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Minnesota Broadband: Land of 10,000 Connectivity Solutions

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In a new report, the Institute for Local Self-Reliance showcases the diverse range of approaches communities and local Internet Service Providers (ISPs) have taken to expand affordable, high-quality Internet access in Minnesota. It includes a series of case studies that detail how communities are meeting the connectivity challenges of a broken marketplace shaped by large monopoly service providers. 

Download Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf] here.

The profiled projects include municipal networks, public-private partnerships, cooperatives, and private investment. They run from the most rural areas of the state to Minneapolis. Some examples include:

  • RS Fiber Cooperative, in south central Minnesota, which has brought fiber to local businesses and town residents. Rural residents benefit from RS Air, a fast wireless service available at affordable prices.
  • Arrowhead Electric Cooperative’s fiber network in Cook County, which succeeded beyond original projections. It provides fast and affordable Internet access to one of the most far-flung parts of the state.
  • St. Louis Park’s partnerships with both ISPs and the builders of large condominium complexes. One of the providers working with St. Louis Park is better known as the fastest ISP in Minneapolis, USI Fiber.
  • Christensen Communications, a 100+ year-old telephone company in south central Minnesota. The company demonstrated a strong commitment to its communities when the pandemic hit, and is now going above and beyond to build fiber with federal subsidies.
  • The Fond du Lac Band, in northern Minnesota, which built a fiber-to-the-home network that is rare in Indian Country.

Ry Marcattilio-McCracken, co-author of the report and Senior Researcher with ILSR’s Community Broadband Networks initiative, said of the report’s findings: 

Report: Minnesota Communities and Local Providers Build Diverse Solutions for Affordable, Reliable Internet Access

Our new report, Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf], showcases the diverse range of approaches communities and local Internet Service Providers (ISPs) have taken to expand affordable, high-quality Internet access in Minnesota. It includes a series of case studies that detail how communities are meeting the connectivity challenges of a broken marketplace shaped by large monopoly service providers. 

The profiled projects include municipal networks, public-private partnerships, cooperatives, and private investment. They run from the most rural areas of the state to Minneapolis. Some examples include:

  • RS Fiber Cooperative, in south central Minnesota, which has brought fiber to local businesses and town residents. Rural residents benefit from RS Air, a fast wireless service available at affordable prices.
  • Arrowhead Electric Cooperative’s fiber network in Cook County, which succeeded beyond original projections. It provides fast and affordable Internet access to one of the most far-flung parts of the state.
  • St. Louis Park’s partnerships with both ISPs and the builders of large condominium complexes. One of the providers working with St. Louis Park is better known as the fastest ISP in Minneapolis, USI Fiber.
  • Christensen Communications, a 100+ year-old telephone company in south central Minnesota. The company demonstrated a strong commitment to its communities when the pandemic hit, and is now going above and beyond to build fiber with federal subsidies.
  • The Fond du Lac Band, in northern Minnesota, which built a fiber-to-the-home network that is rare in Indian Country.

Ry Marcattilio-McCracken, co-author of the report and Senior Researcher with ILSR’s Community Broadband Networks initiative, said of the report’s findings: 

Minnesota communities and local ISPs have found creative and sustainable ways to build future-proof networks across the state, despite a broken marketplace and state barriers that favor slow-moving, out-of-state monopoly providers clinging to outdated technology. Lawmakers must stand up for the cities and towns that sent them to the legislature, and remove the obstacles that prevent a more competitive market and local broadband solutions.

Taxpayers Protection Alliance Trolling Vinton, Iowa

Vinton, Iowa, is on the road to Internet access self-reliance as the community of about 5,100 people continue to move forward with their Fiber-to-the-Home (FTTH) project. They’ve come under attack, however, from the Taxpayers Protection Alliance (TPA). The group is part of a web of organizations aimed at increasing corporate dominance and corporate concentration of power. TPA sent a letter filled with the usual twisted anti-muni spin, but this time went a step farther. A TPA senior fellow mischaracterized a quote from one of the industry’s most respected experts in order to push their harmful agenda.

Former State Representative Chip Baltimore did not run for re-election last year and now fills his days trying to prevent competition for the large incumbent ISPs. His methods include interfering in local communities’ decisions to improve connectivity. In an attempt to undermine the project and frighten community leaders out of supporting it, Baltimore sent a letter to Vinton Municipal Electric Utility Board Members in February.

The letter included several overused fallacies that permeate TPA literature and in other letters we’ve seen directed to decision makers in other communities. Baltimore also included a quote from Joanne Hovis from CTC Technology & Energy. The quote applied to take rates in another part of the country far away from Vinton. 

Farr Technologies, the consultants that performed the feasibility study for Vinton, estimated that iVinton could achieve take rates of 40 percent in the first year and grow to 62 percent within five years. Baltimore tried to use Hovis’s statement, which applied to a different community, to discredit Farr’s estimate. It’s true that these rates appear high, but folks in Vinton have shown that they believe the electric utility can provide better service than incumbents Mediacom or CenturyLink. Farr’s consultants considered the community’s survey results, expressions of dissatisfaction with current incumbents, and the electric utility’s stellar reputation with customers when estimating future take rates. 

ICYMI: NBC News Ponders Rural Connectivity, Economic Development, and Bad Data

In his recent article written for NBC News, journalist Phil McCausland examines the impacts broadband access can have on rural communities and the challenges that persist in bringing coverage to these isolated areas. Reliable high-speed internet access can spark economic development in some of the United State’s most cash-strapped areas, but a lack of dependable data makes acquiring funding difficult.

McCausland explores how high-speed Internet access is becoming increasingly essential for communities’ economic growth. He spoke with Roberto Gallardo, the assistant director of the Purdue Center for Regional Development, who explained how having broadband access today “is analogous to the installation of a railroad 100 years ago or a highway 50 years ago.”

Bringing Broadband to Rural Areas

McCausland investigates the specific case of Lake County, Minnesota, an area home to 10,000 people that spans 3,000 square miles in the far northeast part of the state. Our 2014 report, All Hands on Deck: Minnesota Local Government Models for Fiber Internet Access, describes how the Minnesota legislature set a goal in 2010 to achieve universal access to high speed broadband throughout the state by 2015, including in Lake County. Many of Minnesota’s local governments stepped up to try to accomplish the goal. Local leaders in Lake County decided that they needed high-speed internet in order to take part in the growing digital economy. McCausland found that after nearly eight years of planning and an investment of over $80 million dollars, the area is seeing the economic benefits of high-speed Internet access. Coverage has boosted tourism and allowed for lifestyles that involve working remotely, as well as becoming essential to the growth of local businesses. 

KentuckyWired: Partners, Poles, Problems Plague Project

With the best intentions, Kentucky announced in late 2014 that it would build out a statewide open access fiber optic network to at least one location in each county to encourage high-quality connectivity in both urban and rural communities. Hopes were high as rural residents and businesses that depended on DSL and dial-up envisioned connectivity to finally bring them into the 21st century. After almost three years and multiple issues that have negatively impacted the project, legislators and everyday folks are starting to wonder what's in store for the KentuckyWired project. 

Local Communities Are Best Suited To Deploy Community Networks

There is no one-size-fits-all method of deploying across a state filled with communities and landscapes as diverse as Kentucky. From the urban centers like Louisville and Lexington to the rocky, mountainous terrain in the southeastern Appalachian communities, demographics and geography vary widely. But most lack modern Internet access and local ISPs have found it hard to get affordable backhaul to connect to the rest of the Internet.

There are several municipal networks in Kentucky, some of which have operated for decades. In addition to Glasgow, Paducah, Bowling Green, Frankfort, and others, Owensboro is currently expanding a pilot project that proved popular. As our own Christopher Mitchell discussed at the Appalachia Connectivity Summit, several cooperatives have made major fiber-optic investments in the state.

When it comes to connecting residents and local businesses, we strongly believe local entities are the best choice. Local officials have a better sense of rights-of-way, the challenges of pole attachments, and the many other moving pieces that go into network investment. Projects with local support see fewer barriers - people are more willing to grant easements, for instance. 

$3.5 Million for Lake Connections in Minnesota

A northern Minnesota county has been approved for federal funding to bring high-quality Internet access to some of the community's most rural residents. Lake County (population: about 11,000) has been building Lake Connections, a county-owned community network, for the past few years. People living in the densely wooded region have always lacked adequate Internet service, but with this funding, they will have better connectivity than many city dwellers.

The Federal Communications Commission (FCC) recently authorized $3.5 million for Lake Connections through the Rural Broadband Experiment program. Lake Connections previously faced numerous delays, but this next stage of the project is ready to move forward.

Despite Best Efforts, Delays

Lake County has long been working towards a more connected future by building a Fiber-to-the-Home (FTTH) network. The massive project covers almost 3,000 square miles, connect almost 100 community anchor institutions, and will provide connectivity to over 1,000 businesses. Grants, loans, and matching local funds to complete the project add up to approximately $70 million.

The county obtained federal stimulus funding through the American Recovery and Reinvestment Act (ARRA) in 2010 (see our 2014 report, All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access). Incumbent providers, Mediacom and Frontier, delayed the project by alleging rule violations and fighting for ownership of utility poles. By July 2014, however, the fiber network started serving its first 100 customers.

Rural Broadband Expansion Ignores Economic Development Potential in Minnesota - Community Broadband Bits Podcast 190

For years, many rural communities suffered from a broadband donut hole problem - the investment in better-than-dial-up was in the population center, leaving a donut of poor access around it. Now policy to reverse that in places like Minnesota is perversely creating the opposite problem, to the detriment of the entire community. 

This week on the Community Broadband Bits podcast we welcome back Dan Dorman, Executive Director of the Greater Minnesota Partnership. He is also a former legislator and current small business owner in Greater Minnesota. We discuss how this problem developed and where we see it happening before our very eyes. Though we focus on Minnesota, this issue is broadly applicable to all states. 

We also talk about how Comcast lobbyists have cynically manipulated the program to prevent economic development or possible competition, despite the fact that Comcast serves practically no one outside of the metro region. Lisa Gonzalez and I predicted this problem in our paper from 2014, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. Listen to Dan Dorman's last appearance, episode 136

This show is 25 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Paul Bunyan Communications Spreading Fiber Across Northern MN

The northern half of Minnesota, despite its rural character, is rapidly improving in high quality Internet access. Paul Bunyan Communications, the cooperative serving much of the Bemijdi area, began work on its GigaZone network last fall and the network is snaking its way across the region. According to an April 20th press release from the cooperative, GigaZone is now available to 500 more locations from the rural areas near Lake George to Itasca State Park. This brings the number of customers with access to GigaZone to 5,000.

Rates for symmetrical Internet access range from $44.95 per month for 20 Mbps to $74.95 per month for 50 Mbps. Higher speeds are available, including gigabit Internet access, but the cooperative asks potential customers to call for pricing.

We first reported on Paul Bunyan Telephone Communications in 2009. The cooperative began expanding its existing fiber network in 2007 but gigabit connectivity did not become available to members until earlier this year. Upgrades began in Bemidji and will continue to include the cooperatives entire 5,000 square mile service area. As new lines are installed, older lines will also be upgraded to fiber to transform the entire network. 

The cooperative began offering Internet access in 1996 as Paul Bunyan Telephone. Three years later, Paul Bunyan began infrastructure upgrades that allowed it to offer phone, high-speed Internet access, and digital television. The network expanded incrementally and continued to implement technological improvements. In 2005, the cooperative expanded with fiber technology for the first time. In 2010, Paul Bunyan Telephone changed its name to Paul Bunyan Communications.

At an event to announce GigaZone last fall, leadership from the region's economic development commission noted the new unleashed potential:

Greater Bemidji Director Dave Hengel compared Paul Bunyan to pioneering software giant Apple.  

Lake County Provides Gap Funding To Keep Project On Track

Lake County has faced a number of challenges since it began deploying its fiber network in 2012. The latest wrinkle comes as the Rural Utility Service (RUS) is late in distributing funds to pay contractors. The agency is administering the stimulus funds used to build the $66 million project. The Lake County News Chronicle recently reported that the County Board of Commissioners will pay $500,000 to cover expenses until federal funds arrive.

The Chronicle reports:

County Administrator Matt Huddleston said the County typically submits financial requirement statements (FRS) to RUS, and the federal agency usually processes the request for funds within 20 days. FRS 15 was filed more than 50 days ago and RUS still hasn't paid the County. A second, more recent FRS has also been delayed.

Commissioners were concerned delayed payments to contractors would further delay the project, scheduled for completion by September 2015.

After the original partner and the County dissolved their partnership and a threat of a lawsuit from Mediacom slowed deployment, Frontier asserted ownership of a number of utility poles within Two Harbors. According to the Chronicle, Lake Connections and the County recently made the decision to bury fiber instead of stringing them on poles as a way to avoid more delays.

Commissioner Rick Goutermont said he was hopeful after speaking to RUS officials on a conference call Monday that RUS would approve the new plan, the project would move forward and RUS would reimburse the $500,000 quickly.

"If we make some kind of movement in the form of some gap financing ... to keep the boots on the ground out there working on it, I believe that would send a stronger message to RUS of our commitment and that we want to move forward," Goutermont said Tuesday.

New Report Details Local Government Efforts to Improve Minnesota Connectivity

Update: Read an updated version of this report, published in July 2021, here, titled Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf]. It revisits all of the below communities to see how they fared over the intervening years, while adding new counties, communities, and, for the first time, two local Internet Service Providers.

In our latest report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, we analyze how local governments in 12 Minnesota communities are expanding 21st century Internet access to their citizens.

In 2010, the Minnesota legislature set a goal for 2015 - universal access to high speed broadband throughout the state. Even though we have the technology to make that vision a reality, large swaths of the state will not meet that goal. Nevertheless, local folks who have chosen to take control of their connectivity are finding a way to exceed expectations, surpassing the choices in many metropolitan regions.

Some of the communities we cover include:

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

We delved into networks in Anoka, Carver, Cook, Lake, and Scott Counties. The report also shares developments in the municipalities of Chaska, Buffalo, and Monticello. We tell the story of RS Fiber, located in Sibley and part of Renville County. These communities provide examples of municipal networks, a variety of public private partnerships, and "dig once" policies.