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To Improve Minnesota Broadband, Look to Lessons of Electrification
Steve Downer is the Associate Executive Director of the Minnesota Municipal Utilities Association, MMUA, and he previously served on the Blandin Foundation Strategy Board. He offered these thoughts on page 4 of the "The Resource" [pdf] from January 2013 and has allowed us to reprint them below.
According to online reports, House Commerce Chairman Joe Atkins has listed his top 10 issues for his Committee in 2013. Included on the list, at No. 4, is Telecommunications and Broadband Law Update. As municipal involvement has been a hot-button topic over the years, this should be of interest to municipal utilities.
The idea of re-writing state telecom law was a priority of the Ventura administration but, even with agreement among various parties that state law was antiquated the discussion never gained much steam, largely because the telecom companies decided the law was just fine after all. Efforts have been made over the years to remove or reduce the super-majority referendum requirement to build a municipal telephone exchange, but have withered in the face of vociferous opposition.
On the other hand, efforts to further restrict municipal provision of broadband service, a concern in recent legislative sessions, have also languished. So, what does Chairman Atkins have in mind?
Perhaps local interests, working through organizations like MMUA, could suggest the state needs to be more open to partnerships and local government projects, if it is ever to reach its broadband goals.
Cities have proven fully capable of providing a full range of telecommunications services over the years. Counties are providing cutting-edge communications services. The Southwest Minnesota Broadband Services project (a consortium of eight cities) shows how ordinary people, working through their local governments, can work together to provide high-quality voice, video and data service at reasonable prices.
After much work, a similar project in Renville and Sibley counties has recently been stymied due to concerns over the ability of city-county partnerships to issue bonds.
After much work, a similar project in Renville and Sibley counties has recently been stymied due to concerns over the ability of city-county partnerships to issue bonds.MN House Committee Learns About the PUC/Broadband Relationship
We want to thank Ann Treacy from the Blandin Foundation for getting out and reporting on many events dealing with telecommunications. We know we can rely on her to faithfully share her findings via the Bladin on Broadband blog.
Last week, Ann attended the Labor, Workplace and Regulated Industries Committee at the Minnesota House of Representatives. It is early in the session in the Land of 10,000 Lakes and legislators are being briefed on the basics. At the January 24th meeting, the Minnesota Public Utilites Commission (PUC) provided an overview and an update on the workings of the agency. Right around nine minutes into the presentation, the discussion shifted to telecommunication. While other areas, including energy, came up in the conversation, a large part of the meeting focused on telecom. You can listen to the entire discussion (a little over an hour) from the Committee Audio and Video Archives page.
Questions regarding telecom ranged from regulatory authority, to policy changes over time, to challenges we need to address. There was a basic message regarding broadband from the PUC - that broadband is a critical element for our schools, libraries, and government. PUC officials acknowledge that "there really is no regulation per se" in the broadband industry and that decisions are driven by private providers. The PUC representatives also expressed their concern on consumer protection due to de-regulation in the areas of telephone service.
Listening to legislative committee meetings on overview is a great way to learn how mechanisms operate at the agency level. The meetings usually give a hint of legislators' concerns and what proposals you will see. You may hear something surprising or revealing; you will always be better informed.
Pole Issue Means More Delay For Lake County Project
Lake County, a rural area on the north side of Minnesota's portion of Lake Superior, has long suffered with just dial up and satellite, with slow cable connections available in some of the towns. After receiving a stimulus project to build a county-owned FTTH project connecting everyone, many thought their broadband troubles were over.
But Mediacom attacked first, with unsubstantiated allegations of rules violations that investigators found to be lacking in merit. When Mediacom announced it would not further delay the project with a lawsuit, we again thought the project would proceed.
But now a dispute over who owns some of the poles is holding up the project. The Lake County News reports that Frontier asserts ownership of some poles on which aerial fiber optic cables sit as the project nears completion of Phase One. From the article:
There have been questions over the ownership of these poles in recent weeks. The poles, many of which Lake Connections has already utilized for attaching fiber, are within Two Harbors city limits. Frontier, a telecommunications provider in Lake County, said Lake Connections connected to their poles without submitting permit applications.
In an earlier report (reprinted here on mobilitytechzone.com and edited to include comments from Frontier), Mayor Randy Bolen declined to take an official position on the dispute between Frontier Communications and the install company, Lake Connections.
According to that October 25th report, there was a pole agreement between the two, but the agreement did not approach the issue of pole ownership. Rather than bring up the issue during negotiations, Frontier has waited until now to raise the challenge. Also from the article:
SMBS Will Expand with 4G Wireless
We have shared updates on Southwest Minnesota Broadband Services (SMBS) as they roll out their fiber routes in Jackson and surrounding towns. Now, we want to share info about their use of wireless to compliment the fiber network. According to the U-reka website, LocaLoop, Inc. and its subsidiary, SynKro Southwest, will soon be working with SMBS to expand SynKro 4G wireless fixed and mobile broadband Internet service to eight rural communities in the region.
SMBS and SynKro Southwest collaborated on a six-month trial installation in Bingham Lake. Additionally, the pair continued to build out the network in seven other nearby rural communities. From the U-reka article:
"Coming off the Bingham Lake trial, we look forward to delivering the same high quality network performance and user experience to underserved rural areas across the SMBS service territory,” said Carl-Johan Torarp, founder and CEO of LocaLoop. “We are expanding the network to complement SMBS’s broadband service as well as providing their customers with mobile broadband Internet.”
SMBS received $12.8 million in BIP funds to develop an FTTH network to Bingham Lake, Heron Lake, Jackson, Lake Okebena, Round Lake and Wilder. This latest endeavor will offer even more coverage to the local residents. Maps and more on the SMBS website.
Ramsey County and Saint Paul Under Fire for Network Plan
If you were judging solely from the reaction of Comcast, you could be faulted for thinking Ramsey County and the city of Saint Paul were making a bold, if risky, investment to bring real broadband to local businesses and citizens in Minnesota's capital. But you would be wrong. Very wrong.
The City and the County are paying a company to build them a network to serve their own needs. The City and County are smart to want their own network but this particular approach is a poor one. Let's start with a little background:
Saint Paul and Ramsey presently rely on Comcast's network to transfer data files between locations and access the Internet. It is an old cable network, called the I-Net, that is failing to meet the present day needs for the City and County. Because Comcast provides the I-Net at no charge as part of the franchise, they put it up with its inadequacies. But government employees are less efficient than they could be due to this old, unreliable network. For instance, they have to wait for GIS files to crawl across the network.
St Paul's telecommunications problems aren't limited to just the I-Net. Even back in 2005, St Paul recognized that the Comcast/CenturyLink duopoly wasn't getting the job done for much of anyone. We had (and still have) the same basic connections that the rest of the country had, limiting our attractiveness for new businesses that have above average needs. So the City created a Task Force that produced this terrific report in 2007 [pdf]. But the economy crumbled and the report was largely forgotten.
No one, including myself, stepped up. I have lived in St Paul for 15 years and now own a home here. This has been a failure of leadership from elected officials, staff, and concerned citizens (in that order). Mayor Coleman has utterly failed to do anything but talk about the importance of broadband and the City Council has followed his lead since Lee Helgen lost his seat. A sign of this failure is an announcement that MISO is moving out of St Paul: One of its reasons for moving 90 jobs from St Paul to Eagan was better access to fiber optic connections.
Mediacom Says it Will Not Sue Lake County, Minnesota
In Star Tribune coverage of Mediacom's war against real broadband in rural Minnesota, we learn that Mediacom will not sue Lake County to disrupt its plan to serve thousands of unserved residents and local businesses.
And for all its accusations, Larsen says Mediacom will not sue. Spending millions of dollars on a lawsuit in a place where the company serves so few homes, he said, "is not a great business decision."We have previously covered the many false and disproved accusations Mediacom have leveled against Lake County. The Strib article reiterates that these charges have been found to have no merit. The article also reiterates that the County has a real need that private companies have failed to meet:
The conflict that ensued is part of a national struggle. Public officials and some of their constituents argue that rural broadband is like rural electrification: It's a lifeline for small-town America that the free market will not extend. "We've been ridiculously underserved in this area for years," said Andy Fisher, who owns a Lake County bed-and-breakfast and a rural cross-country skiing lodge. The cable companies "are working in the interest of their profits. But if they're not going to serve this area, what are we going to do?"And yet, Mediacom sees itself as the underdog!
"Lake County wants to make this into a David and Goliath story, where Mediacom is Goliath and poor little Lake County is David," said Tom Larsen, Mediacom's group vice president of legal and public affairs. "The truth is we're David because we're fighting [the government]. It's just the same story repeated all over the country."Fascinating. Mediacom has billions in revenues whereas the County deals with budgets in the millions. Sure Mediacom is between 100 and 1000 times bigger than Lake County, it still wants to stop a project serving thousands of unserved people (that it believes is doomed to fail) because it is too disadvantaged.
Fiber Route Construction Nearing Completion In Southwest Minnesota
In April, we reported on Spring construction of fiber installation by the Southwest Minnesota Broadband Services (SMBS) in the Jackson area. This is a stimulus-funded expansion growing out of the community-owned WindomNet. The original plan was to have construction completed in Jackson by the end of August, but the job was 97% completed in July freeing the way for business and residential installs.
The Jackson County Pilot reported on the July Kiwanis Club meeting where SMBS's Naomi Pederson presented an update:
As of this past Monday, Pederson said 176 miles of the 181-mile main line had been built.
“People have been thrilled with the service,” Pederson said. “I’m sure businesses will be too.”Pederson said crews will begin residential installs in Jackson July 16. She anticipates crews will be able to hook up around 100 homes per week.
“Jackson has been one of our best towns, with 73 percent sales — much more than anticipated,” she said. “People are very receptive and are signing up for more services than people in our other towns. More services and more sign-ups mean we’re trying our best to keep up.”As of this past Monday, Pederson said 176 miles of the 181-mile main line had been built.
“People have been thrilled with the service,” Pederson said. “I’m sure businesses will be too.”
SMBS received $12.8 million in stimulus funds to develop an ftth network to Bingham Lake, Heron Lake, Jackson, Lake Okebena, Round Lake and Wilder. Check out a map of the fiber route on the SMBS website.
The high level of interest in these communities comes in the face of policymakers in Washington, DC, and many state capitals - they assume rural residents don't know how to use broadband or don't want it. This program shows that when you make good broadband available to people for a reasonable price, they take it in high numbers.
Thanks to BlandinonBroadband for alerting us to this story.
Mediacom Continues Obstructing Rural Broadband Rollout in Lake County Minnesota
Of all the broadband stimulus projects, the Lake County FTTH network in Minnesota has been one of the most embattled in the nation (possibly only behind AT&T's attacks on South Carolina projects).
Mediacom has pulled out all the stops, including filing complaints with the Inspector General that included dubious allegations at best and then complaining after the Inspector General investigated and found nothing worth following up on.
What we have here is a company that wants to block a project that will deliver essential infrastructure to thousands of people who are presently lacking access. Why? Because part of that project will overlap with an outdated and overpriced Mediacom cable network that prefers its subscribers to have no choice in providers.
Recall that this is a part of the nation where a single fiber cut previously cut off all communications for 12 hours. Police could not run plates, no business could call outside the North Shore or run credit cards, ATMs were useless, 9-11 ceased functioning, and US Customs and Border Protection needed to use Canadian communications.
Minnesota Public Radio ran a solid article that explained the need for real broadband up there. It starts by talking about a local business, Granite Gear, that has suffered from the lack of proper access.
What if FiberNet Monticello Had Been Canned in 2008?
Monticello faced a number of key decision moments throughout the history of its FiberNet. Given the recent changes in management and decision not to make up the different between debt service and revenues, some may be wondering if proceeding with FiberNet was the smart decision.
It was 2008 and the economy hadn't entered its death spiral. Monticello had overwhelmingly voted by a 3:1 margin for the local government to bond for and build the network.
When Monticello was beginning to sell its bonds, the incumbent telephone company (TDS) filed a lawsuit against the City, with the extremely dubious claim that Monticello did not have the authority to do what other cities in Minnesota had done. Courts later tossed it, finding that the TDS suit had no merit and making TDS reimburse Monticello for some of its costs due to the frivolous suit.
But the goal was never to win the lawsuit, it was to delay and harass. Monticello had to wait a year to begin building its network. Though TDS had previously maintained that its DSL was just fine for the needs of residents and busineses, it began pulling permits to significantly upgrade its DSL to a FTTH product. (TDS has steadfastly maintained, while investing more in Monticello than any other Minnesota community, that community networks result in less investment from incumbents.)
At any rate, Monticello had a decision. It faced an expensive court case and the City's action was apparently driving TDS to improve its poor network. Monticello could have backed down in the face of TDS' bullying.
And if it had? From what we have seen elsewhere, this is our best guess:
TDS could have delayed its upgrades or changed its mind entirely when the economy tanked. If it continued with upgrades, it would likely have made some token investments but not lowered its prices because the threat of actual competition was removed.
TDS could have delayed its upgrades or changed its mind entirely when the economy tanked. If it continued with upgrades, it would likely have made some token investments but not lowered its prices because the threat of actual competition was removed.Rural Reality: Waiting One Month for Basic Telephone Service in New House
Yesterday, we released our first podcast - a short discussion with Linda Kramer of the Sibley-Renville Fiber project in rural Minnesota.
When I happened across their Facebook page this morning, I found this perfect example of why the project is necessary (and they gave us permission to reprint it):
One of my friends moved from Fairfax to Gibbon two weeks ago. Her existing provider won't hook up service to her new home until June 29. This means nearly four weeks without basic telephone service for her family (and no phone at all while her husband has his work cell phone with him during business hours). Once she gets the service hooked up, she needs to address a billing problem, as the amount she's being billed by this company is not the same as what she was promised when she signed the contract. Excellent local customer service is one of the things many people are looking forward to with RS Fiber. Is this important to you?Most of us in urban areas really hate our cable providers because of the poor service they provide. But at least they are relatively timely in the terrible service they offer -- unlike in rural areas where telco technicians may be responsible for covering many hundreds of square miles. Hesitant though I am to promote anything Facebook-related, the people in Sibley have done a tremendous job of using Facebook to organize people and share stories about why their community-owned network is so important. If you are trying to organize a community for better broadband, take some notes.