The state of Minnesota has awarded Paul Bunyan Communications the Border-to-Border Broadband grant to expand fiber optic services to three different counties.

The expansion will cost $1.78 million, with Paul Bunyan Communications contributing $980,990, and the state Border-to-Border grant covering $802,620. The plan should be finalized by the spring and construction will start this summer. Paul Bunyan Communications projects the build-out will be completed by June 2020.

Rural Minnesota Gets Better Connected

The Border-to-Border Fund was created by the Minnesota state legislature back in 2014. The goal is to help make the financial case for providers to invest in building infrastructure into unserved and underserved areas of the state.

Many underserved areas of the state have included the Border-to-Border grants in their planning process and as a pivotal part of their expansion models. The financial boon from the state has proved successful for many communities. RS Fiber Cooperative has been successfully connecting towns and rural areas in Sibley and Renville County, and they recently announced a gigabit residential connection at no additional cost for subscribers. It’s also attracting investment and industry, explained Mark Erickson in a recent report, citing the forthcoming medical school being built in Gaylord:

"We have that opportunity because of the Fiber-to-the-Home network. Without it, no medical school."

Cooperative Success 

Paul Bunyan Communications Cooperative has already made massive strides in providing high-speed access to large swaths of northern Minnesota. Paul Bunyan’s GigaZone reaches more than 29,400 locations, covering more than 5,000 square miles in Beltrami County, also reaching areas of Cass, Hubbard, Itasca, Koochiching, and St. Louis Counties.

This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?

After a long and arduous process, the folks in Mount Washington, Massachusetts, were finally able to light up their publicly owned fiber optic network last week. According to resident and Select Board Chair Eleanor Tillinghast, “We are thrilled. We’re going to be the envy of everyone.”

It's Finally Here

As we reported last month, the community was eagerly anticipating the opportunity to finish up the last steps to begin connecting subscribers from the town's 146 premises. Approximately 100 are connected and will take services from local Internet service provider Crocker Communications. In addition to providing Internet access, the ISP will handle billing for the city, provide 24/7 tech support for subscribers, and monitor the network. The infrastructure will be maintained by the company that built it for the city, NextGen Group. Mount Washington owns the infrastructure.

Gigabit connectivity is available, but most subscribers have opted for 500 Megabits per second (Mbps). All speeds are symmetrical, which makes Mount Washington’s network valuable as an economic development tool. Community leaders are already seeing in increase in real estate transactions that they relate to the new network. “People may have ruled Mount Washington out before,” Select Board Member Brian Tobin told the Berkshire Edge. “But we just catapulted ahead of other towns in terms of amenities.” As a potential quiet retreat for New Yorkers located in the Taconic Mountains, Tobin and Tillinghast expect to lure more urbanites who want to work remotely for part of the week. Tobin also has a Manhattan apartment and says that his Internet access speeds in the city are only about 117 Mbps download with slower upload speeds.

A Long Process That's Paid Off

On September 22nd, Fillmore County and local telecommunications cooperative representatives participated in a groundbreaking event to mark the start of building a Fiber-to-the-Home (FTTH) network in the rural town of Lanesboro, Minnesota.

Fiber To The Unserved

Lanesboro is located in Fillmore County about 50 minutes southeast of Rochester. The small rural town covers 1.3 square miles with a population of 755. Forty-one percent of households in Fillmore County are “unserved” as defined by both the Minnesota Office of Broadband Development and the FCC, which defines “broadband” as 25 megabits per second (Mbps) download and 3 Mbps upload. Fillmore County residents and businesses are one small group of a large segment of rural America without access to high-quality connectivity. The FCC reported in 2016 that 39 percent of rural residents don’t have access to broadband, but actual numbers are much higher because incumbent reported mapping tends to overstate the reality. 

Fortunately, rural cooperatives are picking up the slack where national incumbent ISPs are failing to deploy high-quality Internet infrastructure. Local telecommunications cooperative, AcenTek, will build the FTTH infrastructure. The network will connect 431 unserved households, 42 unserved businesses, and one community anchor institution (CAI) in the rural Lanesboro area, including Whalan, Carrolton Township, and Holt Township. The FTTH project is expected to reach speeds of 1 gigabit upload and download.

Funding FTTH

Next week’s Border to Border Broadband Conference from the Blandin Foundation promises to be a great opportunity to meet like-minded people with an eye on infrastructure. This year, the event is titled “Bridging the Gaps - Expanding the Impact” and will take place at Madden’s on Gull Lake. If you haven’t already made your plans, now is an excellent time to plan on heading up north to enjoy some fall weather, Minnesota style. 

The folks at Blandin shared more information about the event and we want to pass it on to you:

Minnesota is hosting its annual Border to Border Broadband Conference October 25-26 in beautiful Brainerd Minnesota on Gull Lake.  Come learn about Minnesota's broadband innovative broadband infrastructure grant program that has had a significant impact on broadband deployment in some of the most rural places in Minnesota. 

Blandin Foundation will present new research demonstrating the impact of investment in broadband infrastructure and adoption on five rural Minnesota communities where world-class broadband is meeting smart economic development strategies.

Providers and communities will host eight interactive learning stations showcasing successful rural projects funded through Minnesota’s Border-to-Border grant program.

Pre-conference sessions will include a Broadband 101 Workshop and a Digital Inclusion Showcase:

Laura Withers, Director of Communications, NTCA – The Rural Broadband Association; Roberto Gallardo, Assistant Director, Purdue Center for Regional Development; and Aaron Brown, Iron Range storyteller, blogger (http://minnesotabrown.com/)  and broadband advocate; are among the conference’s featured speakers.

Learn more at the conference website.

Mount Washington, Massachusetts, is set to light up its new Fiber-to-the-Home (FTTH) network this month. By “building our own Fiber-to-the-Home broadband network, we are taking an important step in securing our community’s long-term vitality and sustainability,” says Selectboard Member Gail Garrett. 

Mount Washington Recap

Mount Washington is nestled within the forested Taconic Mountains area located in the southwest corner of the state. The roughly 150 full-time residents have been frustrated with the lack of connectivity. "Everybody's had it with their current connections” said Garret and believes the town “deserves the same opportunity to connect to the internet as those in larger communities.” 

The final estimates for the network came in at $603,000 but the town planned for any unanticipated make ready or dig costs and prepared for a high estimate of $650,000. To fund construction, Mount Washington authorized the use of $250,000 from their stabilization fund in 2015, received $230,000 in federal and state funds from the Massachussetts Broadband Institute (MBI) earlier this year, and established a plan to borrow the remaining $400,000 through a state loan program. This spring, received an additional $222,000 grant from the Executive Office of Housing and Economic Development, which will allow them to pay down the debt sooner and have the network paid off within five years.

The FTTH network is set to provide residents who opted in, over 60 percent of the town, with up to 1 gigabit of upload and download speeds. To opt in, residents deposited $300 per household and committed themselves to three years of data and telephone service on the FTTH network.

Over the past several decades, the population of Somerset County, Pennsylvania, has incrementally jumped up and down, but today's population is the same as it was in 1960. In order to boost economic development and encourage growth with more jobs, community leaders are deploying fiber for better connectivity in several industrial areas.

Financial Help For Fiber Connectivity

In May, U.S. Department of Commerce’s Economic Development Administration (EDA) announced that they would provide a $569,000 grant to the county to help fund the project. The EDA consider the project worth while because they expect the project to retain 20 existing jobs, generate 42 new jobs, and stimulate $25 million in private investment.

County officials intend to combine the EDA grant with an additional grant they received in January from the Appalachian Regional Commission. The ARC grant of almost $949,000 will allow Somerset County to dedicate approximately $1.5 million to run fiber four industrial parks. The County will match the grant award in order to fully fund the 22-mile network, which will expand existing Somerset County fiber infrastructure. View a map of the proposed expansion here.

Lack Of Meaningful Connectivity In Rural Pennsylvania

Recently, the County Board of Commissioners approved a contract with a firm to oversee the project. Long-term goals are to improve connectivity for approximately 1,100 businesses and 3,900 households along with local community anchor institutions (CAIs) and other entities. Approximately 18 percent of the people in Somerset don’t have broadband as defined by the FCC (25 megabits per second (Mbps) download and 3 Mbps upload) according to Form 477 data. The number is likely much higher, however, because Form 477 data tends to overstate coverage, especially in rural areas. Shortly after the county received the EDA award, two local Internet service providers expressed interest in delivering services via the new infrastructure.

Two Ohio State Senators are taking a page from Minnesota’s playbook to expand rural broadband connectivity. Democratic Sen. Joe Schiavoni and Republican Sen. Cliff Hite recently announced that they would be introducing legislation to create a grant program modeled after the Minnesota Border-to-Border Broadband Grant Program.

Putting Money Into It

The program is expected to expand broadband Internet access to approximately 14,000 rural Ohio households per year. State officials estimate that 300,000 homes and 88,500 businesses in rural areas of the state do not have access to broadband connectivity.

In Minnesota, the Department of Employment and Economic Development hosts the Office of Broadband Development, which administrates grant awards and management. The Ohio bill will place the responsibility for the program in the hands of their Development Services Agency (DSA).

Grants will be awarded of up to $5 million for infrastructure projects in unserved and underserved areas; the grants cannot fund more than half the total cost of each project. Recipients can be businesses, non-profits, co-ops or political subdivisions. The bill allocates $50 million per year for broadband development from the state’s Ohio Third Frontier bond revenues.

The Ohio Third Frontier is a state economic development initiative aimed at boosting tech companies that are in early stages and helping diverse startups. The Ohio General Assembly appropriates funds to the program, much like the Office of Broadband Development in Minnesota.

Minnesota Setting The Trend

This isn’t the first time politicians have looked longingly at Minnesota’s plan to build more network infrastructure in rural areas. Ralph Northam, Virginia’s Lieutenant Governor, released an economic plan for his state this summer and addressed the need to improve connectivity in rural areas. In his plan, he suggested that the state adopt clear goals “[s]imilar to the legislation Minnesota has passed.”

This is the transcript for episode 268 of the Community Broadband Bits Podcast. Jon Chambers of Conexon once again joins the show. This time Jon dives into the details of the Connect America Fund program and discusses the upcoming Connect America Fund auction. Listen to this episode here.

Jon Chambers: Rural Americans, have the same aspirations, the same needs, the same uses of the Internet as everyone else. It shouldn't surprise anyone when I say, rural Arkansans, rural Missourians subscribe to gigabit services too. It does surprise people. It surprises people at the FCC, it surprises policy makers. Doesn't surprise people who live and work and spend their lives in rural America.

Lisa Gonzalez: This is episode 268 of The Community Broadband Bits Podcast from The Institute For Local Self-Reliance, I'm Lisa Gonzalez. As the question of how best to bring high quality Internet access to rural America becomes more pressing, rural cooperatives are rapidly taking a leading role. This week's guest, Jon Chambers, works with electric cooperatives that decide they want to offer high speed connectivity. Jon spent time working for the FCC and has a special understanding of how the agency approaches review and funding for telecommunications. In this conversation, he and Christopher talk about the Connect America Fund. Learn more about Jon's firm, visit their website at conexon.us. Now, here's Christopher and Jon Chambers from Conexon.

Christopher Mitchell: Welcome to another edition of The Community Broadband Bits Podcast. I'm Chris Mitchell at The Institute For Local Self-Reliance. Today, I'm once again with Jon Chambers, a partner at Conexon. Welcome back to the show Jon.

Jon Chambers: Thank you Chris. Thanks for inviting me.

Christopher Mitchell: You've been on the show multiple times recently, talking about how rural electric cooperatives can basically solve this problem for all of rural America. Do you want to briefly remind us what Conexon is?