Minnesota Office of Broadband Development: Broadband in MN and Dakota County

June 10, 2020 Dakota County Broadband Board Diane Wells 651-259-7610 [email protected] Timeline Minnesota Broadband Development Policy

•2008 - First broadband taskforce created •2009 - First broadband map created (prior to federal mapping program) 20082008- •2010 - Broadband goals established (10/5 by 2015) 2010

•2010-2014 – Broadband mapping with federal stimulus (ARRA) funding •2011 – Dayton Administration Broadband Task Force created 20112011- •2013 - Office of Broadband Development created in law, placed at DEED 2013

•2014 - Border to Border Broadband Infrastructure Grant created; $20M appropriated •2015 – Additional funding for broadband grants: $10.58M 20142014- •2016 – Broadband goals revised; $35M appropriated for grant program 2017 •2017 – Border to Border program renewed; $20M appropriated

•2018 – Bi-partisan support but in the end, no funding for grants in 2018 •2019 – Border to Border grant: $20M for 2019 and $20M for 2020; Telecommuter Forward!; Walz Administration 2017 - Broadband Task Force created 2020 •2020 -- $20M from biennial appropriation; Additional funding (telehealth, Border to Border)? MN Broadband Policy Framework

Broadband Statutory Office/Task Goals Force

Data Tools (Mapping (Grant Program) Program) Office of Broadband Development Roles and Responsibilities - Highlights

• Work to facilitate, promote, and improve broadband infrastructure development • Measure and map broadband availability across the state • Dig Once/conduit/ROW mgmt/permitting • Provide technical assistance to providers and communities • Administer the Border to Border broadband grant program • Inform and support state broadband policy discussions • Clearinghouse for state and federal program resources • Measure, analyze, and support community anchor institution needs • Support digital inclusion (literacy and affordability) • Support inclusion of broadband needs into local planning processes • Provide support to the Broadband Task Force • Administer the Telecommuter Forward! Community program

By Township (25Mbps download wireline) By Township (100Mbps download wireline) Metro Counties Comparison Dakota County--DSL (at or above 10/1) Dakota County--Cable Dakota County--Fiber Dakota County—Fixed Wireless Interactive Map-Federal CAF Build Out Areas Providers in Dakota County

• DSL: CenturyLink, Consolidated Holdings, Frontier, Nuvera, • Cable: Access Media, Charter, Comcast, Midco • Fiber: CenturyLink, HBC, Velocity, Jaguar (MetroNet), Lonsdale (BEVCOMM) • Fixed Wireless: HBC, JTN, LTD, Nextera, Northfield WiFi, RadioLink, SE MN WiFi, Xtratyme • Cellular: AT&T, Sprint, T-Mobile, Verizon • Satellite: Hughes, ViaSat Progress…but not done yet

• 163,000 households without access to 25/3 (2022 goal) • 258,000 without access to 100/20 (2026 goal) State Statutory Broadband Goals: All Homes and Businesses will have access to broadband service of at least:

- 25 Mbps download by 3 Mbps upload (Current FCC definition) by 2022 - 100 Mbps download by 20 Mbps upload by 2026 Using the Maps: Minnesota Gigabit Cities

496 Minnesota Cities have Gigabit capabilities

- Economic Development - Professional recruiting - Attract returning alumni “Unserved” Minnesota Cities

186 in 2017 120 in 2018 62 in 2019 Minnesota Cities with at least 50% of households without access to 25Mbps download/3Mbps upload

(FCC Minimum definition and State Speed Goal for 2022) MN Border to Border Broadband Development Grant

• Grant purpose: To provide financial assistance for the acquisition and installation of middle-mile and last-mile broadband infrastructure to areas of the state that do not have wireline access at federal and state minimum standard speeds. • Allowable costs: Examples of allowable costs include: final project design; obtaining construction permits; purchase and/or construction of facilities, including construction of both “middle mile” and “last mile” infrastructure; and installation and testing of the equipment used to provide broadband service. Border to Border Broadband Development Grant – Overview

• Annual general fund appropriations in 6 out of 7 years • Distributed in a single competitive grant round each FY funding received • Technology must be scalable to at least 100Mbps Up/Down • Cap of $5M per grant award

• At least 1 to 1 match (50% of eligible expenses) required (More points awarded for higher match) • Grant awards are to be geographically dispersed • Speeds offered must achieve 25/3, many offer 100/20 or 1G Border to Border Broadband Development Grant – Overview - Eligibility

• Who is eligible to apply? – An incorporated business or partnership – A political subdivision – An Indian tribe – A Minnesota nonprofit organized under 317A – A Minnesota cooperative organized under 308A or 308B – A Minnesota limited liability corporation organized under 322B for the purpose of expanding broadband access Scoring Criteria—Points Awarded for the Following

• Amount of increase of broadband speeds and number of passings • Is an economically distressed area served? • Is a tribal area served? • Community partnerships & evidence of economic development benefits • Is there a third source of funding (applicant, state and ?) • Sustainability of the project over time • Financial and organizational capability • Evidence of community support • Project plan and timeline • Comparability (price and speed) to service offered in urban areas • Community anchor institutions that will benefit • Provide information on broadband programs for low-income residents FY20 Grant Awards MN Border to Border Broadband Incentive Grants

All 5 Years Funding $105.6M Applications 296 Received Awards: Awards Made 140 Households 43,250 Served Businesses 6,669 Served Institutions 360 Served Projects: Matching $146.5M Investments Completed 80 Partners in the program

• Small and large traditional telephone companies • Cable providers • Wireless ISPs • Electric cooperatives • Broadband cooperative • K-12 service cooperative • Counties • Townships • Towns Trends

• New Partnership Configurations – Multiple financial participants including private, local governments, federal and state – Electric cooperatives and tribes partnering with telephone companies

• More Local/Grassroots Activity – Local meetings to discuss need for better broadband – Local support from counties, township bonding, city budget, private businesses

• Grant Funding Incenting Private Deployment – Not only does the grant application itself leverage private investment, but areas where a competitor is interested in building incent an existing provider to spend private capital to build out service at higher speeds

• Monitoring Advancements in Technology – Tracking speeds, coverage, ability to serve and customer satisfaction with new technologies

• COVID-19 – Highlights the need for broadband – Upload speeds increasingly important (download=consumption, upload=production)