Monthly Archives: December 2018

Broadband bubbles up as top policy goal by Thriving by Design attendees

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Last week I wrote about the Thriving by Design conference. Hosted by Growth & Justice and One Minnesota, this meeting was part of a process to find out what are the top policy concerns and hopes for Minnesota residents. It was very interactive session where we looked at priorities and policy intersections – or policies that had an impact of other policy concerns. It was fascinating.

Spoiler alert: broadband came out on top. I won’t go into the value of the numbers but broadband had top priority and interconnectedness scores. Not necessarily the top for either – but combined, it was the top. (And I did not tip the scales!)

I remember being in the room in the nascent days of the Minnesota Broadband Coalition. Many organizations were interested enough to join the meeting but when asked to rank their top policy concern, broadband came up second, third or farther down the line. So it’s interesting to see how the Thriving by Design team has been able to quantify and embrace the interconnectedness as part of its importance.

Broadband is problem for those who don’t have it – and an answer to many questions for those who do. Having broadband solves more than the issue or not having it, it opens the door to better opportunities for education, healthcare, civic engagement and economic development. It is a priority because of its interconnectedness.

To learn more mark your calendar for January 14, that’s the morning Thriving by Design will hold a press conference at the Minnesota State Capitol.

Also – and only because someone asked while I was there. There was distribution of rural/urban/suburban folks in the room. Not everyone left a zip code – but for those who did here’s the break down:

  • 22 from urban areas (TCs)
  • 5 from suburban areas (most around TCs)
  • 7 from large towns (think Mankato)
  • 11 from rural areas (4 from New London!)

Broadband failure is in the eye of the beholder – community members benefit

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A recent letter to the editor in The Hill uses the Lake County broadband network as an example of when government should not get involved in providing services…

Armed with an infusion of federal stimulus money, Lake County, Minnesota, ran a network costing $80 million. By the time the project officially failed, the county was paying $22,000 per subscriber in subsidies and recently had to sell the network.

Also in Minnesota, 10 cities and 17 townships joined a cooperative that financed $13.7 million in taxpayer bonds to construct a $55 million fiber optic network. After only two-thirds of the needed subscribers actually signed up, a $1 million revenue shortfall developed. This resulted in a tax increase on much of the community to cover the bond payments.

I don’t know that they talked to the people in Lake County. Last year the Blandin Foundation published work I had done (with Bill Coleman)  looking at several rural communities with better broadband; Lake County was on our list. They recognized back when they accepted the money that private providers were not going to upgrade to fiber any time soon. The research that we used indicated that each house with broadband reaps an (average) annual benefit of $1850. And homes increase (on average) 3 percent. Of the counties we looked at, Lake County had the slowest ROI because they got the most public funding and that was in the form of a loan but even for them, the time that the community would reap the benefit of the investment was 7 years.

The cost was $83,418,170 – but the combined annual benefit to residents (with fiber) was $13,695,550 and the increase in home values came to $38,547,421.

What we found talking to people on the front lines was that homes without broadband didn’t sell. Areas with broadband attracted businesses. The faster internet made school, healthcare and work easier and faster for people. So it may take a while to repay the loan but without the faster broadband, the community would not be seeing these other benefits.

The article offers three alternatives to government-led networks:

  1. Rely on private industry
  2. Make broadband deployment cheaper and faster by streamlining state and local rules.
  3. Issue vouchers for rural and senior citizens.

Those alternatives seem very provider-centric. The vouchers and the accommodations used to lure providers to the area would need to be profitable enough to be attractive to encourage development – at least with commercial providers. Commercial providers focus on their bottom line because they are beholden to their shareholders. A middle ground solution would be to consider cooperatives where customer and the shareholders are the same people. Where you can balance profitability with investment with a different outlook.

Rural Jobs and Investment Act – another pocket of potential broadband funding?

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Last week I wrote about $350 million in the Farm Bill for broadband. Today I found, what I think is another pocket of funding that might also help with broadband and/or rural technology projects. Binghamtom writes about Senator Gillibrand’s bipartisan Rural Jobs and Investment Act…

Washington, DC – U.S. Senator Kirsten Gillibrand today announced that her bipartisan bill, the Rural Jobs and Investment Act, has passed the Senate as part of the final conferenced version of the Farm Bill. The legislation now heads to the House of Representatives for a final vote. Gillibrand’s legislation would expand access to much-needed resources and investment for rural entrepreneurs in Upstate New York to start and expand local businesses. According to the U.S. Census Bureau, 57 percent of rural communities throughout New York State saw more businesses close than open from 2012 to 2016.

Here is what it proposes to fund…

This bill would invest in rural communities through a Rural Innovation Stronger Economy (RISE) Grant Program through the U.S. Department of Agriculture’s (USDA) Rural Business-Cooperative Service. This program would award grants of $500,000 to $2 million each to locally-driven “rural jobs accelerator partnerships” made up of entrepreneurs, local leaders, investment organizations, and training providers to improve their local economy and position their region to be more competitive.

 

This funding would be flexible and provide transformative investments that can meet multiple needs of rural communities, including:

  • Developing innovation centers to serve as space for mixed-use housing, business development, training, and co-working opportunities, and help redevelop community downtowns;

  • Fostering networking and collaboration among local entrepreneurs;

  • Helping rural entrepreneurs and businesses connect to new markets;

  • Turning more research and development at universities and other research institutions into new companies and business growth;

  • Facilitating the on-shoring of high-wage jobs in rural communities;

  • Providing skills training to prepare workers for quality jobs and provide businesses with the workforce they need for success;

  • Investing in infrastructure upgrades required to support new business growth, including the deployment of high-speed broadband service.

I’m not clear as to how this fits in with the previously mentioned $350 million but it does appear to be a separate pool. And even if that last bullet point gets lumped in with the $350 million, the other projects listed would help communities better use technology.

Average American Family Can Save $10,500 Per Year by Using Broadband for Comparison Shopping and Online-Only Deals

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The Internet Innovation Alliance says a household can save $10,500 a year! 

The Internet Innovation Alliance (IIA) finds that the average American household can save $10,539.09 per year on household spending through use of high-speed internet services, according to the organization’s latest Cost Campaign analysis. Before factoring in the average annual cost of a mobile data plan and a home broadband connection ($1,575), the yearly savings add up to $12,114.09. The financial analysis, “10 Ways Being Online Saves You Money,” was authored by Nicholas J. Delgado, certified financial planner and principal of Chicago-based investment bank Dignitas, in partnership with IIA

These numbers are always fun to have. I must admit when I looked at community ROI of public investment in broadband, I went with numbers that were much more conservative; we looked at an annual economic benefit of $1850 per household with broadband – because these numbers seem a little urban-focused.

I know the text won’t transfer well so I’ll post the picture (and table below) so you can get the content in the best way for you…

Top 10: Potential Internet-Enabled Savings on an Annual Basis Continue reading →

Mediacom extends fiber to Fountain (Fillmore County) with MN State broadband grant

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Bluff Country News reports…

Mediacom Communications announced it has built more than seven miles of fiber optic cable connecting the homes and businesses of Fountain to its Fillmore County broadband network.

By mid-December, Mediacom will activate the new portion of its network to deliver advanced telecommunication services, including robust one-gigabit-per-second internet speeds that are up to 40 times faster than the minimum broadband definition set by the Federal Communications Commission (FCC).

The project was made possible by a Border to Border Broadband Development Grant provided by the Minnesota Department of Employment and Economic Development (DEED).

Through this public/private partnership, DEED allocated funds to pay for up to 48-percent of the $400,000 network construction cost. Mediacom’s capital investment covered the remaining 52-percent of the project to create Fountain’s first facilities-based broadband network and makes gigabit internet speeds available to residents and businesses throughout the community.

Mediacom has been a longtime service provider in the Fillmore County communities of Canton, Chatfield, Lanesboro, Mabel, Peterson, Preston, Rushford and Spring Valley. With the addition of Fountain, 183 mid-sized and smaller communities throughout Minnesota are now connected to Mediacom’s fiber-rich broadband network.

 

Farm Bill includes $350 million for broadband

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MPR reports…

Broadband in rural areas also gets a boost in the 2018 farm bill, which sets aside $350 million dollars for loans and grants. The money is specifically targeted to rural communities that don’t have broadband, or have slow broadband service.

A recent report from the state Governor’s Task Force on Broadband shows that Minnesota is making progress, with about 90 percent of households able to access internet speeds of 25 megabits per second or higher.

Great news – but I think it’s time we start looking at how much in Minnesota has access to the 2026 speed goals of 100 Mbps down and 20 up. When you look at that speed the latest reports say 74 percent of Minnesota households have access to wireline 100/20.

USDA offering up to $600 million in loans and grants for broadband

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The USDA announced some good news and bad news today. They are dedicated money to broadband…

Agriculture Secretary Sonny Perdue today announced that the United States Department of Agriculture (USDA) is offering up to $600 million in loans and grants to help build broadband infrastructure in rural America. Telecommunications companies, rural electric cooperatives and utilities, internet service providers and municipalities may apply for funding through USDA’s new ReConnect Program to connect rural areas that currently have insufficient broadband service. Answering the Administration’s call to action for rural prosperity, Congress appropriated funds in the fiscal year 2018 budget for this broadband pilot program. USDA Rural Development is the primary agency delivering the program, with assistance from other federal partners.

In the form of grants, loans and mashups…

USDA will make available approximately $200 million for grants (applications due to USDA by April 29), as well as $200 million for loan and grant combinations (applications due May 29), and $200 million for low-interest loans (applications due by June 28).

But they are funding areas with 10/1 access or worse and minimal requirement is an upgrade to 25/3…

Projects funded through this initiative must serve communities with fewer than 20,000 people with no broadband service or where service is slower than 10 megabits per second (mbps) download and 1 mbps upload.

Approved projects must create access speeds of at least 25 mbps upload and 3 mbps download. Priority will be awarded for projects that propose to deliver higher-capacity connections to rural homes, businesses and farms. USDA seeks to stretch these funds as far as possible by leveraging existing networks and systems without overbuilding existing services greater than 10/1 mbps.

Frustration with broadband providers in Orr, MN

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The Timberjay posted an editorial of frustration written about the broadband providers’ lack of investment in last mile broadband. They note the state support middle mile technology but ask the state to take a closer look at what’s happening or not happening to get the homes and businesses connected…

There’s just one problem. We’ve forgotten to install the on and off ramps. The city of Orr, as we report again this week, has at least three separate fiber optic cables running right through town, but no one can get Internet. We report on the frustration of two local business owners in Vermilion Lake Township, who have fiber running right past their businesses, but who still must operate on Internet speeds that barely allow them to navigate the web— and that’s when their service is actually functioning.

The missing link in all this has been the corporately-owned service providers, companies like Frontier and CenturyLink, which have failed to uphold their role in the process. Bringing real and reliable broadband connectivity to rural Minnesota is, in theory, supposed to be a public-private partnership. The state or federal government provides the backbone of the system, while the local service providers like Frontier and CenturyLink are supposed to build the on and off ramps so local residents can begin to tap into that information superhighway that runs past their door.

While we’ve been critical of Frontier Communications in the past, the company has, at least, begun to make some upgrades to allow faster speeds in some parts of the region than have been available before. We’ll give credit where it’s due. It’s been a much more frustrating experience for customers of CenturyLink, such as those who live in Orr, given the company’s near-abandonment of parts of its service territory in northern Minnesota.

A partnership can only work when all the partners are willing to pull their weight. We certainly don’t want to discourage the Legislature from investing in bringing fiber to our region. The backbone is a critical part of the solution. But it has to be paired with strict and enforceable commitments by the local service providers to utilize that backbone to bring the level of service now possible to homes and businesses in our region. These service providers are regulated utilities and the Legislature needs to start addressing the lack of investment and follow-through that we’ve seen from some of them. If the Legislature can’t or won’t use enforcement mechanisms, they should explore incentives to encourage other providers to do the job. Ely is currently working with Brainerd-based CTC to facilitate fiber connections to downtown businesses. Orr is now turning to Back40 Wireless for a similar project, using a wifi signal. These are all hopeful developments which should be provided financial support where needed.

If CenturyLink or Frontier can’t do the job, the state should provide the resources needed to enable such organizations to expand the reach of their service.

Blue Earth County Board talks about expanding broadband

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The Mankato Free Press reports…

The Blue Earth County Board already has a New Year’s Resolution: kickstart efforts to bring more broadband options and data fiber connections to the area.

Commissioner Vance Stuehrenberg called on county officials Tuesday to lay the groundwork for a future public-private data fiber partnership as recent data show Blue Earth County is lagging in internet connectivity.

Stuehrenberg said during a board meeting Tuesday he was concerned only about 14 percent of the county was equipped to handle at least 100 mpbs download speeds and 20 mbps upload speeds. While almost all of Blue Earth County’s internet options meet the state’s immediate high-speed goals — at least 25 mbps downloads and 3 mbps uploads by 2022 — Stuehrenberg and other commissioners believe the county needs to have better internet access if it wants to continue growing and attracting more economic development.

“It’s kind of disheartening to hear that in Mankato and Blue Earth County, we don’t have the same ability to get internet service as some of those smaller communities,” Stuehrenberg said.

I applaud the forward-looking vision. They are brainstorming some ways to make it happen…

Stuehrenberg suggested future highway reconstruction projects include installing fiber to help offset connection costs in rural areas. Yet he and other commissioners said it will ultimately be up to area internet providers to use and maintain fiber networks.

The county finished installing fiber infrastructure around Mankato and nearby cities over the last two years, according to County Administrator Bob Meyer. He said county officials have been in preliminary talks with internet providers to expand broadband access throughout the county.

Eighth Circuit Denies Petition for Rehearing of Charter VoIP Decision

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You may recall that in September, Minnesota PUC ruled in favor of Charter by limiting state regulation.

On December 4 (2018), the Eighth Circuit Court issued an order denying the Minnesota PUC’s petition for rehearing of the Court’s September 17, 2018 decision affirming the Minnesota district court’s ruling that Charter’s VoIP service is an information service under the Telecommunications Act.

A map of areas in MN without Internet access

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NDIA has created maps from the latest Census data…

The interactive maps below are based on new Census data released on December 6, 2018 as part of the 2017 American Community Survey (ACS) 5-Year Estimates.

For the first time, the 2017 ACS includes computer ownership and internet access information for local Census tracts. (Note: The Census uses the term “internet access” to refer to actual household connections, not just availability.) This information, presented in ACS Tables B28002 through B28011, was previously released only for communities of 20,000 or more and only on a community-wide basis. (NDIA’s Worst Connected Cities reports are based on this ACS citywide data.)

I was most interested in the map that shows where we lack access…

But the map of access is important too…

Both maps are interactive if you visit the NDIA site.

FCC is looking for new Broadband Deployment Advisory Committee Members

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The FCC announces the opportunity. I hope we can flood the market with Minnesota names!

The Federal Communications Commission announced its intent to re-charter the Broadband Deployment Advisory Committee (BDAC), a federal advisory committee, which provides advice and recommendations to the Commission on accelerating the deployment of high-speed Internet access. The Commission intends to renew the BDAC’s charter for a two year period, starting on or about March 1, 2019.

Nominations for membership to the BDAC should be submitted to the FCC no later than January 10, 2019. 

https://docs.fcc.gov/public/attachments/DA-18-1239A1.pdf

Thriving by Design attendees are finding connections to broadband

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I’m doing something a little different today. I’m at the Growth & Justice Thriving by Design conference. The goal of the conference is to finesse a plan for the future to hand to Governor Walz. The process started last summer when 100 or more people from around Minnesota gather to talk about shared problems, shared goals and potential solutions.

We started the day talking about equity blueprint problem statements:

  • Human Potential (green)
  • Economic Development (blue)
  • Physical Infrastructure (red)
  • Environment & Natural Resources (yellow)
  • Democracy & Civic Engagement (white dot)

Each problem was then divided into sub-statements – including broadband as a sub-statement under Physical Infrastructure. Attendees had an opportunity to create connections among the statements. It was done visually so that you placed a colored dot (representing the statements above) next to the sub-statement that connected with it. It sounds confusing and I may have more to report tomorrow when the conference continues but for now I think it’s interesting to see that broadband was a magnet for many attendees. I was one of the top draws.

FCC is moving to new broadband map format, decommissioning old maps

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The FCC reports on the decommissioning of their old broadband maps – on Dec 21, 2018…

Since 2011, the National Broadband Map has been a vital tool for consumers, businesses, policy makers, and researchers by providing an easy- to-use and searchable way to find out who is offering broadband, what types of broadband they are offering, and where they are offering it.  But the mapping platform has become dated, as has the coverage data, which was collected through the National Telecommunications and Information Administration’s (NTIA) State Broadband Initiative (SBI); the last published SBI data set was current as of June 30, 2014.  Based on the age of the data, and the underlying technology, the National Broadband Map and its Application Program Interface (API), will be decommissioned on December 21, 2018.

Recognizing the value of broadband data visualizations, the Federal Communications Commission released a new Fixed Broadband Deployment map in February 2018 to display new data collected by the FCC from carriers on FCC Form 477, which is updated twice annually. Like the old map, the new map provides key information about broadband deployment for consumers, policymakers, researchers, economists, and others.

Looking at the new maps was a reminder to me that they were last updated in 2017. We are lucky in Minnesota to have updates more often.

Minnesota broadband is better than Wisconsin broadband

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If I were more of a sports ball person I could probably make a lot more of this story. As it stands, I’ll just say it’s interesting to see what your neighbors think of you. The [Appleton] Post Crescent reports…

Minnesotans have more access than Wisconsinites to fast internet that consumers rely on for everything from schoolwork and jobs to shopping and binge-watching Netflix, new census data show.

Access to broadband internet in Wisconsin is also worse for many poor and rural families, as well as racial and ethnic minorities, according to data that the U.S. Census Bureau calls its first-ever look at internet subscription rates over five years.

The paper is part of the USA Today network. They came up with five findings after looking at state level broadband data…

  1. Wisconsin slightly behind Minnesota, Illinois
    About 78 percent of Wisconsin households had a broadband internet subscription from 2013 to 2017, mirroring the national rate over the period but trailing states to the northwest and south. Minnesota had the highest rate of neighboring states at 80.8 percent.
  2. Minnesota children had more access
    Most children in Wisconsin had access to fast internet in their homes and they had access at higher rates than kids in Illinois, Michigan and the nation overall. But compared with Minnesota’s 90.6 percent, Wisconsin was slightly behind at 87.7 percent.
  1. Fewer subscribers in low-income households
    Why is broadband internet more common in Minnesota than Wisconsin? One factor may be income. Like other Midwest states and the nation overall, access to high-speed internet in Wisconsin varies greatly by household wealth.
    About 93 percent of Wisconsin households with at least $75,000 in annual income had access to broadband from 2013 to 2017. But only half of those households with less than $20,000 in annual income had access.
  1. Fewer subscribers in northern Wisconsin
    Waukesha, Dane, Ozaukee and Calumet counties had the highest rates for households with broadband internet. Mostly northern counties — such as Forest, Clark and Menominee — were at the other end of the spectrum in the state. More than one-third of the homes in those three counties were without broadband.
  1. Fewer African American subscribers
    The racial inequities for fast internet in Wisconsin are larger than in most of the state’s neighbors and the nation overall. While 84 percent of white residents in Wisconsin had access to broadband, just 68 percent of black residents had access. The rates varied for Asian, Latino and Native American residents, too.