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Updated Report Shows How Cooperatives Are Bridging the Digital Divide

Decades after bringing electricity and telephone services to America’s rural households, cooperatives are tackling a new challenge: the rural digital divide. New updates to our report Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era, originally published in 2017, illustrate the remarkable progress co-ops have made in deploying fiber optic Internet access across the country. 

“Cooperatives should be the foundation for bringing high-quality Internet service to rural America... Small towns and farming communities need robust Internet service to support their local economies, educate themselves, and generally improve their quality of life. Cooperatives have quietly proved that they can build Fiber-to-the-Home networks that are capable of speeds of greater than 1 Gigabit per second (1,000 Mbps). More than 140 cooperatives offer gigabit service to residents or businesses.”

The report features new maps showing overall growth in areas served by co-ops, as well as expanded information about state legislation that supports co-op investment in broadband networks. A few important takeaways:

  • More than 140 co-ops across the country now offer residential gigabit Internet access to their members, reaching more than 300 communities. 
  • Co-ops connect 70.8 percent of North Dakota and 47.7 percent of South Dakota landmass to fiber, and residents enjoy some of the fastest Internet access speeds in the nation.
  • Georgia and Mississippi have overturned state laws banning co-ops from offering Internet access, and other states, including Colorado, Maryland, North Carolina, and Texas, have implemented legislation that will further ease the way. 

Co-ops have proven that this is a model that works. With increased support from federal and state governments, they will continue to connect rural Americans to economic and educational opportunities otherwise denied to them. 

Read the full report [PDF] here.

Reports Archive - Cooperatives Fiberize Rural America

As data changes, we stay current so you can get the most recent information. It's important to be up-to-date, but seeing how broadband and related issues have changed over time also has value. As we release new versions of our report, Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era [pdf], with updated information we’ll connect you with prior publications here.

Decades after bringing electricity and telephone services to America’s rural households, cooperatives are tackling a new challenge: the rural digital divide. This report explains why co-ops are a model that works for rural areas, and features:

  • Maps showing areas where co-ops offer fiber Internet access
  • Information on funding sources for co-op broadband projects
  • Background on state legislation that hinders or supports broadband projects
  • Our recommendations on how state and federal governments can support co-ops’ efforts to connect rural America 

Links on this page will take you to original and current publications of the report. 

A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig

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Local communities continue to search for ways to tackle the digital divide and in San Francisco, the city is making strides by working with a local Internet access company. The City by the Bay and ISP Monkeybrains have adopted a new model to bring high-quality connectivity to residents in public housing. The approach not only creates new opportunities for people who were once denied economic and educational opportunities, but does so in a way that is financially self-sustaining. With modest maintenance and start-up costs, Monkeybrains and San Francisco has found a way to bring the same high-speed Internet access to low-income households at an affordable rate. Read our new report, A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig, to learn how the partners found a way to shrink the digital divide in public housing facilities.

Download A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig [pdf], here.

Lessons for More Communities

Every community, regardless of population, must contend with digital inequity. As local communities continue to recognize all residents’ need for high-quality Internet access, models such as the approach developed by Monkeybrains and San Francisco spark further innovation. 

From Christopher:

“These households need Internet access to search for jobs, improve their education, access government services, and for many other reasons common to modern living. Monkeybrains' work in San Francisco shows how smart one time investments in public housing can guarantee high-quality access to all in public housing.”

Report: San Francisco's Public Housing Low-Cost Gig and How They Did It With Monkeybrains

Local communities continue to search for ways to tackle the digital divide and in San Francisco, the city is making strides by working with a local Internet access company. The City by the Bay and ISP Monkeybrains have adopted a new model to bring high-quality connectivity to residents in public housing. The approach not only creates new opportunities for people who were once denied economic and educational opportunities, but does so in a way that is financially self-sustaining. With modest maintenance and start-up costs, Monkeybrains and San Francisco has found a way to bring the same high-speed Internet access to low-income households at an affordable rate. Read our new report, A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig, to learn how the partners found a way to shrink the digital divide in public housing facilities.

Download A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig [pdf], here.

A few national ISPs offer programs for households considered low-income, but those services only offer slow and typically unreliable connections. The program that Monkeybrains and San Francisco has created provides high-speed Internet access to public housing units at no cost to the end user. In some cases, the ISP does receive a monthly payment of $10 per unit from building management. No matter what, each user receives the same level of customer service and support as those who pay standard monthly rates. From the beginning, the goal was to bring the same level of service to subscribers in public housing as Monkeybrains subscribers throughout the city.

Unlocking the Value of Broadband for Electric Cooperative Consumer-Members

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When privately owned utilities refused to electrify rural areas, communities established electric cooperatives to light up their homes and farms. A recently released report, Unlocking the Value of Broadband for Electric Cooperative Consumer-Members, describes how electric co-ops now have an opportunity revisit that role as they bring Internet access to their rural members nationwide.

The report, published in September by the National Rural Electric Cooperative Association (NRECA), finds that millions of people in electric cooperative service territories lack access to broadband. As the report explains, rural electric cooperatives are uniquely poised to meet their members’ needs for better connectivity. However, public investment may still be necessary to connect many rural communities.

Download the report.

Co-ops Could Meet Rural Broadband Needs

Like many rural Americans, members of electric cooperatives often find themselves unserved or underserved by the existing Internet service providers. The report’s authors estimate that more than 6 million electric co-op households — a total of 13.4 million people — don’t have access to broadband, defined by the Federal Communications Commission (FCC) as 25 Megabits per second (Mbps) download and 3 Mbps upload. Even more co-op members are likely struggling with poor connectivity because of how the FCC data overstates broadband availability and access.

More Fiber Than Cows: Report Confirms South Dakota’s Rural Networks Above Average

South Dakota has more cows than people — and if you live in a rural community in of the state, it’s possible that all those bovines may have better Internet access than you do.

South Dakota Dashboard recently released a report on rural Internet access in the state. It was commissioned by the South Dakota Telecommunications Association (SDTA), whose members include cooperative, municipal, and tribal providers. The report, Connecting South Dakota’s Future: A Report on the Deployment & Impact of Rural Broadband, found that rural connectivity in the state significantly exceeds national averages, proving that high-quality Internet access is possible even in the most rural areas.

Download the report for more details.

Summary of Findings

According to the report, more than three quarters of rural South Dakotans who subscribe to Internet access from SDTA members have access to speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload, which are the federal minimums for broadband. Across the country, approximately 61 percent of rural residents have access to those speeds.

Furthermore, 65 percent of people who subscribe to Internet access from SDTA members receive service through Fiber-to-the-Premises (FTTP). In contrast, only around 40 percent of rural telecommunications company subscribers nationwide are connected via fast and reliable fiber optic lines.

This is all despite the fact that, with fewer than five residents per square mile, deploying fiber costs on average $3,571 per resident in the rural regions served by SDTA members versus about $26 per resident in the more densely populated Sioux Falls.

Fast Internet Speeds Nothing New for South Dakota

Broadband Competition in the Rochester Region: Reality vs Federal Statistics

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In this policy brief, we highlight the gulf between FCC broadband data for Rochester and what’s actually available to residents by examining local competition. Download the policy brief Broadband Competition in the Rochester Region: Reality vs Federal Statistics here.

Rochester Competition: Not All it Appears to Be

The city, home to the world-famous Mayo Clinic, had previously considered building a municipal network, but the idea was dropped, in part because of the incorrect perception that enough competition already exists between Internet service providers. Our analysis and the corresponding maps reveal that broadband competition in the region is more limited than many realize.

The policy brief concludes:

“Overall, Charter and CenturyLink compete for the urban center of Rochester, while the rural areas rely almost exclusively on fixed wireless for broadband service. Even where residents have a choice in broadband, anyone looking for speeds in excess of 40 Mbps will almost certainly have to subscribe to Charter Spectrum. This is why more cities, especially those with municipal electric services, are considering how smart local investments can ensure more consumer choices and a working market for these essential services.”

Shortcomings of FCC Data

As we’ve covered before, the FCC collects data by census block, which incorrectly inflates broadband access and competition data. Internet service providers self-report and describe an entire block as “served” even if they can only connect one address in that census block.

We describe the problems with self-reporting in the policy brief:

Policy Brief: How FCC Data Has Failed Rochester, Minnesota

It’s no secret that the Federal Communications Commission’s (FCC’s) broadband data is unreliable. Many people, including U.S. Senators, have pointed out how federal data collection methods overstate connectivity across the country. Rochester, Minnesota, is no exception. In this policy brief, we highlight the gulf between FCC broadband data for Rochester and what’s actually available to residents by examining local competition.

Download the policy brief Broadband Competition in the Rochester Region: Reality vs Federal Statistics here.

What’s Going On in Rochester

The city, home to the world-famous Mayo Clinic, had previously considered building a municipal network, but the idea was dropped, in part because of the incorrect perception that enough competition already exists between Internet service providers. Our analysis and the corresponding maps reveal that broadband competition in the region is more limited than many realize.

Shortcomings of FCC Data

As we’ve covered before, the FCC collects data by census block, which incorrectly inflates broadband access and competition data. Internet service providers self-report and describe an entire block as “served” even if they can only connect one address in that census block.

We describe the problems with self-reporting in the policy brief:

“Large, de facto monopoly providers have incentives to overstate their coverage and territory to hide the unreliable and slow nature of their service in many communities. Small providers often have trouble completing the FCC Form 477. . . Larger providers have plenty of staff to handle the form and seem to benefit the most from its flaws, as this data is often used to determine whether government programs should invest additional funds into an area, often by a competitive grant program. Areas that appear to be well covered will not result in more investment, leaving the incumbent providers without fear of competition.”

Are CAF II Investments Helping Rural Minnesota? Blandin Report Looks at the Data - Community Broadband Bits Podcast 318

In the most recent report from the Blandin Foundation, Researcher Bill Coleman from Community Technology Advisors and his crew put boots to the ground to examine the results of Connect America Fund (CAF II) investments. Bill recently visited our office in Minneapolis to discuss the report with Christopher for episode 318 of the  podcast.

You can download the report, Impact of CAF II-funded Networks: Lessons From Two Rural Minnesota Exchanges here.

Bill and Christopher discuss the challenges Bill and his team encountered when they initially decided to gather documentation on what services CAF II funded projects brought to rural Minnesota. In order to get past those challenges, the researchers devised a methodology that other communities can reproduce.

Once the team had answered the technical questions about infrastructure, they analyzed the results and applied them to Minnesota’s statewide goals for broadband access. They determined that, in addition to lack of transparency regarding CAF II network plans, the tendency to invest in slower speeds, including DSL, will not help Minnesota achieve its goals. 

For people living in urban areas who have grown accustomed to broadband within reach, it’s hard to imagine the situation in rural Minnesota, where there are still homes that have no access to the Internet at all. The disparity in speeds and availability complicate the idea that rural folks should have access to high-quality connectivity at the same levels as people living in urban centers.

This show is 35 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 Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Impact of CAF II-funded Networks: Lessons From Two Rural Minnesota Exchanges Left Underserved

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The Connect America Fund provides annual federal funding to some of the largest telecommunications providers, but it can be hard for local officials to know where these dollars go.

This report digs deep into the federal subsidies for Internet service in Minnesota. Researcher Bill Coleman of Community Technology Advisors led a Blandin Foundation project that explored how federal Connect America Fund dollars have been used in two Minnesota telephone exchanges. In the end, researchers found that these networks would likely not meet Minnesota’s state connectivity goals.

While digging through a paper trail of right-of-way agreements and local permits, researchers also went out into the field to find the actual infrastructure in the communities. They identified DSLAMs where fiber-optic lines connect to the copper DSL lines that run to people’s homes.

Using the locations of the DSLAMs, researchers mapped where people can likely receive federal government defined broadband of 25 Mbps download and 3 Mbps upload. The maps also show where people can likely get 10 Mbps download and 1 Mbps upload which is the standard for the Connect America Fund subsidy. 

The 27-page report goes into detail on the connectivity available in the two telephone exchanges. The researchers conclude by explaining:

“In sum, CAF II investments in Minnesota are being spent to build networks that don’t meet today’s federal definition of broadband and won’t meet state goals for the future. Moreover, lack of transparency in proposed CAF II network plans and timelines is making it difficult for impacted communities to plan accordingly to ensure their broadband needs are being adequately met.“ (Page 22)

Download Impact of CAF II-funded Networks: Lessons From Two Rural Minnesota Exchanges Left Underserved from the Blandin Foundation.