra fast network. That’s not a big challenge of big solution …

The real problem is financing fiber networks for rural or underpopulated areas, where the cost can reach $4,000 per connected home, versus $1,400 in a suburban area, estimates Mark Horinko, president of N4Group.com, which builds broadband networks.

It seems as if Google may have already had an impact. Here’s a an excerpt from FCC Chairman Genachowski’s speech at NARUC (National Association of Regulatory Utility Commissioners) today:

“To meet the imperatives of global competitiveness and enduring job creation, we must have broadband networks of such unsurpassed excellence that they will empower American entrepreneurs and innovators to build and expand businesses here in the United States.”

“Our [National Broadband Plan] will set goals for the U.S. to have the world’s largest market of very high-speed broadband users [by 2020]. A “100 Squared” initiative — 100 million households at 100 megabits per second — to unleash American ingenuity and ensure that businesses, large and small, are created here, move here, and stay here.”

“And we should stretch beyond 100 megabits. The U.S. should lead the world in ultra-high-speed broadband testbeds as fast, or faster, than anywhere in the world. In the global race to the top, this will help ensure that America has the infrastructure to host the boldest innovations that can be imagined. Google announced a one gigabit testbed initiative just a few days ago — and we need others to drive competition to invent the future.”

MHTA hopes for MN Legislature

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Kate Rubin, President of the Minnesota High Tech Association, has an article in the most recent Finance and Commerce with an Association Update, asking Are policies to aid high tech industries on their way? Here’s her short list of policies high tech businesses should be watching:

While the 2010 Legislature will have an epic challenge with Minnesota’s enormous $1.2 billion budget deficit, there are other important public-policy issues that are top-of-mind for Minnesota’s technology industries. These include: passage of a 25 percent tax credit for angel investors, funding for key science and technology higher education bonding projects, and implementing the recommendations from the Minnesota High-Speed Broadband Task Force.

The MHTA supports the Task Force recommendations. They also support an angel tax credit and bonding for the Physics and Nanotechnology Center and 20 or more Science, Technology, Engineering and Math projects requested by the Minnesota State Colleges and University System.

Why do farmers need broadband?

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I was struck by comments to a recent Star Tribune article about getting broadband to rural areas. Many of those commenting couldn’t see why access to broadband in a rural area would matter to them – or probably more to the point why they should invest in broadband to rural areas – especially why their tax dollars should be used.

The 10th Nebraska Agriculture Technologies Association Conference held at the end of January seemed to offer some answers. I’ll start with my favorite:

“Can you imagine not meeting the needs of the biggest industry in the state?” Sandra Scofield said of agriculture in Nebraska. “You need to tell urban people why what you do is important to them.”

I know Minnesota isn’t Nebraska (I haven’t been gone that long) but the example and points pulled from the conference in a recent article in the Minnesota Farm Guide are great. Many of us have heard them before – or live them – but if you have a doubting friend you can send them this article. And the presenters offered some good advice that specifically refers to the power of the Nebraska Agriculture Technologies Association – but I think we can read in another association or collaboration.

“It’s going to take a huge amount of money to get where we want to go,” Scofield said. “We belong to an organization. If you’re a member, you need to be talking and telling your story. Not as an individual but as a group. Say it again and again and again. You can’t assume someone else is telling your story.”

Shoemaker added, “One voice is noise but many voices can be heard. If you’re wanting broadband, it’s worth it to go to your telephone company. They’ll carry the message because you are their customers. It’s about money for them and service to you guys. It helps to have an association to work in those roles.”

Minnesota gets bonus for healthcare IT

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The Minneapolis St Paul Business Journal reported some good news for Minnesota’s healthcare industry last week…

The Minnesota Department of Health is receiving $9.6 million to facilitate health information exchange at the state level. Bloomington-based nonprofit Stratis Health will receive $19 million so it can function as a “regional extension center” to aid Minnesota and North Dakota health professionals on adopting the technology.

Meanwhile, the U.S. Labor Department awarded more than $13 million in health IT jobs training grants to three Minnesota community colleges: Northland Community & Technical College, in Thief River Falls and East Grand Forks, $5 million; South Central College, in Faribault and North Mankato, $4.5 million, and Pine Technical College, in Pine City, $4.2 million.

Minnesota broadband bill passed in House hearing

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Apparently the broadband hearing with the House went well on Friday. Rep Johnson introduced the bill and with some amendments; it was passed by his committee. Goals were set as is. Council detailed a bit more than the Senate version but still named by Department of Commerce Commissioner.

The next step will be a full Commerce Committee on Thursday. Then, the Government Ops Committee in the House the following week.

At the House hearing, Rick King, Ultra High-Speed Broadband Task Force Chair led, followed by Commissioner Wilson, and then two other Task Force members, Mary Ellen Wells and JoAnne Johnson. Nearly the same lineup had presented at the Senate, except Craig Taylor replaced Mary Ellen speaking on the healthcare piece.

So we watch and listen for the time that those of us who support the bill will want to call our legislators and let them know how we feel. You can get a few more details from the Session Daily.

MAG-Net National Day of Action for Broadband!

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Thought there’d be some folks on the site who would be able to go – and several more that would be interested in at least knowing about the event. (Thanks to Amalia Deloney for sending on the news.)

Twin Cities Community Gets Up To Speed With High-Speed Internet

02.11.2010 – (Minneapolis, MN) On Monday, Feb. 15, the Minnesota Digital Justice Coalition will host a community forum on the critical role of the Internet in the lives of people living in the Twin Cities.

Who: Mark Ritchie – Minnesota Secretary of State, Minnesota Digital Justice Coalition

What: Community Forum on Importance of the Internet

Where: Brian Coyle Center, 420 15th Ave. S, Minneapolis

When: Monday, Feb. 15, 1 – 2 p.m.

Minnesota Secretary of State, Mark Ritchie, will speak to the importance of the Internet to civic participation. Artists, activists and other community members will share stories of the role of the Internet in their own successes and challenges.

“Housing, education, jobs, government services – our daily lives are increasingly dependent on the Internet,” said Steven Renderos, media justice organizer with Main Street Project. “This dependency puts those with access at an advantage, and communities that are historically
excluded at a disadvantage.”

The forum is sponsored by the Minnesota Digital Justice Coalition, which includes Main Street Project, the Minnesota Center for Neighborhood Organizing, Twin Cities Community Voice Mail and People Escaping Poverty Project (Moorhead). The Coalition is focused on influencing Internet/broadband policy and implementation decisions toward access and inclusivity.

This event is one of many being hosted across the country by members of the Media Action Grassroots Network (MAG-Net) as part of its National Day of Action.

Main Street Project is a grassroots cultural organizing, media justice and economic development initiative working to help rural and urban communities face today’s realities with hope. We provide creative and practical tools to give people of all ages, cultures, economic and immigration status the opportunity to more fully participate in all aspects of community life. Learn more at mainstreetproject.org

The laptops on the bus…

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I think this idea is genius – wifi on the school buses. The story comes from Arizona but it seems like something that could be implemented anywhere. In Vail, Arizona they have attached a mobile router to the bus. Now kids can use the travel time as a study hall, rather than boisterous play time.

Here’s the picture they paint, I must admit it doesn’t sound like any bus ride I tooka s a kid…

On this morning, John O’Connell, a junior at Empire High School here, is pecking feverishly at his MacBook, touching up an essay on World War I for his American history class. Across the aisle, 16-year-old Jennifer Renner e-mails her friend Patrick to meet her at the bus park in half an hour. Kyle Letarte, a sophomore, peers at his screen, awaiting acknowledgment from a teacher that he has just turned in his biology homework, electronically.

Apparently the administrators got the idea from their own travel. When they travel one drives one direction while the other works and vice versa on the way home. They realized that might make sense for the kids too.

MN Senate broadband bill recommended to pass

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Sadly I haven’t been able to find the audio or video archive of the meeting online yet. (Will post when I see it.) But yesterday the Minnesota Senate Committee met and the bill (SF2254) was recommended to pass. Here’s a super summary:

  1. Universal broadband goal – 10-20mbps up / 5-10mbps down and be top 5 in US, and top 15 internationally
  2. Annual reports – reports on progress thus far expects each February
  3. Authority of commernce commissioners – the commissioner may appoint a broadband advisory group

The House has filed a companion bill and will meet this morning to hear both it and the Senate bill. The House version has more detail and instea of saying the commernce comissioner may appoint an advisory committee, the House says comissioner shal appoint and convene.

Duluth going Google?

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So who is one of the first communities to jump onto the Google fiber train? Duluth!

I’ve seen the initiative promoted on the Perfect Duluth Day blog – but it has to start somewhere and comments on the blog seem encouraging. They are asking readers to nominate Duluth on the Google web site. And they point to a Facebook Group set up to promote the movement. Go Duluth go! And what a great idea that I hope other Minnesota communities will follow!)

Business North just ran an article (IT perseveres despite recession) highlightinf the benefits the IT industry has brough to the Arrowhead Region…

Drew Digby, regional labor analyst for the state agency, said the IT sector has helped keep the recessionary unemployment rate in Duluth/Superior below state and national levels. In December 2009, the unemployment rate was 7 percent, below the statewide 7.3 percent average. The IT industry also has a big economic impact. “They are well-paying jobs,” Digby said.

Many of us who attended the Blandin Broadband conference last fall learned more about Digby and the technology culture in Duluth at their pre-conference presentation.

Planning and infrastructure are cited in the Business North as driving forces behind the growing IT industry. Blandin gets a nod for both convening leaders and financial support in the area through its Broadband Initiative. St. Louis County is home to about 85 percent of all Arrowhead IT employment – although Cook and Lake Counties have certainly been planning and working to get infrastructure as well. As the article points out…

However, having broadband access has made an indirect impact, said Iron Range Resources Commissioner Sandy Layman. The state economic development agency she leads has helped with financing for 13 call centers on the Iron Range. “High speed connectivity helped move call centers to the Iron Range,” she said.

I found it interesting that the article seemed to express some concern with rural broadband having an adverse impact on the Duluth Technology Center. When it was built, the idea was that the Tech Center would be a draw for businesses looking to relocate or start up. It turns out that the labor force (good and inexpensive) in the area has been a greater draw – but I think that the Tech Center has provided at least indirect support for the labor force. Given the job rate in the area – something is going right, which really proves the importance of planning and infrastructure.

And once they get the Google deal, it’ll be green lights only for Duluth!

Checkup on ARRA funding

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Thanks to Ann Higgins for sending me an article in USA Today, Stimulus funds for high-speed Internet access tangled up. Some readers will be acutely aware of what’s happening with the funding (or more to the point we’re acutely aware of what’s not happening) with the grants – but for those who aren’t this is a good outline of what’s happened, what hasn’t, what’s predicted to happen and even addresses why. For those living the situation, it’s an interesting read too. The more cynical in the bunch will enjoy the comments.

The article describes the situation in a nutshell:

The goal was to quickly create tens of thousands of jobs and connect millions of poor and rural communities to broadband, a technology that’s essential for economic development, modern medicine and education.

But officials had no idea that the demand for the cash would be so overwhelming. They also were bombarded with questions and challenges from large cable and phone companies including Comcast, Time Warner Cable and AT&T.

The flood of response has led to about 7 percent of the funding being dispersed thus far. Many seem to doubt the agencies (NTIA and RUS) ability to dole out fund before the September 2010 deadline, but the NTIA and RUS maintain they can do it. Craig Settles had a nice line describing the problem…

The effort to spend that money quickly but responsibly is like “trying to use a fire hose with a garden hose nozzle,” says Craig Settles, an independent consultant who helps companies develop broadband strategies. “Getting broadband to the American public is not going to be easy.”

NTIA Administrator Lawrence Strickling admits, “We’re learning as we go.” I hope that means they have more money to spend later and will be able to put these lessons to good use.

Google looking for pilot fiber communities

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Google is putting their money where their mouth is and they’re looking for partners to help pilot some fiber optics networks. Here’s the word:

Google is planning to launch an experiment that we hope will make Internet access better and faster for everyone. We plan to test ultra-high speed broadband networks in one or more trial locations across the country. Our networks will deliver Internet speeds more than 100 times faster than what most Americans have access to today over 1 gigabit per second, fiber-to-the-home connections. We’ll offer service at a competitive price to at least 50,000 and potentially up to 500,000 people.

From now until March 26th, we’re asking interested municipalities to provide us with information about their communities through a Request for information (RFI), which we’ll use to determine where to build our network.

According to Tech Crunch…

Google says it is doing this on an trial basis to promote new killer apps that will take advantage of the faster speeds, experiment with better ways to deploy fiber to the home, and create pressure for more open access to broadband in general.

I’m excited at any effort to build bigger broadband, but in some ways I see similarities between Google building networks and Comcast and NBC building a partnership. It’s not exactly the same but I see some similarities. On the other hand, I am eager to learn about how they will work with the participating local governments. Google has a history of new approaches and public-private partnerships could use some new thinking.

Advice on broadband for Minnesota Legislators

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A couple of weeks ago we invited readers to send comments and advice for legislators who will be looking at broadband issues in the Senate – tomorrow! We wanted to share what we received. If you have any comments, please feel free to post them as a blog comment to add to this list.

Also I just got notice that the House hearing details have been set too:  

  • FRIDAY, February 12, 2010 – 8:30 AM
    Room: 10 State Office Building
    Chair: Rep. Sheldon Johnson
    Agenda: Federal Broadband Stimulus update
    HFXXXX/SF2254 (Johnson) High speed broadband state goals*

Thanks to everyone for their thoughtful comments! Continue reading →

Google on Speeding up the Internet

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Thanks to Tom Garrison for sending me an article from CNN, Google analyst: U.S. Internet needs to get faster. It’s really an interview with Derek Slater, one of Google’s policy analysts. He talks about the importance of broadband in everyone’s home, calling broadband the “dial tone of the 21st century.” He briefly mentions ideas Google has passed on to the FCC to promote both broadband deployment and adoption.

I liked what he said about what we should be doing…

There is no silver bullet there. Instead, it’s going to take encouraging creative solutions. Some of them will come from the public sector, that is, some of them will involve municipalities or governments. Some of them are going to come from the private sector. And some of them are going to be a mix.

The idea isn’t new or exciting, heck I don’t even think it’s easy – but I think it is the essential piece to promote ubiquitous coverage.