More state grants toward broadband expansion — $34 million worth — could provide more reliable internet access to areas of rural Minnesota.
Lt. Gov. Tina Smith announced the funding Wednesday, which covers 42 broadband infrastructure throughout the state, centered primarily on greater Minnesota. The state’s Border-to-Border Broadband Infrastructure plan adds state taxpayer dollars to funding from private and local sources and federal reimbursements from the Connect America Fund.
Statewide, the grants are expected to provide a high-speed internet connection to about 16,000 homes and 2,200 businesses.
“We are coming up with ways to fill the gap where the private sector is just not able to expand to that last mile or even that middle mile because projects just don’t make economic sense without some kind of partnership with the public,” Smith said in a conference call with reporters.
Locally, Mediacom and Paul Bunyan are benefactors of the influx of funding.
Mediacom in Fayal Township received $263,345 for 167 households, three businesses and 92 underserved households. Total cost of the project, a cooperation project between Fayal Township and Mediacom identify needed areas, is $675,243 with a $411,898 local match.
Mediacom also received $224,369 for a similar project in Harris Township in Itasca County to service 262 homes and six businesses.
Paul Bunyan Communications in Hubbard, Becker and Itasca counties was granted $1.74 million for 785 households, 26 businesses, two county anchor
institutions and a total 145 additional underserved homes and businesses. Total cost of the project, which is expected to impact about 2,740 people and 50 small businesses, is $3.48 million with a $1.74 million local match.
Expanding broadband in rural areas has been a recent priority of the state. In 2014 and 2015, the state funded 31 broadband infrastructure projects, 18 of which are complete or 95 percent complete. The remaining projects are about 75 percent complete.
Internet access, said Danna MacKenzie, executive director of the Minnesota Office of Broadband Development, is not a “luxury” in today’s high-tech world, but rather a way to the state competitive for economic development.
"Broadband is one of the tools necessary to ensure these industries are able to compete not only locally and globally," she said.
Investment into the state’s program echoes that sentiment.
It has invested $66 million into broadband projects with $81 million in private funds. In 2015, Gov. Mark Dayton set up a task force to study broadband infrastructure, which concluded a needed investment of $900 million to reach all Minnesotans.
Smith said the grants are supported by Dayton as he prepares a state budget.
“Looking at the calendar, the year is 2017, not 1997. Families, students, and businesses all need top-notch broadband access to be competitive in our economy,” said State Rep. Jason Metsa, DFL-Virginia. “These grants certainly represent a step in the right direction, but we need to step up to the plate to make sure all Minnesotans can get connected to fast, reliable internet.”