Minnesota Public Radio recently ran an article that outlines the state of “ultra-fast” broadband in St Paul and Minneapolis. US Internet currently provides ultra-fast broadband in some parts of Minneapolis. CenturyLink promises to offer Gigabit access over the next few years. Comcast already offers Gig access. The article observes that competition breeds better pricing and speeds…

Generally, the more high-speed Internet competitors in a market, the better the speeds and prices available to customers. That’s been the case in Chattanooga, where a community-owned electric utility is installing a fiber network, and Kansas City, where Google is deploying such a system.

Gigabit pricing generally starts at about $70 a month, said David Belson, who studies the broadband landscape for Akamai Technologies, a major Web content delivery firm.

Folks in rural areas are acutely aware of that conundrum. Where there’s no competition – there’s no competition. This is especially true where there is not only no competition – there’s no service or limited services. (The unserved and underserved 20 percent of the state.)

The article offers some suggestions…

At best, no more than 5 percent of Minnesota households have access to fiber networks, estimates Chris Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance.

Mitchell said local governments can increase availability by building fiber networks on their own or in partnership with the private sector, providing financing help, and smoothing the permitting process.

When communities reconstruct streets on a large scale, they can also lay the foundation for future fiber networks. Mitchell wishes St. Paul had been doing that, as the city tore up and rebuilt streets city-wide.

Advice that makes more sense in a metro setting. Because while it’s disruptive to pull fiber anywhere – a real expense comes up when you’re pulling it for 2 homes (or businesses) per square mile.

I found it interesting that US Internet expressed an interest in expanding…

After US Internet wires more of Minneapolis, the company plans to expand in other communities, perhaps by next year, said vice president of technology Travis Carter.

Because I was present for a conversation when the US Internet owner Travis Carter learned about the different in price in serving rural and metro areas…

It started when Travis Carter from US Internet asked “so broadband – are we talking Gig?” Everyone sort of hemmed and hawed and finally said – actually we’re talking 10-20 Mbps up and 5-10 Mbps down. Gulp!

Then providers got down to brass tacks and budgets. Access (Gig) to the backbone in Minneapolis costs a provider 50 cents a month. In Red Wing it’s more like a dollar. In Thief River Falls, it’s $10,000-$20,000 a month. Clearly when wholesale costs vary so much, retail is a different game in remote areas.

Now I suspect that US Internet is thinking St Paul or Wayzata – not Thief River Falls – but it’s fun to think of someone as vocal as Carter bringing is metro sensibilities and expectations to the rural discussion!