Mankato Free Press gives their view on federal broadband funding and requirements…
When Minnesota was awarded $652 million from the federal Bipartisan Infrastructure Act for broadband expansion, the astounding amount of the investment left many thinking the broadband coverage problem would be solved.
But as the state develops its plan a year later, broadband providers are balking at what they call onerous federal requirements to apply for the money. The requirements are so difficult, they say, they won’t be applying for it.
Brent Christensen, president and CEO of Minnesota Telecom Alliance and former general manager of Christensen Communications in Madelia, told MinnPost in June that he doubted any of the 70 companies in the Alliance would apply for the money.
Requirements to provide low-cost internet options to low-income people was just not feasible for many of the small companies. That, coupled with new state law that requires companies to pay the higher “prevailing wage” that applies to other state public works projects, makes it more difficult for companies to provide the service.
The Minnesota Cable Communications Association had the same analysis. “Providing a low-cost option just won’t work for smaller providers,” Melissa Wolf, executive director, told MinnPost.
It was interesting to hear that the Office of Broadband Development is working closely with the broadband industry folks…
But there appears to be room for negotiation before Minnesota sends its final plan to the federal government for approval. Some 15 states have already gained full approval while Minnesota has approval of its preliminary plan. The telecom and cable groups are negotiating with the state to make the rules of the program work for companies. …
That office says it is still talking with the providers and coming up with a plan that both meets federal guidelines and gets provider participation. We hope those negotiations finish sooner than later. State plans that have been approved could be a template for a Minnesota plan.
I hope we’ll learn more about the negotiations at the next Task Force meeting.