Rural electric cooperatives, rural telcos and Comcast were the biggest winners in the latest broadband funding announcement from the state of Minnesota. An announcement from the state’s Office of Broadband Development states that the awards were made on June 30, although it isn’t clear if the announcement was released at that time.
The biggest winner was Federated Rural Electric Association, which was awarded a $7 million grant in the Low Density Broadband Grant Program.
The next biggest winners were Paul Bunyan Rural Telephone and Comcast, both of whom will receive about $5.5 million. Paul Bunyan’s award also came through the low density program, while Comcast’s funding came through two awards in the Border-to-Border Broadband Development Grant Program. …
Other companies awarded about $5 million or more included Interstate Telecommunications Company, East Central Energy and Runestone Telephone Association.
Over 20 companies were awarded funding and a large portion of them were rural telcos and rural electric companies.
Two of the bigger names that won funding were Midco, which won three awards totaling about $3.1 million, and Frontier, which won about $830,000.
Category Archives: MN Broadband Fund Awards
Senator Westrom on broadband impact on rural Renaissance
The Alexandria Echo Press reports on Senator Westrom’s comments at Farm Fest…
“This session, we passed a significant rural broadband bill. Broadband is a real equalizer, and we have less than 8% of the state to connect to reliable internet. We can get that job done and bring a lot of economic development opportunities to rural Minnesota.”
“In many cases, broadband has been part of the rural renaissance of people moving back to small communities because they can work from home, they can visit their doctor from their home. If they have high-speed internet, they can do jobs that they couldn’t do 10 and 20 years ago.”
More info on Arvig MN State broadband awards in Sherburne County
Arvig has been awarded a $182,576 grant from the State of Minnesota’s Border to Border Broadband program to expand its fiber network to 240 unserved structures in Sherburne County.
Construction on the last-mile fiber network will take place near the Travelers Country Club on the Mississippi River, southeast of Clearwater, Minn.
When complete, the network will provide residents with internet speeds from 100Mbps (20 Mbps upload) up to 10 Gbps (1 Gbps upload), which meets or exceeds Minnesota’s 2026 state speed goal….
The total project cost for the network is estimated at $456,440. Arvig will provide a local match of $182,576 and Sherburne County and the State of Minnesota will contribute $91,288 toward the project.
Construction will begin as soon as the grant is awarded and the environmental reviews are completed, and will be completed before December 2025.
More info on Fillmore County Harmony Telephone MN state broadband grant
Fillmore County Journal reports…
Minnesota Department of Employment and Economic Development (DEED) announced Harmony Telephone Company as a recipient of two Border-to-Border Grants totaling $3.9 million.
Harmony Telephone Company will use the $2.9 million grant and $4.5 million local match to serve 311 households, businesses, and farms north of Fountain in Fillmore County. The $1 million grant and $1.6 local match will be used to serve 68 households, businesses, and farms in rural portions of Fillmore County, north of Preston. Projects will improve unserved levels to 1 Gbps download and 1 Gbps upload on their fiber network, exceeding the 2026 state speed goal. Building a fiber-to-the-premises network will improve access to education and healthcare services. It will also increase employment as businesses leverage this new network and telecommuting opportunities become available.
More info on Harmony Telephone…
Harmony Telephone Company is a privately-held company in Harmony, Minn. It was purchased in 2006 by Mabel Cooperative Telephone Company and Spring Grove Communications. In 2018, MiEnergy Cooperative bought into the company to become an additional owner. It provides broadband, telephone and video service to Harmony and the surrounding rural area. Ownership by cooperatives means providing quality service remains a top priority.
MN State Grants: all money spent, so many good projects and so much need
Thank you to the helpful readers who make me better, as always. The other day, I wrote about the MN State Broadband grants and I was confused by some of the numbers. I corrected the blog within 10 minutes of posting (thanks to awesome help!), but I know some of you get this in email. So, I want to highlight the right numbers:
- Grant total budget: $67 million
- Total awarded for Border to Border grants: $37 million
- Total awarded for Low Density Pilot: $30 million
- Total grants awarded: 30
- Total applications: 88
The Office of Broadband distributed all the awards they could. But as has happened in the past, there simply wasn’t enough funding to go around. The legislature budgeted $100 million for broadband for the biennium. They spent $67 million in this last round; that leaves $33 million for the next round. (I’m using round numbers here and above.)
It looks like some new folks applied this year. The new rules for the Low Density Pilot project (higher requests, and lower match from application permitted) opened the door to new opportunities. I’m sure many quality applications were left unfunded because of the budget and the competition will be tighter next time around.
Harmony MN is better served with Border to Border funding (Fillmore County)
Before receiving Border to Border funding, Harmony MN was a tough place to work remotely, as Post-Bulletin reports…
“During the pandemic, you had people working from home, kids doing school from home, so everyone was on the internet,” said Skaalen, who worked from home half the time in his job as president and CEO of First Southeast Bank in Harmony, Minnesota. “You’re all kind of sharing this pool of internet. There were just more chances of drops.”
At the time, the city’s internet infrastructure did not support broadband, meaning speeds were well below the state’s goal of 100 mbps — megabits per second — for download and 20 mbps upload. Under those speeds, a customer is defined as “underserved” according to the state. For folks getting speeds under 25 mbps down and 3 mbps up, they are defined as “unserved,” according to Bree Maki, executive director of the Office of Broadband Development for the Minnesota Department of Employment and Economic Development.
The grants have helped get them connected…
Currently, Maki said, there are 291,000 locations in Minnesota that are either unserved or underserved, which is about 12% of homes or businesses. The state would like to fill in those gaps by 2026. An infusion of $67 million in grants allocated during the last legislative session will put a dent in that need. Federal funding totaling $652 million over five years that was allocated to Minnesota will go even further to bringing high-speed internet to all Minnesotans.
In 2019 and 2020, grants from the state helped Harmony Telephone start installing fiber optic cables in its territory. The company has continued to take advantage of cost-share grants from DEED. In 2023, Harmony Telephone received $3.9 million for a pair of projects that, combined with $6.1 million in local match, will bring gigabite speeds to 311 households, businesses and farms north of Fountain and 68 households, businesses and farms in rural portions of Fillmore County north of Preston.
Meanwhile, the company has finished putting fiber in the ground in Harmony this spring and hopes to have all customers converted over to high-speed broadband by the end of the year, Huffman said.
The area is getting connected too…
Harmony Telephone isn’t alone in trying to expand broadband access in its region. Bevcomm, which services parts of Goodhue and Dodge counties in Southeast Minnesota plus territories in central Minnesota and Wisconsin, has been expanding its broadband services.
Bill Eckles, CEO at Bevcomm, said of the company’s broadband, 70% are connected with fiber optics, and 30% are DSL or coaxial cable.
MN State Broadband Grants: time to rethink Border to Border vs Low Density allocations?
The Office of Broadband Development has been distributing Border to Border (BTB) grants since they were established in 2014. This year a new grant has been introduced, the Low Density Pilot (LDP) grant. As the name implies, the Low Density Pilot, is a pilot. The idea is to try it and see if it works. It’s very early days but it seems like there are already some observations to be made. The most recent awards included BTB and LDP, The funds for LDP were fully distributed; the funds for BTB were not, which left money unspent. Also, of the $37M invested in BTB grants, $8.6M went to Twin Cities communities; no LDP money went to Twin Cities communities. It might indicate that reallocation of funds is worth considering.
Added 10 mins after original post: apparently $30M wasn’t allocated to LDP but “up to $30” so the total was $25M state funds plus $42M federal = $67M of which ~$30 went to LD pilot. Total awards $66.8M, which means most of the money was spent.
What is the difference between BTB and LDP?
For the regular Border-to-Border Grant Program the maximum individual grant amount is $5 million and the maximum grant funding award cannot exceed 50% of the eligible total project costs. For the Low-Density Pilot Grant Program, the maximum individual grant amount is $10 million and the grant funding award cannot exceed 75% of the eligible total project costs. Priority consideration is be given to projects that leverage greater amounts of funding for a project from other private and public sources.
What budget was available?
There was $42.6 million available for BTB grants and up to $30 million for the LDP program.
How much was distributed?
Almost $6.7 million was awarded, including $30M for LDP program and $37 for BTB.
Was the money spent?
BTB funds were not all distributed. There was $42.2 million available and only $37 million spent, which leaves $5.2 million on the table. Presumably, that money will get rolled into the next round of funding but for projects that are ready-to-go and in an economic climate where prices are increasing that feels like a loss. LDP funding was nearly spent; there was less than $50,000 on the table.
I don’t know why the unfunded projects didn’t receive awards, but the Office of Broadband Development has a respected history of grant management. Their work is award-wining and has been lifted up as a model to others. The easier question or lesson might be to ask if it makes sense to shift more money to the LDP applications.
Doing some quick math, the investment per passing in the BTB projects is $4033 and investment per passing for the LDP projects is $11,228. But almost 10 years into State grants, maybe it’s unfair of me to even use a business calculation on a grant-funded investment. Maybe I need to find a way to calculate the cost to the State and the community of not investing.
Border-to-Border
- Award available: $42.2M
- Grant award total: $37M
- Total requested: $104.5M
- Number of passings: 10,464
- Grant awards: 21
- Grant applications: 60
Low-Density Pilot
- Award available: $30M
- Grant award total: $30M
- Total requested: $80.7M
- Number of passings: 2,672
- Grant awards: 9
- Grant applications: 28
Where was the money spent?
Another difference is where the money was spent. I don’t know that the geographic distribution is an interesting as the potential rural-urban difference; of the $37M invested in BTB grants, $8.6M went to Twin Cities communities. There are definitely portions of the Twin Cities that are unserved but it might be worth investigating whether to BTB eligibility favors more urban areas – areas where smaller grants with a greater match mare more feasible. It makes sense to open up the doors to all communities but maybe the Office of Broadband Development should be authorized to redistribute funds prioritizing needs and applications over grant classification.
Another indicator might be successful challenges made in each grant-type. There were 14 BTB challenges that changed the outcomes of the grants and/or projects. No LDP challenges had an impact on LDP awards. That would indicate to me that providers are or will be serving the BTB areas impacted by 14 challenges. The LDP areas didn’t have viable challenges, which indicates to me that they won’t be getting service soon without grant support.
Border-to-Border
- Twin Cities recipients: 4
- Investment in Twin Cities: $8.6M
- Number of challenges resulting in partial or non-funding: 14
Low Density Pilot
- Twin Cities recipients: 0
- 7-County Metro Area recipients: 0
- Number of challenges resulting in partial or non-funding: 0
Cass County looks at federal and state investment in broadband: is it enough?
Walker’s Pilot Independent has started a series of monthly articles from the Cass County DFL Party. This month they are looking at broadband. It’s sort of a 101 lesson of the policy or business of broadband…
Created by the state legislature, the Minnesota Office of Broadband Development (OBD) began operations in 2014 to work toward the goal of border-to-border high-speed internet access by 2026. The OBD has administered $296 million in broadband grants thus far, helping to connect 103,000 businesses. The OBD predicts that the additional public investment from 2022 to 2026 needed to reach the goal is $1.38 billion at a 75 percent grant funding level. This is over and above state and federal funding to date including the recent $652 million award.
While this is still a significant amount needed to reach the goal, there’s little doubt that the federal infrastructure funding, coupled with the $100 million appropriated by the 2023 DFL-led state legislature for broadband, will make a tremendous impact on achieving our border-to-border access goal. It is anticipated that the $1.38 billion will come from a second federal infrastructure appropriation expected next year, biennial state budget appropriations, and state reserves.
Why subsidize broadband expansion? In a word — money. It’s too expensive for broadband developers to lay fiber optic cable in difficult terrain and more sparsely populated areas. Broadband is not unlike the development of other types of basic infrastructure over our country’s rich history in the need for public investment. Our intercontinental rail system, interstate highway system, electric grid, and our wired telephone system, all needed public investment to ensure these systems served all Americans. Then and now, public investment bridges the gaps through public-private partnerships when market incentives are not sufficient to meet real needs.
While this is still a significant amount needed to reach the goal, there’s little doubt that the federal infrastructure funding, coupled with the $100 million appropriated by the 2023 DFL-led state legislature for broadband, will make a tremendous impact on achieving our border-to-border access goal. It is anticipated that the $1.38 billion will come from a second federal infrastructure appropriation expected next year, biennial state budget appropriations, and state reserves.
Why subsidize broadband expansion? In a word — money. It’s too expensive for broadband developers to lay fiber optic cable in difficult terrain and more sparsely populated areas. Broadband is not unlike the development of other types of basic infrastructure over our country’s rich history in the need for public investment. Our intercontinental rail system, interstate highway system, electric grid, and our wired telephone system, all needed public investment to ensure these systems served all Americans. Then and now, public investment bridges the gaps through public-private partnerships when market incentives are not sufficient to meet real needs.
The system also requires the installation of some ground equipment. The commitment to broadband via fiber optic cable is seen as a nearly no-fail technology with very low ongoing maintenance costs to fill an increasingly urgent need sooner than later, that some would say we needed “yesterday.”
MN Senate Republican Caucus members celebrate broadband in their areas
The Minnesota Senate Republican Caucus helped their member celebrate broadband projects in their areas…
Minnesota State Senator Eric Lucero (R-St. Michael) today celebrated the announcement of a $2.55 million Border-to-Border broadband grant that will bring high-speed internet access to 1,227 households, businesses, and community institutions in the city of Nowthen.
“Access to reliable and affordable high-speed internet is absolutely critical to participate in our 21st-century economy,” Senator Lucero said. “Bringing broadband Internet to our underserved community will create new career potentials, provide access to telehealth services, allow for additional work-from-home options, enable greater educational opportunities, support our local businesses, and more.”
Sen. Lucero is a cyber-security professional working in the digital communications, networking, and technology space for over twenty years in his private sector career and has been a strong proponent the last nine years during his time in the Legislature advocating for the advancement of bandwidth and other innovation capabilities.
The $2.5 million state grant is part of a $8.5 million total project cost, which will have a $5.95 million local match including $800,000 from the city of Nowthen and $150,000 from Anoka County. The funding will enable Comcast to build a fiber optic network delivering speeds up to 1 Gigabit per second. The project will reach 1,227 locations that previously lacked modern broadband service.
Senator Mark Koran (R-North Branch) today applauded the announcement that East Central Energy has been awarded a $4.9 million Border to Border broadband grant from the Minnesota Office of Broadband Development to expand high-speed internet access in Isanti County. This grant is part of $66.8 million awarded statewide for 30 critical broadband infrastructure projects.
“Reliable and affordable high-speed internet is more than critical infrastructure; in the 21st century, it is an absolute necessity to participate in our economy,” Senator Koran said. “I want to thank the Office of Broadband Development for investing in East Central Energy’s fiber network that will connect nearly 2,000 homes, businesses, and farms to some of the fastest internet speeds available today.”
PROJECT DETAILS
East Central Energy – Isanti South
- Total eligible project cost: $18,267,826
- Grant amount: $4,900,000
- Local match: $13,367,826
With funding support from the State of Minnesota and funding partnerships with Chisago County ($2,000), Isanti County ($39,600), North Branch Township ($9,600), Lent Township ($1,000) and the City of North Branch ($100), East Central Energy will cover 1,990 passings to at least 100 Mbps download and 100 Mbps upload, and access to Gbps connectivity, exceeding Minnesota’s 2026 state speed goal. A fiber-to-the-premises network will benefit households, businesses, and farms, furthering community and economic development by saving time, money, and other resources. A high-speed fiber network will provide critical e-learning access to students and training resources to businesses in the project area. 89.4% of businesses in Isanti County have fewer than 20 employees and will greatly benefit from ECE’s affordable pricing model for small, local businesses. In addition to skills development and telework opportunities that reliable internet supports, ECE’s fiber network will enable resource optimization for agricultural lands and managed vegetation through supporting the use of precision agriculture tools. The impacts of ECE’s fiber-to-the-premises network will be felt throughout the community, supporting diverse strategies for community and economic development.
Senator Carla Nelson (R-Rochester) applauded the announcement that KM Telecom has been awarded a $1.9 million Border to Border broadband grant to expand high-speed internet access to 221 households, businesses, farms, and community institutions in rural Olmsted and Dodge Counties.
“As a strong advocate of the Border-to-Border broadband program, I am thrilled that this grant will continue bridging the digital divide for residents of our area,” Senator Nelson said. “High-speed internet access is no longer a luxury — it’s a necessity for people to fully participate in education, business, health care, and civic life. This grant will truly be life-changing for families currently struggling with slow, unreliable internet service — or families with no service at all. Thank you to KMTelecom for their dedication to providing affordable high-speed internet access for everyone.”
PROJECT DETAILS
KM Telecom — Rural Byron & Salem Corners Fiber Build
- Total eligible project cost: $3,862,092
- Grant amount: $1,931,046
- Local match: $1,931,046
This last-mile project in SE Minnesota will serve 221 households, businesses, farms, and community institutions. The project area is primarily located in Olmsted County with partial coverage of Kalmer and Salem Townships. It also covers a small portion of Mantorville Township within Dodge County. In a funding partnership with the State of Minnesota, KMTelecom will offer up to 1 Gbps download and 1 Gbps upload, exceeding the 2026 state speed goal. This rural fiber build is an extension of the gig-capable network currently serving Kasson, Mantorville, Rock Dell and surrounding rural areas. The improved network will provide the necessary high-speed broadband connectivity for these rural residents to finally experience reliable access to e-learning, telehealth, and telework. The network will also allow farming operations to increase their productivity and improve their access to the latest agricultural technologies.
For Senator Miller… [added July 18]
Senator Jeremy Miller (R-Winona) today celebrated the announcement of Border-to-Border broadband grants for two projects in southeastern Minnesota. The grants, totaling over $4 million, will provide critical broadband infrastructure to underserved areas of Fillmore County.
“High-speed internet has become a necessity as important as electricity,” Senator Miller said. “These past few years have really magnified how essential broadband access is in our daily lives. In Greater Minnesota, there are still too many communities that do not have access to high-speed internet. We are making significant progress every year and grants like these make a world of difference in people’s lives.”
PROJECT DETAILS
Harmony Telephone Company – Rural Preston Fiber-To-The-Premises
Total eligible project cost: $2,611,089
Grant amount: $1,044,436
Local match: $1,566,653
The North Preston Rural Fiber-to-the-Premises Project will serve 68 households, businesses, and farms in the rural portions of Fillmore County. In a funding partnership with the State of Minnesota, Harmony Telephone Company (HTC) will improve unserved levels to 1 Gbps download and 1 Gbps upload on their fiber network, exceeding the 2026 state speed goal. This network is vital to their rural community and economy.
Harmony Telephone Company – North Fountain Fiber-To-The-Premises
Total eligible project cost: $7,477,595
Grant amount: $2,991,038
Local match: $4,486,557
The North Fountain Fiber-To-The-Premises Project will serve 311 households, businesses, and farms in Fillmore County. In a funding partnership with the State of Minnesota, Harmony Telephone Company (HTC) will improve unserved levels to 1 Gbps download and 1 Gbps upload on their fiber network, exceeding the 2026 state speed goal. Building a fiber-to-the-premises network will improve access to education and healthcare services. It will also increase employment as businesses leverage this new network and telecommuting opportunities become available.
More info Benton County Benton Communications MN State broadband grant
Rural Benton County will soon experience high speed internet services.
The Minnesota Office of Broadband Development announced a $3 million “Border to Border” broadband grant to Benton Communications on July 7.
The grant is to extend fiber service to areas of Benton County south of Highway 23.
This grant comes five months after another “Border to Border” grant of $1.5 million to bring broadband service to unserved and underserved areas of Benton County to the north of Highway 23.
Benton County says “once both projects are completed, virtually every area of Benton County will have access to high speed internet service.”
Work is already well underway on the North Benton County project areas.
Around an estimated 1,300 addresses in the north and south will be impacted.
The County urges residents to contact Benton Communications to determine if fiber service will be installed in their area.
Completion is expected by the end of 2026.
More info on Carlos MN Gardonville Coop MN State broadband grant (Douglas County)
Gardonville Cooperative Telephone Association will be supplying internet to hundreds of homes and businesses in Carlos and the Buckskin neighborhood after beating out competitors for a state grant.
The Brandon-based telecommunications provider will receive just over $1.5 million from the Minnesota Border-to-Border Broadband Development Grant Program. …
Arvig-Tekstar and Spectrum-Charter had also applied for the border-to-border grant to provide service to the Carlos and Buckskin areas.
Dave Wolf, Gardonville CEO and general manager, said he believes his company got the grant because of its history of reaching all homes and businesses in a project area. …
Gardonville is now installing fiber-optic near Garfield, Evansville, Brandon and Millerville, he said.
“Once those wrap up, we’ll be building the Nelson area, and if all goes well, we may actually start on the Carlos and Buckskin grant areas this fall,” he said.
He said Gardonville will soon reach out to residents in those grant areas soon.
More info on Carlton County SCI MN State broadband grant
THE TOPIC: Savage Communications, Inc., recently received a $1,271,835 grant from the Minnesota Department of Employment and Economic Development to expand broadband in Carlton County.
BACKGROUND: The funds were awarded by DEED through the Border-to-Border Broadband Development Grant Program, which started in 2014, according to the DEED website.
The 2023 grant dollars will help 503 households and businesses in the following townships add fiber internet access: Barnum, Eagle Lake, Lakeview and Moose Lake, DEED said. Savage Communications will be able to offer broadband service up to 1 gigabit per second for downloads and 1 GBPS upload speeds when the more than $2.5 million project is complete.
The grant program requires a 50% local match, so SCI will contribute all but $50,000 of the $1,271,835 not covered by the grant. At its Feb. 27 meeting, the Carlton County Board of Commissioners approved using $50,000 in American Rescue Plan Act funds to put toward the local match if the project received grant funding.

More info on Benton County MN State Broadband grant
Benton County continues to make strides in bringing high-speed internet to its residents.
The Minnesota Office of Broadband Development has announced a $3-million Border-to-Border grant that will be used to bring high-speed internet to 836 addresses south of Highway 23. It’s on top of a previously awarded $1.5-million to bring service to 483 underserved customers north of Highway 23.
When complete at the end of 2026, the $12.8-million project will bring a minimum of 100 megabits per second of internet to those customers and cover nearly all of the addresses in the county.
More info on Olmsted County KMTelecom MN State Broadband grant
In total companies around Minnesota received more than $67 million. KMTelecom was awarded almost $2 million to improve internet speeds in rural communities surrounding Byron.
“This is a rural fiber bill so it’s all those areas surround Byron that haven’t been able to get access to high-speed internet,” president of KMTelecom Mary Ehmke explained. …
The project is set to start next year and must be completed by the end of 2025. It will impact Olmsted County’s Kalmar and Salem townships, effecting more than 200 households.
More info on Sherburne County’s MN State Broadband grant
MN Senate Republican Caucus reports…
The Office of Broadband Development recently announced that a Sherburne County broadband infrastructure project in Senate District 27 will receive a $182,576 grant through the Border-to-Border Broadband Development Grant Program.
The Sherburne County Area Fiber Extension is a last-mile project that will expand broadband access to 240 unserved households near the Travelers Country Club on the Mississippi River, southeast of Clearwater. Once the project is complete, internet speeds will be between 100 Mbps download and 20 Mbps upload to 10 Gbps download and 1 Gbps upload, meeting and exceeding Minnesota’s 2026 state speed goal.