Monthly Archives: December 2018

Congresswoman Ilhan Omar makes rural broadband a priority

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The Minneapolis Star Tribune reports…

Omar told the Star Tribune that her early priorities will include an infrastructure package — funding roads, bridges and broadband internet — and a measure that would institute publicly funded political campaigns and automatic voter registration. She’s also advocating for a proposed constitutional amendment to undo the U.S. Supreme Court’s 2010 Citizens United ruling that allows corporations and labor unions the right to spend unlimited money in political campaigns.

Senator Klobuchar has broadband on radar for 2019

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The Duluth New Tribune published a letter from Senator Amy Klobuchar…

To accommodate a 21st-century workforce, we need to make sure we have 21st-century infrastructure. That’s why I’ve been working with Department of Transportation Secretary Elaine Chao on a number of priority projects to strengthen safety, ease congestion, and improve mobility — like the recently-announced $20 million grant to reconstruct the Twin Ports Interchange in Duluth and the more than $10 million in investment this year to modernize and expand the Duluth International Airport.

No serious infrastructure plan is complete without addressing broadband expansion. There is strong bipartisan support for including broadband funding in any infrastructure package, and that’s good news.

In communities that have access to broadband, we’ve seen life-changing results. Like Essentia Health’s Virginia clinic, which has begun connecting patients with health services through the internet. Instead of spending hours traveling by car, people who need to see a doctor can now head to the local clinic and with the click of a mouse find themselves face to face with medical specialists from around the state.

As we expand access to broadband, we must also do more to protect people’s data online. Going into the new Congress, I will continue to push for privacy protections like those in my bipartisan bill with Republican Sen. John Kennedy of Louisiana, which requires tech companies like Google and Facebook to use plain language when explaining how consumer data will be used while also allowing people to opt out of having their data collected altogether. And if there’s a security breach, it would require these companies to tell all consumers within 72 hours and provide those affected with solutions to protect them from identity theft.

We also need to pass my Honest Ads Act to shine light on dark money online. Right now if a political ad runs on a TV station in Duluth, that station has to disclose who purchased the ad. There’s currently no similar requirement for online ads. My legislation would require this disclosure and help prevent foreign interference in future elections and improve the transparency of online political ads.

Fiber Broadband Association Releases Study on Rapid Fiber Growth in North America

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Earlier this month the Fiber Broadband Association released a study on fiber. Here are  the key findings:

  • In 2018, fiber surpassed DSL to become the second most common connection for home internet in North America after cable.
  • In the United States, fiber now passes 41 million unique homes in the United States and connects 18.6 million homes. This is a 17% increase in homes passed by fiber since 2017.
  • In North America, fiber now passes nearly 60 million homes and connects 23.8 million.
  • Canada leads North American fiber deployment, with 19% growth in homes marketed in 2018 alone.

I thought this was interesting – in part because I drive from St Paul to Winnipeg a few times a year and I can tell you – that stretch of Canada is pretty rural…

“The fiber industry is on fire,” said Lisa R. Youngers, President and CEO of the Fiber Broadband Association. “Fiber holds the key for next generation connectivity, from 5G to smart cities to the Internet of Things. This research and analysis helps keep the industry, consumers, and policymakers informed about our Association’s progress towards a better connected future. I am excited to work with our industry partners to keep up this momentum in 2019.”

Find USDA ReConnect Grant/Loan Areas and determine feasibility

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Earlier this month, I wrote about the USDA’s new ReConnect Program; $600 million for better broadband (loans and grants). CNS has created a mapping tool to help potential providers determine whether the ReConnect funds make sense in their area. Their video describes it all:

Minnesota Attorney General Lori Swanson sues Comcast

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MPR reports…

Minnesota Attorney General Lori Swanson slammed Comcast Corp. on Friday, alleging in a lawsuit that the cable TV and internet giant overcharged customers for cable packages, charged consumers for unordered services and didn’t deliver the prepaid Visa cards promised in its promotions.

Comcast, also known by the brand name Xfinity, added home security, service protection plans, modem and other equipment charges to customers’ bills without authorization, Swanson told reporters.

To lure some customers, Swanson’s office said Comcast promised prepaid Visa cards of $200 or more if they remained in the minimum-term contract and up-to-date on monthly payments for 90 days, but did not deliver.

“It’s hard to shop for cable television if a company plays hide-the-ball on its true prices, and people shouldn’t have to watch their bills for things they didn’t buy,” Swanson said in a statement.

The lawsuit filed in Hennepin County seeks unspecified restitution and civil penalties.

Comcast responded saying it fully discloses all charges and fees and that the facts don’t support Swanson’s allegations.

“We’re committed to our customers in Minnesota, and it’s important to us to make sure customers completely understand the products and services they order,” said company spokesperson Jill Hornbacher.

Lake County accepts $8.4M bid for Lake Connections from Pinpoint Holdings

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Lake County News Chronicle reports…

The Lake County Board of Commissioners has awarded the highest bid, $8.4 million, for Lake Connections, the county’s municipal broadband project, during a meeting Tuesday, Dec. 18, in Two Harbors.

The highest successful bid was the best and final offer from Pinpoint Holdings Inc. in Cambridge, Neb. The board unanimously accepted the resolution to accept the bid; Commissioner Rick Hogenson was absent.

Pinpoint was selected from the final four bidders, which also included Mediacom Communications Corp., Cooperative Light and Power Association and Hanson Communications.

Mediacom’s best and final offer of $8.25 million was selected as the backup bid in the event Pinpoint doesn’t close the sale.

And a little background…

In 2010, the board received a $56 million loan and $10 million grant from the U.S. Department of Agriculture’s Rural Utility Service to construct the network. Over three years, more than 1,200 miles of a fiber network was built in Lake County and parts of eastern St. Louis County. Most of the network was completed in June 2015.

In June 2017, the county entered into a deferral agreement with RUS for principal and interest on the condition the county sell the network to a private company or entity. Two months later, the county executed a memorandum of understanding with RUS in which RUS agreed to accept to the sale price of Lake Connections in full satisfaction of the county’s debt for construction of the network.

When the deferral agreement was executed, the county owed approximately $48.5 million on the RUS loan.

This means the federal government stands to lose approximately $40 million on the broadband project.

I wrote about Lake County and the impact of better broadband in the community a year ago. Using a pretty conversation formula, we figured out the annual economic benefit for broadband in the community was $13.7 million, which means in less than 3 years the community will have seen an economic benefit of more than $40 million. Now I recognize that that benefit won’t go to the federal government. BUT it does help realize the cost to the community of not investing.

Iowa is looking to catch up with MN with state Broadband grants

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A great example of Minnesota leading by action. But to keep a ahead of the curve, we need to keep investing. The Des Moines Register reports…

This summer, Gov. Reynolds created the Empower Rural Iowa task force, and rural broadband is one area where the citizen-led commission has made recommendations to bolster rural Iowa housing, leadership and overall quality of life.

Empower Rural Iowa was initially focused on broadband, housing and rural leadership.  The recommendations made this month for broadband include identification of a sustainable funding  source for the state’s broadband grant fund.  That makes sense, since the main impediment to further expansion of broadband networks and services is financial – it’s expensive to serve rural, sparsely populated areas.

The timing for this action is critical because our neighbors are already moving.  Over the past several years, Minnesota’s broadband grant funding has ranged between $10 million and $35 million per year.  Wisconsin’s broadband fund has grown to $14 million per year.  Its latest round of grants totaled $7 million, distributed among 37 recipients who serve 1,100 business locations and 14,000 residences.

Charter Communication to refund $62.5 million in NY for slower than promised broadband speeds

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The Washington Post reports…

In what regulators are calling the largest refund in U.S. history by an Internet provider to consumers, Charter Communications has agreed to give $62.5 million — and free subscriptions to HBO or Showtime — to New York customers who allegedly didn’t receive the Internet speeds they were promised, according to New York Attorney General Barbara Underwood.

The settlement puts an end to a months-long legal battle between the state of New York and the nation’s second-largest cable company, whose subsidiary Time Warner Cable was accused of providing slow routers and modems to customers that prevented them from accessing the download speeds they had signed up for.

As many as 700,000 New Yorkers will be receiving the direct refunds. Another 2.2 million will be eligible for the free premium and streaming channels, which are collectively valued at more than $100 million, Underwood’s office said in a release.

That is an interesting precedent.

Minnesota is top 10 in State Technology & Science Index – but slipped from number 8

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It’s good news but our ranking is going the wrong way. So cautiously good news. Minnesota ranks number 8 on the STSI ranking. Here’s more on the STSI…

The State Technology and Science Index (STSI) endeavors to benchmark states on their science and technology capabilities and broader commercialization ecosystems that contribute to firm expansion, high-skills job creation, and broad economic growth. It aims to capture a state’s innovation pipeline. The index looks ahead, assessing the foundation on which future growth will build and focusing attention on the elements of a knowledge economy that will help states adapt to economic change.

 

And what they say about Minnesota…

Minnesota drops one spot to end up eighth on the 2018 STSI. After a strong performance in 2016, Minnesota’s score decreased by 6.47 points to 63.11. The state dropped two places on the RDI to land at 21st. Minnesota also ranks 21st on the RCI in this edition of the STSI, a five-rank drop from 2016. Minnesota increased one rank on the HCI to fourth, while the state dropped to seventh from fourth on the TSW sub-index due to decreases in the concentration of computer, engineering, and science-related occupations. Minnesota dropped three ranks to 18th on the TCD.

The state has been focusing on creating a workforce to support the growing high-tech sector.  The statewide College Occupational Scholarship Pilot Program for STEM-related degrees is one such program, and in conjunction, Minnesota has built eight IT Center of Excellence facilities to focus resources on education and internship programs. These eight centers provide a pathway for entering the high-tech workforce, with an emphasis on cybersecurity, expanding the high-tech workforce through diversity recruitment, and providing K-12 grades with a tech-related curriculum.23

Minnesota is also making efforts to expand access to broadband internet. Currently, Minnesota has 69 percent of households with broadband internet, ranking 19th in the nation. One estimate puts a $1.4 billion price on the infrastructure needed to connect the remaining 31 percent of households in the state.24 If Minnesota can provide statewide high-speed internet access, this could generate longterm economic benefits by connecting its population to opportunity through modern infrastructure development. By providing the necessary education, workforce, and infrastructure as the knowledge economy develops, Minnesota should be competitive in the long run.

 

And as you can see broadband lifts up dips in rankings in other areas.

More info another highlight, the College Occupational Scholarship Pilot Program…

Minnesota started its College Occupational Scholarship Pilot Program in 2016. A college graduate from Minnesota’s class of 2016 had an average of $31,915 in student debt. The scholarship covers four semesters at any community college for students pursuing STEM degrees. Minnesota ranks No. 4 (HCI) and No. 7 (TSW), and by making active efforts to reduce the cost of education, the state has more potential to improve. The cost reductions will only help those who are pursuing STEM degrees, which means that graduates should enjoy a wage premium if they land related employment.74 The focus on STEM degrees should add to the percentage of recent science and engineering graduates, who currently make up 16.07 percent of Minnesota’s recent B.A. graduates.

 

Sen Klobuchar thinks broadband is an issue that crosses to both sides of the aisle

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The New Yorker recently spoke to Senator Amy Klobuchar about running for office and how to reach voters from all sides. Broadband came up…

There are issues that transcend urban-rural, like, for instance, you don’t want to kick people off of their insurance for preëxisting conditions. That was something that you saw Democrats run on, and win on. But then there are other issues that are unique. And I would put Critical Access Hospitals, rural broadband—most people in urban areas don’t have to worry about that. And a lot of parts of our rural countryside can’t even access cell-phone service, much less broadband. Their cell phones keep going in and out. And I don’t understand, as I pointed out to the Farmers Union, how you can have rural cell-phone service all over Iceland and not in northern Minnesota.

Opportunities for Bipartisan Tech Policy Event Jan 15: in DC and online in St Paul

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Next Century Cities is hosting an event in DC. It will also be made available online. AND the Blandin Foundation is going to host a remote viewing party in St Paul.

Here’s info on the event in DC…

Location: Google’s DC Office, 25 Massachusetts Avenue NW #900, Washington, DC 20001

Register now to join Next Century Cities, the American Action Forum, and Public Knowledge for a bipartisan discussion about tech policy priorities for the new Congress in Washington, DC from 8:30am-12:30pm on January 15, 2019.

Opportunities for Bipartisan Tech Policy will be a half day event bringing together members of Congress, community leaders, and policy experts. Keynote conversations and panel discussions will work to determine key policy goals and action steps for the new Congress, with a specific focus on rural broadband and digital privacy legislation.

Please register for the event here. We look forward to seeing you at this important discussion!

And info on participating in St Paul…

Blandin Foundation and the League of Minnesota Cities will be hosting an opportunity to participate virtually in a tech policy discussion being hosted that morning at Google’s DC headquarters by Next Century Cities, Public Knowledge, and the American Action Forum.

Blandin and LMC are inviting interested Minnesotans to come together for a shared viewing and discussion of the meeting proceedings.  We will gather in a room at the LMC offices.  Further details about the event will be forthcoming in the new year.

Please RSVP if you’re interested!

I will absolutely post more info when I get it. We’re working on creating ties with what’s happening on a national level and how that impacts MN and how MN impact the national scene.

MN Online Sales Tax Not the Windfall Predicted

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There were great expectation for the online sales tax that Minnesota recently started to collect. But reality is falling short due to a number of factors. MinnPost reports…

The state still expects to collect $11.14 billion from its sales tax by the end of the biennium, it’s second largest source of revenue behind individual income taxes. But because of declining sales tax collections overall, there is no “found money” for lawmakers to decide how to spend. Internet sales tax collections instead seem to be doing what they are intended to do: capture some of the sales that are migrating from in-state retailers and other taxable transactions to remote sites out of state.

Looking out to the next biennium, the one that begins July 1, 2019, the sales tax is projected to bring in $12.02 billion. That is only slightly less, $5 million, than was forecast last February.

I guess it’s like funding a $20 in your winter coat. It feels like a bonus, but you know it came from somewhere.

Arvig Buys Windstream Fiber Assets in Minnesota (and Nebraska)

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Light Reading reports…

Windstream (NASDAQ: WIN), a leading provider of advanced network communications and technology solutions, today announced that it has sold certain fiber assets in Minnesota to Arvig Enterprises, Inc. (“Arvig”), a Minnesota-based provider of telecommunications and broadband services. The all-cash transaction is valued at $49.5 million.

Windstream also announced that it has entered into a definitive agreement to sell additional fiber assets in Nebraska to Arvig for $11 million. The Nebraska sale is expected to close in the first quarter of 2019.

As part of the transactions, Windstream will establish a fiber network relationship with Arvig, allowing Windstream to utilize the assets to continue to sell its products and services in Minnesota and Nebraska. “These transactions monetize latent dark fiber assets in Minnesota and Nebraska, lower capital requirements in each state and allow us to focus on our core network offerings with minimal change to our operations going forward. The structure also sets a roadmap for future fiber monetization across our footprint,” said Bob Gunderman, chief financial officer and treasurer for Windstream.

“Expanding our broadband footprint is core to our strategic priorities and bolsters our fiber assets throughout Minnesota and across the Midwest,” said David Arvig, vice president and chief operating officer at Arvig. “The additional Nebraska transaction will provide a critical link for our network beyond Minnesota supporting our continued growth throughout the region.”

Key ingredient in digital readiness? Digital resourcefulness and utilization!

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Roberto Gallardo has a new research report on Gauging Household Digital Readiness. I spend a ton of time focused on access – but as a librarian, I have been worried about readiness (information has morphed into digital) for decades. Access is a piece of digital readiness but as Roberto points out – it only a piece.

Here are the key findings from the report…

  • Regarding device & internet access, nonmetro respondents relied more on their smartphones and mobile data to connect to the internet compared to their metro counterparts. They also had slightly higher device performance issues as well as more extended downtime periods with their internet access. Despite these disadvantages however, they connected to the internet as frequently and with diverse devices as their metro counterparts. In the end, nonmetro did have a lower DIA score compared to metropolitan respondents.
  • Regarding digital resourcefulness and utilization, metro respondents had a slightly higher and statistically significant score but overall had similar digital resourcefulness levels as well as number and frequency of internet uses as nonmetro. On digital resourcefulness, while both metro and nonmetro respondents felt electronic devices made them more productive, a higher share of nonmetro respondents needed help setting up new electronic devices as well as finding it difficult to discern online information as trustworthy. Likewise, the share of nonmetro responses was higher compared to metro in all three statements regarding online echo chambers. On internet utilization, both metro and nonmetro households used the internet on average 11 different ways (out of 25 listed) at least once monthly. As expected, households relying more on mobile data (50 percent or more of the time over the past year) had a lower internet utilization.
  • Regarding internet benefits and impact, there is ample room for growth. A higher share of respondents saved money online compared to earning money regardless of metro status. More than four-fifths of respondents did not make money online gauged by selling, freelancing or renting. In addition, about twelve percent of respondents, regardless of metro status, saved money online regarding healthcare. Less than ten percent of respondents obtained a promotion due to online educational credentials, but nonmetro households had a higher share compared to metro. Lastly, a little more than one-fifth of respondents (metro) secured a job due to the internet over the past year, while less than fifteen percent of nonmetro did.
  • Regarding the digital readiness index score, metro households had a higher score (5.2) compared to nonmetro (4.5), leaving ample room for improvement given 10 is the highest score. More interestingly, when it comes to digital readiness a metro-nonmetro divide was not as large and surpassed by income and occupation differences.
  • Lastly, the dimension that yields more bang for the buck regarding improving digital readiness is digital resourcefulness and utilization after controlling for specific socioeconomic characteristics. On the other hand, of the three dimensions analyzed, internet benefits and impact had the lowest score. In other words, the impact of the internet on households—as measured by this study—is lagging. This implies that focusing on improving digital literacy and skills is critical to ensure the benefits of internet continue to accrue to households.

I am most excited by the final point – the focus on digital resourcefulness and utilization. Because that’s when technology changes from being a challenge to a solution. It’s like the change in grade school, when kids go from learning to read to reading to learn. A world opens up! You need to have access, you need to have devices that work – but that’s technology. A big enough check will take care of that. Resourceful and utilization is all people.

It is interesting to see what people do online based on their location…

 

Also interesting to see who saves money and who makes money online. Non-metro people seem to make less money freelancing; I wonder how much of that is attributed to Uber/Lyft. Whereas non-metro households earn more in rent. Maybe that’s Air B&B – certainly that could be true in some of Minnesota’s lake areas. Non-metro households also report greater savings with online healthcare.

Some factors I’m sure reflect the difference in rural/urban areas and some reflect the difference in people who choose to live in one or the other.

On top of  being an interesting look at what people do online I think this report does help propose some options to encourage greater use. First non-users can see how much is to be gained by moving some activities online but also digital inclusion professionals can focus on getting beyond that learning to read stage to encourage greater satisfaction and stronger desire to learn more. It reminds me of one of my favorite digital inclusion activities – the scavenger hunt. Get people to travel the city of town using online apps and other tools for prizes. Encouraging resourcefulness and utilization!

Home buyers will pay 7 percent more for a home with Gigabit service

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Corning reports…

Today, home buyers are shopping for more than just curb appeal. They’re looking for a quality internet connection. When you’re in the business of attracting new residents and keeping existing ones satisfied, you can’t deny that the value of reliable broadband connectivity at home is real.

Did you know …

  • High-speed broadband can increase the value of your home by 3.1%

  • Homes with Gigabit broadband sell for about 7.1 % more than similar homes with slower connections