MN Broadband Task Force Aug 2024 Mtg: Hearing from broadband providers

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It was nice to hear from broadband providers from the Northeast Minnesota. The spoke frankly about the trials, tribulations and success for building broadband in the area. The importance of the Affordable Connectivity Program also came up – and the loss of trust that came up with loss of broadband.

Also nice to get public comments from folks from the frontlines!

10:10 a.m. – 10:20 a.m. Introduction – Paul McDonald, Board Chair, St. Louis County Commissioners

  • In 2021 created SLC broadband grants
  • $400,000 for community infrastructure
  • Worked with RAMS and IRRR to talk to folks
  • 7,000 square miles, 13.1 pop density (people per square mile), very rocky (Canadian Shield), lakes and rural
  • One community in the area: 550 customers, $11M for project, many partners – still $3M shy
  • They leverage $10 for every $1 in grants
  • BEAD fears: not enough money / fall back on non-fiber solutions / ISP required to cover affordable options

10:20 a.m. – 10:25 a.m. Approval of minutes from July 18th, 2024, Task Force Meeting
Done

10:25 a.m. – 11:15 a.m. Internet Service Providers Panel – Consolidated Telecommunications Company: Joe Buttweiler, Chief Strategy Officer, Northeast Service Coop: Paul Brinkman, Executive Director; Joe Weber, Operations Manager, Paul Bunyan Communications: Gary Johnson, CEO/GM; Chad Bullock Assistant GM; Patti Horazuk, Regulatory Compliance Specialist; Steve Howard, IT & Development Manager

CTC:

  • New things: We have workforce challenges – we need more people but have been named top 200 small businesses
  • New things: launching new MC Fiber construction company (CTC and Meeker Coop Light & Power)
  • New things: CTC Cares is a nonprofit to exclusively fund local community initiatives – new grants in 2025
  • Lots of partnerships with local govs, EDAs, cooperatives…
  • In last 10 years: $123M in federal, state  local gov and CTC investment to get 16, 534 homes and businesses online
  • Implementing a state grant: it starts with community engagement. We develop a high level budget – how many served/unserved, is there an anchor institution, potential funders (IRRR, state funding…?), pre-application process (tell area providers you are going to apply – required by OBD) – it can cost $1000-25,000 to get this far. The state process is easier than many others.
    Assembling the grant application: get letters of support (personalized letters are better!),  curing a grant application if it is challenged (OBD does a nice job but it takes job and labor – could be $5,000-33,000)
    Grant awarded: community engagement, grant review and bid waiver (bidding isn’t always best option – sometimes easier to negotiate (cost $1,000-6,000)
    Deploying: Pre-construction, construction and activation, admin functions. They pre-wire at home while building.

NESC

  • Providing middle mile for last 10 years.
  • We look for partners to provide last mile – except public utilities.
  • We are a providers’ provider.
  • Work with public and private sectors.
  • Working on 40/200 gigahertz Optical Channels

Paul Bunyan Communications

  • Constructed nothing but fiber since 2004
  • Do people really need multi-Gig? We don’t want to make decisions for people.
  • Long standing partnerships
  • Strive to make things affordable. Without ACP intervention, we found people didn’t get online. SO we jumped on that and brought subscription desks and training to them. Especially helped with tribal partners. Heart broken on the demise of the ACP. We know it worked and we have stories.
  • 6,000 square miles – have spent $245M on infrastructure from 2005 to 2023. $228M is PB investment the rest is IRRR, RDOF, Border to Border or other. Profit is not our motivation – service is.
  • GigaZone Gaming – 8 years going, so far

Questions:

  • About Bois Fort – how much of $20M has been eaten up in process?
    Thousands of dollars – it’s more the time that it takes.
  • About Bois Fort – have you looked at cost projections from going through rock or around it?
    We have $1M in rock contingency. We’re hoping CTC construction will help us keep to budget.
    Sen Smith has been involved in broadband. The letters of support are striking. We hear good things about CTC and Paul Bunyan.
  • About Bois Fort – when complete, will it serve everyone?
    Yes – although there are members who live off the reservation so that’s a factor we are working on.
  • For PB: what’s the impact of demise of ACP?
    We did work hard on it. It was hard to send the letter about the demise and it hurts the trust between. The lack of trust is bigger than lost of broadband. A terrible collateral damage.
    Cost of ACP was $5-7M per month. We might make recommendations for a State program.
  • Terrain is an issue in NE MN for buildouts. What do you do to mitigate it?
    It’s not impossible. It’s expensive. You just have to know the costs. If you think 30 years out instead of 5 years, the math is easier.

11:15am-11:25 a.m. Break

 

11:25 a.m. –11:40 a.m. Broadband Equity, Access and Development Program (BEAD) Update

Bree Maki, Executive Director, Office of Broadband Development – Diane Wells, Deputy Director, Office of Broadband Development

  • Vol 1 approved in May
  • Challenge process is closing. There were 12,300 challenges made. Deadline is Wednesday. Providers have 30 days to rebut.
  • Vol 2 is still being cured. NTIA is hoping to approve all Vol 2s by Fall. Then we’ll have 365 days to award subgrantees. So, we’re hoping for 3 rounds of funding in 8 months.
  • Original vols are available online and OBD tries to keep recent versions online. There was interest from providers to sit down and go through the volume in detail. We are working on setting up something like that.
  • At end of subgrantee selection, we need to have a plan to serve everyone in Minnesota. If you decide not to apply in your area, we will have to select someone else.
  • OBD has weekly office hours (Thursday 2-3pm).

Q: How do you feel about 12,000 challenges?
It’s lowering that we were anticipating. Most are from providers. Last round MN grants is part of the process. ARPA was never captured by OBD so we’re seeing some of that now. Also seeing fixed wireless going from licensed to unlicensed.

11:40 a.m. – 11:50 a.m. Digital Opportunity Update

Bree Maki, Executive Director, Office of Broadband Development – Hannah Buckland, Digital Equity Program Lead

 

11:50 a.m. – 12:05 p.m. Office of Broadband Development Overview – Bree Maki, Executive Director, Office of Broadband Development

  • DEED and OBD is in a State audit review. Going well.
  • Working on statewide plans for permitting
  • We have concern about $652M reaching everyone – we are having to recognize that fiber won’t go everywhere.
  • Working with Dep of Labor on certification programs required after last MN Legislative session
  • We are working on awarding Round 10 funding. We’re aiming on early fall. We’re trying to coordinate with ReConnect and BEAD.
  • Line Extension continues. Round 1 needs to be done this year. Round 3 is in process

12:05 p.m. – 12:20 p.m. Sub-Group Discussion in preparation for Broadband Task Force Annual Report – Affordability & Digital Equity; Mapping, Funding, & Policy; Economic Opportunity & Workforce

Affordability & Digital Equity

  • They are looking at plans for MN version of ACP. Looking at what data might be useful.
  • Looking what feds are doing with Lifeline
  • Adding digital navigation to 211 – but thinking it goes into United Way

Mapping, Funding and Policy

  • Community planning efforts
  • Recruit workforce
  • Increase statutory speed goals
  • Continuation of digital equity
  • Continuation of Line Extension

Q: How can Lead for America help? Is it though orgs or communities?
TBD

Economic Opportunity & Workforce

  • Data review of past broadband projects, especially success
  • Current workforce doing broadband deployment? What’s the forecast when all states want those types of employees?
  • What is State currently doing to prepare people for jobs in broadband deployment?
  • CWA and CTC have joint apprenticeship programs. Might be nice to hear more about it.

12:20 p.m. – 12:30 p.m. Other Business, September 24th Meeting Plans, Wrap-up

  • We will talk more about how subcommittees prepare for the yearend report in future meetings.

Any open comments?

  • Rep from small town outside of Duluth (Northstar Township)– we need help. We have 238 places that need broadband. We have 275 voters. We are 7.33 miles away from broadband. We can’t afford broadband.
    They were part of a Border to Border grant that was disqualified due to RDOF.
    Need to makes sure those addresses are challenged if need be.
  • Paul Peltier from RAMS. What can local folks do to help policymakers? We have 13,000 square miles – they don’t all have broadband. We’ve worked with local providers. We have households that would still need to go to McDonalds for internet access. Do you folks recognize that building broadband is only getting more expensive. Rural broadband is going to change rural America.
    Pay attention to the challenge process.
    As draft reports are coming out – we could have in depth conversations about where the gaps are and try to build coalitions. Good questions.
    We need to make the right recommendations. Concrete examples are helpful.
  • Tom Karst at NTIA: Getting involved in the Challenge process is key.

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