People rave about next-generation connectivity’s possibilities in rural economies, but what does that mean for locals? A recent survey quantified the actual impact of a reliable high-speed Internet connection in an underserved area.

Central Minnesota telephone cooperative, Consolidated Telephone Company (CTC), released the results of an impact survey on their newest fiber Internet service customers. CTC had extended their Fiber-to-the-Home (FTTH) network to an underserved area south of Brainerd, with funding from a 2015 state broadband grant.

A Positive for Small Businesses and Farms

The survey of the CTC customers in the grant footprint highlighted the importance of connectivity for the community. Forty percent reported that they could not live in a home without a reliable high-speed connection. At the same time, fifty-six percent of the CTC customers currently use their home Internet connection for work purposes.

The new connectivity had a positive impact on small businesses and farms. More than twenty percent of the CTC customers maintain a home-based business or farm, and thirty-six percent of them reported that Internet service reduced their overall operating costs. Meanwhile, nine percent of all the CTC customers surveyed stated that they plan to start a home-based business in the next few years.

Reaching Goals

These results are especially refreshing for the Border-to-Border Broadband Grant program. CTC received more than $750,000 from the program in 2015 to improve connectivity for telecommuting and home-based businesses in the area. 

The previously underserved area sits south of Brainerd and extends to Fort Ripley. To encourage survey responses, CTC offered the chance to win an iPad and sent reminder postcards and emails to their customers. Twenty-eight percent of CTC’s customer base in that area took the survey either online or over the phone

The Co-op Perspective

The City of Madison, Wisconsin is one step closer to constructing a citywide municipal fiber network after obtaining the results from a broadband feasibility study. The consulting firm hired in December 2015 recently completed the study and made it available to the city’s Digital Technology Committee and the public.

The report recommends Madison build an open access dark fiber network and engage a partner to offer services to subscribers via the infrastructure. Westminster, Maryland, and Huntsville, Alabama, use the same approach with partners Ting and Google Fiber. Madison’s network would build on the existing Metropolitan Unified Fiber Network (MUFN), a smaller fiber network that was funded with stimulus dollars through the 2009 American Recovery and Reinvestment Act (ARRA). It connects public institutions such as the University of Wisconsin, Dane County, hospitals, K-12 schools, and DaneNet, which is made up of 28 community groups serving low income families and seniors. 

Consultants suggest Madison retain ownership of the infrastructure in order to maintain control of the asset and the city's future connectivity. The City would fund the $150 million cost of building a dark fiber network and their private partner would contribute an estimated $62 million to connect properties. Consultants envision the partner responsible for cable to residences and businesses, network electronics, and consumer electronics, bringing the total cost for the project to approximately $212 million.

"Now here’s the key: that’s a lot of money. The report talks about how to get it and we can bond and do a lot of other things, but it basically says to make this happen, you need a private partner," said Barry Orton, a member of the Digital Technology Committee. Orton went on to say that a more specific cost estimate, including identification of partners, would be forthcoming, as soon as Spring 2017.

An Ongoing Project

Local officials in Charles City, a town of 7,500 in northeastern Iowa, approved a preliminary study of community broadband interest late last month. The study will determine whether additional funds should be allocated toward a more comprehensive study. This announcement comes on the heels of increased regional interest in the Iowa Fiber Alliance, a proposed multi-community fiber ring. 

The preliminary study will cost the city $18,500 and should be completed before the end of the summer. The Community Broadband Engagement and Education Project seeks to engage key community stakeholders, educate the public on high-speed community networks, and ultimately measure the interest of local residents, businesses, and government leadership. 

Third Time’s the Charm

Local interest in community networks has peaked twice in the past decade. In 2005, Charles City residents approved a referendum to create a telecommunication utility with a 62 percent majority. Under threat of losing revenues to a community network, incumbent Internet service providers (ISPs) promised local officials that they would improve the network. Stopgap measures from Mediacom and CenturyLink marginally improved local connectivity in the short-term, but Charles City residents soon realized that they hadn’t escaped the letdowns of the telecom octopus. 

The results of a statewide Tennessee survey on residential and business connectivity are in and they ain't pretty. Thirteen percent of the state - more than 834,000 people - don’t have access to 25 Megabits per second (Mbps) download and 3 Mbps upload, which is the FCC's definition of broadband. Authors of the study make a number of recommendations, the first of which is removing state barriers that stifle Internet infrastructure investment.

"...A More Open Regulatory Environment"

The study, commissioned by the state’s Department of Economic and Community Development (TNECD) earlier this year, includes feedback from more than 23,000 households and businesses. 

From page 13 of the report:

The State of Tennessee could consider lifting administrative burdens and restrictions to broadband infrastructure investment to fostering a more open regulatory environment. 

In the report, the authors provide detailed reasoning for why the state should embrace an open regulatory environment to encourage competition. They note that state barriers impact electric cooperatives, municipalities that operate electric utilities and cannot expand beyond their own service areas, and municipalities that do not operate electric utilities but can only build telecommunications infrastructure in unserved areas with a private partner.

The FCC came to the same conclusion in February 2015 and rolled back Tennessee state laws in order to encourage competition. Tennessee is leading the charge against the FCC's decision with North Carolina (even though NC's Attorney General criticized the law). The parties have filed briefs, attorneys have presented oral arguments, and now the Sixth Circuit Court of Appeals is considering the case.

Nonprofit Old Town Orono Fiber (OTO Fiber) is awaiting responses to a recently posted broadband survey. A fiber-optic network is in the works for both Orono and Old Town, but funds are limited. Local officials seek input from local residents and business to “determine both the interest in this project and where the Internet infrastructure would need to be established.”

Approximately 7,800 people live in Old Town; a little over 10,000 people are in Orono and there are also over 11,000 University of Maine students who attend classes there.

Old Town, Orono, and the University of Maine lost a funding battle against Time Warner Cable in 2015. That incident dealt with an area where only about 320 potential subscribers could be served with approximately four miles of fiber. A recent $250,000 grant from the Northern Border Regional Commission put the consortium back on track to finish that project. OTO Fiber is now gathering more information about where to best deploy a broader network; they have funding for about six miles of fiber in each community.

Locals are enthusiastic about high-speed fiber’s potential benefits to the community. OTO Fiber’s survey page states, 

“The purpose of having this infrastructure in our community is to bolster existing businesses that can take advantage of this connectivity and to attract and foster entrepreneurs, students and recent graduates to create new businesses and enterprises that rely on high-bandwidth connectivity. To help us advance this project, please complete one or both of the following surveys.”

A fast, reliable, affordable connection can promote job growth and keep college-age talent in the region. Residents can look forward to symmetrical high-speed connections (the same speeds on the upload and the download) that will open the door to improved video streaming, telemedicine, virtual reality gaming, and a number of other high bandwidth technologies.

How good is Internet service in your community? 

The question may seem simple, but the answer isn’t always straight forward, according to a recent blog post from Blandin on Broadband. There is more to consider than just availability or speed. “A multitude of factors come into play.”  

Now, a Twin Cities-based consultant who has worked extensively with the Blandin Foundation has created an online Community Broadband Assessment tool designed to help cities and towns determine how their Internet service compares to other communities. The Community Broadband Infrastructure and Services Assessment Tool can be found at the Minnesota Broadband Coalition website.

Coleman Crafts Assessment Tool 

Bill Coleman, told us he recently came up with the idea for the survey after talking with several people from outstate counties and towns and rural advocacy groups. “There is a surprising lack of information about broadband quality” in Minnesota, said Coleman, whose consulting firm assists clients develop and implement programs of broadband infrastructure investment and technology promotion and training. “We are trying to coordinate the rural voice around broadband.” 

The Broadband Coalition noted that Coleman’s assessment tool:

“[W]ill help local leaders investigate, consider, understand and discuss the state of the community’s broadband infrastructure and services. This tool incorporates measures of broadband speed, ubiquity, competition, redundancy and partnership.  In many areas, community broadband consideration has moved beyond the city limits to the community’s market area or to individual townships, the entire county or tribal reservation.  This tool allows analysis at any geography, recognizing that larger geographies are likely to have wide variations in broadband availability. “

Comparing Communities on Broadband 

According to the Blandin blog:

For the past several months, we have covered the plight of North Carolina and Tennessee. These states have passed laws that prohibit local governments from expanding beyond their municipal electric utility service area to bring better connectivity to neighboring communities. Even though nearby towns ask places like Chattanooga or Tullahoma to provide services, they are prevented from doing so.

Today we bring to you this news story from Anderson County, Tennessee. Local officials are encouraging residents to tell the state about their horrible connectivity. With a bill in the state legislature to remove the restriction and the state embroiled in a court case to challenge the FCC's decision to roll back the state barrier, local governments are using the survey to connect people with lawmakers. In Anderson County, some local government agencies have hardcopies of the state’s survey for those without Internet access. Any Tennessee resident with Internet access can take the survey online here. 

"It's the slow circle of death that you see wheeling around there, and it's waiting and waiting and waiting," -- Steve Heatherly, Anderson County Chamber of Commerce Chairman