Federal funding to provide millions to expand broadband in Minnesota
Broadband access becomes less reliable farther away from the Twin Cities, according to a new map published by the Minnesota Department of Employment and Economic Development.
It shows there are nearly 89,000 homes and businesses that could get high-speed broadband access through an infusion of federal funding now available.
“We’re trying to get one good provider at every home and business,” said Bree Maki, the executive director of the Office of Broadband Development. “We are hopeful that our internet service providers will continue to partner with the state of Minnesota with these federal dollars to expand broadband.”
Her office is welcoming the $652 million now allocated to Minnesota through the federal Broadband Equity, Access and Deployment (BEAD) program.
Minnesota has been giving grants to broadband providers over the last 10 years through its Border-to-Border Broadband Development Grant program to encourage investment in unserved and underserved areas of the state.
“Our state is very big, and we’ve been doing this a long time, so the most difficult and most expensive places to serve are what’s left,” said Maki.
Minnesota’s BEAD pre-qualification process just wrapped up on March 13. This spring and early summer, subgrantees will be selected, according to the state. The first round of projects will focus on fiber providers, while the second round will expand to other technologies.
“There are places that are just so remote and so expensive to serve, so we may be looking at fixed wireless or low orbiting satellite,” said Maki.
Minnesota Telecom Alliance President Brent Christensen, however, is concerned the requirements will be too costly for smaller providers.
“A lot of people in the federal government will say, ‘Well, this is free money, why wouldn’t you apply for it?’” he said. “It’s not free money, the strings attached to it are too many to make it make sense.”
He explained that an area of concern is a provision requiring underground networks to allow interconnection by others.
“You build fiber to the rural customers and you need those customers to make the business plan makes sense,” said Christensen. “If you have to open it up to competitors, you’re not guaranteed to get those customers, and your business case could fail.”
The legislation creating the program was signed into law by President Biden. Christensen hopes the Trump Administration will consider changes.
“We’re hoping that with the change of administration, there will be a change in the rules, and it will be more attractive to the rural providers to get broadband to the hardest to serve,” he said.
The U.S. Secretary of Commerce announced earlier this month that the department is reviewing the BEAD program but did not give specifics.
Meanwhile, Minnesota Cable Communications Association Executive Director Melissa Wolf is working with state legislators to ease regulations on providers.
A Minnesota law passed last year requires a new certification for underground installation, which she said could complicate these projects.
“We have to get thousands of people through a hands-on training by July 1,” she said. “What we’re worried about is we won’t have the workforce to complete BEAD projects.”
She said the providers she represents are still getting pre-qualified in preparation for the opportunities ahead. They’ve been preparing for this funding since Congress created BEAD four years ago.
“My members have been very excited to participate in this program,” she said. “This is once-in-a-generation funding.”