Monthly Archives: May 2015

Infrastructure alone won’t close the digital divide in rural areas

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The Daily Yonder just posted a study on the digital divide – specifically what’s the cause and what sort of policies might help reduce the divide. Access is a problem but adoption is a bigger problem, especially in rural areas…

We first used Current Population Survey (CPS) data to document that the urban-rural broadband adoption gap was 13 percentage points in 2003 versus 12 percentage points in 2011. In other words, the gap remained almost unchanged even though there was a significant increase in household broadband adoption rates in both urban and rural households between 2003 and 2011.

They looked at characteristics of non-adopters and cross referenced them with rural versus urban. It turns out that even after accounting for age, education and income, 10 percent of the gap applies only to rural.

The reasons non-adopters gave for not using broadband is what we’ve heard before – the forerunner answer – there was no need.

non-adopters rural v urban

Then they looked at how policymakers are trying to address the gap. Primarily they are supporting deployment of broadband – and the authors were quick to note that deployment is important – but so is adoption…

As more and more crucial activities are being conducted online (children’s homework, searching for and applying for jobs, etc.), federal and state broadband policies should concentrate in increasing rural adoption rates targeting specific demographics with digital literacy efforts.  There is already some good work being done in these areas across the country (a nice summary of some early demand-oriented programs can be found here) and we argue that more federal funds should be used to support this type of work.  It is important to note, however, that funds should also be used to evaluate which types of programs actually work.   A preliminary study on the adoption-oriented ARRA funds (referenced in Figure 1) shows that they did not have a meaningful impact on increasing local broadband adoption rates.

An increasing body of evidence is showing that it is the adoption of broadband (and not simply the provision of infrastructure) that is responsible for improved economic outcomes in rural areas.  Refocusing national broadband programs to emphasize this adoption component is the next logical step.

I’ll add a quick note from lessons learned with Blandin Foundation’s ARRA-funded Minnesota Intelligent Rural Communities (MIRC) program. The program supported broadband adoption initiatives in various communities around Minnesota and at the end of the project, Jack Geller researched the impact on broadband adoption rates. Here is what he found…

With these caveats in mind, at the beginning of 2012 we estimated that broadband adoption increased 7.4 percent in the MIRC communities, while the rest of rural MN increased by 5.7 percent.

… Well doesn’t seem like much of a difference!

While this difference may seem quite modest at first glance, it is important to recognize that this means the pace of broadband adoption in the MIRC communities is actually 29.8% faster than in the rest of rural Minnesota.

 

Broadband as a political tool in Minnesota: A springboard to working better together

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The Grand Forks Herald recently ran an interesting take on broadband as a political tool to help “build consensus by meeting rural needs.”

The premise of the editorial is that broadband can help smooth the politics, build trust and be a springboard to greater political cooperation…

Come to terms on the two big issues affecting rural Minnesota. Because getting to “yes” not only would put rural Minnesotans in a good mood, but also would build trust among the party leaders, and oil the negotiating gears.

And here’s specifically what they say about broadband…

House and Senate leaders should take advantage of Minnesota’s budget surplus, fund this vital program generously and move on.

▇ And here’s a place they can move on to: making sure rural Minnesotans have broadband access, exactly as metro-area residents have grown accustomed to.

Businesses run on broadband Internet connections these days—and iPhone- and iPad-toting Americans do as well.

But as happened in the 1920s, when electricity kept lighting up more and more American cities, small towns lag far behind. “In 1934, less than 11 percent of U.S. farms had electricity,” as Wikipedia recounts. Enter rural electrification: “By 1942, nearly 50 percent of U.S. farms had electricity, and by 1952, almost all US farms had electricity.”

Rural areas’ access to broadband can and should undergo the same transition. Democrats and Republicans in St. Paul should resolve to make that happen—and in doing so, they could set the stage for broader agreements, restoring Minnesotans’ trust in government and avoiding the shutdown that residents dread

The broadband have-nots in Virginia Minnesota: find them at the library

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In the first of a two-part series, Northland News tells the story of broadband need in their area in part by telling the story of a woman who runs her business out of the library because she can’t get adequate broadband at home.

Whitney Crettol works out of the library. She has a 4G hotspot, but uses is judiciously. (I assume because of data caps although the story didn’t say.) She also has two students at home who have each received an iPad at school, which they can’t really use at home or at least can’t get online.

This is what life is like for someone who lives 15 miles outside of Virginia. The story goes on to cite an number of reports and resources, many found in the 2015 Minnesota Broadband Task Force report… (Given many readers will know that report well, I found the first hand story even more compelling.)

She isn’t alone.

In a 2014 report, the Governor’s Task Force on Broadband found nearly 37 percent of rural Minnesota homes are underserved by state-set broadband standards.

Many lawmakers in St. Paul agree: broadband access for those areas is critical for business, especially if the state hopes to meets it goal of being in the top five states for broadband access.

“Minnesota wants to be a leader in certain areas, and this is certainly one of those areas,” said Rep. Erik Simonson (DFL-Duluth).

In 2014 the legislature approved $20 million dollars for 17 broadband projects in 83 Minnesota communities.

“In order to build out Minnesota, on kind of a border-to-border range if you will, is about one to three billion dollar initiative,” Simonson said. “That certainly shouldn’t be all government money, but the Government can certainly take a place in promoting economic development, because you do get a pretty significant return on those investments.”

In fact, a 2014 study found that a one percent increase in broadband adoption could result in 8,307 jobs saved or created and a $517 million growth in the economy. 

Senator Klobuchar leads effort to ask FCC to modernize support for rural broadband

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According to Senator Klobuchar’s website…

U.S. Senator Amy Klobuchar (D-MN) and John Thune (R-SD) led a bipartisan coalition of sixty-one senators calling on the Federal Communications Commission (FCC) to modernize rules intended to ensure that Americans in rural areas have access to affordable broadband services. … Senator Al Franken (D-MN) was one of the signatories of the letter to the FCC.

Here is the text of the letter they sent…

Dear Chairman Wheeler:

On May 6, 2014, 44 Senators signed a bipartisan letter calling on the Federal Communications Commission (FCC) to move forward on tailored modifications to modernize the federal Universal Service Fund (USF) as it supports the delivery of communications services to consumers in high-cost portions of the United States served by small, rural rate-of-return-regulated local exchange carriers. While we commend the FCC for its continuing efforts to implement a Connect America Fund for consumers in areas served by larger carriers, we are troubled that the FCC has yet to take meaningful steps to address one of the most problematic aspects of the existing USF rules in areas served by smaller carriers.

As you know, Americans are increasingly “cutting the cord” and dropping their traditional landline voice “plain old telephone service” (POTS) in favor of wireless or voice over Internet Protocol (VoIP) service. Many of these consumers, however, still desire fixed broadband services that offer robust speeds – in fact, fixed broadband services are necessary for consumers to make effective use of VoIP service.

Unfortunately, the FCC’s USF rules have not kept pace with changing technology and shifting consumer preference. Instead, out-of-date rules tie high-cost USF cost recovery for small rural carriers to a consumer’s actual purchase of voice service, even if the consumer no longer wants that service and only wants broadband service. The POTS requirement prevents rural consumers from making choices that are available to their urban counterparts. Ironically, these outdated rules may hurt lower-income rural consumers the most, possibly putting the price of broadband out of reach unless those consumers make the additional expenditures to buy POTS as well.

A year after the previous letter, the time has come to take common-sense steps to update the rules. While long-term options to modify USF support can and should be explored, as you’ve committed to doing via the Connect America Fund Further Notice of Proposed Rulemaking, the FCC must not leave consumers in the lurch given the substantial time needed to develop, evaluate, and implement such options. No new models or sweeping changes are needed to adopt and implement a targeted update to fix the issue highlighted in this and last year’s letters – instead a simple plan that isolates and solves this specific issue is all that is needed right now. In addition, we continue to support measures that ensure USF distributions are invested prudently and reasonably, which helps provide the credibility necessary for the FCC to fulfill its statutory mandate.

Small rural carriers have worked hard to provide innovative services to some of the most difficult-to-serve parts of our country. However, without the update to the USF support rules described in this letter and in the letter last year, many rural consumers will continue to be denied a choice among these innovative services. As the FCC continues to modernize USF to support broadband deployment, we must ensure rural consumers are not left behind by antiquated rules that inhibit investment, adoption, and consumer choice. We therefore renew our call for the FCC to expeditiously make careful, targeted updates to the existing USF mechanisms to provide sufficient and predictable support so that consumers in areas served by smaller rural carriers can make the choice to obtain robust broadband services at affordable rates without being compelled to purchase other services.

Thank you for your consideration. We look forward to continuing to work with you to update USF to ensure rural consumers receive reasonably comparable voice and broadband communications services of their choosing at reasonably comparable rates.

Is the Legislature cheating rural Minnesota on broadband?

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Rural voices are being heard – at least by the media – when it comes to the need for ubiquitous access to broadband, which means support from the State to reach the far corners of Minnesota where low population density and large space make it difficult for a business alone to make a business case to build better broadband.

MinnPost frames the story well..

So­-called “high speed Internet” has been a fact of life in Minnesota’s metropolitan areas long enough that many urban consumers have a hard time remembering the slow, juddering era when photos, much less videos, took “forever” (OK, a minute or more) to download and play. Never mind the reliable, routine streaming of Netflix or HBO Now; the Internet experience “back then” was rudimentary at best.

To paraphrase Bill Clinton, the “was” still “is” the case for 40 percent of Minnesotans beyond the borders of the Twin Cities, Rochester, Duluth and a few other cities. And as the current legislative session grinds through its final days, that situation doesn’t seem likely to change appreciably, despite both parties’ loud promises to be the best friend Greater Minnesotans have ever had.

The article goes on to look at the politics and technology of the issue.

Minnesota Tekne Award applications now open: Nominate a rural business

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The Minnesota High Tech Association just opened the nomination period is open for 2015 Tekne Awards. I would love to see the gates get flooded with nominations for rural people, places and companies!

We are pleased to announce that the application and nomination period for the 2015 Tekne Awards is open! The awards celebrate the individuals and organizations that play a significant role in discovering new technologies that educate and improve the lives of Minnesotans and people around the world. The 2015 Tekne Awards have fourteen categories, including three new awards that recognize applied analytics, financial services, and the rapid growth of the Internet of Things. Applications are due July 10. LEARN MORE

Update on fiber build out in Lake County

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I want to thank the folks from Lake County for the update on their fiber project…

Construction, engineering and installation crews are working diligently to bring high-speed broadband services to underserved areas of Lake and eastern St. Louis Counties.  Crews are installing fiber and completing drops daily, working toward the timeline goals for a June 30/September 30 completion. With warmer weather upon us, frost out of the ground and longer days, constructions crews should exceed mileage for daily construction.

The biggest goal throughout this project has been to provide fiber-optic broadband access to rural, underserved areas of these counties.  With a project of this breadth there are bound to be obstacles. While project leadership has been proactive with communicating concerns, these unforeseen issues have caused the project significant delay. Project leadership is working to ensure these high-demand services are delivered to all project communities and townships.

While we are reliant on the construction crews for management to complete these routes on time and on-budget, we are hopeful the progress we have seen this spring will carry through the next months to maintain our timeline.  Lake County and project leadership cannot comment on the implications if these timelines are not met, that would be better directed to the federal agency that provides funding for the broadband project, the Rural Utility Service.

Lake Connections continues to receive applications for service throughout the project territories daily. 

Let your voices be heard during this important Legislative lull

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It’s a hurry up and wait game for those of us watching for the legislative budget issues. There’s not much to see now but decisions are being made in preparation for the budget deadlines next week. So it’s a good time to contact a legislator if you have an issue – such as wanting to see more investment in rural Minnesota.

Today the Minneapolis Star Tribune ran an editorial from Senator Matt Schmit, a vocal advocate for rural broadband…

Instead of building upon last year’s momentum, we’re poised to take a significant step back.

The Senator connects with one frustration many of us have in the field – people care about the topic but that concern is not being heard…

Just a year and a half ago, hundreds of Minnesotans turned out for our broadband listening tour. The takeaways were clear: We have a diverse state with various providers, markets and geography; a one-size-fits-all approach won’t connect the state, so we need to empower local problem-solvers, and, finally, folks are tired of talking about the issue — we need action.

Unfortunately, though, we’re still doing too much talking — and the lip service is getting tiresome.

The last Legislature put a down payment on what was intended to be a sustained, significant effort to expand broadband access. Last year’s $20 million appropriation will connect more than 6,000 homes, hundreds of businesses and scores of community anchor institutions — such as libraries, schools and hospitals — with high-speed Internet built for the long haul. These communities will be competitively positioned against the world’s best connected for economic opportunity and quality of life.

In round one of Minnesota’s “Border-to-Border Broadband” matching grant fund, 17 of 40 applications were awarded funding, leveraging at least $45 million in infrastructure investment. However, many potential applicants held out for round two, where more funding was expected to be at stake. In fact, Minnesota led all states in response to a 2014 federal inquiry of need, touting more than $600 million in shovel-ready projects throughout the state.

But this Legislature isn’t taking the challenge seriously. Instead, the Senate is proposing a 15 percent cut to the matching-grant program; the House proposes a 60 percent cut. Minnesota didn’t make a big splash by allocating significant resources to its fund; after all, New York devoted $500 million to its upstate effort. Instead, we settled for building the fund slowly — but now even that approach appears in doubt.

Minnesota has a projected $2 billion budget surplus — and we’re struggling to pledge 1 percent of our one-time excess to an urgent one-time need. Instead of building upon last year’s momentum, this Legislature risks taking a significant step back.

What can you do with fiber? Support Data Centers!

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The St Cloud Times recently ran an informative article on data centers. I suspect most people reading this article know what a data center is – but the highlight is that it’s a global industry with nothing but room to grow and a great use of fiber.

Here’s what the article says about date centers and infrastructure…

A data center also needs to be relatively close to a fiber optic network to allow access to multiple service providers.

The Corporate Center has access to more than a dozen fiber optic service providers. And striving to be a carrier neutral data center, Unger said potential clients will have access to most network providers.

“There is a 10-foot fiber ring around the area (around the Corporate Center),” Unger said.

This, coupled with the strong structural integrity of the building, made the Corporate Center the logical place for Unger to expand Vaultas in St. Cloud.

Something to think about as you look for partners in your community to support a fiber build out or help make better use of fiber. The article is a quick primer on the basics of a data center – a potentially persuasive resource for your toolkit. The article points out that Minnesota has some advantages over other parts of the world due to lack of natural disasters. We’ve seen Eagan and Duluth make good homes to data centers.

For a community, a data center can be a good anchor tenant for the infrastructure.

What can broadband advocates learn from 80 years of Rural Electrification and rural productivity?

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Today (May 11) is the 80th anniversary of President Franklin Roosevelt signing Executive Order 7037 establishing the Rural Electrification Administration (REA), a temporary agency tasked with deciding how to fund rural electric systems.

People often compare the REA to efforts to spread broadband to rural areas. It’s a good reminder of the power (pun intended) of the cooperatives and an opportunity to look back at the impact of the investment in rural areas. Here’s one example from the USDA…

A 1954 Rural Lines newsletter noted that “Three years ago, not one acre of rice was being grown in the area served by the rural electric system [the Mississippi Delta]…Today more than 19,000 acres are planted…” Rural electrification provided irrigation capability, which increased farm earnings and helped rural economies grow.

Broadband can change rural areas and even agriculture in the same way!

Wisconsin has a cool map of gigabit businesses, Minnesota should too

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According to the Hudson Star Observer…

Wisconsin Economic Development Corporation (WEDC) and the Wisconsin State Telecommunications Association (WSTA), unveiled a new interactive map that identifies more than 100 business and industrial parks in Wisconsin with gigabit broadband availability. WEDC and WSTA say the map provides Wisconsin with a competitive edge in business attraction.

The business park information is included atwww.LocateInWisconsin.com which is WEDC’s free online search tool for businesses looking to expand or relocate in Wisconsin. The icon for Gigabit Parks is located along the horizontal bar above the interactive map of Wisconsin.

I know that we need to look globally to be competitive, after all with broadband our businesses can work easily with anyone and they can work with us. BUT sometimes it starts with borrowing good ideas from our closest competitors and building on that.

Below is what Wisconsin looks like. I think we can do better! It would be great to see someone pick up on the idea!

WI gigabit

Funds for Teen Technology Programs in Company Communities

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There are plenty of Best Buys in Minnesota Good luck!!

Best Buy Community Grants Program
The Best Buy Community Grants Program provides support to community-based organizations that are located within 50 miles of a Best Buy facility. Grants promote programs that create hands-on learning opportunities for underserved teens to engage them in learning, experimenting, and interacting with the latest technologies to build 21st century skills. Eligible programs must build technology skills utilizing cutting-edge technology such as computers, digital cameras, video cameras, and professional software; deliver community-based youth programs for teens, ages 13-18, during out of school time; and serve a diverse population. Grants typically range from $4,000 to $6,000, and will not exceed $10,000. Public and nonprofit community-based organizations (e.g., community centers, schools, and libraries) are eligible to apply. Online proposals may be submitted between June 1 and June 29, 2015. Visit the Best Buy website to review the program guidelines.

Better Broadband keeps aspiring $1 million company in Ada Minnesota

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Broadband is not an expense, it’s an investment. The story below exemplifies that from start to finish. I want to add for folks in urban areas that rural businesses understand that it’s an investment for them the problem can be getting the bandwidth they need and paying going rates. That’s why the community (maybe provider, maybe local government, maybe EDA or Chamber of Commerce) gets involved because to keep thriving businesses in Minnesota, they have to have access to the resources they need and that means broadband.

From the Northwest Minnesota Foundation Blog…

Since 2012, I have owned and operated a small business in Greater Minnesota called Weave Got Maille. As a supplier of jewelry making components, we started small — traditionally what you would think of as a “mom and pop” shop. When the business opened, I had planned on being part-time and having the store as a hobby.

But then, broadband service revolutionized the way we did business. We went from hoping for $40,000 in sales to having $1 million within reach by the end of 2015, and from one part-time employee to 12 full-time employees with the intention of hiring eight more. We do business in 56 countries and are planning to build a new $500,000 facility to accommodate our growth. …

Over the years, we’ve had to painfully decline business partnerships because of Ada’s broadband limitations. I was on an island in the digital world, which limited my company’s ability to keep growing.

Last year, my husband and I were heavily courted by North Dakota to relocate our business to where high-speed broadband service was guaranteed. We wanted to stay in our town, but also knew that without high-speed internet service, our company would not survive.

Not long after, our community received the attention of a local phone company recognized the need to move forward installing fiber so that our businesses and residents can prosper here.

If we had not received the commitment for higher broadband speed, we would not have achieved our dream goals.

Tell the Feds what you think about Broadband Adoption and Digital Literacy

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I thought folks might be interesting in offering their ideas and I’d love for the IMLS to hear from plenty of rural areas. There’s a webinar on May 20 to learn more about the opportunities (details below). I assume you don’t have to be from a library or museum to comment…

IMLS Press Contact 202-653-4799 Giuliana Bullard, gbullard@imls.gov

Help Your Community Reap the Advantages of Broadband Adoption and Digital Literacy

IMLS announces public request for comment and webinar on broadband barriers

Washington, DC—The Institute of Museum and Library Services (IMLS) is encouraging library, archives, and museums to share their thoughts on how the federal government can expand and promote broadband adoption and digital inclusion. IMLS is one of 25 federal agencies comprising the President’s new interagency Broadband Opportunity Council charged with developing a framework of recommendations to support broadband access and adoption.

The council has issued a request for comment in the Federal Register for public input to get a better understanding of the challenges facing communities that lack adequate access to broadband. It aims to identify unnecessary regulatory and policy barriers, incentivize investment, and align funding policies to support broadband access and adoption.

A free webinar to explain the request for comment’s purpose and objectives will be held on May 20, 2015, from 4:00 p.m. until 5:00 p.m. EDT. Members of the public will be able to pose questions about the request for comment to the federal partners, including IMLS. Space for the webinar will be available on a first-come, first-served basis. Register at https://attendee.gotowebinar.com/register/4277364480826458625 by May 13, 2015. Upon registration, webinar link and information will be distributed.

“Community anchor institutions, like libraries and museums, play a critical role in educating residents about the importance of being digitally literate so they can take advantage of the economic, educational, and social opportunities online. All public libraries in the United States offer free Internet access. The library is where people in underserved areas, in rural, tribal, or inner city communities, go to get online access and support and gest support and training from knowledgeable staff,” said Maura Marx, Acting IMLS Director. “IMLS is committed to advancing a national digital platform that delivers online content and services to all Americans over an essential broadband infrastructure.”

IMLS encourages libraries and museums to submit their comments by the submission deadline of June 10, 2015. Comments can be submitted by email to BOCrfc2015@ntia.doc.gov or by mail to the National Telecommunications and Information Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Room 4626, Attn: Broadband Opportunity Council, Washington, DC 20230.

About the Institute of Museum and Library Services The Institute of Museum and Library Services is the primary source of federal support for the nation’s 123,000 libraries and 35,000 museums. Our mission is to inspire libraries and museums to advance innovation, lifelong learning, and cultural and civic engagement. Our grant making, policy development, and research help libraries and museums deliver valuable services that make it possible for communities and individuals to thrive. To learn more, visit www.imls.gov and follow us on Facebook and Twitter.

Minnesota Legislators are making decisions now: Let them know what you think about broadband funding

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I know we put out word a few weeks ago that now was the time to act to get the House to put broadband back in their budget.

People acted. It made a difference!!

The House put broadband back in the budget, unfortunately they number is not what has been recommended, which is going to leave a lot of areas unserved.

It looks like it’s time again. Conference committees are starting. Decisions will be made. If you think broadband funding is important. I think now is another really good time to be a squeaky wheel!

The Minnesota High Tech Association is getting focused and reports that now is the time if you want to get focused too…

There are less than two weeks left in the 2015 Legislative Session, with the conference committee beginning to meet today on the Jobs and Economic Development Finance omnibus bill.

We need your help encouraging lawmakers to support additional funding for the Office of Broadband Development and the Border-to-Border Broadband Grant Program. Check out the information below, and contact key legislators to let them know you support these key funding priorities.

They set the stage…

The House and Senate Jobs committees recently funded the Office of Broadband Development and the Border-to-Border Broadband Development Grant Program. However, funding for the grant program in both bodies is at a fraction of the funding level recommended by the Governor’s Task Force on Broadband.

The Office of Broadband Development plays a critical role in helping develop Minnesota’s broadband infrastructure, with the goals of making Minnesota a top-five state in terms of broadband access and speed. To help meet these goals, the Office works with partners on mapping broadband availability in an effort to more effectively direct state investment. For more on the state speed goals, please see page 9 of the 2014 Annual Report.

Senator Schmit, a serious rural broadband advocate, is also timing his message for now in a recent letter in the Kenyon Reader…

By now, we all know the facts: 20 percent of Minnesota homes lack wireline broadband at our modest state speed goal of 10 mbps download / 5 mbps upload. Nearly 40 percent of homes in Greater Minnesota miss the mark.

The speed goal represents a basic threshold by which Internet users can count their connections worthy for home-based business or teleworking, distance learning or telemedicine.

The speed goal is the result of Minnesota’s first broadband task force, which nearly a decade ago unanimously recommended that all Minnesotans have basic broadband access by 2015. Following a second active task force, nonprofit outreach, Internet service provider and cooperative engagement, countless community meetings and a groundswell of support across the state, we’ve made progress.

But at the rate we’re going, we’ll connect the final quarter of Minnesota households with high-speed Internet at a snail’s pace.