Is MN a broadband winner or loser? A look at Federal Funding RDOF and CAF

Telecompetitor reports on the RDOF ranking by state. Turns out Minnesota ranks highly for funding per rural resident…

The states with the most funding per rural resident, in descending order, were California ($830), West Virginia ($530), Arkansas ($377), Minnesota ($328), Massachusetts ($327), Mississippi ($313), Pennsylvania ($254), Wisconsin ($248), Illinois ($205) and Michigan ($201).

You’d think that would make Minnesotans feel like winners but it doesn’t because there is great concern over what that money is going to buy and when. The biggest concern is about LTD, undeniably a big winner with an opportunity to bid for almost $312 million project to build FTTH (fiber to the home) to 102,005 homes. This is especially surprising because they are a small company that always has focused on fixed wireless not fiber.

I’ve written a lot about this – so a quick rundown:

This story may sound familiar. It reads an awful lot like what I posted about CAF II awards in 2015

If I’ve learned nothing else from the TV show Toddlers in Tiaras, I learned that sometimes you don’t want to win the first crown. Winning the first crown is better than winning nothing, but it usually puts you out of the running for Best in Show. Getting access at speeds of 10/1 is better than what the communities receiving CAF 2 funding have now. And any improvement is an improvement. BUT those speeds are slower than the Minnesota speed goals of 10/5 (The MN Broadband Task Force is looking to update those speeds.) and they seem even slower when you compare them to rural areas that have Gig access, such as Grand RapidsRed WingLac qui Parle CountyNew PragueRogersMelrose and others.

Five years later, CAF II winners CenturyLink (Lumen) and Frontier report that they “may not have met” CAF II deployment deadlines for 2020. Here’s what I said when that announcement was made in January…

The frustration is that this leaves many people without broadband – again. The goal is to build to 25/3 (even lower in some areas) and they haven’t done that. To put that in perspective, it does not get them closer to the MN State speed goal of 100/20 by 2026. In Minnesota we are used to the State MN border to border broadband grant rules where project must build networks that are scalable to 100/100. That is not the case with these networks and getting to 25/3 does not mean getting to 100/20 will be easier.

Also there is the concern for customers that the promise or threat of building has kept competitors out of their market. The promise of a CAF II network has made it more difficult for the communities to get funding from other sources. CAF II funding focused on the providers only – communities didn’t not sign up or on to the program.

Einstein said, insanity is doing the same thing over and over again and expecting different results. Frustration is watching from the sideline as decision makers make the same decision again and again, especially when you are the community that suffers the consequence.

CenturyLink expands internet access to parts of Kanabec County

According to the Kanabec Times

Rural residents that have struggled to find ways to access the internet from their homes may be in luck as Century Link is expanding services to include an additional 1,400 homes in the Braham area, and 3,000 homes in the Mora area.

While this will boost internet access and speeds in under-served areas, Doyle Jelsing of the Kanabec Broadband Initiative said it still isn’t ideal.

“This is a step in the right direction, but there is still a long way to go,” he said. Jelsing explained that even though Century Link advertises speeds of at least 10 Mbps download and 1 Mbps upload, actual speeds tend to vary. For Jelsing, he had hoped upload speeds would be considered equally as important as download speeds. While download speeds help consumers who are interested in streaming video, upload speeds are essential for supporting local businesses that need to send data —not just receive it.

While 10 Mbps bandwidth will be a huge improvement for those with no wired internet options, it’s still below the FCC’s definition of broadband which is 25Mbps download / 3Mbps upload.

“We welcome the improvement,” Jelsing said. “However, time will work against us as the need for broadband increases.”