TC Business looks at Minnesota’s investment in broadband

Twin Cities Business posted a nice article on the history of broadband funding in Minnesota right up to today. It provides enough background to give context to a topic that ever-changing due to the nature of technology and funding…

For more than a decade, the state of Minnesota has been actively pursuing expansion of high-speed broadband access throughout greater Minnesota as well as in the Twin Cities metro. And there have been some significant success stories. But as Sjostrom’s experience demonstrates, there are still plenty of areas where internet speeds are still sluggish.

On Aug. 28, the state’s Office of Broadband Development announced that it would be making plans to disburse an estimated $392 million to parts of the state needing faster internet connections. That funding will certainly help bring greater Minnesota up to speed. With their general lack of urban density, rural areas still face the challenge of making broadband investments financially viable.

The recognize that both urban and rural communities have challenges…

Broadband access and the urban-rural digital divide have been widely discussed topics throughout this century. The pandemic intensified reliance on the internet to conduct business, work from home, and make purchases. Consequently, it made high-speed internet access an even more urgent need.

And recognize the work being done to increase access and adoption…

The state of Minnesota began addressing the need for higher-speed internet in 2013, when it established the Office of Broadband Development within the Department of Employment and Economic Development. The office was tasked with helping fund “border-to-border” high-speed internet access for all state residents and businesses. The following year, it launched a grant program through the state’s general fund to support communities’ efforts to attract broadband development.

Since 2014, the general fund money, along with some broadband-dedicated capital project funds, has totaled more than $400 million. There have been 10 rounds of border-to-border state grants to internet service providers (ISPs) to expand broadband in “unserved and underserved” locations. Those terms are defined by connection speed as measured in megabits per second (Mbps). “Underserved” connectivity has upload speed of lower than 100 Mbps and download speed of lower than 20 Mbps. “Unserved” is lower than 25 up and lower than 3 down. To earn a state broadband grant, a project must have speeds of at least 100/25 with the capability to scale up over time to 100/100.

Each border-to-border grant has covered up to 50% of an expansion project’s costs. There also have been three grant rounds from a smaller funding bucket called the Low-Population Density Program, which covers 75% of costs. According to Bree Maki, the Office of Broadband Development’s executive director, that program “recognizes the most expensive and difficult places to serve,” with the goal of “making the business case” to ISPs to expand in those areas. These grants “come with a lot of local match [dollars],” she adds.

Both ISPs and communities have contributed to buildout projects. Since 2014, nearly 120,000 locations have received state grant dollars. There are currently four grant rounds in progress, all of which will close by year’s end.

They may have also quoted me…

Based on her December 2024 profiles, Treacy says that “there are a number of counties that are doing well, and some of those counties are in rural areas.” Beltrami County, for instance, has enjoyed high-speed broadband thanks to fiber installed by Bemidji-based Paul Bunyan Communications.

“While some rural areas are well served, that puts the ones that aren’t well served further and further behind,” Treacy says. “Schools, businesses, health care organizations all assume a certain level of technology now. And if you don’t have it, you’re sunk.”

 

 

This entry was posted in Funding, MN, Policy, Rural, Vendors by Ann Treacy. Bookmark the permalink.

About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

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