MN Broadband Line Extension awardees announced: more than $6 million invested

The Office of Broadband Development reports

The Office of Broadband Development announced the first round of Line Extension Connection Program awards on a rolling basis beginning Oct. 6, 2023 and ending November 9, 2023. The first round of the program awarded $4,395,257.45 to expand wired broadband delivering at least 100 Mbps download and 100 Mbps upload to 843 locations across 32 counties. Of these locations, 779 are residences and 64 are businesses. Internet providers carrying out the projects matched $2,225,747.14 for a total investment of $6,621,004.59.

Round 1 Line Extension Awards by Internet Provider

Provider Locations Grant Amount
Arvig – East Ottertail Tel 26 $172,220.48
Arvig – Loretel Systems, Inc. 7 $65,841.18
Arvig – Osakis Telephone Co. 9 $24,756.40
Arvig – Redwood County Tel 1 $20,222.99
Arvig – Tekstar 74 $542,433.10
Arvig – Twin Valley Ulen Tel 1 $17,087.56
Bevcomm 11 $85,734.78
Consolidated Tel Co. (CTC) 282 $1,005,949.81
Farmers Mutual Telephone Co. 1 $4,800.00
Federated REA Coop. 29 $62,263.25
Federated Telephone Coop. 15 $138,000.00
Hiawatha Broadband Comm. (HBC) 205 $1,323,626.82
Johnson Telephone 1 $24,010.44
Mediacom 37 $190,501.15
Midco Midcontinent Comm. 21 $166,800.00
Otter Tail Telecom 4 $38,361.70
Paul Bunyan Telephone Co. 10 $86,286.00
Savage Communications Inc (SCI) 104 $354,445.72
Sytek Communications 4 $57,348.00
Wikstrom Tel Co. (Wiktel) 1 $14,568.07
20 Providers 843 $4,395,257.45

Round 1 Line Extension Awards by County

View the map of Round 1 Locations

County Locations
Aitkin 65
Anoka 3
Becker 34
Big Stone 1
Carlton 11
Cass 6
Clay 21
Crow Wing 183
Dakota 67
Douglas 9
Goodhue 6
Hubbard 28
Itasca 7
Jackson 27
Kandiyohi 12
Kittson 1
Lac qui Parle 1
Le Sueur 3
Mahnomen 12
Martin 2
Morrison 4
Otter Tail 21
Pine 36
Redwood 1
Rice 3
Scott 5
St. Louis 67
Swift 2
Todd 55
Wabasha 97
Washington 18
Winona 35
32 Counties 843

Arvig awarded almost $1 million from MN Line Extension program

Arvig reports

The Minnesota Office of Broadband Development (OBD) has awarded Arvig grant funding to extend existing fiber infrastructure to more than 118 unserved locations in several lakes-area counties.

Arvig was awarded grants totaling $842,562 from OBD’s Line Extension Connection program after submitting successful lowest-cost bids to provide fiber to the locations. Arvig will invest another $217,419 to cover additional project costs.

The Line Extension Connection program, administered by the Minnesota Department of Employment and Economic Development (DEED) was created to bridge the gap in connecting homes and businesses just out of reach of existing last-mile infrastructure.

Created in 2022 with a budget of $15 million, the program invites residents and business owners to submit applications if they lack a wired connection with access to internet speeds of at least 25 Mbps download and 3 Mbps upload, which is considered unserved. Internet service providers then bid on the applications and are awarded grant funding based on the number of successful bids.

As Arvig reports, there was $15 million budgeted for Line Extension. I expect we will see a full list of awardees from State soon. It would be really nice if that list included a map. Arvig also included information for folks interested in applying for Line Extension support…

More information about how to apply for the program is available at https://mn.gov/deed/programs-services/broadband/extension.

For assistance completing the application or to request a paper form, call 651-259-7610 or email DEED.broadband@state.mn.us.

To date, the program has received more than 3,000 applications across the state of Minnesota.

Winona reminds folks of the Line Extension Program for last mile broadband help

Winona Post reports

The Minnesota Office of Broadband Development under the Department of Employment and Economic Development is administering the Line Extension Program: mn.gov/deed/programs-services/broadband/extension. A household or business can apply, at no cost, to the Line Extension Connection program if it does not have wireline internet service of at least 25 Mbps download and 3 Mbps upload. Grant funding is available to encourage internet providers to extend coverage to eligible applicants.

Residents and businesses who believe they are unserved can learn more and apply online at mn.gov/deed/programs-services/broadband/extension or by calling 651-259-7610 or emailing DEED.broadband@state.mn.us. To date, nearly 2,500 homes and businesses have registered for the program across the state.

This seemed like a good time to remind folks that the Line Extension has an open application process but the applications are complied every six months. Here is the timing according to the Office of Broadband Development website…

How quickly will line extensions be installed under this program?

This program has a number of steps built into the process. An approximate timeline would be as follows:

  • Address is registered in portal (November 2022)

  • Every six months OBD sends list of addresses to broadband providers in Minnesota (May 2023)

  • Broadband providers notify OBD if they can already serve any of the addresses (May 2023)

  • Reverse auction begins (May 2023)

  • Broadband service providers have 60 days to submit bids (July 2023)

  • OBD selects winning bids (September 2023)

  • OBD enters contracts with all winning bidders (October 2023)

  • Winning bidders have one year to build the line extension (October 2024)

So it’s never a bad time to submit an application but it looks like the next time they will send the list of addresses to providers will be November 2023. Also interesting to see that the winning bids will be announced this month.

Also from the OBD website is the map of applicant locations at right.

How does MN’s Line Extension Program compare to others?

A Line Extension Program funds locations that are unserved (no access to broadband at speeds of 25 Mbps down and 3 up) and that are just beyond the reach of an existing broadband connection. Think of the home at the end of the rural road or with the mile-long driveway.

Minnesota is in the middle of our first cycle of Line Extension Funding. The Office of Broadband Development created a portal where folks who need a line extension submit a request for their address. Every six months, the OBD will send that list to providers. Providers need to notify the OBD of any addresses they do serve. Then a reverse auction will begin on the culled addresses. That is where the process is now. Those bids are due in July; in September, the OBD will announce the winning bidders, who will then have a year to build the extension.

The line extension must be scalable to 100/100 Mbps. Each line extension award is capped at $25,000 – regardless of how many people might be served by the extension. (So the extension to the cul-de-sac of 6 houses is capped at $25,000 for the project not for each house.) The provider gets the funding, not the resident.

I had some reservations about the Line Extension because it potentially took the community out of the picture and in Minnesota, community broadband planning has been successful. My concern was that new home builders in well heeled suburbs or super fancy cabins at the lake cabin would be the bulk of subscribers. I was also concerned that this would impact funding for community broadband both because it means less funding for Border to Border grants but also because it might quiet vocal community broadband advocates who benefitted from a line extension.

We’re still mid process but it turns out 2100 people submitted their locations from all over the state. That is because the OBD and local community broadband advocates promoted the heck out of this opportunity. So, I’m feeling hopeful but I remain curious about how others are doing their Line Extensions. Pew just published details on the eight states that are offering Line Extension funds.

Here are notes on the other programs through a lens of how they differ from Minnesota:

California: The program began in 2019. They fund wired and wireless connections; affordability is a component. They have only awarded funds to three projects so far, including almost $300,000 to Cruzio Media in Salinas for Fixed Wireless. It sounds like it was a way to get broadband to low-income households in a specific community during the pandemic.

Indiana: The program is similar to Minnesota’s but the providers only need to build to speeds of 50/5. I spoke with someone when the MN Legislature was looking at the Line Extension and they felt positive about how it was going in Indiana.

Vermont: It sounds like the homeowner (or person submitting the address) receives the funding of up to $3000 to offset the costs of an extension. In 2020 and 2021, they awarded 800 grants. It’s unclear to me whether the homeowner needs to have an arrangement with a provider before requesting funds. The program has ended although they are collecting contact info for folks who might be interested.

Maine: Maine is very different. They are working with providers who have applied to work on line extensions. They will work together to decide where to build. Fiber is encouraged. Deadline for completion is 2025 and the provider must invest $700 per location.

Virginia: Virginia’s program is income based. They will pay up to $10 per linear foot for overhead infrastructure and up to $15 per linear foot for underground builds and work with pre-qualified providers. The resident can apply directly or apply through a provider referral.

West Virginia: West Virginia works entirely with the providers on larger scale projects helping existing providers stretch their service boundaries by at least 50 locations per project. Each provider must invest $500 per location.

Pennsylvania: The Line Extension in Pennsylvania sounds more like Minnesota’s Border to Border program to me. Providers can apply for $500,000 to $10 million grants to connect unserved residents and must contribute at least 25% of the total project costs and must adhere to ARPA requirements.

OPPORTUNITY: DEED encourages applications for broadband expansion program by April 30, 2023

I’ve written about this opportunity in the past but figured sharing a timely reminder from DEED would be helpful…

Ahead of an important April 30 deadline, the Minnesota Department of Employment and Economic Development (DEED) is encouraging Minnesotans to apply for its Line Extension Program to connect homes and businesses to high-speed broadband.

The DEED Office of Broadband Development’s Line Extension Program connects internet service providers to residents and businesses that lack high-speed broadband.

If applicants are in areas where high-speed broadband is available, DEED will help service providers contact applicants about connecting to the service. If no provider offers broadband at an applicant’s address, the Line Extension Program awards grants for providers who want to extend existing broadband infrastructure to the unserved locations, providing higher-speed internet to more people around the state.

Minnesota residents and businesses that lack access to broadband speeds of at least 25 megabits per second (Mbps) download and 3Mbps upload can apply online through the Office of Broadband Development. They can also request a paper application by calling 651-259-7610 or emailing DEED.broadband@state.mn.us. Minnesotans are encouraged to apply even if they do not know their existing Internet speeds.

“High-speed broadband helps families stay connected to work, school, and healthcare. It allows businesses big and small to reach more customers and grow” said Bree Maki, executive director of the Office of Broadband Development at DEED. “The Line Extension Program is one of the ways DEED is connecting more people to the broadband they need. We encourage Minnesotans who need faster connections to apply for this program.”

While DEED will accept applications throughout the year, the Office of Broadband Development will only review applications, contact applicants, and award extension grants every six months. The first review period begins on May 1, meaning Minnesotans hoping to participate most quickly should apply before then.

The Legislature created the Line Extension Program in 2022, allocating $15 million for broadband extension grants to further DEED’s mission to connect more Minnesotans to high-speed broadband. Minnesota’s 2026 goal is that all homes and businesses have access to broadband with download speeds of at least 100Mbps and upload speeds of at least 20 Mbps.

Line Extension is one of several programs DEED’s Office of Broadband Development administers to expand Minnesota’s broadband access.

Last year the agency announced the state’s largest-ever investment in broadband when it awarded $99.6 million in grants through the Border-to-Border Broadband Development Grant program to 61 expansion projects around the state. The funding will connect more than 33,000 Minnesota homes and businesses in 48 counties to high speed broadband. Legislative leaders and Governor Walz have agreed to provide $100 million this session to fund future Border-to-Border grants.

“Programs like Line Extension show how Minnesota’s legislators, private sector, DEED, and the rest of the Walz-Flanagan Administration are working together to bring high-speed broadband to everyone in Minnesota,” said DEED Temporary Commissioner Kevin McKinnon. “We appreciate this ongoing partnership and look forward to helping more people access important high-speed broadband.”

OPPORTUNITY: Hubbard County promotes MN Line Extension Program funding

I know I’ve already shared this when other counties have promoted the opportunity but it’s a good reminder for everyone that the opportunity is available for a recommendation for other counties to share the info in local resources, such as the Park Rapids Enterprise

Grants are available to help county residents improve internet service.

Anyone who owns property in Hubbard County and meets the criteria for being unserved or underserved may apply for the Broadband Line Extension Program, including seasonal residents.

An unserved location is defined as a location that does not have a wired broadband service of at least 25 Mbps download and 3 Mbps upload. …

The State Legislature has allocated $15 million to the program and the maximum grant for a property is $25,000. The application window is open now, with the first grant awards announced in May.

They help define areas with greater need…

“If you look at a broadband map from 2022, there is a swath around Lake Belle Taine and around the Akeley area that is underserved, but part of that is in the Paul Bunyan State Forest so there’s really nobody there,” Cadwell said. “There’s also a big chunk of underserved along Hwy. 34 and Hwy. 64 from Akeley to Walker with quite a few people there.

And instructions…

Individuals complete an application through DEED for grants to offset the cost of extending service to their home or business location.

Each person should enter their own address where service is not available. The form also has a signature box for the person completing the form, affirming the information provided.

According to a news release from DEED, broadband providers will then decide how to respond in the reverse auction to serve multiple addresses under this program, or possibly submit a Border-to-Border Broadband Grant application to build out the area under a larger project.

To access the Broadband Line Extension Connection program, visit mn.gov/deed/programs-services/broadband/extension.

Submitting an application does not guarantee an extension of service will be given.

For more information or to request a paper application form, call the Office of Broadband Development at 651-259-7610 or email deed.broadband@state.mn.us.

What is the Broadband Line Extension Program in Minnesota?

Sharing information from the Office of Broadband Development…

Line Extension Connection

What is the Minnesota Broadband Line Extension Connection?

The Line Extension Connection program goal is to connect residents and businesses that lack access to broadband internet service to service providers, and then assist in the expense of extending broadband to those locations.

How the Program Works

Residential and business locations that are unserved (lack access to speeds of at least 25Mbps download and 3Mbps upload) can apply by entering their information into the Line Extension Connection portal.* This will initiate their interest in receiving broadband internet service and make their location available for consideration.

By submitting your address into the Line Extension Connection portal, internet service providers will have the opportunity to review the location and submit a bid based on the cost to bring service to your location.

The Office of Broadband Development will evaluate these bids and required provider documentation and make awards to the providers whose bid proposes the lowest cost to the State for extension of the service.

*Submitting location information into the Line Extension Connection portal does not guarantee extension of service.

*If a resident or business cannot access the online portal, the Office of Broadband Development can assist in this process. Please call 651-259-7610.

Who Can Apply

Locations that currently lack broadband service or have actual broadband speeds of less than 25/3Mbps.

Funding

The Minnesota Broadband Line Extension Connection Program has been allocated $15 million in total funding.

Limits per line extension are set by Minnesota law. These limits are:

  • A per line extension amount cannot exceed $25,000.
  • The Office of Broadband Development must ensure the bid is a cost-effective use of state funds.

Timeline

The Minnesota Broadband Line Extension Connection online portal is accepting applications.

The bidding and review processes must take place before awards can be made. Once made, projects must be completed within 12 months of the contract date.

  • At least every six months, OBD will provide Internet Service Providers the listing of addresses requesting service
  • Service providers will have 10 days to notify OBD of service availability at those locations
  • Service Providers have 60 days to submit bids on locations they would like to extend service to
  • OBD will evaluate all bids within 60 days and select the provider whose bid requests the lowest amount of financial support from the state.

More information is available on our website. Need help applying or need to request a paper form? Call 651-259-7610 or email deed.broadband@state.mn.us.

Advice from a MN Broadband Task Force Meber: Look at the MN LIne

The Ely Echo posts a letter to the editor from a MN Broadband Task Force member…

If I were to ask 100 people across the Iron Range if they have heard of the Broadband Line Connection Extension Program, I would bet my next Social Security check that less than 10% would say yes.  Anyone want that bet?  One of the few bills to pass in the 2022 legislative session was a bill with an allocation of $15 million dollars to fund a program that would help people in more remote locations get connected to broadband. I know many people in rural communities that are aware that there is fiber broadband located in the ditch across from their home, yet to connect to that fiber the provider who owns the fiber wants the homeowner to pay the entire cost of trenching the fiber to their premise. Depending on the length of your driveway, and geographic barriers like ledge rock or wetlands, the cost is usually prohibitive, so life goes on with lousy internet or using your cell service for a connection.

Well as a member of the Governor’s Task Force on Broadband, and the MN Rural Broadband Coalition, I am pleased to share with you some simple steps to hopefully get you connected to high speed, quality broadband at reasonable pricing. This new program requires that you as a homeowner fill out an online application  (available at this address or for online subscribers click on this link) https://mn.gov/deed/programs-services/broadband/extension/#1  or you can submit a written request to the MN Office of Broadband 332 Minnesota Street Suite E200  St Paul, MN 5510; or you can call the OBD at 651-259-7610 and they will fill out the request over the phone.  You have to let them know that you do not have a WIRELINE broadband or internet provider to your home, and you wish to be connected. That is really all you have to do.

Signed,,,

Steve Giorgi

Mt. Iron, MN

Recap on MN investments in broadband from Benton

The Benton Institute for Broadband & Society has compiled a nice recap of what’s happening in Minnesota in terns of broadband investment…

Minnesota’s Border-to-Border Broadband Development Grant Program is the state’s financial tool to address the primary cause for the lack of broadband in unserved areas: high costs and lower population densities resulted in unsustainable business plans and thus broadband installations are not feasible. This month, Minnesota announced new grants that represent a significant acceleration of the Border-to-Border Program: previously, the Department of Employment and Economic Development’s (DEED) Office of Broadband Development had provided nearly $130 million in Border-to-Border grants—matched with over $180 million in private and local matching funds—to connect more than 57,000 homes and businesses around Minnesota to high-speed internet since the program’s inception in 2014.

In May 2022, Minnesota enacted HF3420, which included $210 million for broadband resources:

  • $25 million in fiscal year (FY) 2023 and $25 million in FY 2024 in general fund spending directed to the state’s Border-to-Border Broadband Development Grant program, which provides 50% matching funds for broadband development costs for a qualifying project in unserved and underserved areas;
  • $60.703 million directed from the state’s share of the federal Capital Projects Fund authorized by the American Rescue Plan Act to be used for broadband grants under the Border-to-Border Broadband Development Grant program, with the remaining $50 million reserved for the Walz administration to spend on any other eligible expenditure within the program’s guidelines, including digital inclusion efforts;
  • All of the state’s appropriation of at least $100 million directed from the Broadband Equity, Access, and Deployment (BEAD) program, authorized by the Infrastructure Investment and Jobs Act, to be used for broadband infrastructure deployment under the Border-to-Border Broadband Development Grant program;
  • A set aside of $10 million from the Border-to-Border Broadband Development Grant program funding and $30 million from the state’s BEAD grant share for the Low-Density Pilot Program to provide broadband service in areas of the state where a 50 percent match formula is not adequate to make a business case for broadband infrastructure deployment and allows up to 75 percent of the total project cost to be covered by Border-to-Border broadband grant funds;
  • A set aside of $15 million for a new Broadband Line Extension Program, which would fund smaller-scale broadband line extensions to individual homes and businesses that still lack access; and
  • A set aside of $15 million from the state’s BEAD grant share for comprehensive statewide broadband mapping efforts.

You can now apply for Minnesota Broadband Line Extension Funding

The Office of Broadband website now includes access to apply for the line extension connection program. There’s a little background…

In the 2022 Legislative Session, the Office of Broadband Development (OBD) was directed to create a new program, the Broadband Line Extension Connection Program. The purpose of the program is to award grants for the extension of existing broadband infrastructure to unserved locations. An unserved location is a location that does not have a wired broadband service of at least 25Mbps download and 3 Mbps upload.

Instructions…

People can report to OBD that a wired broadband service is unavailable at their residence or business by entering information on the online application below or by calling 651-259-7610 and requesting a paper application or by talking to someone at OBD who will complete the application on their behalf.

And what happens next…

Every six months, OBD will send the list of addresses to each broadband provider offering service in Minnesota. Providers then have ten days to notify OBD that they can provide service at any of the addresses on the list. OBD will then contact those people to let them know the name of the broadband provider that can offer them service and any discounted pricing plans available.

For those addresses that are not served by a provider or in an area that will be built with an already awarded Border-to-Border Broadband grant project, OBD will hold a 60-day reverse auction where broadband service providers can bid to extend service to one or more of the addresses on the list. In their bid, providers will identify the grant amount requested to extend the broadband service. Within 60 days of the auction closing, OBD will select the bids that request the least amount of financial support from the state and that are a cost-effective expenditure of state resources. OBD will then enter into line extension agreements with each winning bidder. Winning bidders will have one year from the date the contract is signed to complete the broadband line extension. The winning bidder must build broadband service that offers speeds of at least 100Mbps download and 100Mbps upload.