Author: Ann Treacy

  • Broadband the newest beat for Insight News

    When we started Blandin on Broadband a few years ago I spent a lot of time beating the bushes for anything related to broadband. I was lucky if I could find a dozen or so legitimately broadband-focused stories a month. Well, that has certainly changed. Now there are single days when I could report on a dozen broadband stories. I’ve noted this to myself often – but today I saw evidence that it’s not just that I’m looking for broadband in all the right places.

    This week Insight News introduced their latest hire…

    Ivan B. Phifer this week joins McFarlane Media as a technology reporter supporting efforts to expand broadband awareness and utilization in communities of color. Phifer’s work will appear in newspapers serving African and African American, Latino, Asian and American Indian communities.

    The newspapers are members of Minnesota Multicultural Media Consortium, which, in partnership with University of Minnesota’s innovative Urban Research and Outreach Engagement Center (UROC), and the U’s Office for Business and Community Economic Development, have created a network of community public computer centers (PCC) that provide jobs, training and access to high speed internet technology.

    I happened upon the article while looking at Bernadine Joselyn’s notes from the TISP meeting earlier this week. (Those notes will appear on this blog later today.) I think it’s exciting that they’ve hired someone to focus on broadband. I look forward to reading future stories. Heck, maybe we can even share notes.

  • Broadband options around Marshall

    For the second in her Broadband series, Deb Rau from the Marshall Independent focused on broadband options available in the area. Cable (first in the form of Prairiewave, now Knology) has been a big players in towns such as Tracy.

    I love the look back in her article…

    “Before that [cable], there was dial-up. It was 56 kilobits per second, if you could get it,” said David Spencer, finance director for the city of Tracy, and a local resident. Getting a telecommunications hookup in town was “very big, not just for the Internet, but for telephones and cable television too.”

    Remember when you had to convince an Internet service provider to bring dialup to your area? I was one of the people you called if you wanted MRNet to come to your town. I remember getting the calls and I remember visiting areas where the Internet was a long distance phone call. It wasn’t that long ago.

    The article recognizes the expense of bringing infrastructure to rural areas where the population density is lower, which means fewer customers per mile, which in turn means you have to cover more miles. But that being said, local providers in the area have talked about customer base tripling in the last 5 years.

    Cable isn’t the only option, wireless is mentioned too…

    Some groups have opted to pursue alternatives to cable-based Internet in southwest Minnesota, however. About four years ago, the Southwest/West Central Service Cooperative invested in a system of microwave wireless towers to provide high-speed Internet to a total of 31 school districts in the region. Minnesota Valley Television also uses a wireless network to bring Internet service to rural areas.

    The MVTV wireless network was another good option for Tracy.

    MVTV received ARRA funding so their area is about to expand. They weren’t the only providers in Southwest Minnesota to receive funding. The Southwest Minnesota Broadband Group has received moved to deploy fiber – but maybe I’m getting ahead of the Marshall series on broadband.

  • Broadband at the Ground Level

    Yesterday Dave Peters at Minnesota Public Radio posted a great article on broadband in Minnesota. It’s a nice overview of what’s going on in the state – starting with the statewide broadband bill and going down to talking about what a couple of specific communities are doing to boost broadband in their areas.

    Dave writes about rural issues so I wasn’t surprised but I was impressed to see his assessment of leadership (at the Ground Level)…

    So how one community addresses this question is likely to differ, and need to differ, from how the next one does. I can’t think of another public policy issue or social trend — from energy to food networks to housing to demographic change — in which the leadership in specific communities will make as much difference in the quality-of-life outcome.

    It’s going to be illuminating to see how local leadership emerges and what kind of information sharing gets fostered. It’s a great opportunity to see, as the Bush Foundation likes to call it, “courageous leadership.”

    It’s a perspective that can often get lost but rural is a series of different communities. There are some shared characteristics – but each is different and each will address their questions differently. In some ways that’s what makes the broadband situation in the US different that in other countries. As Dave points out we don’t have a statewide strategy. The National strategy is being developed but the plan at that level seems to be stocking the magazine of weapons – not creating the game plan for each community. So it’s an opportunity for local communities to shine.

  • New Connect Minnesota Maps Webinar

    The Connect Minnesota folks gave a quick and easy tutorial to their new maps last Friday via webinar. I took some notes – but I want to start by mentioning that the interactive maps are pretty easy to use. I used to run into issues with my own broadband when accessing the older maps – but that’s wasn’t a problem. (According to my most recent speed test I have 3.5 Mbps down and 184 Kbps up – however I am located in Ireland so I have that disadvantage.) So here are my quick notes…

    They have new static maps to download.

    You can see layers of types of service ( you can flag one or many):

    • Cable
    • Mobile
    • Fiber
    • DSL
    • Fixed wireless
    • Unserved

    There is a function that allows you to zoom in quickly and easily with a specific address. It will then tell you the coverage in that area and providers, including contact information.

    A little bit info on unserved layers. It is based on information from providers. You could see a lot of areas in NE Minnesota that aren’t served. Now you can dig down into census tract info. This would be (would have been) helpful for the ARRA grant applications.

    Also they will be tracking adoption info such as computer ownership. There is an analysis function that will allow folks to overlay their own datasets. (Well maybe not their own – but they mentioned datasets.)

    In Tennessee this has been helpful in talking with providers because they have been able to talk about many households are in a given area, which has helped to make a business case to go into an area. It was pretty cool to see how the visuals could really help decision makers. Like Google Maps, you really get a feel for the characteristics and layout of a community – so a provider might be able to see that within areas with lower population density, there may be pockets of density. (Not such great news if you are really removed from neighbors.)

    They are also adding RSS feeds that might help track activities in Minnesota. They used the Governor’s Office as an example – but I think adding an RSS feed from Cook County Broadband or Southwest Minnesota Buyers Group might be better examples.

    Anyone with a broadband project underway or a local story to share can send Connect Minnesota the details to be added to the RSS Feed via the [email protected] email address. You will need to provide any pertinent information including the name, address, and a url or website (if one is available.) Our mapping team will then plot the  coordinates so that it appears on the map at that location.

    Additionally, that same email address can be used to submit comments and feedback about the maps. If an error is found, they encourage users to notify them and they will work to make the correction.

    There were no questions.

    You can get more details from the Connected Nation press release. I did happen upon a Star Tribune article mentioning the new maps – the readers of that article had plenty of questions. Some were on target; some completely off the mark. But they are always interesting to read.

  • Marshall celebrates broadband success

    This week the Marshall Independent started a series of “stories that looks at where Marshall and the area stands when it comes to broadband Internet service, where it could go in the future, and what that future holds for businesses and residents alike.”

    Yesterday’s story starts with a definition of where they are today…

    A survey of local Internet services shows seven different Internet providers in Marshall, several offering download speeds greater than one Megabit per second (Mbps). A recently-enacted Minnesota law calls for broadband download speeds of 10 Mbps by 2015.

    … and looks at the concerted effort it took to get there…

    The first steps toward better Internet service in the Marshall area were taken more than 10 years ago, said DeCramer and Marshall Community Services Director Harry Weilage. It took a lot of community education and teamwork to build network infrastructure when the Internet was just starting to gain prominence, they said.

    And the efforts have paid off; the area around Marshall (think Windom) is one of the best wired areas in the state. It’s interesting to hear the historical perspective. They didn’t get fiber because they were lucky, they got it because they planned. No accident there. It will be fun to read the rest of the series.

    What that did strike me was the impact of the Minnesota Broadband Bill on communities that are currently well poised to be broadband powerhouses – as seen in the first quote from the article. In the spirit of planning ahead – maybe focusing on the 10 Mbps in 2015 isn’t the right goal for them. I think that goal is better reserved for folks who have nothing now. The folks who are doing well should reach higher.

    Over the weekend Mike Horwath from ipHouse sent me an article that puts our speed goals in perspective – the title says it all “US happy with 4Mbps baseline; Europe demands 30Mbps for all”. Maybe Marshall needs to follow the European standard – or shoot for the US premium plan of 100 million U.S. homes have affordable access to actual download speeds of at least 100 Mbps and actual upload speeds of at least 50 Mbps by 2020. In some ways I do see Marshall doing just that. Southwest Minnesota received an ARRA grant to boost broadband and I know Marshall is slated for DOCSIS 3.0.

    Maybe it’s a good time to take a page from Marshall’s history and go for it!

  • Unfunded MN ARRA Round One Applications

    A while back I started to wonder what if anything will come of the Round One unfunded ARRA applications. So I contacted everyone who had an unfunded project in Minnesota. My survey was hardly scientific or stringent but I thought it might be interesting to report in.

    I found 93 unfunded projects. Of those, 27 were projects that centered only or primarily in Minnesota, a few covered a couple of states and the rest were primarily national projects. I heard back from almost a third of the folks I contacted. I asked just four question encouraging people to say as much or as little as they wanted:

    1. Was your application for an existing plan or project or did the ARRA funding spur you to create a plan?
    2. Did you apply for Round Two Funding?
    3. Do you currently have a plan for moving forward regardless of ARRA funding?

    Here’s what I heard or found out:

    Was your application for an existing plan or project or did the ARRA funding spur you to create a plan?

    About a third of the folks who got back to me indicated that their projects would have been used to significantly expand or extend an existing project. For many people that expansion meant going into new areas. For a few folks it meant a chance to expedite long term plans – I think that was especially true for existing service providers.

    Very few folks seems to developed a project out of the blue – but with the quick application turnaround and just the ominous nature of any federal application I think that makes sense.

    Did you apply for Round Two Funding?

    Almost 70 of the 93 applicants did not reapply. (I was able to check that with the online database of applications so there might be some false negatives if folks applied under a different name. I had checked into this a couple of weeks ago too to find out that there were fewer applicants and more money on the offer in Round Two. ) Some applicants felt that they no longer qualified – such as Hiawatha Broadband; they felt that some of the requirements conflicted with previously written contracts; others felt that their geographic location no longer qualified.

    Many of the folks who reapplied pared down the scope of their projects. Either they included fewer states or fewer technologies. Recognizing that for many applicants the ARRA represented an opportunity for growth I think this paring down probably brought some folks closer to their pre-ARRA plans. For some folks that may have been a good call, for others it may be a lost (or slowed down) opportunity.

    A few folks seemed to be less than pleased with the funding process. Someone alluded to spending 1500 hours on the applications; others just said straight out that they had experienced frustration. For other folks I think the ARRA funds were an opportunity to think big. I suspect that those who had worked with federal applications in the past may have had a different attitude going in.

    Do you currently have a plan for moving forward regardless of ARRA funding?

    The response rate on this question is even more nebulous than the previous questions. About 25 applicants reapplied for funding. About a dozen said they were definitely moving forward regardless, we’ve posted news on at least two in the last month: TTM and Keyon and seen other stories posted elsewhere.

  • Digital Inclusion, Libraries and Computer Centers: a bibliography

    Thanks to my Aunt Mary (Treacy) with the Minnesota Coalition on Government Information for sending me a great bibliography written by a colleague and friend, Mary Ann Van Cura ( a friend to me and broadband!). It is entitled Towards Digital Inclusion: The Role of Libraries and Other Community Technology Centers and it is available online (as are all of the resources). It’s a good general resource – but really focuses on Minnesota.

    Mary Ann has included research and statistics but I think many readers will be most interested in the guides, toolkits and curriculum she has gathered from libraries and computer centers that have implemented digital literacy programs. It’s a great shortcut for anyone looking to do the same.

  • I bought what?

    Minnesota Senator Amy Klobuchar joined Senator Jay Rockefeller and four others in introducing the Restore Online Shoppers’ Confidence Act. Here’s a quick explanation taken from the Senate press release

    Chairman Rockefeller’s bill will help put an end to the deceptive online sales tactics uncovered by the Commerce Committee’s landmark E-commerce investigation. The bill is sponsored by Senators Mark Pryor (D-Ark.), Bill Nelson (D-Fla.), Amy Klobuchar (D-Minn.), Claire McCaskill (D-Mo.) and George LeMieux (R-Fla.). Chairman Rockefeller’s bill will protect online shoppers by:

    • Prohibiting companies like Affinion, Vertrue, and Webloyalty from using misleading post-transaction advertisements by requiring them to clearly disclose the terms of the offers to consumers, and to obtain consumers’ billing information, including full credit or debit card numbers, directly from the consumers.
    • Prohibiting Internet retailers and other commercial websites (“initial merchants”) from transferring a consumer’s billing information, including credit and debit card numbers, to post-transaction third party sellers, like Affinion, Vertrue, and Webloyalty.
    • Requiring companies that use “negative options” on the Internet to meet certain minimum disclosure and enrollment requirements, so consumers will not end up paying recurring fees for goods and services they did not intend to purchase.

    Clearly it’s a nice step forward and it would seem to following that greater confidence in online shopping would boost interest and adoption of online shopping.

    On a not-super-related note but tangentially related to Senator Klobuchar and greater use of the web … Senator Klobuchar joined another group of colleagues authoring a bill (Veterans One Source Act of 2010, S. 3355) to develop a modern, one-stop, user-friendly Web site for veterans.

  • What if I don’t want fiber?

    Fiber may be a utlity, but it’s not mandaotry – not in Jackson, Minnesota. According to the Jackson County Pilot

    “We are going to make freely available a connection to every home, every business, every building in the city of Jackson,” said [Jackson Mayor] Jasper, a longtime fiber proponent and the city’s representative on the Southwest Minnesota Broadband Project Board of Directors. “But if you don’t want this on your land, we will not put it there.”

    Now if you decide later (or the next owner decides) that you do want fiber the installation cost will be on you.

    It’s an interesting notice reflecting a viewpoint I almost forget exists. Also it makes the case for broadband adoption programs. I assume there are situations I cannot imagine where fiber may not be attractive – but for most folks I think it’s just a matter of explaining what broadband can do for them and failing that, what access to fiber can do for resale values.

  • Connect Minnesota Broadband Map Launch

    I thought folks might be interested in the following…

    Join us for a Webinar on May 21

    Be among the first to see Minnesota’s new broadband mapping app – BroadbandStat. On Friday, May 21, 2010, the Minnesota Department of Commerce, along with Connect Minnesota, will unveil Minnesota’s updated broadband availability maps including the new and improved interactive map on www.connectmn.org. Connect Minnesota’s staff will answer your questions and highlight the latest high-speed Internet availability insights drawn from the Connect Minnesota initiative.

    Live Webinar Demonstration: Connect Minnesota Broadband Map Launch
    Friday, May 21, 2010
    1:00 PM – 1:30 PM CDT/2:00 PM – 2:30 PM EDT
    Space is limited.
    Reserve your Webinar seat now at:
    https://www2.gotomeeting.com/register/297901915
    After registering you will receive a confirmation email containing information about joining the Webinar.
    ________________________________________
    BroadbandStat is the nation’s leading broadband mapping app, providing an interactive mapping tool for viewing, analyzing, and validating broadband data, analyzing multi-layered supply and demand market dynamics, and tracking all relevant projects at the state and local level. BroadbandStat was developed by Connected Nation in conjunction with ESRI, the world market leader in geographic information system (GIS) software.

    About Connect Minnesota: Connect Minnesota is a subsidiary of Connected Nation and operates as a non-profit in the state of Minnesota. The Minnesota Department of Commerce is leading the initiative to increase broadband Internet access throughout Minnesota. Connect Minnesota was commissioned by the Governor’s Office to work with all broadband providers in the state of Minnesota to create detailed maps of broadband coverage in order to accurately pinpoint remaining gaps in broadband availability in Minnesota. www.connectmn.org  

  • Blandin Foundation Lightspeed Grant Update from Minnesota West Community & Technical College and South Central College

    This is posted on behalf of Duane Krueger, SBM Program Instructor, at the Minnesota West Community & Technical College and South Central College. I love the idea of the regular webinars on the quick hit topics!

    The Business to Business Networking & Training Lightspeed Grant from the Blandin Foundation to the Small Business Management Programs of Minnesota West Community & Technical College and South Central College. has enabled participants to see how Business to Business Networking can bring small business owners together for online training, discussion, and the of sharing ideas. These sessions began in September of 2009 and finished in March of 2010. Small business owners were able to obtain additional tools and ideas they could implement immediately in their business.

    The semi-monthly presentations, which were also recorded to allow participants to go back and review any session or view a session that they might have missed, covered topics that gave participants tools and ideas to improve the profitability of their business immediately. The first sessions had 25 participants from various communities in Southwest Minnesota. The program used Web-Ex Software which allowed the participants to access the Business to Business Networking and Training from their home, office, or business. Many participants reported they often accessed the training session recordings over and over again. Taking part in the real time discussion seems to be the biggest obstacle for participants. A second session of training topics will be run this fall. The web site for the project is http://www.southcentral.edu/lightspeed.

    Session Topics:

    Getting Comfortable with Online Workshops
    Coping in a Recession
    Business Planning in a Day
    Marketing on a Shoestring
    Is you Dislike Sales, This is for You!
    There’s an Elephant in Your Financial Living Room
    What You and Your Banker Need to Know About Financial Analysis
    I Made a Profit, So Why Don’t I have Any Cash
    How to Develop Winning HR Practices
    Five Things Every Employer Should Know
    How to Be On the Winning Side of the Marketing Revolution
    Using Social Networks to Market Your Business
    Business to Business Networking
    Mentorship
    Case Study: Admiral Byrd Bed & Breakfast

    Bonus Series
    Marketing Your Retail Store
    How to Bring New Customers Back Again
    Get You Customers to Shop More Often
    Keep Your Customers for Life
    Introduction to Quickbooks® Accounting Software
    Special Question and Answer Session on Quickbooks® Accounting Software

  • Good math news for Round Two ARRA applicants

    I thought the last batch of Round One ARRA award announcements might be the last. It looks as if that suspicion has been confirmed. According to Telecompetitor (and to Ann Higgins for passing it on), that was the last batch of Round One awards.

    Also according to Telecompetitor…

    The nine new grants bring the total value of awards made by the NTIA in Round 1 to $1.2 billion. Considering that the NTIA was charged with awarding a total of $4.7 billion in two funding rounds, that leaves more than half for the second round.

    So that’s good news for anyone who’s in the hopper for Round Two funding. First – there’s more money to be spent. Second, fewer folks have submitted applications.

    According to my own tally, this is how Minnesota did:

    • Total loans: 31,939,636
    • Total grants: 87,438,857 ** however that includes 47,778,669 in funds that go to multi-state projects; so 39,660,188 is going more directly to Minnesota

  • HickoryTech is expanding

    Mankato-based Hickory Tech is expanding to Sioux Falls, South Dakota and Fargo, North Dakota. According to the HickoryTech web site

    The network expansion to Sioux Falls and Fargo will add 350 fiber route miles to HickoryTech’s existing 2,400 fiber route miles. These initiatives are evidence of the company’s commitment to grow its Enventis business services and provide cost-effective, high-capacity fiber-based solutions.

    They have also been increasing “the capacity of its network between Minnesota and Des Moines, Iowa and is investing in local fiber infrastructure in Des Moines to grow its Enventis business services.”

    So it will be interesting to see the growth pattern. They are also hoping to expand or deepen their connections in Minnesota. HickoryTech/Enventis applied for $16.8 million in ARRA broadband grants to extend its middle mile fiber-optic network connecting community anchor institutions across Minnesota to an advanced high capacity broadband network.

  • Twin Cities Going 4G?

    Thanks to John Schultz for the heads up on a recent article on 4G in the Minneapolis Star Tribune (Race is on again in Twin Cities for faster wireless networks).

    According to the article, there may be some good news for folks in the Twin Cities…

    To keep up, Verizon Wireless, AT&T and Sprint are or soon will be installing faster, higher-capacity 4G (fourth generation) networks in the Twin Cities. By late this year or early in 2011, they will make Web browsing by phone as fast as using a wired connection.

    There are some serious unknowns that might postpone any real celebration. We don’t know the price of the subscription and we don’t know the prices of the new 4G-enabled phones/devices. But it’s coming and that’s good news. The benefits of 4G included faster browsing, which is always better but also added functionality – such as videoconferencing and greater online interactivity.

    Another unknown is plans for 4G in rural areas. However I happened to be talking Mark Hamilton from TTM yesterday. They have an ARRA application in (Round Two) to build middle fiber that would support 4G; other projects such as Southwest Minnesota Broadband Group could also help with 4G in rural areas.

  • Gov signs Minnesota broadband bill

    The message is short, but sweet…

    The Minnesota Broadband Bill was signed into law Monday (April 26, 2010) by Governor Pawlenty.

    And just for the archive, here is the text that was presented to the Governor according to the Minnesota Session Law site

    CHAPTER 277–H.F.No. 2907
    An act relating to communications; setting state goals for the deployment and speed of high-speed broadband; proposing coding for new law in Minnesota Statutes, chapter 237.
    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. [237.012] BROADBAND GOALS.
    Subdivision 1. Universal access and high-speed goal. It is a state goal that as soon as possible, but no later than 2015, all state residents and businesses have access to high-speed broadband that provides  minimum download speeds of ten to 20 megabits per second and minimum upload speeds of five to ten megabits per second. Subd. 2. State broadband leadership position. It is a goal of the state that by
    2015 and thereafter, the state be in:
    (1) the top five states of the United States for broadband speed universally accessible to residents and businesses;
    (2) the top five states for broadband access; and
    (3) the top 15 when compared to countries globally for broadband penetration.
    Subd. 3. Annual reports. The commissioner of commerce must annually by February 10 report on the achievement of the goals under subdivisions 1 and 2 to the chairs and ranking minority members of the legislative committees with primary jurisdiction over telecommunication issues. The report on goals under subdivision 1 must be made through 2015.

  • More ARRA money in Minnesota

    Yesterday, the NTIA announced more ARRA award recipients from Round One. Idaho was a big winner this time around with three funded projects. Minnesota was part of a multi-state project submitted by One Economy Corporation. Here’s their project description…

    Multiple states: One Economy Corporation: $28.5 million sustainable broadband adoption grant with an additional $23 million applicant-provided match to implement a comprehensive program of computer training, wireless Internet access, broadband awareness marketing, and online content and applications to residents of 159 affordable and public housing developments and low-income communities in 50 cities and towns across 31 states and the District of Columbia.
    States impacted by this grant are: Alabama, Arkansas, California, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin.

    I don’t know if this is the last Round One announcement that the NTIA will be making – but this week I have been trying to track applications at all related to Minnesota and One Economy was the one application I noted as not listed as funded or unfunded. So I suspect that this is the last announcement that will have a direct impact on Minnesota.

    The other applications announced today include the following:

    Idaho: Digital Bridge Communications: $1.9 million broadband infrastructure grant with an additional $466,000 applicant-provided match to bring affordable wireless broadband service to rural, underserved communities in Cassia County, Idaho, including the towns of Albion, Burley, Declo, Malta, and Oakley. The project would expand Digital Bridge Communications’ existing network by adding five towers, 46 miles of new fiber, and a nine-mile microwave link. The project also proposes to offer speeds of up to 3 Mbps using both fixed and mobile wireless technology, as well as directly connect approximately 25 community anchor institutions at no charge.

    Idaho: Digital Bridge Communications: $980,000 broadband infrastructure grant with an additional $246,000 applicant-provided match to bring affordable wireless broadband service to rural, underserved communities in Jerome County, Idaho, including the towns of Barrymore, Falls City, Greenwood, Haytown, Hunt, Hydra, Jerome, McHenry, and Sugar Loaf. The project would expand Digital Bridge Communications’ existing network by adding three towers, 15 miles of new fiber, and two microwave links. The expanded network intends to offer speeds up to 3 Mbps using both fixed and mobile wireless technology, as well as directly connect approximately 25 community anchor institutions at no charge.

    Idaho: Digital Bridge Communications: $1.4 million broadband infrastructure grant with an additional $340,000 applicant-provided match to bring affordable wireless broadband service to underserved communities in Twin Falls County, Idaho, including the towns of Buhl, Burger, Clover, Deep Creek, Fairview, Filer, Godwin, and Hansen. The project would expand Digital Bridge Communications’ existing network by adding eight towers, three miles of new fiber, and nine microwave links. This expanded network intends to offer speeds up to 3 Mbps using both fixed and mobile wireless technology, as well as directly connect approximately 25 community anchor institutions at no charge.

    Kentucky: City of Williamstown, Kentucky: $535,000 broadband infrastructure grant with an additional $134,000 applicant-provided match to deploy a high-speed fiber-to-the-home broadband network to unserved and underserved communities south of its existing network in Corinth, and north of its existing network to areas of Grant and Owen counties in northern Kentucky. The project intends to offer broadband speeds up to 10 Mbps and directly connect the three municipal organizations within the service area – Corinth City Hall, the Corinth Water District, and the Corinth Volunteer Fire Department – free of charge. In addition, the project expects to offer broadband Internet access for local consumers, including approximately 680 households and 20 businesses, and spur economic growth and job creation in the region.

    Oklahoma: Pine Telephone Company, Inc.: $9.5 million broadband infrastructure grant with an additional $2.4 million applicant-provided match to deliver affordable wireless broadband service to underserved areas of Southeastern Oklahoma, including the Tribal lands of the Choctaw Nation and its 10 counties. The project intends to directly connect 20 community anchor institutions, including Choctaw Nation agencies, public schools, public safety agencies, fire and police departments, and a health clinic. The project’s last mile network plans to offer broadband speeds ranging from 1 Mbps to 3 Mbps to as many as 7,000 households and 75 businesses.

    Puerto Rico: Critical Hub Networks, Inc.: $25.8 million broadband infrastructure grant with an additional $6.7 million applicant-provided match to provide fast, affordable broadband connectivity for last-mile Internet service providers and underserved areas of Puerto Rico, including of the islands of Culebra and Vieques. The project plans to purchase a 10 Gbps undersea fiber-optic cable directly connecting to Miami and deploy more than 180 miles of terrestrial middle-mile microwave network using 11 towers. The network will offer speeds from 100 Mbps to 1 Gbps to anchor institutions, including more than 1,500 K-12 schools, and local Internet service providers.

    Virginia: Buggs Island Telephone Cooperative: $19 million broadband infrastructure grant with an additional $5 million applicant-provided match to bring high-speed affordable broadband services to 15 underserved counties and the cities of Emporia and Franklin in South Central Virginia by expanding and enhancing its existing high-speed broadband and voice communications wireless network. The BIT Wireless project intends to offer wireless broadband at speeds of up to 10 Mbps to as many as 100,000 households, 14,800 businesses, and 800 community anchor institutions. In addition, the project will promote broadband adoption by discounting the cost of the equipment necessary to subscribe at home.

    Washington: Public Utility District of Pend Oreille County: $27.2 million broadband infrastructure grant with an additional $6.8 million applicant-provided match to bring high-speed, affordable broadband to underserved areas of Pend Oreille County in northeastern Washington State, which borders Idaho and Canada. The proposed fiber-to-the-premises network would deploy approximately 526 miles of fiber-optic cable to deliver last-mile broadband Internet services and facilitate critical network redundancy in this rural area. The project plans to offer affordable, high-speed broadband access to as many as 3,200 households, 360 businesses, and 24 community anchor institutions.

  • Reworking the Universal Service Fund

    Changing the Universal Service Fund (USF) is right at the top of the list of National Broadband Policy Broadband Action Plan. In their own words, they plan to “Carry out a once-in-a-generation transformation of the Universal Service Fund over the next ten years to support broadband service. This will be achieved by converting existing subsidy mechanisms over time from “POTS” (plain old telephone service) to broadband, without increasing the size of the fund over the current baseline projection.”

    That’s a tall order. Now some of what they plan to do is expand upon already successful programs, such as the E-Rate program and Rural Health Care Program. Those programs have worked well in the past. I think the most interesting changes will come with the new Connect America Fund created to “extend broadband service to unserved areas of the nation and to ensure affordable broadband service in high-cost areas where support is necessary”.

    Last week the FCC kicked off their Universal Service Reforms by inviting “public comment on the use of an economic model to precisely target support for areas where there is no private-sector business case for carriers to provide broadband and voice services”. They also want to hear ideas on “how to quickly provide consumers in unserved areas with broadband access while the Commission is considering final rules to implement fully the new CAF funding mechanism”.

    TeleCompetitor recently ran an interesting article that outlines industry chatter about the changes. I think they sum up the highlights…

    In effect, the competitive landscape will broaden beyond the traditional marketplace, to include a new regulatory/policy marketplace, where broadband carriers of all types compete for USF. The national broadband plan advocates for this process to be complete by 2020. The battle lines are already forming.

    I think we’re starting to industry posture for the battle with recent announcements of mergers and purchases. Any change is expected (according to the Action Plan) to transition over 10 years. And when the transition will actually start has yet to be decided. The FCC seems to be making this a top priority, but some folks, such as Rep. Bart Stupak predict that “lawmakers would not follow through on their plans this year to create a fund that would expand broadband access nationwide”.

    So we watch, and hopefully respond to the request for ideas, if you have any.

  • MN is 13th in terms of broadband competition

    According to ID Insight’s latest report, The State of Broadband Competition in America – 2010, Minnesota ranks number 13 in terms of the most competitive broadband environment. (You have to sign up to get access to the report; however, the report is free.)

    The ranking is interesting – but the good stuff, in my opinion, really is in the details. They found that:

    • There is a strong correlation between income and home value and the level of competiveness in a state. As income and home values show an increase from state to state, the level of competition – as measured by the report – decreases.
    • States with the largest percentage of Internet users and the highest available speed tend to be less competitive.
    • The bulk of broadband stimulus funding did not go to states with the least competitive environments.

    At first this seems a little strange – but it makes sense. Where there are profitable customers one of two providers have stepped in to supply service. In areas where this is less true the market is still pretty open. The researchers raise some good questions about these findings:

    • If more lucrative markets tend to become less competitive, will this trend continue?
    • If the most lucrative markets tend to become less competitive, what will incent those providers to increase their networks and available speeds?
    • In the areas with lower incomes that have more competitive environments, what factors will increase broadband adoption (an assumption being that there are barriers either to constituents buying services from these competitors, or competitors selling services)?

    Also interesting is that these findings are true for Statewide perspective, but do not hold at a countywide level. Here is what they say…

    In reviewing the data, this does not appear to be the case, especially as we moved to more rural counties. What we saw instead was noise. As we got down to the county level, it appeared that the competitive environment was much more volatile. Some counties are extremely competitive while others are even more monopolized. The highly competitive areas appear more the result of local communities having a greater hand in determining their broadband future than areas where the larger providers are acting mainly for financial reasons.

  • CenturyTel to buy Qwest

    Here’s the scoop from the Associated Press

    CenturyTel Inc., the country’s fifth-largest local-phone company, said Thursday that it will buy Qwest Communications International Inc., the third-largest, in a stock swap worth $10.6 billion to gain the benefits of scale in a shrinking business.

    The combination would have about 18 million phone lines serving customers in 37 states, but would still be dwarfed by AT&T Inc. and Verizon Communications Inc. It would be based at CenturyTel’s headquarters in Monroe, La., rather than in Denver, where Qwest is based.

    The article says it wouldn’t be great for job count, though apparently, “The Communications Workers of America, the largest union in the telecommunications industry, said it “looks forward to serious discussions” with both companies.”

    It might be good for broadband…

    But they hope the acquisition can make their combined company more competitive as a provider of telecommunications services to businesses and expand the reach of their broadband Internet service for consumers.

    The Wall Street Journal has already chimed in with an opinion on “Why CenutryTel Finally Pulled the Trigger on Qwest”. The answer seens to be bigger is better, synergies are better, limited federal tax payments are better. They also indicate that more consolidation may be to follow.

    GigaOm also jumps in with an opinion that focuses more on the impact on broadband and other services to rural areas.

    The demand for wireline telephone and DSL services is on the wane, but at the same time, the need to spend money to maintain old lines and invest in new technologies like fiber is on the rise. … Adding to this grim mix is the coming reform of the Universal Service Fund, a government subsidy program aimed at offsetting the costs of providing rural telephone service. The program is being shifted away from telephone subsidies and toward paying for broadband expansions. The Federal Communications Commission is also trying to rein in some of the waste associated with the program. Within five years the FCC hopes to stop paying companies like CenturyTel for voice lines with USF money. Some of that loss will be made up through new USF broadband subsidies, however, so this deal may be a way for CenturyLink to reap a larger portion of those fees.

    And for anyone who wonders how policy has an impact on consumers…

    Historically, these telecom consolidation deals have been a loss for consumers and even the firms who make them. Verizon has sold many of its rural assets, leaving its purchasers to file for bankruptcy. Taking on the burden of costly assets and a lot of debt doesn’t seem to be a winning strategy for telephone companies, but maybe the hope is to become something that’s just too big to fail. Given the government’s current focus on boosting broadband, perhaps such a strategy isn’t such a bad idea.

  • Minnesota Rural Voices Issues Forums Report

    E-Democracy has been working in rural communities to promote and support local online discussion. It was a project sponsored by the Blandin Foundation. They developed online forums in four communities:

    In the spirit of full disclosure I should add that I’m a long time volunteer for E-Democracy; although I did a lot more 10 years ago I still try to keep up with what they’re doing. It was fun for me to watch their progress in these areas.

    The E-Democracy model is to encourage email-based discussion (also available on the web). They start by requiring each community to sign up 100 list members. That often involves a lot of each person, reach a person kind of grass roots work. They provided some in-person training and continued support to list members.

    The good news is that the four lists are now up and running. The conversation on each list is different – as you would expect – but the conversation seems to be going. You can check out the topics on the various list, I’ve seen everything discussed including broadband, transportation and rummage sales.

    You can learn more about the project, what was learned and what is going to happen now in the final report.