CORI on rural broadband and economic growth featuring Bemidji

The Center on Rural Innovation looks at the role of broadband in rural economic growth and resilience. Here are some of the high level findings..

Compared to the control group, rural counties in the high broadband utilization group have:

  • Business growth rates that are 213 percent higher
  • Self-employment growth rates that are 10 percent higher
  • Per capita income growth rates that are 18 percent higher
  • GDP growth rates that are 44 percent higher

And charts to back up the data.

They also look specifically at Bemidji, broadband and the impact of cooperatives, Paul Bunyan Communications and Beltrami Electric Cooperative…

Paul Bunyan Communications’ growth from a local telephone cooperative to a leading broadband provider reflects a broader trend of community-driven infrastructure development. The cooperative’s investments, including the $100 million GigaZone project, northern Minnesota’s first high-speed gigabit fiber network, have positioned Bemidji and surrounding areas as innovative, connected communities. To further enhance its services, Paul Bunyan Communications also offers a range of value-added broadband services. For residential areas they provide SmartHome services complete with enhanced parental controls and advanced network security powered by their GigaZone mobile app. To support WiFi roaming they have implemented the SmartTown initiative, providing outdoor WiFi in public spaces and ensuring that residents and businesses stay connected, even in previously underserved areas. Additionally, the SmartBiz program caters to the specific needs of local businesses by offering secure networks, easy-to-manage employee access, and redundancy options to safeguard against power outages — all without the need for extensive IT support. This is particularly beneficial for small businesses that might not otherwise afford these enterprise-level services.

Beltrami County’s cooperatives, Paul Bunyan Communications and Beltrami Electric Cooperative, have a collaborative history characterized by shared ventures and mutual support within their community-focused missions. One of their notable partnerships was the formation of Cooperative Development, LLC in 1996, a joint initiative between the two cooperatives to create Bemidji’s Technology Park. This business park was established to provide a conducive environment for technology-oriented businesses, offering advanced communication and infrastructure services. Supporting new tech businesses is beneficial for the community, as tech jobs are high-paying and high-growth jobs that help ensure that the region remains competitive and resilient in an increasingly digital economy.

And based on Beltrami County’s steady business growth it seems Paul Bunyan Communications’ approach is paying off. Since 2010, the number of businesses in Beltrami County has grown by 12.1% (which amounts to an average annual increase of 1.1%), outperforming both the state and the country as a whole (see Figure 10 above). AirCorps Aviation General Manager Erik Hokuf said that the exceptional broadband services in Bemidji have made it possible to expand their business, generating $4 million in annual revenue instead of an estimated $300,000-$400,000 without fiber. In addition to the growth of new businesses and revenue, the per capita income in Beltrami County also increased by 7% between 2020-2022.

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