Farm Progress

State broadband report calls for $200 million rural investment

Twenty percent of rural households do not have high-speed Internet access.

Paula Mohr, Editor, The Farmer

February 5, 2016

2 Min Read

A Governor’s Task Force on Broadband has released a report calling for a $200 million investment in rural broadband access over the next two years.

The report examines Minnesota’s broadband adoption rates and reviews progress that the state has made on achieving its broadband speed goals, established in 2010. The state goal was that by 2015, all state residents and businesses would 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.

Related: USDA finalizes rural broadband access projects

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As of February 2015, the most recent month for which data is available at the time when the report was written, 91% of Minnesota households had broadband access available at a speed of at least 10 Mbps download and 5 Mbps upload, while 80% of rural Minnesota households have a broadband connection that meets these speeds. These figures include broadband service provided by wired, fixed wireless and wireless technologies.

While the state has made progress toward reaching its broadband speed goals, it has not yet achieved universal access, the report noted.

The task force offered the following policy recommendations:

• Update Minnesota’s statutory broadband speed goal. By 2022, all Minnesota businesses and homes should have access to high-speed broadband that provides minimum download speeds of at least 25 megabits per second and minimum upload speeds of at least 3 megabits per second. By 2026, all Minnesota businesses and homes have access to at least one provider of broadband with download speeds of at least 100 megabits per second and upload speeds of at least 20 megabits per second.

• Appropriate $200 million to the Border-to-Border Broadband Development Grant Program in FY2016-17. While this figure is a fraction of the total capital investment required to meet the state’s border-to-border broadband objective, it is an important contribution.

• Create an Office of Broadband Development operating fund to promote broadband adoption and use. The specific amount would be determined between the office and the legislature, allowing for advancement and support of programs and projects aimed at promoting broadband adoption and use.

• Increase telecommunications aid for libraries to $6.6 million and for schools to $9.75 million in FY2016-17.

• Expand existing sales tax exemption for telecommunications equipment.

• Reform regulations of Minnesota’s telecommunications industry to reflect the modern communications era, bringing regulatory certainty, competitive equity and relevance to an industry in the midst of dramatic change, while also addressing consumer protections.

• Review existing permitting requirements impacting broadband network deployment to determine where there may be opportunities to ensure the most efficient processes are in place. Uncertainty over permitting timelines and requirements can delay or prevent network deployments from moving forward.

Read the full report online at http://mn.gov/deed/images/2015-broadband-report.pdf

About the Author(s)

Paula Mohr

Editor, The Farmer

Mohr is former editor of The Farmer.

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