Monthly Archives: January 2013

Minnesota Broadband Task Force reports to Senate committee: Jan 30, 2013

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I attended the Senate Committee on Jobs, Agriculture and Rural Development yesterday to hear Margaret Anderson Kelliher, Bill Hoffman and Jack Geller talk about broadband.

The meeting was good and I took full notes and some video, as posted below. I think the smartest part of the meeting was the preparation. Bill Hoffman and Connect Minnesota had sent the Senators maps of their districts showing broadband availability.

You know what wakes up a Senator? Finding out that their district does not meet the state standard speeds – in fact they may only have 20 percent coverage.  That shines a light on the issue and seems to really inspire an interest in learning more.

Bill Hoffman on Connect Minnesota Maps:

History of Connected Nation and Connect Minnesota in Minnesota

  • Assesses broadband availability, access and use
  • Inform policymakers through mapping
  • Partner with groups to expand broadband availability, access and use

The data we collect is passed on to FCC to build the National Broadband Map, www.broadbandmap.gov

About the Maps

Everyone should have received a broadband map of your district

  • Maps will be updated until December 2014
  • We work with Minnesota Office of Broadband

Question – The map shows that we are under 20 percent in Olmsted County, what does this mean?

This map measures households that have broadband at speeds of 10 Mbps down and 6 Mbps up.

Followup – but the map doesn’t include mobile, won’t that make a difference.

Mobile is not yet meeting the speed goals. It may in the future, but it didn’t when we did the last survey.

Followup – what about the speed goal? Is it possible that residents think having mobile is more important than speed?

Some consumers may not want these faster speeds – but the State set the goal of 10/5 Mbps to accommodate for applications such as telehealth, online education… To have that option is important economically and social – even if people don’t take advantage of it.

Question – what about telephone service? People are wrestling with the need for landline vs mobile phone. Do you look at that?

We look at evolution of who is using a mobile device to access broadband. Although we could ask new questions next time around.

Followup – people are looking at this in terms of cost and security. When it’s busy it can be difficult to get the calls though.

Question – does broadband include satellite?

We don’t incorporate satellite because it is by its natute ubiquitous. We look at fixed platforms and mobile.

Question – Your funding runs our December 2014. Will there be funding to continue?

Remains to be seen. We have a federal grant from the NTIA. The NTIA and FCC have made it clear that they want this to continue – but we need the funding. The FCC will make financial decisions based on the maps (CAF) it seems like they will have to find a way to keep the info coming.

Question – One map says Freeborn County has less than 20% access to broadband. Is there a better map that gives us an idea of what tells the true story?

On the website we do have county-level maps. If you don’t see what you need, you can contact us and we’ll try to get it done for you.

We’re at 61.5 percent residents with access as defined by Minnesota

Sneak preview of upcoming report:

Adoption

  • MN 78% adopt (subscribe to home access)
  • National average 66%

Why don’t people adopt

  • 41% relevance
  • 19% Cost
  • 15% don’t know
  • 6% availability
  • 6%

Satisfaction

Folks not as happy with price (below 50%)

Margaret Anderson Kelliher – intro from Task Force

Broadband provides critical infrastructure for businesses and residents.  Access to high speed broadband, we define this broadly. We are technology-neutral. We think broadband is essential.

Mayo Clinic is making an investment in Rochester – but without high speed access across the state, we won’t be able to take advantage of any services. [Ann’s note: more on this story soon.]

Will we be able to reach the state broadband goals?

No! Not without further policy intervention.

We might make the goals with policy but we think it might be reached with partnerships. We have focused on partnerships.

We net 15 times. We learned about a range of broadband use and need.

We organized in groups:

  • How to coordinate across government levels
  • Best practices and incentives for broadband adoption and deployment
  • What is the state of broadband
  • Impact of FCC and PUC/Cost of broadband
  • Mobile wireless broadband
    • We plan to look more at the role of mobile. Currently it doesn’t meet the speed goals. Also there are tasks (such as fill out job application) that are difficult to complete on a smartphone. (A tablet might suffice)
    • Meeting logistics/agenda

We have produced 4 reports:


Recommendations:

  • Proposal: Provide a tax credit or grant to incent broadband providers to build in unserved areas. Coordinate with Connect Minnesota to provide target areas that are underserved or unserved and provide priority for projects that will serve these target areas
  • Proposal: Provide a tax credit or grant to incent broadband providers to build in unserved areas. Coordinate with Connect Minnesota to provide target areas that are underserved or unserved and provide priority for projects that will serve these target areas
  • It seems as if the Governor has mentioned tax proposal that conflicts with this recommendation
  • Proposal: Create a program or mechanism to coordinate rural broadband installation with state and federal programs assisting hospitals, schools, libraries, and public safety facilities with obtaining broadband
  • Proposal: Implement a formal “Dig Once” process to coordinate highway construction and broadband deployment projects
  • Proposal: Develop a Minnesota Fiber Collaboration Database
  • Proposal: Award scholarship dollars for broadband access for students, especially those that meet federal poverty guidelines
  • Proposal: Increase funding to public libraries and schools for computer stations and Internet access
  • Proposal: Establishment of an ongoing, post-Task Force resource within state government for high speed broadband-focused efforts in the future.
    • It would be nice for that office to have modeling capabilities

http://youtu.be/8uUxQsmbYLc
Question – Pawlenty discussed this need 10 years ago. There has been lots of changes in 10 years. Is this speed still adequate? And how does mobile fit this? And Dig Once – don’t’ you think we’ll move away from wired access at some point?

It’s easy to spend a lot of time on this. But the Task Force realized that this is the goal and we need to measure against that goal. But you legislators could decide to lift those speeds. We have discussed how some “broadband” speeds are really too slow to qualify for that broadband definition.

We have looked at satisfaction because there is a balance and satisfaction would speak to a need for improvement.

We see mobile as an important part of access. The providers would say that even if the provider is wireless, at some point the connection needs to be wired to the backbone. In some topography in the state satellite doesn’t work. It’s great until it snows. It’s not reliable.

Question – Governor Dayton has proposed funding the Office of BB Development. How would you collaborate?

Our Task Force has talked about the structure for future Task Forces. We could envision some more statutory designation of a task force commission that might include legislators and/or the governor.

Question – What’s happening in rural Minnesota?

The maps provided will give you a visual answer. For the most part rural Minnesota does lag behind. In some places they have better access – when it’s regional center or economic drivers. The challenge is last mile and last farm. It can be a barrier.

We heard from business owners in rural Minnesota and they talk about this as an issue. We need to talk about uses and importance for businesses. When a business has a website, they do better. It’s a real advantage to be connected and live where you want to live.

Jack Geller – University of Minnesota Crookston

On Residents:

How much do we want to go to reach the final adopters? Have we reached saturation?

We do know that intervention does work. There are things you can do.

Elderly people make up many non-adopters but we’re seeing growth there. Some of the growth is organic. Younger people, tech users, get older. And non-adopters pass away.

We ought to invest more time maximize the broadband they’ve already adopted.

On Businesses:

Rural businesses don’t have websites to the same extent as metro businesses. But for businesses broadband boosts productivity.

  • 72% of all business have a website
  • 58% of rural business have website

On Mobile:

I’m more positive on mobile use in rural areas than previous speakers. People are starting to look at mobile more now.

People are dropping their landlines – 35.8 percent are completely wireless.

People are need to make financial decisions are going mobile.

I agree with Ms Kelliher, I don’t want to fill out a job application on a device. But you can use wireless on desktop/laptop as well.

Wireless is a great equalizer!

Is Mobile Internet enough?

Access everywhere is spotty. I can get good speeds in some places and bad speeds in other places.

On Why MN is falling behind?

We set the State goals 3 years ago. Our ranking as a state has been going down since we put those speeds in place.

We need to act to improve access and adoption.

I don’t have recommendations about what the legislature should do. But the Task Force presented a clear set of recommendations.

Setting out for public-private partnerships with providers is a good approach. The Broadband Development Office is a good first step.

If we really want to be a leader – we need to do something!

Question – can you paint a picture of the future – maybe 10 years from now? Are there applications that are coming up?

I’m not a futurist, but I’m comfortable saying whatever you think we’ll need – you’ll need more. I think everything will come in one big pipe. Many of us are getting hi definition videos now.

Business applications will be one big pipe.

The Blandin Foundation started talking about a Gig going into the home. Now there are multiple communities with Gigabit access. Chattanooga has Gig access. Not only high tech industries need broadband. Realtors need broadband.

Broadband need is ubiquitous.

Question – What will happen with TV? We’ve been looking at Apple TV.

Apple TC is a good example – the only barrier now is do you want to wait an hour to download that movie?

Question – What’s the infrastructure required to get wireless in rural areas?

Most of the wireless network is not wireless at all. We think the signal between the device and the tower BUT that tower is surrounded by fiber. There is significant investment required.

LTE platform is available in metro areas; but not in the rest of rural Minnesota. We’re still on 3G, which is OK but it won’t replace terrestrial platforms.

Wireless won’t solve all of our issues. Security is a big world. No banks will look at wireless but for residential use it will work. At street fairs people can now take payments with wireless devices.

The public private partnerships will help move that faster.

Question – You mention that we’re ranking lower since 2010. What have those doing better done differently?

It seems like other state are putting policies in place – not just setting goals. They are appropriating dollars. Other states are dong lots of different things. Some want to keep ahead and some just want to keep from falling behind.

Slide from Bill Hoffman & Jack Geller

Red Wing Ignite on Gigabit Nation

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The Red Wing community was featured on the Gigabit National Broadband Talk Radio this week. It’s fun to hear about their Ignite project and always fun to see Minnesota communities get a nice nod. You can see the video on the Gigabit Nation site; here’s a description from the site…

Last year, the potential of US Ignite to kickstart a wave of high speed broadband apps generated lots of excitement and anticipation. Red Wing, MN reveals potential transformed into reality with their recent progress report.

Red Wing Port Authority Exec Dir Randy Olson and Division Head of Information Services Laura Blair explain to listeners how to get it right when driving broadband adoption and network financial sustainability. The Port Authority directs several initiatives, including their gig-driven state-of-the-art applications incubator, and the City is a major subscriber on the network.

Though it is the smallest city in the US Ignite program, Red Wing is making pretty big strides. They offer important lessons on marshaling financial and other resources that helps their network soar. Red Wing’s’ accomplishments offer community broadband supporters everywhere a set of guideposts pointing to network success.

FTTH Council Toolkit – roadmap to deploying fiber

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The FTTH Council recently unveiled their new toolkit to support communities seeking better wired broadband. They introduce the toolkit…

The purpose of the FTTH Community Toolkit is to provide communities with a roadmap for the deployment of gigabit broadband over fiber infrastructure.

The collection includes several videos and link to other materials. I think some of the highlights include:

It was fun to see a couple of Blandin Foundation documents as well (which also belong on my highlight list):

I think the toolkit will be valuable for any communities considering a broadband plan.

Minnesota Broadband Task Force Meeting (Jan 2013): Full Notes

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Today I attended the Minnesota Broadband Task Force at the Department of Transportation Building. The main attractions were visits from Representative Sheldon Johnson and Senator Dan Sparks. Margaret Anderson Kelliher had visited with the House committee last week so Representative Johnson was well versed on what the Task Force had done. He voiced an interest in working with the Task Force to introduce legislation. MA Kelliher is scheduled to visit with a Senate committee tomorrow.

The Task Force heard from Margaret Kelly from the Management and Budget Department on Governor Dayton’s proposed budget. She noted that broadband is an economic development tool.

There were updates from a few of the Task Force subcommittees and plans for greater advocacy of their recommendations next month. Continue reading →

East Central Regional Broadband Summit: Feb 28, 2013

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I am planning to attend and will take notes – but if you’re in the region or your region is thinking about better broadband, it would be helpful to attend…

east centralEast Central Regional Broadband Summit: “It’s not just the internet anymore” – See Agenda

Aitkin, Carlton, Kanabec, Mille Lacs, and Pine Counties

Sponsored by the Blandin Foundation and the Initiative Foundation

February 28, 2013 – Grand Casino Hinckley
Starting at 9:00 AM; lunch will be provided

Why should you attend?
Broadband affects all of us, whether in business, a school, another government sector or as a resident; we are all connected in many ways. Attendees at this summit will learn about what is currently being done in the broadband field, both locally and statewide, with the Broadband Task Force. You will also hear from local businesses, educational representatives, and others about the issues they face in using broadband services in our region. Most of the day will be spent gathering your input about the challenges you face in relation to broadband and the direction broadband should move in our region. This increased connectivity will assist businesses, schools, governments and residents in their day to day lives. Working together and building a coalition on broadband issues is a desired outcome, with this event providing networking opportunities. This event is an opportunity to leverage existing infrastructure for collaboration around business and economic development, education, health care, and government for operational efficiencies and innovation.

Our first speakers include Bernadine Joselyn, member of the State Broadband Task Force as well as the Blandin Foundation, and Bill Hoffman from Connect Minnesota. These speakers will provide an overview of state broadband goals and of some of the programs and resources available to help ensure that the benefits of digital communication networks are available to all rural Minnesota residents and businesses.
Next there will be a panel discussion with several local broadband providers including CenturyLink, Frontier Communications, Midcontinent and Savage Communications. Following the panel, several local speakers will provide their local perspectives on why broadband is important to us in our region. These speakers include Keith Thelen, reviewing the Kanabec Broadband Initiative Feasibility Study Report; Wayne Gilman, Pine City Schools Superintendent, speaking about the impacts on education and Doyle Jelsing, President Peoples National Bank, Mora & Aitkin, speaking about the impact to his business.

Following the presentations, we will be gathering input in breakout sessions by asking you the following types of questions: How well does our network support current technology use? What are the trends in our sector that will change our technology needs, and are we prepared for these changes? What might we do together that we cannot do alone? Our lunch speaker will be Margaret Anderson Kelliher. In addition, during lunch, feedback received in the morning session will be reviewed. After lunch, another round of discussions will take place, gathering your input to be used n answering the following questions: What are the opportunities and/or barriers that we are trying to address? What is the long term goal in our region? What are the next steps in moving forward towards that goal? Who is willing to lead?

To attend the Summit, please register online at http://www.kanabecbroadband.org/ecsummit/ .  The $10 registration fee will be refundable upon attendance.   For more information on registration please contact Jenny Gilman from ECMECC at 320-396-5213 or jgilman@ecmecc.org.   This event is sponsored by the Blandin Foundation, and the Initiative Foundation.  Registration is limited to the first 150 participants.  The registration deadline is February 14, 2013.

If you would like more information about the event, please contact:
Bill Coleman at bill@communitytechnologyadvisors.com or
Roxy Traxler at roxy.traxler@co.mille-lacs.mn.us

PCs for People Affiliate in Willmar

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I’m a fan of PCs for People. They refurbish used computers and get them into the hands of folks who need them. The West Central Tribune recently ran an article on the PCs for People affiliate in Willmar. There are several branches or extensions of PCs for People in Minnesota, the partnership is Willmar is a little different in that PCs for People is working through a local computer dealers…

KandiComp of Willmar doesn’t plan to get rich working with PCs for People, a nonprofit that provides free refurbished computers to low-income families.

While the company is a for-profit business, its partnership with the nonprofit PCs for People is an important aspect of their effort, said Roy Stiff, KandiComp owner and a former United Methodist pastor.

When he and his wife Beth started KandiComp nine years ago, he knew he didn’t want to be just a business man.

“We built this to be a ministry extension, to help people receive computer technology at a price they can afford,” he said.

The partnership with PCs for People and KandiComp began through a MIRC grant.  The Kandiyohi County & Willmar Economic Development Commission (EDC) became the Demonstration Community that administered their local grant during the two year period.  They are planning a big computer giveaway on February 1, 2013. They will be distributing 100 computers.

This distribution of computers will diminish their inventory, so  KandiComp and Kandiyohi County & Willmar EDC asking folks in the area to consider donating any used computers company to the PCs for People program. (For more information about donating a computer to PCs for People or volunteering with the organization, call KandiComp at 235-2701 and ask for Robert.)

Minnesota Broadband Task Force at the Senate

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I will be in town and plan to attend the following. I will try to take notes…

Committee on Jobs, Agriculture and Rural Development
Chair: Sen. Dan Sparks
Wednesday, January 30, 2013
03:00 PM
Room 112 Capitol

Agenda:

Overview of the Connect Minnesota Project – William Hoffman, Connect MN, Senior Program Manager

Governor’s Task Force on Broadband, Report and Recommendations – Margaret Anderson Kelliher, Governor’s Task Force on Broadband, Chair

MHTA Session Preview: Tech, Innovation and Life Science Industries

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Sadly I will be out of town but I think this could be a very interesting meeting…

Join us for a discussion with our legislative leaders on the upcoming issues impacting the tech, innovation and life sciences sectors. This event is presented jointly by the Minnesota High Tech Association and LifeScience Alley.

EVENT DETAILS
Tuesday, February 5, 2013
4:30 – 7:00pm Program will begin promptly at 6:00 pm

Science Museum of Minnesota
Discovery Hall
20 Kellogg Boulevard West
Saint Paul, MN 55102

REGISTRATION FEE: $15

Register Online Here

AGENDA
WELCOME & INTRODUCTION
Margaret Anderson Kelliher, President & CEO,
MHTA Dale Wahlstrom, President & CEO, LifeScience Alley

PANEL DISCUSSION – Session Preview: Tech, Innovation & LifeScience Industries
Speaker of the House Paul Thissen
Senate Majority Leader Tom Bakk
Senate Minority Leader David Hann
House Minority Leader Kurt Daudt

Blandin Broadband Communities Launch

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BBC group picLast week the Blandin Broadband Communities (BBCs) met for a two-day kick off meeting in Grand Rapids. It was pretty exciting to have so many community leaders from across Minnesota with a shared passion for broadband.

Each community has a different set of assets, challenges and goals – but we saw a lot of overlap too.

All of the communities had uneven access to broadband; for most that meant decent to good access in town and slower speeds on the outskirts. Almost every community had one sector that was doing well with broadband – often the school, health care or local government. And everyone had residents on the far side of the digital divide.

We heard from potential statewide partners who had tools to help each community close the gaps or build up strengths. We heard from past MIRC (Minnesota Intelligent Rural Communities) leaders about what worked and what didn’t in their communities. To a person each commented that people and passion really drove success.

My favorite part of the retreat was hearing from each community about what in their community makes them proud. I wanted to share this list – partially as an introduction to the new BBCs but also to encourage other communities to start their broadband plans my thinking about their strengths and how broadband can make them stronger!

BBC MapFond du Lac Band of Ojibwe

  • Strong cultural identity
  • Self-determination
  • Economic success
  • Strong family connections
  • Innovative

Itasca County

  • Outdoor beauty and activities
  • Growing arts and culture
  • Positive leaders and involved community
  • Young professionals returning
  • Higher ed opportunities

Kanabec County

  • Strong sense of cultural heritage
  • Strong values
  • Classic series: ski, bike, canoe and run Access to quality health care
  • Numerous outdoor recreational opportunities

Lac qui Parle Valley

  • Strong sense of community
  • Shared forward thinking leadership
  • Good basic infrastructure to succeed
  • Diverse local partner
  •  Family-centered

Lake County

  • Fiber network
  • Bucket list destination place
  • Beautiful natural resources
  • Recreation
  • Good schools

Lake of the Woods County

  • People
  • Diverse economy
  • Education – great schools
  • Health care – new hospital, clinic, lab all integrated MBO

Mille Lacs County

  • Working together
  • ARMER/Technology Updates
  • Opportunity for Growth
  • Community Involvement
  • Education readiness

Southwest Minnesota

  • Cooperation
  • Renewable energy
  • Great economy
  • Available fiber
  • Strong farm economy

Email Privacy Rules for State

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I’ve been listening to a lot of Legislative meetings lately. In this weather one of the things I really appreciate about broadband is the ability to listen to these from the comfort of my own home on my own time, rather having to head to sessions at a set time. Also a recorded session lets me fast forward past the parts that aren’t interesting to me.

Yesterday I listened to Representative Freiberg discuss changing the privacy setting for email addresses submitting to the State for update – such as snow emergency updates.

Here’s the basic info:

HF20 – Personal contact information classified except where disclosure is specifically authorized by law.  – Authors: Freiberg, Laine; Schoen; Isaacson; Uglem; Nelson

And notes on the sessions:

Bill addresses privacy when residents give email address to get updated from government agencies. So residents who give their email address – say to get updated on snow emergencies – can assume that their addresses will not be shared.

The Chairs lays the bill over.

Folks testify: It protects email addresses and phone but not USPS address because that info is available in so many other ways. There was discussion about making this info via website as well. And there was discussion about how to counter the fact that the government might send out info that someone might not like and that person would not have a means to express their displeasure in the same way.

Minnesota Broadband Task Force meeting with Legislators

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I just finished listening to the session where Margaret Anderson Kelliher spoke about the Minnesota Broadband Task Force to the House. Here’s info on the meeting:

Labor, Workplace and Regulated Industries
Wednesday, January 23, 2013
Listen Now or Download MP3
Agenda: Overview and Update from the Minnesota High Tech Association on the Minnesota Task Force Broadband report

And my notes on the session:

The Task Force is composed of a wide range of folks – business philanthropic, education, health care… We met 14 times since established in Nov 2011. We have produced 4 reports. Connect Minnesota has been an important partner; they are responsible for broadband mapping.

Our work has been built upon the work for past broadband task forces. There is a state statute for having border to border broadband – established in 2010. We strive to offer recommendations for meeting that goal. We have work to do.

Broadband is a significant issue in terms of how Minnesotans will work, learn and live. Those with high speed Internet (wired or wireless) have greater success. We have companies that would like to live in Minnesota but can’t unless they get better broadband. Digikey is one example.

State goal is download 10 Mbps and upload 6 [sic] Mbps. We have troubles with the upload speed. We get 3 Mbps in many places but not 6. [Note: the goal is actually 5 Mbps up – but the mapping shows 6.]

Right now (Oct 2012) 61.6 percent of Minnesota meet the 10/6 goal.

Without intervention we will not reach that goal. We have been focusing on adoption too – as more people have access than choose to adopt broadband. And adoption drive access. And adoption is a barrier to many activities, such as applying for a job. People can access computers and broadband at the library but there are time limitations. It seems as if adoption spread across several possible State interests.

We also added a section on mobile access. There is a digital divide – but the divide erases at adoption of mobile computing. Hispanic/Latino Minnesotans are faster adopters of mobile. But can you apply for a job on a smartphone?

We have some recommendations for action:

There’s a need for a home for this issue – so we suggest an Office of Broadband. It would be nice to have someone looking for federal funding and FirstNet. We have had great support – but we don’t’ have the ability to model out the impact of potential policies. It would be nice to do that

  • Provide tax credit to providers to encourage them to reach unserved areas
  • Tax exemption on fiber
  • Coordination of Dig Once
    • Model legislation (fiber collection database in California) (AZ allows locals to lay down conduit – and pushes information to transportation)

Questions

What are barriers? Seems like cost is an issue.

The Task Force has created a site (whybroadband.com) that helps promote broadband in rural areas. Also Comcast & CenturyLink offer reduced rate options. It would be nice to see a scholarship program where maybe students could earn vouchers/credits for broadband. We talked about more funding for libraries but in cash strapped times that seemed unrealistic.

What does the data show?

The maps show the access across the state. We’re at 61 percent of MN accessing at speed goals. In 18 months that’s gone up 5.2 percent. Adoption rates has grown by 5.9 percent from 2012 to 2012 – although that’s overall use not based on speeds.

Are people asking for access or are we asking them? We pay more for real estate tax in the metro areas than rural areas.

The rub is understanding the economics of getting the infrastructure to rural areas. It costs less than $4000 to a house in a suburban area – but when you get to rural areas the cost rises significantly to $10-12,000 per house. People may want to subscribe but those costs are prohibitively high. We need to care about it if we want to deliver education through broadband. We need to care if we want to deliver health care online. While the broadband costs money it can be reduced costs in other areas – such as cost of health care services.

Have we talked about satellite or are you strictly broadband? 100 years ago phone lines were but in and now they’re obsolete? What are third world countries doing?

The Task Force is neutral on technology. One of our members provides wireless broadband. However at some level there needs to be a connection so the service can get out. Satellite has drawbacks. The issue is that it’s weather sensitive, which leads to real time issues. We try to think broadly but having infrastructure in the ground helps – kind of like the highways.

What about economic advantage of broadband in rural areas? Do you have plans to teach people how to conduct business online? (around minute 50)

It’s an important point – and it gets at adoption. If people don’t know how to use technology, they will be less effective. We are all for free enterprise. There are things happening. Private providers have offered training – such as Google. But there may be a need to talk about this in economic development sector. It could be a webinar to help people navigate.

The phone lines aren’t obsolete – we get broadband over them in my district. Can we get more info on AZ project? (Pg 31 of report speaks to this)

In AZ the State can install conduit – but it might be nice to have providers installing too.

What about employment opportunities? Is there a demand for business to relocate in rural areas?

Broadband helps a business develop organically. Businesses looking to relocate insist on broadband. The vision is that people could be anywhere doing their work. We see countries that have made aggressive investment in infrastructure to give their countries a boost. And we compete with them. Broadband is a great equalizer!

What about broadband over power lines? Most of us have electric?

I’ll need to study. We hadn’t talked about broadband over power lines. But as far as tech advancement – it happens quickly. There will be new ideas/players and that is part of why we are tech neutral. By 2015, without intervention and attention we will not make that goal.

For example, wireless has only been brought up in this last report.

Representatives in my city are concerned that we aren’t meeting the goals. Speed and access mean jobs. The fact that we’re on top 10 is a major concern.

Have you done modeling on ROI?

That gets to the issue of needing an office of broadband. The companies are doing it when planning their deployment. This has been so helpful in health care industry.

In telecom, how does federal work mesh with what state is doing?

We see this as an emerging area. We need to be more involved. We recently testified with PUC. We’re monitoring the federal policies. We need closer monitoring. We want to talk about the fact that this needs to be a partnership – not all on the shoulders of the states – such as with FirstNet. It’s a big deal for public safety and will bring in a  lot of dark fiber.

The government is looking at adding computer services to list of new sales tax target. Will that have an impact?

The MHTA is looking at this. We don’t have an opinion on this issue yet but we will.

Copyright Policing – the six strike rule & impact on public Wi-Fi

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I haven’t been following the copyright alert system closely – but it sounds like monitoring is coming soon so I thought I’d catch up and share what I learn. First here’s a good quick definition of copyright alert system from Wikipedia…

The copyright alert system, also known as the six strikes program[1], is a graduated response framework agreed upon by participating ISPs and Intellectual property organizations in which a third-party will monitor file-sharing networks, collect the IP addresses of suspected copyright infringement, and submit the IP addresses to ISPs who will in turn issue the suspected infringer a copyright alert.[2] Those suspected of copyright infringement may be issued six copyright alerts, one for each subsequent infringement.[3] Consumers who fail to respond to the alerts may have their connection throttled, though their account may not be terminated.[4]

TorrentFreak reports that providers will start rolling out their six strike plans in the coming weeks…

During the coming weeks the controversial “six-strikes” anti-piracy system will start in the U.S. The initiative is aimed at educating the public, but last week we uncovered from leaked documents that it also applies to businesses. Today CCI director Jill Lesser confirms that indeed some business accounts will be affected. However, she adds that this is not going to affect café owners who offer public WiFi, as this is already prohibited in the applicable Terms of Services.

TorrentFreak reveals details on Verizon’s six strike plan…

In short, the Internet provider will notify customers whose accounts are caught sharing pirated movies and music, and after four warnings these account will be temporarily throttled to 256kbps.

It sounds like some providers will redirect users to educational pages where they can get a primer on copyright. Some of been skeptical of that info…

The National Cable & Telecommunications Association has stated that the framework will serve to “educate consumers” and “reduce online content theft”.[5]

The framework has been the subject of criticism concerning its effectiveness and possible privacy violations.[6] The Electronic Frontier Foundation has also claimed that the materials used to “educate consumers” are “more like propaganda,” and that the framework violates the principle of presumption of innocence.[7]

So who is in danger? TorrentFreak spoke to the Center for Copyright Information…

“The Copyright Alert System is targeted to residential customers, and the vast majority of alerts issued will be residential. There is a small pool of home office or home-business customers that may end up in the copyright alert system due to infrastructures in place at the member ISPs,” Lesser said.

And apparently coffee shops are already violating their contracts with providers by sharing WiFi with the public – so the copyright isn’t the issue there. After some looking I did find the clause in the Verizon contract that addresses hotspots…

For example, you may not provide Internet access to third parties through a wired or wireless connection or use the Service to facilitate public Internet access (such as through a Wi-Fi hotspot).

I’m not sure how many coffee shops are aware of this clause or if they have arranged some special dispensation. I suspect it’s been too difficult for Verizon and others to monitor given the potential return on investment of any efforts (lose the customer, turn them off, potential bad publicity from coffee shop clients?), however having a third party monitor use may bring to light some of those shared connections that have been flying under the radar. Folks are concerned about the potential impact on users of free public Wi-Fi.

It will be interesting to see how the issue of public hotspots plays out. But to be fair, it’s not a copyright issue – but perhaps an unintended consequence of third party monitoring. It may be that the Verizons of the world work with coffee shops on a new breed of branded hotspot opportunities. (They already work with a range of places to provide free hotspot access to Verizon customers. I see more of this in Europe than in Minnesota. It’s a great deal when your local coffee shop works with your provider; not as great when there’s a conflict.)

Minnesota PUC describes itself to Legislators

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I have been trying to keep up with what’s happening with the Legislature. So last night I listened to the Overview and Update from the Minnesota Public Utilities Commission – a recording from a meeting held earlier in the day. (You can listen online.) I thought I’d share notes. Depending on your background, it’s interesting to hear about what the PUC does, about how that has changed, the challenges and it’s always interesting to hear the questions from the Legislators. Below are my notes from the meeting – I only took notes related to telecom and broadband…

(starts about minute 9-13) Telecom regulation has changed. Telecom Act of 1996 moved towards less regulation. That approach has been followed with most states. Mostly we insure competitive markets in Minnesota and make sure services are highest quality possible.

The authority is focused on local landline companies such as CenturyLink and smaller independent companies. Most have adopted AFORs that allows for greater pricing flexibility in trade for some restrictions. CLECs and IECs operate in MN. We don’t regulate cellular, satellite, paging, public phones, phones in hotels, ISPs, cable, VoIP.

Questions

What are telecom and cable companies treated differently?

It’s a policy choice that state’s make. Some states do have PUC regulate both. It really has to do with how the industry has evolved and technology has changed. Cable came from entertainment and services that weren’t traditionally regulated – but the transmission and content have merged.

Question on Telecom Act of 1996?

Big change was federal Act of 1996. It moved telecom away from tradition regulation to greater reliance on market. There were concerns on dominant, incumbent companies and allowing CLECs to function. We’re still dealing with costs. Most states had their own policy that followed suit. It provides flexibility such as AFOR – and re-categorization of services to increase competition. The technology had changes so there was greater opportunity. The monopoly model no longer worked as well – other could provide service in a cost effective way.

Challenges (starts around min 30)–

Telecom medium doesn’t matter to end customer. We are concerned with inter-relationship of systems. In a competitive market – sometimes the relationship gets strained when providers do not want to adhere to payment schemes. Certain calls are more expensive. We want to make sure there is fair pricing and that consumers can place calls in non-discriminatory fashion. Dropped calls are a concern. Interconnection is a concern – all of the systems must interconnect. We need a mechanism to make sure that happens. We want consumers to have choice and affordability.

In Minnesota telephone has been regulated since 1915. We are seeing landline use drop off – yet there is an infrastructure investment there that needs to be maintained for the system to work. There are public safety concerns. Landlines are reliable even in storms. How do we maintain that? We make evidence-based decisions. Who will represent all technologies and consumers?

We also focus on growing demand for broadband. People need high speed reliable broadband across the state.

There was a decision when cable companies merged content and transport. We look at how this has an impact on consumers.

More questions

Is it the role of the PUC to insure Universal Access throughout the state?

It is part of our role. We administer a program that support low incomes users and there’s a program that supports access to broadband for low income households.

Do you have concerns with deregulation and balance of universal service?

Yes. It’s a challenge to landline companies and the requirement to being access of last resort.

Who (if not the PUC) is regulating broadband (deployment and adoption)?

There is no regulation per se. The provision is made my private investment. The recent announcement of a public-private initiative is an attempt to move things along in that regard.

What percentage of PUC work is telecom focused?

The majority of filings we get our telecom related. Time spent on cases is mostly energy. We have made some changes. Telecom is about 30 percent of time spent at PUC.

Even when I get a wireless call – that call will go through wires. We need to recognize that the landlines support phone system – wired and wireless. Folks who pay subsidies to support wires get annoyed but it is essential infrastructure and needs to be maintained. At this point we don’t have good answers. We can’t let the copper wires get tossed out. The federal government has decided that the internet is not communication and subject to state regulation.

In rural areas the coops are being asked to foot these bills. We need to preserve coops in Greater Minnesota.

Susan Crawford has a broadband solution. Is Minnesota ready for it?

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I had the pleasure of seeing Susan Crawford speak in Dublin last summer. What I liked then is what I like now – she has a sense of urgency and she has a vision. She has an Op-Ed piece in the Ney York Times today – How to Get American Online.

She defines the problem…

At the heart of the problem lie a few powerful companies with enormous influence over policy making. Both the wireless and wired markets for high-speed Internet access have become heavily concentrated, and neither is subject to substantial competition nor oversight. Companies like Time Warner Cable routinely get their way when they seek to prevent local officials from encouraging competition. At the federal level, Verizon Wireless is keeping the F.C.C. in court arguing over the scope of its regulatory powers — a move that has undermined the agency’s authority.

She defines the symptom…

As a result, prices are too high and speeds too slow. A third of Americans opt not to buy high-speed Internet access at home, often because they can’t afford it

She presents a solution in three parts…

We need reasonably priced, globally competitive, ubiquitous communications infrastructure so that Americans can compete and innovate.

To get there, the federal government needs to pursue three goals. First, it must remove barriers to investment in local fiber networks. …

Second, the F.C.C. must make reasonably priced high-speed access available to everyone. …

Finally, the F.C.C. must foster more competition by changing the rules that keep the status quo in place.

This week I met with a business debating about what to do with their online presence. They had an almost adequate website but some people said they liked it. So in their minds the site was working; therefore they decided to put off any decisions about upgrades. But they are missing opportunities and as their competitors get (better) websites, their business is getting leapfrogged. The decision not to decide has hurt them. I feel like Minnesota is in the same boat. We’re looking at our almost adequate broadband system and we think it’s working so we’re putting off decisions to make it better.

In Minnesota this means we look at almost adequate stats (4 Mbps down/ 1Mpbs up) to measure our progress. (As I saw CenturyLink do at the MHTA meeting last week to say 96 percent of MN had access to broadband.) We look at average cost of broadband ($600/year) in Minnesota when we should be looking at worst case scenario pricing ($1000 a year for almost adequate access) for policy decisions. As Jack Geller has pointed out – we’re beyond focusing on getting average citizens online; we need to get to the hard core non-adopters.

We need to recognize that there’s a problem, as the Post Bulletin recently did, reporting that only 20 percent of Olmsted and Winona counties have access to broadband as defined by the state (10 Mbps down/5Mbps up). We need to recognize the urgency as Susan Crawford does – and then I think we can seriously look at some of the solutions.

 

Mobile Revolution in Minnesota – is it enough for entrepreneurs?

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The Duluth News Tribune this week ran an article promoting wireless access in Minnesota…

This month at the annual Consumer Electronics Show in Las Vegas, once again, mobile innovation took center stage as we marveled at the latest gadgets and apps changing our lives. Yet some of the most profound mobile-fueled transformation is happening in Minnesota, far from “Sin City,” thanks in no small part to the wireless revolution. There has never been a better time to live and work in rural America.

The author, Diane Smith, also presented at the November Minnesota Broadband Task Force; you can see her presentation on wireless on the earlier post about that meeting. She is an entrepreneur from Montana and is on the board of MobileFuture.

She makes the case that local businesses can be managed from wireless connections…

Wireless technologies allow Americans to create jobs from ideas that can strike at any time. With 1.3 million Minnesotans using their wireless devices to access the Internet, local entrepreneurs can manage their businesses and act on creative inspirations without delay from the palms of their hands.

And that wireless is reaching remote areas…

We are preparing to compete with the world in the connected future. Wireless providers are building advanced networks that connect even the most remote communities. Over the past 10 years, these companies have invested more than $23 billion annually in U.S. mobile infrastructure. Today there are nearly 300,000 cell towers, up 11 percent over 2011. Not to mention the leap from 600 cell sites just 17 years ago.

I’ve said in the past, I think wireless is definitely an integral part of providing better broadband to all areas in Minnesota – but I have to admit that I would have a difficult time running my business from a wireless connection exclusively. First, I’ve been known to hit data caps in a matter of hours. (I upgraded my MiFi subscription twice during the Broadband conference in Duluth because as I reached new data caps. Luckily I happened to reach the end of a payment period during the last day of the conference. So I could start anew.) And the idea of running my business from my palm, which I assume means a smartphone is also difficult. Heck it would take me twice as long to type out this blog post on my phone as on my laptop.

Now there are times wireless saves my business life – being able to get online while in the car (not driving) allows me to literally work on the road, wireless at the swim meet means I see the five minutes my kid is in the water and get work done the other three hours of the meet, scanning receipts with my phone saves time and hassles. So again I get that wireless is integral to the solution – but will wireless alone prepare us to compete to the connected future?