In Missoula and Bozeman, momentum is building for improved connectivity by way of community network infrastructure. As usual, funding a municipal network is always one of the main challenges, but the state appears uninterested in helping them. State Representative Kelly McCarthy recently dropped HB 14 into the hopper, a bill to create a broadband development fund primarily for private companies.

The bill authorizes $15 million in general obligation bonds for broadband infrastructure projects for middle-mile and last-mile connectivity in rural areas. Unfortunately, projects built and maintained by private entities have priority per the language of section 3(2)(b).

The state legislature would be wise to follow Minnesota's lead and establish a program that is available to all as in the Minnesota Border-to-Border Broadband Development Grant Program. Private entities are eligible to apply along with public entities and nonprofits, but do not receive special consideration.

If anything, the long history of success from cooperatives and local government approaches in infrastructure is favorable to the history of consolidation and poor services that big monopolies have offered in rural areas.

It never ceases to amaze us that people designing programs to use taxpayer money in expanding essential infrastructurel would earmark it only to subsidize entities that are the least accountable to the communities they are supposed to serve. Ultimately you have to wonder whether these programs are designed to benefit local communities or just the companies that can best afford lobbyists.

Thanks to Jeff Hoel for providing the transcript for Episode 119 of the Community Broadband Bits podcast with Senator Schmit, Representative Simonson, and Danna Mackenzie on State of Minnesota's Border to Border Broadband Fund. Listen to this episode here.

00:05:

Danna Mackenzie: What we wanted to do was figure out what is the appropriate and right role for a state to enter into this conversation, and to incent the construction and build into areas of the state where it's currently -- no other incentives have worked to date.

00:22:

Lisa Gonzalez: Hi, and welcome once again to the Community Broadband Bits Podcast, from the Institute for Local Self-Reliance. This is Lisa Gonzalez.

During the last legislative session, lawmakers in the state of Minnesota appropriated $20 million to a grant program to encourage the deployment of broadband infrastructure. The state is now taking applications for that program until October 28th. As part of the measure, the legislature also created the State Office of Broadband Development. In this podcast, Chris visits with two of the lawmakers that were instrumental in passing the measure, Senator Matt Schmit and Representative Erik Simonson. He also visits with Danna Mackenzie, the Executive Director for the State Office of Broadband Development.

In order to get the initiative adopted, it was important to show need, desire, and support for the appropriation. Senator Schmit and Representative Simonson, both from greater Minnesota, explained how they reached out to Minnesota communities, how they took public opinion back to their colleagues, and what they hoped they can accomplish with this modest state investment. In order to learn more about the grant program, Danna helps explain the details about eligible applicants, expectations for its distribution, and some of the requirements for funded projects. When crafting the requirements for the program, the authors wisely chose to include specs that ensure a long-term solution. Here's Chris, visiting with Senator Schmit, Representative Simonson, and, last of all, Danna Mackenzie.

01:51:

The rumors have been swirling for months now that the city of Chaska was considering putting an end to its municipal Wi-Fi service, Chaska.net. A recent Chaska Herald article confirms that city staff recommends the Council choose to end its residential service. If the Council follows the recommendation, the remaining business Wi-Fi customer, KleinBank data center, and School District 112 will still receive Wi-Fi service.

According to the article, the city explored the possibility of selling the system to the private sector, but the idea did not garner a favorable deal:

[City Administrator Matt] Podhradsky said that it appeared that the proposals were more of an attempt to gain access to the city’s water towers. “We started asking ourselves, ‘Should we be in the business of picking winners and losers?’” said Podhradsky. “We decided that’s just not the right direction for us.” 

City staff is recommending that the service end when the contract for support for the existing equipment ends in July. They also recommend that the last four months of service be offered free of charge. Customers will be notified by letter in early 2015.

The end of Chaska.net is bittersweet. When it was new, it was much celebrated as one of the first municipal Wi-Fi networks in the U.S. The past few years, however, have proved difficult. Waning subscriptions, competition from private providers, and old equipment have taken a toll. In order to replace the aging equipment, the city needs to spend $3 million. 

Podhrasky said the city is proud of what it accomplished with Chaska.net. “When you think back, there were a lot of cities that tried things and spent a lot of dollars to get something like this off the ground.”

He noted that the goal of the Internet utility was to provide high-speed service at an affordable cost until the market caught up. “We were a gap,” he said.

Today, that market has caught up. “It sort of feels like we completed our goal,” said Podhradsky.

Read more about Chaska's fiber network and Wi-Fi investment in our recent report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access.

This week in Community Broadband networks... partnerships, cooperatives, and going-it-alone. For a background in muni networks, check out this recent article from FiscalNote. The article highlights Kansas and Utah's fight for improving beyond the minimum speeds. 

Speaking of minimum, the FCC announced its new "rock bottom" for regulated broadband speeds. Ars Technica's Jon Brodkin reports that despite AT&T, Verizon, and the National Cable and Telecom Association's protests, ISPs that use government subsidies to build rural broadband networks must provide speeds of at least 10 Mbps for downloads.

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. 

This is a step in the right direction, but we are alarmed to see a download:upload ratio of 10:1. People in rural areas need to upload as well as download - our comments to the FCC strongly recommended raising the upstream threshold as well and we are very disappointed to see that remain a pathetic 1 Mbps.

And, from TechDirt's own "who can you trust if you can't trust the phone company department," Karl Bode found that a study by the AT&T-funded Progressive Policy Institute concluded that if Title II regulations were passed, the nation would be "awash in $15 billion in various new Federal and State taxes and fees. Bode writes that the study cherry-picked and conflated data:

Our friends at the Blandin Foundation recently sponsored another Minnesota Border to Border Broadband conference. Video and materials are now available. 

In addition to the archived video of the November 19th event in Brainerd, Minnesota, Blandin on Broadband's Ann Treacy provides links to summaries of each session, some of which also have PowerPoint presentations or video available for viewing:

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.

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.