We have created a new fact sheet: Minnesota: Cooperatives and Local Governments Can Solve Rural Digital Divide. The fact sheet highlights rural areas with excellent connectivity and the role of cooperatives and municipalities.

Minnesota cooperatives and municipalities have done great work to bring fast, affordable, reliable Internet service to rural areas throughout the state. They've built many Fiber-to-the-Home (FTTH) networks, but there is still much work left to do.

One in 4 Minnesotans lives in a rural area, and of those rural households, 43 percent lack access to broadband, defined by the FCC as 25 Megabits per second (Mbps) download and 3 Mbps upload. Resilient, robust, fiber is the long-term goal, but fixed wireless can help extend coverage in hard-to-reach rural areas.

Download the fact sheet here.

Learn more about Minnesota’s connectivity in Community Broadband Bits Episode #190 with Dan Dorman, Executive Director of the Greater Minnesota Partnership. He discusses the "donut hole problem" and the economic development potential of rural Minnesota. 

Check out all of our Community Network Fact Sheets here. You can also subscribe to a once-per-week email with stories about community broadband networks.

The Federal Reserve is responsible for setting interest rates and executing monetary policy in the United States, but many people don’t realize that the agency also has a hand in community development. This summer, the Federal Reserve Bank of Dallas released a report, Closing the Digital Divide: A Framework for Meeting CRA Obligations, which includes information for banks about funding digital inclusion programs and community networks.

The report, published in July, states:

“Access to broadband has become essential to make progress in all areas of community development—education and workforce development, health, housing, small-business development and access to financial services.”

Closing the Digital Divide is important not only because it provides substantial information for banks, but also because it indicates federal support exists for community-based infrastructure improvements. The report discusses improving Internet access for low and moderate-income individuals and neighborhoods.

Using The Community Reinvestment Act To Improve Infrastructure

From the 1930 until the late 1970s, many banks denied lending to individuals and organizations based on their location. The practice is called “redlining” after the red ink that outlined low-income neighborhoods on a map, and was made illegal when Congress passed the Community Reinvestment Act (CRA) in 1977. Under the CRA, banks must to use the same evaluation criteria for all loan applicants regardless of the neighborhood they live in, which expands lending to include low and moderate-income (LMI) individuals. The Federal Reserve assesses banks’ performance under CRA guidelines, which bring about $100 million in capital to low and moderate income areas per year through various projects. Improving Internet access is an increasingly large portion of these initiatives.

In The Weeds

Rural folks without fast, affordable, reliable Internet access face challenges with common tasks such as doing homework, completing college courses, or running a small business. Although Tennessee has an entrepreneurial spirit, a large swath of the state's rural residents and businesses don't have the connectivity they need to participate in the digital economy. A September article in the Tennessean looks deeper at the state's digital divide between urban and rural areas.

National Internet Service Providers (ISPs) have failed to make good on promises made over recent decades to bring high-quality Internet access to the entire country, both urban and rural. Several telephone cooperatives and the U.S. Department of Agriculture (USDA) are already actively investing in better Internet access to improve rural Tennessee’s economy.

The Tennessean Perspective

The newspaper the Tennessean laid out much of the connectivity problem in the "Volunteer State." Tennessee may have excellent Internet access statewide, but the urban and rural divide remains. According to a Tennessee Department of Economic & Community Development's report, only 2 percent of all urban residents do not have access to broadband. The FCC defines it as 25 Megabits per second (Mbps) download speed and 3 Mbps upload speed. That number climbs in rural areas, where one out of three residents does not have broadband access. 

Speed Is Not The Only Problem

Some folks simply have no Internet connection. For example, Deborah Bahr drove 30 minutes for Wi-Fi at Bojangles (Chicken and Biscuit) or visited a friend’s house a few miles away. Bahr used to run a coffee shop, leaving the Wi-Fi on continuously so local community college students could work on homework overnight in the parking lot. Bahr’s town borders Cocke County, an economically distressed area where almost 30 percent of residents are below the poverty level. 

This is episode 227 of the Community Broadband Bits Podcast. Chief Information Officer Paul Kronberger of Madison, Wisconsin, explains how the fiber network pilot project will help bridge the digital divide. Listen to this episode here.

Paul Kronberger: We specified we wanted to keep the costs very low and to remove as many barriers as possible for individuals to obtain this service.

Lisa Gonzalez: This is episode 227 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Madison, Wisconsin, has embarked on a pilot project with multiple purposes. As the community seeks ways to improve connectivity citywide, they will use the project to collect data about benefits of providing services to the community. Simultaneously, the project will bring fast, affordable, reliable connectivity to areas of the city with the highest concentration of low-income households. In this interview, Chris talks with Paul Kronberger, Madison's Chief Information Officer, who offers more details about the Connecting Madison pilot program. In addition to describing the aims of the project, Paul explains how the city is using existing assets and how they're contending with restrictive state law as they embark on their partnership with a private ISP. Now, here's Chris with Paul Kronberger, Chief Information Officer for Madison, Wisconsin, discussing the pilot program to help bridge the city's digital divide.

Christopher Mitchell: Welcome to another addition of the Community Broadband Bits Podcast. I'm Chris Mitchell. Today, I'm speaking with Paul Kronberger, the CIO of Madison, Wisconsin. Welcome to the show.

Paul Kronberger: Thank you. Glad to be here.

Christopher Mitchell: I'm also glad to have you here. It's a bit of a rivalry time between Minnesota and Wisconsin, but I'm happy to learn more about what's happening over there. For people who aren't familiar with Madison, the home of incredible football and basketball teams, can you tell them a little bit about your city?

We have extensively studied the connectivity situation in North Carolina and just released our report, “North Carolina Connectivity: The Good, The Bad, and The Ugly.” Now you can hear from the report authors, H.R. Trostle and Christopher Mitchell, in our most recent PRX coverage.

We spoke with both authors who gave us a recap of the situation in urban and rural North Carolina. They explained how they examined the data and came to the conclusion that, while urban areas are served relatively well by big private providers, the same cannot be said in rural areas. Unless a muni or rural telephone or electric cooperative offers Internet access in a rural region, odds are rural residents and businesses just don’t have access to FCC defined broadband speeds. Audio coverage runs 5:22.

Listen to the story on PRX…

You can also download the report to dig into the details and learn more about connectivity in North Carolina.

When Liberty County, Georgia’s school system, began a one-to-one iPad initiative, they were making a positive impact in technology readiness for local school kids. After a year of the program, however, district officials determined that lack of Internet access at home was so prevalent, students ran the risk of falling behind. To fix the problem and allow kids to work online away from school, the school district is installing buses with Wi-Fi equipment and parking them throughout the community, creating “Homework Zones.”

Taking Internet Access To The Streets

In Liberty County, approximately 60 percent of students don’t have Internet access at home, which renders school issued iPads useless at home. Access is available in libraries, when there are extended school hours, and sometimes in other public locations, but using public Wi-Fi takes kids away from home; some kids are just too young to be out at night.

Pat Millen, Co-Founder and President of Eliminate the Digital Divide, spoke with Christopher for episode #218 of the Community Broadband Bits podcast. He described some of the burdens associated with finding Internet access away from home, just to complete your homework:

…[T]hink about the kid staying after school in the media center of the school until the very last second that the janitor needs to lock the door so that he can do his work. Then think about the same kid walking through all kinds of weather to get to the public library and hop on one of their computers.

…

Think about that same kid walking home in the dark through some of the toughest neighborhoods in the area...Then think about this very same kid going through the motions of walking through the rain and the dark or the heat and the sun to get to the library that's two miles from his house. Then think of him taking measure of his life's prospects. "I can't get this work done. I'm not going to be able to pass this class. My family is so poor, shouldn't I just go ahead and drop out and go try to find a job?" 

They're at it again. Recently, they have been called out for taking advantage of E-rate; now they are taking advantage of their own lack of infrastructure investment to worm their way out of obligations to serve low-income residents. Fortunately, a nonprofit group caught up with AT&T's shenanigans and held their feet to the fire.

"Nah, We Don't Have To Do That..."

As part of FCC-mandated conditions under which AT&T was allowed to acquire DirecTV in 2015, the telecommunications conglomerate created the "Access from AT&T" program, offering discount Internet access to low-income households. The program consists of tiered services - download speeds of 10 Megabits per second (Mbps) for $10 per month, 5 Mbps for $10 per month, and 3 Mbps for $5 per month.

The company is required to enroll households in the fastest speeds available, but a significant amount of low-income families don't qualify because the fastest speed AT&T offered to their home is 1.5 Mbps download. The problem, created by AT&T's own lack of infrastructure investment in certain neighborhoods, allowed AT&T to dodge their responsibility under the terms of the DirecTV acquisition by simply denying enrollment to households with speeds less than 3 Mbps. Trouble is, some one noticed.

NDIA In Cleveland, Detroit

The National Digital Inclusion Alliance (NDIA) realized the scope of the problem when they attempted to help families in low-income neighborhoods in Detroit and Cleveland sign up for Access from AT&T. In addition to discovering that residents could only obtain 1.5 Mbps download speeds, NDIA found that AT&T denied these households enrollment because their speeds were too slow. The only other option for ineligible households was AT&T’s normal rate for 1.5 Mbps service, which is six times the cost of the Access program.

Loopholes: All Lawyered Up And Nowhere To Go