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Carlton County Broadband Feasibility Study Report

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Carlton County Broadband Feasibility Study Report Carlton County Broadband Feasibility Study Report Final – 12/18/2016 Contents Executive Summary ........................................................................................................... 1 Terminology and Background ............................................................................................ 4 Overview of Project and Service Area ................................................................................. 4 Overview of Sponsor .................................................................................................... 4 Carlton County Census and Demographic Information ........................................................... 5 U of M – Brain Drain/Gain & Carlton County .................................................................... 6 Why Broadband Isn’t Ubiquitous – Provider Classification ...................................................... 8 Price-Cap Carriers........................................................................................................ 8 Rate of Return Carriers ................................................................................................... 11 Mobile Wireless Providers .............................................................................................. 11 Fixed Wireless Providers ................................................................................................ 11 Cable TV Providers ...................................................................................................... 12 Satellite ISPs ............................................................................................................... 12 Incumbent Broadband Providers ........................................................................................ 13 Community feedback ...................................................................................................... 17 Community Anchor Interviews ........................................................................................ 17 Education ................................................................................................................... 17 Healthcare ................................................................................................................. 18 Business ..................................................................................................................... 18 Carlton County Power Companies ................................................................................. 19 Social Media Research/Survey Outreach Results .............................................................. 21 General Overview ....................................................................................................... 23 Residential .................................................................................................................. 25 Business .................................................................................................................... 29 Competition ................................................................................................................... 35 Target Market for a new ISP ............................................................................................ 36 Technology Review ......................................................................................................... 37 DSL ........................................................................................................................... 37 Cable Modem ............................................................................................................ 38 Fiber to the Home ....................................................................................................... 39 ii (Final 12/18/2016) Fixed Wireless ............................................................................................................ 40 Satellite Internet .......................................................................................................... 41 Regulatory/Legal Considerations ...................................................................................... 41 Telephone ................................................................................................................. 42 Cable Television ......................................................................................................... 42 Internet Services .......................................................................................................... 43 Other Regulatory/Business Considerations ...................................................................... 43 Potential County Broadband Organization Structures .......................................................... 44 Partnership examples and benefits .................................................................................... 44 RS Fiber ..................................................................................................................... 45 Lac Qui Parle County/Farmers Mutual Telephone Cooperative .......................................... 46 Cook County/Arrowhead Electric ................................................................................. 46 Dakota County ........................................................................................................... 47 Scott County .............................................................................................................. 47 Carver County ........................................................................................................... 47 City of Windom ........................................................................................................... 48 Google Fiber .............................................................................................................. 48 City of Monticello, MN ................................................................................................. 48 PPP Summary and Options for Carlton County ................................................................. 49 Potential Funding Sources ............................................................................................... 50 CoBank .................................................................................................................... 50 USAC ........................................................................................................................ 51 REDLG ....................................................................................................................... 51 Rural Utility Service (RUS) .............................................................................................. 51 Bonding ..................................................................................................................... 52 Engineering Study Overview ............................................................................................. 53 Assumptions for financial analysis ................................................................................... 53 Wireless (Fixed and Mobile) .......................................................................................... 53 Fiber to the Home ....................................................................................................... 56 Baseline: Full County FTTH Overbuild .......................................................................... 58 Scenario 1: FTTH Build to Cover Unserved Areas ........................................................... 61 iii (Final 12/18/2016) Scenario 2: Backbone Network-Only ........................................................................ 64 Scenario 3: Backbone Network with Select Local Build along the Way ............................ 66 Conclusion: Two Possible Paths ....................................................................................... 70 Next Steps .................................................................................................................... 72 Attachment 1-Social Media Survey Open Responses ............................................................ 73 Please share an example of how the current speed of Internet services in Carlton County impacts your life at home or at work? ......................................................................................... 73 If Carlton County had a faster Internet service available, what opportunities would that open up for your business to provide new products or services or reach new customers? Would it impact any opportunities for your family? ................................................................................. 99 Works Cited ................................................................................................................. 115 iv (Final 12/18/2016) Executive Summary The Broadband Feasibility Study was commissioned by Carlton County in conjunction with a local broadband committee. Carlton County stakeholders have identified gaps in broadband (availability, affordability, and reliability) that have limiting factors on their successful retention and growth of both business and residential population bases. This project was funded through county funds as well as funding from the Blandin Foundation. There is little argument about the extreme importance of broadband availability for a community, county, or region remaining competitive and effective in a global marketplace. Broadband speeds and deployment are increasing in Minnesota with
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