Monthly Archives: May 2018

Pickwick MN getting online thanks to MN State Funds and HBC

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The Winona Post reports on the progress of a Border to Border grant project in the Pickwick area…

The promise of high-speed Internet has been a long time coming for Pickwick area residents. When HBC won a $461,000 state grant in 2015 to cover half the cost of extending fiberoptic Internet cables to Trout Creek Valley, Cedar Valley, and Whitewater State Park, the company expected the cables to be laid and the broadband internet flowing by 2017. HBC has completed work to bring broadband to those other areas, but it has yet to begin laying wires in Trout Creek Valley. CEO Dan Pecarina said that work should begin this summer.

It turns out Pickwick was a more difficult area to serve…

Remote and sparsely populated, it is very expensive to extend new fiberoptic cable to rural homes and businesses. “It is anywhere from four to 10 times what it costs to build out a network in town,” Pecarina said. With state grants covering half the cost, some rural projects make financial sense, but the most expensive rural projects are still a difficult business proposition with a long wait for return on investment, he stated.
Pickwick turned out such a project, Pecarina stated. HBC has plans to run fiberoptic cable along County Road 7 the length of the valley, but connecting the mouth of the valley to HBC’s larger distribution network on Highway 61 is the problem, he explained. HBC has existing fiberoptic cable just over a mile upriver, but there is a tight bend where Highway 61 is squeezed between a bluff, the railroad, and the river, where laying fiberoptic cable would require boring through rock, Pecarina explained. That is very expensive.
Once HBC realized how difficult connecting to the head of Trout Creek Valley would be, the company looked for alternatives. Pecarina said the company spent most of 2017 analyzing other options. HBC was also purchased by Indiana-based Schurz Communications that year. After looking at all the options, Pecarina said his firm has come up with a workable solution for Pickwick.
HBC plans to beam wireless Internet across the Mississippi River to Trout Creek Valley from two locations in Wisconsin: one downriver in Trempealeau and one upriver near the Trempealeau Wildlife Refuge. It is not ideal, Pecarina admitted. State officials and companies prefer fiberoptic cable because it has the capacity to provide even higher speeds in the future, but Pecarina said that the Pickwick project’s point-to-point wireless connection will still be able to provide the DEED-mandated broadband speeds. “They’re still going to get the speed an all-fiberoptic network would have … we just can’t build fiberoptic into the valley at a feasible price,” he stated. “We’ll have enough bandwidth pumped into the valley to serve everyone with one-gigabit service if they want to go to that.” In the future, HBC would like to extend fiberoptic cable from Ridgeway to the head of the valley, he added.

Unfortunately the funding for rural broadband was not renewed through the 2018 Legislature.

Senators challenge FCC rural broadband map – that includes Senators Klobuchar and Smith

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I regularly get emails from people who question various broadband maps. The biggest complaint is that their area looks served, but they know from experience that they aren’t able to get online to do the things they want to do. And it matters because those maps are used to determine funding and access to broadband tools (such as spectrum). So I wasn’t surprised to see this story.

MultiChannel  reports (although I’ve borrowed from Benton Foundation’s summary) …

Republican and Democratic senators are expressing concerns about the coverage map the Federal Communications Commission is planning to use to decide where to put more than $4.5 billion in rural broadband subsidies, and they want more time to challenge the agency’s findings. The FCC put out a map of areas eligible for Mobility Fund Phase II money over the next decade as part of its move to redirect wireless carrier subsidies where private capital was already at work for, as FCC Chairman Ajit Pai put it, “something far more useful: bringing 4G LTE service to rural Americans who don’t have it today.”  But a group led by Sens Roger Wicker (R-MS) and Maggie Hassan (D-NH) said the map is significantly flawed; the group wants the FCC to extend the window for that robust challenge by another 90 days. In a letter to Chairman Pai the senators said the FCC map shows areas in their home states that are purportedly served by 4G LTE, when experience on the ground suggests otherwise.

Both Senator Klobuchar and Senator Smith have signed the letter…

Dear Chairman Pai:

“As you know, many of us have expressed concern about the accuracy of the Federal Communications Commission’s map of eligible areas for Mobility Fund Phase II Support (MFII). This map is intended to reflect areas that lack unsubsidized mobile 4G LTE service, but it unfortunately falls short of an accurate depiction of areas in need of universal service support. Therefore, the FCC’s challenge process will play an outsized role in determining appropriate eligible areas for MFII support. Communities in our states that are not initially eligible or successfully challenged will be ineligible for up to $4.53 billion in support over the next 10 years, exacerbating the digital divide and denying fundamental economic and safety opportunities to rural communities.

“While you have noted that state, local, and Tribal governments can participate in the challenge process, absent additional direction, they may remain unaware or unprepared to do so. We appreciate and encourage additional outreach to state, local, and Tribal governments on how they can participate in the challenge process. However, with less than 100 days remaining and additional state outreach presentations not yet completed, MFII challengers will struggle within the current timeframe to provide requisite information that will correct significant flaws in the current map. Additionally, the parameters for challenges have already changed once during the existing challenge timeframe through the Order on Reconsideration on April 30, 2018, altering existing measurements for challenges.

“In recent testimony before the Senate Appropriations Committee, you expressed that the FCC has “some flexibility [for] an extension of time” to ensure sufficient time for state and local governments, as well as carriers and other potential challengers, such as state farm bureaus, to fully participate in the process. To provide this additional time and encourage participation in the challenge process, we urge you to extend the current challenge process window by 90 days.

“The MFII process presents an opportunity to take significant steps to address the digital divide and preserve and expand mobile broadband in rural areas. We strongly urge you to ensure this opportunity is available to all communities deserving support through compiling accurate data that reflects our constituents’ experience, including providing additional time for challengers to submit data, conducting additional information sessions for state, local, and Tribal governments, and providing Congress with an update on final eligible areas before conducting an auction of support.”

Upper Midwest E-Connectivity Listening Session – June 19 in Faribault, MN

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Looks like a great event…

To: E-Connectivity Stakeholders

From: Constance Cullman, Farm Foundation
Shirley Bloomfield, NTCA-The Rural Broadband Association
Thomas Halverson, CoBank
Jim Matheson, National Rural Electric Cooperative Association (NRECA)
Sheldon Petersen, National Rural Utilities Cooperative Finance Corp. (CFC)

Re: Coalition works to expand rural e-connectivity

We write to extend an invitation to be part of an Upper Midwest E-Connectivity Listening Session on Tuesday, June 19, at the Rice County Fairgrounds, Faribault, MN.

Farm Foundation, NTCA-The Rural Broadband Association, NRECA, CFC, and CoBank are partnering with the U.S. Department of Agriculture (USDA) to organize a series of listening sessions across the nation to gather insights into the tools that are needed to improve e-connectivity in rural America. This event will focus on hearing from you and other rural stakeholders about the need for, and positive solutions for obtaining quality broadband services for rural America.

Your participation will add strength to our understanding of the importance of quality broadband services for rural America and e-connectivity to the economic, educational and social vitality of rural America. Brief presentations will be made by USDA, Wisconsin State Telecommunications Association, the Minnesota Office of Broadband Development, Mille Lacs Energy Cooperative, Consolidated Telecommunications Company, and Minnesota Association of Townships.

This Upper Midwest Listening Session is the first of these sessions planned across the country to gather specific input from broadband providers and the people who use – or would like to be able to use – those services. A report of those sessions will be provided to federal and state public and private leaders to better inform their decisions regarding improvements to, and expansion of, broadband services in rural America.

There is no charge for this event, but registration is requested by Friday, June 15. Please register by sending an email to Michelle@farmfoundation.org.

We will convene at 9:00 a.m., with coffee available at 8:45 a.m. and conclude by 11:30 a.m. It will be in the Archery Building at the Rice County Fairgrounds, 1814 2nd Avenue, Faribault, MN 55021. There will be signage at the 2nd Avenue entrance directing you where to park.

If you have any questions, please contact Michelle via the link to her email address above.

We look forward to your participation.

Farm Foundation is an agricultural policy institute cultivating dynamic non-partisan collaboration to meet society’s needs for food, fiber, feed and energy. Since 1933, the Farm Foundation has connected leaders in farming, business, academia, organizations and government through proactive, rigorous debate and objective issue analysis.

CoBank is a national cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation’s rural economy. In addition to serving its direct retail borrowers, the bank also provides wholesale loans and other financial services to affiliated FarmCredit associations serving approximately 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.

NTCA-The Rural Broadband Association (NTCA) represents nearly 850 independent, community-based telecommunications companies that are leading innovation in rural and small-town America. NTCA advocates on behalf of its members in the legislative and regulatory arenas, and it provides training and development; publications and industry events; and an array of employee benefit programs. In an era of transformative technological advancements, regulatory challenges and marketplace competition, NTCA members are leading the technological evolution for rural consumers, delivering robust and high-quality services over future-proof networks that make rural communities vibrant places in which to live and do business.

The National Rural Electric Cooperative Association (NRECA) is the national trade association representing more than 900 local electric cooperatives. From growing suburbs to remote farming communities, electric co-ops serve as engines of economic development for 42 million Americans across 56 percent of the nation’s landscape. As local businesses built by the consumers they serve, electric cooperatives have meaningful ties to rural America and invest $12 billion annually in their communities.

National Rural Utilities Cooperative Finance Corporation (CFC) is the nonprofitfinance cooperative created and owned by America’s Electric Cooperative Network.CFC provides financing to members in 48 states, the District of Columbia & two U.S. territories. CFC also provides services to telecommunications systems that are members of the Rural Telephone Finance Cooperative (RTFC).

Federal bill introduced to spend e-rate funds on wifi on buses

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According to a press release from Senator Udall (New Mexico)…

Today, U.S. Senator Tom Udall (D-N.M.) and U.S. Senator Cory Gardner (R-Colo.) introduced a bill to put wireless internet on school buses in order to help students without broadband access at home get online to study and do homework. The legislation would allow the Federal Communications Commission’s (FCC) E-Rate program to reimburse schools that place wi-fi technology on school buses carrying students to school or school related extracurricular activities.

Looks like Minnesota might be a leader here too – the Minnesota Legislature decided to invest in wifi on the buses last year.

Minnesota Border to Border Broadband grant is model to Missouri broadband grant program

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News Press Now (of Missouri) reports…

Two St. Joseph area lawmakers can’t take credit for inventing the internet, but they hope recently passed legislation will speed up broadband usage in Northwest Missouri.

A bill, authored by Rep. Delus Johnson, R-St. Joseph, creates a broadband grants fund for rural areas. The bill was passed on the final day of the legislative session.

They used Minnesota’s grant programs as a model. (Minnesota’s grant model was unfortunately not funded after the last legislative session.)

State Sen. Dan Hegeman, R-Cosby, said telephone companies, rural electric cooperatives, the Missouri Farm Bureau, and other groups offered support and advice for the grants. Minnesota’s broadband model also served as inspiration.

Constituents often speak with him on the need for broadband improvements throughout his Senate 12th District. He promoted Johnson’s bill in the chamber and also supplied a companion bill.

“It’s a big issue,” Hegeman said. “Our small communities know they need broadband to retain the young folks. Otherwise, we’ll continue to see a loss of population.”

Rep Layman lists broadband funding as a loss felt with Supplemental Budget veto

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In an Editorial in the Grand Rapids Herald Review, Representative Layman specifically lists broadband funding as a loss felt by rural Minnesotans with the Governor’s veto of the Supplemental Budget…

On May 20, we wrapped up the legislative session by putting bills on the governor’s desk to cut taxes, provide schools with more funding, and expand broadband in rural Minnesota. Moreover, we took major steps to address and fix the enormous challenges faced by Minnesotans due to the Dayton administration’s MNLARS debacle and the revelation of years of elder abuse reports neglected by Minnesota’s Department of Health and Human Services. We completed our work on schedule and made a good-faith effort at compromise. Despite the compromise effort, the governor vetoed our tax and school funding bill as well as our supplemental budget, which will mean major consequences for many, many Minnesotans.

Rural Community Development Initiative – Deadline June 25

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Grants.gov provides info on the grants from the USDA…

Qualified private, nonprofit and public including tribal intermediary organizations proposing to carry out financial and technical assistance programs will be eligible to receive the funding.  The Intermediary will be required to provide matching funds in an amount at least equal to the RCDI grant.  The respective minimum and maximum grant amount per Intermediary is $50,000 and $250,000.  The Intermediary must provide a program of financial and technical assistance to recipients to develop their capacity and ability to undertake projects related to housing, community facilities, or community and economic development that will support the community.

 

Changes at New Ulm Telecom: Increase in A-CAM and new name – Nuvera Communications

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Market Exclusive shared some wonky but interesting info on New Ulm Telecom. First the easy part, they are changing their name…

On May 24, 2018, the Company announced that it is changing its name to Nuvera Communications, Inc. The Company expects the name change to be effective on June 4, 2018.

Also they are going to be getting more A-CAM money than originally planned – they will be getting $7.6 million a year in Minnesota. (A-CAM is federal funding for Rate of Return carriers; it is akin to the CAF 2 funding for Price Cap carriers.)…

In its Form 10-Q for the quarter ended September 30, 2016, New Ulm Telecom, Inc. (the “Company”) disclosed that it had elected the Alternative Connect America Cost Model (“A-CAM”) support for its Minnesota and Iowa operations, replacing its former interstate common line support. The new A-CAM funding model became effective for the Company on January 1, 2017. Under the A-CAM program, the Company is entitled to receive A-CAM support payments for ten years in exchange for meeting defined broadband build-out requirements. At the time of the Company’s election, the Federal Communications Commission (“FCC”) had not yet determined the final award numbers.

Consistent with its Form 10-Q disclosure, the Company notified the FCC that it would participate in the A-CAM program. Under the Report that accompanied the FCC December 20, 2016 Public Notice, the Company was entitled to receive annually (i) $391,896 for its Iowa operations and (ii) $6,118,567 for its Minnesota operations. The Company will use the annual $6.5 million that it receives through the A-CAM program to meet its defined broadband build-out obligations.

On May 7, 2018, the FCC issued Public Notice DA 18-465, which contained revised offers of Alternative Connect America Cost Model (A-CAM) support and associated revised service deployment obligations.

On May 23, 2018, the Company’s Board of Directors authorized and directed the company to accept the FCC’s revised offer of A-CAM support and the revised associated service deployment obligations. Under the revised FCC offer Notice, the Company will be entitled to annually receive (i) $489,870 for its Iowa operations, which is a $97,974 increase per year and (ii) $7,648,208 for its Minnesota operations, which is a $1,529,641 increase per year. The Company will use the additional support that it receives through the A-CAM program to continue to meet its defined broadband build-out obligations. A letter of acceptance to elect the revised A-CAM support offer must be filed with the FCC by June 21, 2018. The revised A-CAM support offer payments are expected to begin in the third quarter of 2018.

Why Governor Dayton vetoed the bill that included broadband grants

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Here’s the letter from Governor Dayton on why he vetoed the supplemental bill, which meant not funding the Border to Border Broadband Grants. Broadband isn’t mentioned in the letter; the broadband funding is unfortunate collateral damage of a larger decision. I suspect we will hear many theories about the approach of/from both the Legislature and the Governor. It will be interesting – but in the end, the broadband funding was not passed and the reason doesn’t seem to relate to broadband.

The Office of Broadband Development continues to receive praise from all sides. Other states are looking to replicate their work. I think it’s important for proponents in and out of Minnesota to know that this move does not reflect on the Minnesota’s program – nor does it reflect the views of the Governor or Legislature on broadband – both have been vocal in their approval of the idea and funding in the past.

Dear Madame President:
May 23, 2018
I have vetoed and am returning Chapter 201, SF 3656, the omnibus supplemental budget bill.
Repeatedly over the past several months, I implored the Legislature to send separate bills on Minnesotans’ most urgent priorities. We agreed that we must reform elder care, address the opioid epidemic, and ensure safe schools for our children. Yet instead of coming together to find shared solutions to these critical issues, you have deposited them into a 989 page budget bill, with 51 policy provisions, which I oppose. This legislative gamesmanship was terrible, and I will not sign the result.
Despite efforts over the past several months to strengthen existing elder abuse laws, this bill fails to meet the expectations of a large number of lawmakers and of the
coalition of nearly every consumer advocacy organization in the state working to stop elder abuse. This legislation does not ensure that there will ever be licensure or
protections for assisted living or dementia care. It provides no private rights of enforcement for elderly and vulnerable adults who suffer preventable hmm or even death at a long-term care facility. It fails to provide even the basic public right of action protections for elderly people being evicted from their care setting and residence. In fact, advocacy groups believe changes made in this bill would actually make current law less protective. This failure is unacceptable.
The bill also does far too little to combat the opioid epidemic plaguing our State. Several months ago, I proposed investing over $12 million annually in high impact strategies to treat and prevent opioid abuse, funded through an Opioid Stewardship Fee that would hold partially accountable the pharmaceutical companies, who created this deadly epidemic. Instead, this bill spends only $7 million in FY 2019 and about $10 million in FY20/21, entirely from the General Fund. Not one penny is ascribed to the drug companies, through either a “penny-a-pill” or a licensing fee. Evidently, the industry’s 32 lobbyists and whatever promises they made outweighed the interests of the people of Minnesota.

The bill does not support a comprehensive approach and instead provides onetime grants and a small rate increase to providers. There is no funding targeted to communities of color or tribal communities that have been devastated by this crisis. The disparities between tribal communities and communities of color and white residents are the highest in the United States. You could have and should have done more.
Included in this enormous bill are workable responses to problems that I sincerely hoped would become law: school safety and HAVA funds. I was sincere in my oft-stated
desire to work with you and make these provisions become law. However, you knowingly prevented their enactment by inserting them into a bill, containing policies and agency budget cuts that I had said I would not sign.

I made my objections to this bill very clear throughout the Session. My Administration sent you over 100 detailed letters  throughout the session, carefully explaining my concerns with each of the proposals.
This terrible bill and the resulting veto are your creations. Never have I seen a legislative session so badly mismanaged, less transparent, and more beholden to monied special interests.
For the above reasons, I have vetoed this bill.
Mark Dayton
Governor

MN Library Services and Technology grants

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Shared from the MN Department of Education State Library Services email news alert…

Now Open – Two 2018 LSTA Grant Opportunities

State Library Services is pleased to announce two 2018 Library Services and Technology Act (LSTA) competitive grant opportunities.

2018 LSTA Competitive Grant 
An estimated $545,000 is available to fund grant proposals ranging from $10,000 to $100,000 that help to achieve Minnesota’s LSTA Five-Year Plan (2018-2022). Grant awards will support projects that address LSTA Sub-goals A2, C3 and E2. The overarching goals are to reduce barriers to access, promote equity, and advance digital literacy.

2018 LSTA Mini Grant
An estimated $50,000 is available to fund grant proposals ranging from $1,000 to $10,000 to help libraries offer programs and services that address Goal B2 in the Minnesota LSTA Five-Year Plan (2018-2022) and the World’s Best Workforce legislation by preparing all children for school and ensuring all third-graders can read at grade level.

Both grants periods are estimated to start on September 15, 2018, and end September 30, 2019.

To learn more about our two current LSTA grant opportunities, please attend an upcoming LSTA 2018 grant guidance webinar – Thursday, June 7, 2018, 2-3 p.m. There is no need to pre-register; just click on the link to attend. (Call-in toll-free number: 1-888-742-5095, Conference Code: 289 945 0924). Grant applications and instructions are available on the Minnesota Department of Education’s Grants Management site. Visit the LSTA webpage or contact Leah Larson (651-582-8604) for more information.

We are looking for reviewers for both grant opportunities to read and score applications and participate in a half-day review discussion (the discussion may not be needed for the LSTA Mini Grants). Please contact Leah Larson (651-582-8604) if you are interested in more information.

Governor Dayton vetoes bill that included budget for broadband grants

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MN Public Radio reports…

DFL Gov. Mark Dayton on Tuesday vetoed the tax and budget bills that included the main work of the Republican-led Legislature and vowed he would not call a special session to work things out, saying, “They had their chance.”

While the bills contained proposals supported by Democrats and Republicans, Dayton days earlier had telegraphed his problems with the legislation. Just a few hours before the midnight Sunday deadline for bills to pass, Dayton dashed Republican hopes that there was enough to like in tax and budget bills.

He renewed those criticisms Wednesday after the vetoes.

One of those proposals supported by Democrats and Republicans was funding for broadband grants.

MTA asks Governor Dayton to sign into law the supplemental budget bill SF3656 containing broadband funds

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Thanks to Brent Christensen, President and CEO of Minnesota Telecom Alliance for sharing the letter that he sent to Governor Dayton…

Dear Governor Dayton,
On behalf of the over 70 rural broadband company members of the MTA, I am writing to strongly urge you to sign Senate File 3656, the Omnibus Supplemental Budget bill into law. I know you have concerns about sections of the bill, but we believe the good outweighs the bad. Specifically, we are writing in support of the Broadband Grant program funding. The $15 million in the bill is important if we are going to keep moving towards your goal of Border to Border Broadband.
MTA member companies have successfully used the grant program since its inception to deploy broadband to parts of Minnesota where a business case alone is not enough. For the past 4 years, the State’s investment of $85 million has leveraged over $110.6 million in matching investments. There are a lot of Broadband deployment projects that simply would not have happened if not for the grant program. We believe it is vital to our state to keep this program going. New and exciting partnerships have formed because of this grant program between private providers and local governments and other entities not traditionally involved in broadband. Beyond the money, we need the program funded to keep those discussions alive.
In addition, Minnesota has positioned itself as a leader in the nation for rural broadband. The grant program is a large reason. Many other states are looking to Minnesota’s Border to Border Broadband Grant program as a model. I will be testifying tomorrow in the Michigan House of Representatives on our program and how successful it has been.
The MTA and its member companies respectfully request you sign SF 3656 as soon as possible.
Cordially,
Brent J. Christensen
President/CEO

FCC Establishes A Portal for ISP Disclosures

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Borrowing from the Benton Foundation’s summary…

As required by the Restoring Internet Freedom Order, with this Public Notice, the Consumer and Governmental Affairs Bureau, in coordination with the Wireline Competition Bureau, establishes a portal for Internet service provider (ISP) transparency disclosures. The Order becomes effective on June 11, 2018, and the revised transparency rule requires ISPs to publicly disclose information about their service in one of two ways – by providing the disclosure on a publicly available, easily accessible website or by submitting it to the Federal Communications Commission for posting. On May 29, 2018, this portal will be available for both ISPs submitting their disclosures to the FCC and consumers searching for any disclosures submitted to the FCC.

It seems likely to me that most providers would simply use their own website to disclose information about their service – but this portal is available too. It would interesting to see if some of the providers use their website to disclose some info and this portal to disclose other info.

 

Who has authority over broadband service in MN PUC or FCC?

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Minnesota Public Radio reports…

The question of whether state government can regulate internet service has surfaced at the Minnesota Public Utilities Commission. The PUC will take up the matter this Thursday.

The state commerce department wants consumer internet complaints about Frontier Communications included in a PUC investigation of the company. The agency has received hundreds of complaints about Frontier, many concerning its internet service. The PUC plans a series of public meetings around the state to hear consumer comments on the matter.

But the state’s telecommunications companies maintain the regulation of internet service is something only the Federal Communications Commission can do.

Frontier would like the PUC to have FCC handle broadband issues and segment out only telephone for the PUC. The Attorney General says…

“An attempt to narrow the scope of the investigation at this stage would hinder the ability of the Commission and other state government entities to hear from customers,” the AG’s office wrote.

It said the question of who can regulate internet service is something “that does not need to be resolved at this phase.”

Frontier customers have told the PUC that their internet connection speed is often slow and undependable.

In a statement, Frontier Communications said it’s cooperating with the PUC review of its performance. But the company said the investigation should be limited to Frontier telephone service.

 

US Farm Bill doesn’t pass – including support for broadband in rural areas

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The Benton Foundation reports…

The House of Representatives failed to pass a massive farm bill as Republicans were unable to shore up support from their conservative members. The 641-page bill addresses a range of issues related to agriculture, such as livestock disaster programs, conservation, feral swine, farm loan programs and broadband services in rural areas, just to name a few.

The vote was 198-213. While Republican leaders said they were confident ahead of the vote, it was clear the bill was in jeopardy, and members of leadership could be seen on the floor holding last-minute negotiations, as conservative Republicans sought a promise of a vote on their preferred immigration bill. In the end, the farm bill, a measure with huge implications for low-income families and the agricultural industry, became little more than a bargaining chip in the heated intraparty battle over immigration, President Trump’s core cultural and political issue.