Tag: "minnesota"

Posted June 25, 2015 by phineas

Economic Development and Community Networks

When a community invests in a municipal broadband network, it often does so because it hopes to reap economic benefits from the network. Many people and organizations have explored the positive relationship between municipal Internet networks and economic development, including a White House report published in January 2015. Municipal networks create jobs by ensuring businesses have fast, affordable, and reliable Internet access; the old DSL and cable networks just don't cut it. These networks improve the productivity of existing businesses and attract new businesses to communities, allow individuals to work from home more effectively, support advanced healthcare and security systems, strengthen local housing markets, and represent long term social investments in the form of better-connected schools and libraries. They also create millions of dollars in savings that can be reinvested into local economies. 


"Upgrading to higher speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem." - Executive Office of President Obama

When municipalities choose to deploy fiber networks, they introduce Internet services into the community that are not only significantly faster than DSL and cable, but more reliable. With more reliable fiber connections, businesses and individuals are far less likely to experience temporary blackouts that can halt productivity in vexing and expensive ways. And because these networks are locally-owned and operated, business owners do not have to spend hours on the phone with an absentee Internet Service Provider like AT&T in the (albeit unlikely) event of a problem. 

We at the Institute for Local Self-Reliance have catalogued numerous examples of economic development achievements that have occurred as a result of local governments deploying a municipal broadband network. Below, you can find a wide range of articles...

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Posted May 26, 2015 by lgonzalez

When Westminster, a community of 18,000 in rural Maryland, found itself with poor Internet access that incumbents refused to improve, it decided to join the ranks of a growing trend: public-private-partnerships between local governments and private companies to invest in next-generation Internet access. They are now working with Ting - one of a growing number of private sector firms seeking partnerships with cities – though how partnerships are structured varies significantly across communities.

In building an infrastructure intended to serve the community for decades, city leaders knew Westminster should retain ownership of the network to ensure it would remain locally accountable. Ting is leasing fiber on the network and providing Internet services to the community with plans to offer some type of video in the near future. The public-private-partnership (or “P3”) includes a temporary exclusivity arrangement for two years or when a minimum number of subscriptions are activated. Westminster will then have the ability to open up its network to other providers in an open access arrangement. 

Communities are realizing that if they want better connectivity, they need to take matters into their own hands. As local leaders wade through the complex process of planning, financing, and deploying Internet network infrastructure, P3s are becoming more common. Communities with little or no experience in managing fiber optic networks may assume that P3s are safer or easier. That may be true or not depending on the specific P3 approach; the data is only starting to come in. P3s have been relatively rare compared to the hundreds of local governments that have chosen to build their own networks in recent decades.

Partnerships will continue playing a larger role  when improving local connectivity but this area is still maturing – there are already a few examples of successful P3s though many will also recall the failed Gigabit Squared P3 approach

P3s are more established in municipal public works projects involving other areas of infrastructure. A November 2013 Governing article by Ryan...

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Posted May 7, 2015 by lgonzalez

Minnesota's Dakota County community leaders are planning to expand their existing fiber optic network, reports Blandin on Broadband's Ann Treacy. She attended a recent County Commissioner's meeting in which commissioners approved $1.2 million to add another 500,000 feet to the network.

Dakota County plans to perform some upgrades in addition to the expansion. They hope to collaborate with municipal and state government as well as a local school district. In addition to connecting more public facilities, a key benefit of this expansion will be to improve traffic signals along several busy corridors. 

Dakota County is taking advantage of transportation projects and its dig once policy to install conduit and fiber. This project will also add redundancy and capacity to the existing network and create potential connections to an industrial park. By sharing the cost of the expansion and the maintenance, each participating entity will see many benefits at a fraction of the cost from leasing from an incumbent provider.

The Dakota County Broadband Initiative recently began a campaign to approach local community leaders in order to offer info on the potential benefits of further leasing fiber to private businesses. Nearby Scott County, which offers connectivity to a number of businesses, has successfully used their fiber for economic development.

The SunThisWeek reported on a March Burnsville City Council meeting where Consultant Craig Ebeling spoke on behalf of the Initiative:

Private-sector telecom providers don’t have the capital to extend fiber widely, he said, echoing findings in the Design Nine study. Meanwhile, Scott County “smacked us in the face” with its fiber advantage, he said. It’s no time for a “hide your head” approach, [Council Member Dan] Kealey said.

“Shame on us for not being long-sighted enough to figure that out before,” he said.

The County has also realized that the network could be used to improve residential access. An Star Tribune article in March reported...

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Posted May 4, 2015 by lgonzalez

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.  

“In many, many ways, Paul Bunyan Communications has become the Apple of greater...

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Posted April 10, 2015 by rebecca

Representative Pat Garofalo’s (R-53B) proposal to cut funding for broadband grants is the wrong move for Minnesota. The Institute for Local Self-Reliance (ILSR) is absolutely opposed to any suggestion Minnesota should have two-tiered Internet access - a fast standard in urban areas and slower, less reliable access in Greater Minnesota.

Wireless technology and satellite Internet are not sufficient for homes and businesses in the modern economy. They certainly won’t lead to the kind of job creation or retention that Greater Minnesota needs. Modern jobs require modern connections.

ILSR has long fought the notion, often advanced by the cable monopoly lobbyists in Saint Paul, that wireless is good enough for people that don't live in the metro. Nearly 100 years ago, the United States wisely pursued policies to electrify farms and the boosts to the economy were staggering. Given the significant budget surplus, now is the not the time for the Legislature to turn its back on Greater Minnesota.

“It’s outrageous to us that a lawmaker who is supposedly in favor of needed job creation for our communities would turn around and slash the very thing that could support it,” says Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance (ILSR). “Rural Minnesotans should not be constantly moved to the back of the line for 21st century connectivity. We can’t wait any longer for the kinds of investments that will carry our schools and businesses across the digital divide.”

In Windom, Minnesota, for instance, the community has seen strong job growth, including at the Toro Manufacturing plant, because it could get better Internet access from the small city's utility than it could get at Twin City locations. Those jobs would not exist if local employers relied only on wireless or satellite technologies.

More information:

ILSR published All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, a detailed report on how local communities across the state can improve Internet access for government,...

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Posted March 9, 2015 by lgonzalez

In a recent meeting of the Dakota County Administration, Finance and Policy Committee, Dakota County's Network Collaboration Engineer David Asp provided an update to Commissioners on the status of their broadband plan. Dakota has saved millions of dollars with their network through collaborative efforts, innovative dig-once approaches, and specially deveoped software.

As part of its long term strategy, the county is now considering ways to offer connectivity to local businesses and residents via open access infrastructure. Blandin on Broadband's Ann Treacy attended the February 3rd meeting and, thanks to Asp, posted the PPT from his presentation.

We spoke with David Asp in Episode #117 of the Community Broadband Bits podcast. In 2011, Dakota County was named one of the Intelligent Community Forum's 21 Smart Communities. 

We learned while developing our case study on Dakota County that their efforts to coordinate excavation, including specialized software they developed themselves, has reduced the cost of installing fiber by more than 90 percent. We estimated the County has saved over $10 million in fiber and conduit deployment costs.

For more on this network, download a copy of our case study that includes the stories of Dakota County and eleven other Minnesota communities: All Hands on Deck: Minnesota Local Government Models for Expanding Fiber internet Access.

...

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Posted February 23, 2015 by rebecca

The Rochester City Council recently voted unanimously to move forward with a study on the possibilities of publicly owned broadband in this southeastern city. Rochester will then decide whether to move forward with bids to form a public-private partnership for a network, or pursue another path.

After receiving dozens of calls from his constituents, City Councilman Michael Wojcik is asking his colleagues to consider a municipal network. Rochester’s area holds a population of about 110,000, and is home to the world-famous Mayo Clinic

According to the Rochester Post-Bulletin, Charter Communications operates its cable TV and Internet services under a franchise agreement with the city. That agreement is up for a renewal on March 31.

Wojcik said his constituents have been angered over issues such as digital box fees, but most of the complaints are about broadband service, which Wojcik said is essential. He said Charter's recent price increase for stand-alone broadband from $55 to $60 per month makes the service unobtainable for a percentage of area families with children in school.

"Broadband is key for information for a lot of people, particularly younger generations, and going forward, it becomes more and more critical," he said.

In 2010 Wojcik asked the council to investigate options for publicly owned infrastructure, but the measure did not advance. Wojcik says he hopes that citizen outrage with poor Charter service and contract negotiations will encourage city council members to take action.

The Council invited Chris to offer expert opinion. KIMT TV covered the decision and spoke with him after the meeting: 

“I think it’s a necessary step for the Rochester City government to get involved, because over ten years of experience suggests that the private sector alone is not going to solve this...

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Posted February 21, 2015 by rebecca

Minnesota Public Radio’s Daily Circuit (MPR) interviewed Chris about President Obama’s recent endorsment to end restrictions on states that limit local broadband authority. Chris and Danna Mackenzie, executive director of the Minnesota Office of Broadband Development, answered questions about what Obama’s announcement means for faster, cheaper, more reliable Internet for consumers. 

Chris explained that it’s great to see federal government “getting it right” and championing the rights of local governments. He also discredits the argument about public money for Internet networks, and addresses why municipal approaches offer some of the wisest and most efficient use of taxpayer dollars.

You can listen to a 3-minute clip in the audio player below, or click the link to hear the entire interview: http://www.mprnews.org/story/2014/11/13/daily-circuit-net-neutrality

 

Posted February 11, 2015 by lgonzalez

The Minnesota Office of Broadband Development recently announced the recipients of the Border to Border Broadband grants, funding established by the state legislature in 2014 to facilitate rural broadband projects. Seventeen public and private entities will share a total of $19.4 million in Greater Minnesota.

According the the Department of Employment and Economic Development (DEED) press release, the projects will help bring better connectivity to 6,095 households, 83 community institutions, and 150 businesses in areas of the state considered unserved or underserved. This funding pays for up to 50 percent of the cost of each project. 

The need in rural areas of the state is intense; 40 projects submitted applications for a total of $44.2 million in requests. Among the recipients are some familiar projects.

RS Fiber Cooperative is awarded $1 million for its FTTH project in Renville County and and parts of Sibley County. We wrote a case study on the RS Fiber project in our report All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. According to the press release:

Total project costs are $3.32 million; the remaining $2.32 million (70 percent local match) will be provided by a line of credit that R-S Fiber Telcom has committed and partner equity. This project is part of a larger cooperative project estimated at $38.46 million that will upgrade broadband services to several thousand locations in the region. Hiawatha Broadband Communications will provide operational capacity. 

Federated Telephone, sister cooperative to Farmers Mutual Cooperative will also receive an award for a project in Big Stone County:

Federated Telephone Cooperative, Big Stone County. Awarded $3.92 million to construct broadband infrastructure that will make service available to 1,072 unserved premises. The full project cost is $7.92 million; the remaining $4 million (51 percent) in matching funds will be raised through tax abatement bonds, with the county loaning the bond proceeds to Federated. This project will cover the north half of Big Stone County, as well as the western tract that...

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Posted February 9, 2015 by lgonzalez

Green Isle and nine other communities have reaffirmed their commitment to the RS Fiber Cooperative, reports the Belle Plain Herald. The project began in 2010 as a collaboration between a number of local county and municipal government entities in south central Minnesota. Local residents rallied behind the project, which was designed to connect both towns and surrounding farms. 

Unfortunately, the project faced difficulties due to incumbent intimidation and the high cost of deployment in such a large geographic area. Sibley County officials chose to back out of the project, requiring a business plan reboot. Locals, recognizing the critical need for better connectivity chose to instead form the RS Fiber Cooperative.

The Herald reports that in its first 2015 City Council meeting, Green Isle voted 3 - 1 in favor of a resolution stating continued support to the project. Similar resolutions have passed in Winthrop, Gibbon, Fairfax, Lafayette, Gaylord, Stewart, New Auburn and Brownton. 

Henderson and Arlington, located in Sibley County, have opted to not participate in the coop. 

Coop Directors endorsed an updated business plan in November, reported Prairie Business Magazine. The project will bring better connectivity options to approximately 6,200 customers in Sibley County, parts of Renville County, and portions of Nicollet and McLeod Counties. The revised business plan, scaled back from the original plan to bring fiber to every property in Sibley and Renville Counties, reduces project costs by more than 30 percent.

Participating communities will collectively issue $13.7 million in general obligation bonds. Local investors, bank loans, and other financing will provide the remaining $42 million. The project is scheduled for completion in 2018.

Phil Keithahn, RS Fiber Coop financial planner, told KEYC Mankato that the network will have triple-play capabilities, bringing Internet, phone, and video to remote rural areas. Community leaders are motivated by the need to improve connectivity for agriculture, tele-medicine, and education.:

"It...

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