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.

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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.

A recent 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.

Boots on the Ground

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. 

Result: Little Broadband Access

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)

Read the full report from the Blandin Foundation.

As schools across the country look at their budgets, Janesville, Wisconsin, has decided to cut their future expenses with a fiber optic investment. This spring, the district will use E-rate funding to help finance a fiber optic local area network (LAN) in order to cut telecommunications costs by $70,000 per year.

Connecting Facilities

The school district will install 12 lines, eliminating leased lines and the associated expense. E-rate funds will pay for $1.6 million of the estimated $2 million project; the school district’s contribution will be approximately $400,700 and an additional $225,000 for engineering and project fees. School district officials calculate their contribution will be paid for in nine years. Fiber optic networks have life expectancies upwards of 20 years and in Janesville, District CIO Robert Smiley estimates this project will last for 50 years.

At a recent Board meeting, Smiley told the members that the new network will be like transitioning “to our own private Interstate.” In addition to better prices, the new infrastructure will allow the district to ramp up speeds to ten times what they current share between facilities. The system Janesville School District uses now has been in place since the 1990s.

The federal E-rate program started during the Clinton administration as a way to help schools fund Internet access and has since been expanded to allow schools to use if for infrastructure. School districts obtain funding based on the number of students in a district that are eligible for the National School Lunch Program. Funding for E-rate comes from the School and Libraries Program from the Universal Services Fund.

“Hello, Savings!”

Like many other schools that have chosen to switch to a district owned fiber network, Janesville sees a big advantage for voice communications. Due to the age of their phone system, they’ve had failures in the past. Last winter during a day of inclement weather, a large volume of incoming calls from parents overloaded the system and other parents who had signed up for emergency alerts on their phones didn’t receive them. With a new fiber network, the school district will be able to switch to VoIP.

The Greater...

We’ve written about the Connect America Fund (CAF) on multiple occasions and recently alerted interested MuniNetworks.org readers to the FCC’s ongoing efforts to re-examine the CAF Phase II Auction procedures. On October 26th, the Schools, Health & Libraries Broadband Coalition (SHLB) is presenting a free webinar on CAF as part of their Grow2Gig+ Webinar Series.

SHLB will be offering a Universal Service Symposium in Washington, DC, on November 2nd and the information presenting in the webinar will help attendees prepare. Even if you’re not planning to attend the workshop, the webinar will offer information that will be useful if you have any interest in applying for CAF funds or if you are monitoring the FCC’s policies moving forward.

The webinar speakers are Carol Mattey and Rebekah Goodheart; John Windhausen will moderate. SHLB describes the event as:

The Connect America Fund (CAF) is a federal program that provides funding to defray the cost of operating and extending both fixed and mobile broadband networks to serve consumers and small businesses in rural, high-cost areas in the United States. CAF was created by the Federal Communications Commission (FCC) to fulfill the statutory mandate that all Americans have access to communications service that is reasonably comparable to what’s available in urban areas.

Join two former senior FCC officials as they discuss the History of the Connect America Fund, the Phase II  Auction (Performance Standards, Application Process, and Auction Mechanics), as well as Reporting Requirements. 

You can register online at the SHLB website and also review past webinars and check out other events on the calendar.