MN Broadband Task Force December meeting: cost scenarios for investing BEAD money in MN

Today the Task Force heard a Presentation on MN Broadband Cost Analysis Report, CTC Technology & Energy. They created three scenarios of how to spend the BEAD money.

Wireless access to 100/20 (MN broadband Speed goal): Grant funds required: $2.1 Billion
Wireless access to 25/3 (BEAD standard) : Grant funds required: $1.1 Billion
BEAD coverage: Grant funds required: $628 million

More slides available below…

The expound on the middle scenario…

“The optimal technology mix model to reach the BEAD-eligible unserved + underserved locations, assuming the most-likely, conservative costs (Cable Expansion scenario) and the state’s $628M BEAD allocation, is 90.8% fiber, 0.7% fixed wireless, and 8.5% satellite.” But they are saying that’s 0.4% of households in MN.

Also, the task force went through the latest (last?) iteration of their annual report. I have tried to capture screenshots of the report ASIS – but it’s difficult.

10:00 a.m. – 10:05a.m. Welcome by Teddy Bekele, Chair, Minnesota Governor’s Task Force on Broadband

The meeting started almost 30 minutes late because the technology in the room wasn’t working. It’s funny and ironic and gremlins get into the system for sure. But it does prove the point – that the need for digital inclusion is as strong as ever.

10:05a.m. – 10:10a.m. Approval of minutes from November 26, 2024 Task Force Meeting

10:10 a.m. – 10:20 a.m. Updates from National Telecommunications and Information Administration (NTIA) by Tom Karst, Federal Program Officer, NTIA

New hire for MN with NTIA. Tom will be working on national issues. The new person will be Carah Koch.

10:20a.m. – 10:30a.m. Office of Broadband Development Overview + BEAD and Digital Opportunity Updates

Bree Maki, Executive Director, OBD

Closed position for land use coordinator
Started broadband land use charter group with agencies
- Streamline environmental land use approval
- Meet monthly
Grant proposals need progress reports in January

Diane Wells, Deputy Director, OBD

Getting de-duplicated list of BEAD eligible locations (extension has been requested)
Working with new grants mgmt. portal for pre-application process. Then they can open the process
They will start office hours in 2025

Hannah Buckland, Digital Equity Program Lead, OBD

$12M for digital opportunity activities
OBD needs to get information on potential projects
Funding runs until 2029
Expect to open up to applications mid-2025

10:30a.m. – 11:10a.m. Presentation on MN Broadband Cost Analysis Report, CTC Technology & Energy

Shawn Thompson, Vice President of Analytics, CTC Technology & Energy

Recap of goal analysis
Process and costs to get universal coverage in MN
They look at MN goals (100/20) and BEAD goals (25/3)
They look at fiber solutions, fixed wireless and other technologies
The presumption with Plan C is that the solution would be mostly fiber and satellite because the business case would be reduced for a fixed wireless business case
Universal wireless coverage grant required is estimated at $35M. But this seems to not be preferred.
BEAD prioritizes broadband
Cost to cover universal wired broadband is 3 times BEAD investment
“The optimal technology mix model to reach the BEAD-eligible unserved + underserved locations, assuming the most-likely, conservative costs (Cable Expansion scenario) and the state’s $628M BEAD allocation, is 90.8% fiber, 0.7% fixed wireless, and 8.5% satellite.” But they are saying that’s 0.4% of households in MN.
The threshold of “too expensive” is $30,000 per passing.

Q: how does $30,000 compare to other states?
Not atypical. States on the East Coast will be able to reach all of their addresses.

Q: Did you look at take rates and inflation et al?
We do 10 and 20 year outlooks. That includes inflation rates. ARPU (a rate paid per user) is ranged with full pay and partial (discounted) pay. Based on average statewide basis.