Update: Read an updated version of this report, published in July 2021, here, titled Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf]. It revisits all of the below communities to see how they fared over the intervening years, while adding new counties, communities, and, for the first time, two local Internet Service Providers.

In our latest report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, we analyze how local governments in 12 Minnesota communities are expanding 21st century Internet access to their citizens.

In 2010, the Minnesota legislature set a goal for 2015 - universal access to high speed broadband throughout the state. Even though we have the technology to make that vision a reality, large swaths of the state will not meet that goal. Nevertheless, local folks who have chosen to take control of their connectivity are finding a way to exceed expectations, surpassing the choices in many metropolitan regions.

Some of the communities we cover include:

• Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
• Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
• Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

We delved into networks in Anoka, Carver, Cook, Lake, and Scott Counties. The report also shares developments in the municipalities of Chaska, Buffalo, and Monticello. We tell the story of RS Fiber, located in Sibley and part of Renville County. These communities provide examples of municipal networks, a variety of public private partnerships, and "dig once" policies.

In the past few months, Lafayette has drawn in three high tech companies that will create approximately 1,300 well-paying positions. In addition to the community's commitment to boost its high-tech workforce, better connectivity offered by LUS Fiber helped attract the new businesses.

According to a Daily World article, the most recent addition is Perficient, Inc. The information technology and management consulting company is based in St. Louis. Perficient will add 50 new positions by the end of 2015 and another 245 over the next 6 years; average annual salary will be $60,000. The area should also see 248 additional indirect jobs. Perficient leadership intends to recruit from South Louisiana Community College and University of Louisiana at Lafayette.

This past spring, CGI announced it would employ 400 high-tech employees in a new finance facility in Lafayette. CGI will also recruit from the local high-tech educational programs. James Peake from CGI told the Advocate that the company has made an effort to keep tech positions "onshore" rather than sending them overseas. From the article:

CGI Vice President Dave Henderson cited UL-Lafayette’s top-ranked computer science program and Lafayette’s growing workforce and fiber-optic network.

This past summer, start-up Enquero announced it would open a tech center in Lafayette. The Milpitas, California company plans to hire 350 new employees by the end of 2017. City officials also expect to see 354 new indirect positions. According to Bloomberg Business Week, Enquero executives considered New Orleans, Baton Rouge, and four other states.

From City-Parish President Joey Durel's official statement:

As the FCC contemplates the fate of the Chattanooga EPB's ability to expand to surrounding communities, some of those Tennessee communities are publicly announcing their support. The Town of Kimball and Marion County, both part of the Chattanooga metro area, have passed resolutions asking state legislators to reconsider Tennessee's anti-muni law.

The Times Free Press reports that Kimball's Board of Mayor and Alderman unanimously and officially asked their state officials to introduce legislation enabling local authority. They requested action as early as the next legisaltive session.

Marion County passed a similar resolution in August - also unanimously. According to Kimball's City Attorney Bill Gouger:

"It is a situation where there are providers out there who would like to extend fiber-optic cable and high-speed Internet-type systems throughout our county," Gouger said. "The simple fact is, right now, our state laws make that really difficult to do, if not impossible."

County Mayor David Jackson is reaching out to the other municipalities in Marion County to increase support. From the article:

High-speed Internet access is "very important" for the entire county, said Jackson.

"It would, hopefully, give us another edge in getting new industry and other businesses to our county," he said. "It [quality Internet access] is very vital. We've got some industries now that are really struggling because they have limited Internet access."

Gouger said commercial and industrial developments are making high-speed Internet access a "requirement" for setting up shop in rural areas like Marion now.

"If we can't get those types of things throughout our county, it's going to disqualify us from some future growth," he said. "That's the whole purpose of this resolution."

The Guardian recently ran an article covering Chattanooga EPB's fiber network. The article tells the story of the birth of the network, the challenges the community faced to get its gigabit service, and how the network has sculpted the community.

Reporter Dominic Rushe, mentioned how the city has faced legal opposition from incumbents that sued to stop the network. They continue to hound the EPB today, most recently by trying to stop the city's FCC petition to expand its services. But even in a fiercely competitive environment, EPB has succeeded. From the article:

The competitive disadvantage they face is clear. EPB now has about 60,000 residential and 4,500 business customers out of a potential 160,000 homes and businesses. Comcast hasn’t upgraded its network but it has gone on the offensive, offering cutthroat introductory offers and gift cards for people who switch back. “They have been worthy competitors,” said [Danna] Bailey,[vice president of EPB]. “They’ve been very aggressive.”

Rushe spoke with Chris:

"In DC there is often an attitude that the only way to solve our problems is to hand them over to big business. Chattanooga is a reminder that the best solutions are often local and work out better than handing over control to Comcast or AT&T to do whatever they want with us,” said Chris Mitchell, director of community broadband networks at advocacy group the Institute for Local Self-Reliance.

A key difference between a Comcast or an AT&T and EPB goes beyond the numbers. Rushe described the artistic renaissance happening in Chattanooga with the help of top notch service from EPB:

The city is making sure schools have access to devices for its children to get online. Fancy Rhino, a marketing and film production firm backed by Lamp Post, has been working with The Howard School, an inner-city school, to include them in the city’s renaissance.

...

Back in June, some sixty House Republicans led by Tennessee’s Marsha Blackburn sent an open letter to FCC Chairman Tom Wheeler expressing their “deep concern” with his support for community networks. They took issue with comments he made at a House Energy and Commerce hearing in May, indicating his willingness to preempt incumbent-sponsored anticompetitive state laws that handicap or outright ban municipal networks. 

In the the views of Rep. Blackburn and her allies, this “sets a dangerous precedent and violates state sovereignty in a manner that warrants deeper examination.” They demanded answers from Chairman Wheeler on a set of eight questions so leading that they would make even the most partisan pollster blush. They featured many of the same “states’ rights,” “unelected federal bureaucrat,” and “unconstitutional authority” talking points used later in the floor debate over Blackburn’s anti-muni amendment, softened up and rephrased just a bit for polite company. 

In late July, Chairman Wheeler offered a formal written response. He opened with a diplomatically worded overview of the U.S. broadband sector, before launching into the heart of the matter:

“...Many states have enacted laws that place a range of restrictions on communities’ ability to make their own decisions about their own future. There is reason to believe that these laws have the effect of limiting competition in those areas, contrary to almost two decades of bipartisan federal communications policy that is focused on encouraging competition. I respect the important role of state governments in our federal system, but I also know that state laws which directly conflict with critical federal laws and policy may be subject to preemption in appropriate circumstances.”

There is little doubt that our readers are aware of Chairman Wheeler's remarks on September 4th at 1776, a start-up incubator in D.C. His message echoed what policy leaders have repeated countless times - competition is lacking in the world of broadband.

Telecommunications has become a popular topic in the past few months as decision makers are discovering that constituents DO care about online access, economic development, and exessive consolidation. ILSR was pleased to see the Chairman address the issue of lack of competition and released the following statement:

The Institute for Local Self-Reliance applauds FCC Chairman Tom Wheeler’s Agenda for Broadband Competition. We feel it is a positive step coming from the nation’s top communications official.  

“These gigabit developments are positive, but they are not yet pervasive,” Wheeler said. “Looking across the broadband landscape, we can only conclude that, while competition has driven broadband deployment, it has not yet done so a way that necessarily provides competitive choices for most Americans.”

Wheeler's recognition that Americans lack a true choice in fast, affordable, and reliable Internet access is an important development. If we want real options for next-generation connectivity, local governments must be free to build then own networks. 

If there is one thing we have learned from the history of essential infrastructure, it is that local governments must have the option of building and owning it themselves. 

“Hundreds of communities have already invested in their own fiber networks, keeping money in the local economy and spurring job growth.” says Community Broadband Networks director Chris Mitchell.

In an excellent piece titled “How Republicans Flip-Flopped on Government-Run Internet,” the National Journal outlines the disappointing political evolution of municipal broadband, from a bipartisan local choice issue to an anti-Obama Administration, pro-incumbent telecom, states’ rights issue. 

It was not so long ago (2005, to be precise) that three Republican senators (John McCain, Lindsey Graham, and Norm Coleman) joined three Democrats in sponsoring legislation that would enshrine the principle of local choice explicitly in law, preempting anti-muni state laws pushed by incumbent lobbyists. A year later, 215 House Republicans voted for a bill that included a similar preemption provision. In 2007, even more Republican Senators joined McCain and Graham, including Olympia Snowe, Ted Stevens, and Gordon Smith. Their communications bill, including local choice provisions, narrowly missed becoming the law of the land due to fights over unrelated net neutrality issues. 

Yet somehow, in 2014, we have the Blackburn anti-muni amendment passing the House floor with nearly unanimous Republican support: 223-200. There are multiple reasons for this, including the generational shift in the Republican Party away from moderates like McCain and towards the more insurrectionist Tea Party. The Journal article also cites the ubiquitous hostility to anything associated with President Obama, even extending to statements made by his nominees at the FCC in favor of federal preemption. Ever greater lobbying spending by cable and telecom incumbents has helped muddy the water for municipal broadband as well.

Yet even some of the same Republicans who once supported local choice now oppose it. Rep. Fred Upton of Michigan, the current and former Chairman of the House Energy and Commerce Committee that handles communications issues, was one of the leading figures in pushing the bill that included preemption in 2006 and 2007. In 2014, he joined his caucus in voting for Blackburn’s amendment to stop such preemption. From the Journal:

An Upton spokesman claimed there's nothing inconsistent about supporting a bill to nullify state restrictions and opposing FCC action that would do the same thing.

The Center for Public Integrity recently published an excellent article worth sharing. In "How big telecom smothers city-run broadband," Allan Holmes describes the money-for-infleunce machine at the state level, connects the dollars, and reveals bedfellows. The article is part of a series investigating the political power of big cable and telecom companies.

If you are a regular at MuniNetworks.org or any other news source covering telecommunications, you are familiar with the renewed push to restore local telecommunications authority that began in January of this year. Holmes provides a little background on the court case that inspired FCC Chairman Wheeler to publicly state that the agency is serious about restoring local authority.

Since those developments, an increasing number of journalists have reported on how we came to have barriers to municipal networks in some 20 states. The revived interest has further revealed that state legislatures are big benefactors of campaign contributions from cable and telecom leaders. "Think tanks" aimed at protecting industry giants and conservative millionaires prove to be at the heart of this payola. Holmes does an excellent job of simplifying the web of political influen$e that dooms millions of people to dial-up, outdated DSL, and aging cable infrastructure.

Holmes follows the story of Janice Bowling, a state senator from Tennessee representing the district that is home to LightTUBe in Tullahoma. When she introduced a bill to allow LightTUBe to expand to serve surrounding communities, she did so because:

…I believe in capitalism and the free market. But when they won’t come in, then Tennesseans have an obligation to do it themselves.

When it appeared the bill might get some traction: