Connect Minnesota Releases New Broadband Availability Report

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ST. PAUL, MN – Today, Connect Minnesota released an assessment of broadband availability in Minnesota in a report titled, Broadband Availability in Minnesota: Measuring Progress.

This report, which is available online, outlines the statewide results of a broadband inventory with the aim of sparking stakeholder discussions on key policy goals and strategies to expand and enhance the broadband opportunities for all Minnesota residents.
Key findings from this report:

• Broadband is available to 97.08% of Minnesota households, leaving 61,000 Minnesota households unable to connect to high-speed Internet.
• 81.2% of Minnesota households can access broadband at advertised speeds of 6 Mbps download/1.5 Mbps upload, meaning that 392,000 households are in areas that may be eligible for Universal Service Fund broadband deployment subsidies.
• 57.4% of Minnesota households can access broadband at speeds of at least 10 Mbps download/6 Mbps upload – the minimum speed threshold for Minnesota’s goal of ubiquitous broadband availability. This means that across the state, approximately 889,000 households are not connected to services that meet the state’s target.
• 93.75% of rural households in Minnesota have access to broadband.
• 84.19% of Minnesota households have the ability to choose broadband service from two or more non-mobile broadband providers.

Note: The data in this report are subject to data validation.

A key difference in this report from past availability releases is that the estimates were created with the new 2010 Census data, which showed an increase of over 190,000 households in Minnesota. In addition, much of the availability data released today includes a minimum upload speed threshold of 1.5 Mbps, whereas other releases utilized 200 kbps upload speeds.

In August 2011, Governor Mark Dayton signed an Executive Order that established the Governor’s Task Force on Broadband and reiterated the state’s goal of ensuring that all residents and businesses have access to broadband at download speeds of at least 10-20 Mbps and upload speeds of at least 5-10 Mbps.

To help the state measure its progress toward these goals, Connect Minnesota has partnered with the Governor’s Task Force on Broadband and the Minnesota Department of Commerce to collect and validate broadband availability data statewide. As directed by the Governor’s Executive Order, the Task Force will be submitting its first report by December 31, 2011 and will include key elements of the availability data.

“Access to, together with adoption and utilization of high-speed broadband are key elements for Minnesota’s economic growth in the next decade. The data in this report—as with our other research—will allow the Governor’s Broadband Task Force and all stakeholders to have benchmarks upon which to build effective policy recommendations,” said Bill Hoffman, Program Manager for Connect Minnesota. “Clearly we have moved forward thanks to providers, communities and broadband proponents; but we still have work to do to meet the goals set by the Minnesota Legislature.”

In May of 2010, Connect Minnesota produced an initial map of broadband availability to identify served and unserved areas across the state. Since the initial map’s release, Connect Minnesota has collected and released new data every six months, with updates in October 2010, April 2011, and October 2011.

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Connect Minnesota Releases Broadband Service and Pricing Report

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Report examines the impact of cost on broadband adoption

ST. PAUL, MN – Connect Minnesota released today a new report on broadband service and prices in Minnesota.

The report, Worth the Cost: Broadband Prices in Minnesota, was part of discussions during the 2011 Broadband Conference hosted jointly by the Blandin Foundation and Connect Minnesota in Duluth. This year’s conference, focused on the ARRA broadband funding efforts that have been underway in Minnesota. Through discussions with national and local policy leaders, community leaders had the opportunity to develop a better understanding of how policy impacts them and how they link to the big picture. Through the sharing of tools and accomplishment of ARRA projects, attendees celebrated progress and planned for the future.

“Providers, governments and other stakeholders including Connect Minnesota are working to improve adoption rates statewide,” said William Hoffman, Connect Minnesota Program Manager.  “Our 2011 Residential Survey data will help inform efforts to ensure more Minnesotans adopt broadband and benefit from technology both economically and socially.”

The cost of home broadband service is a growing factor in encouraging more Minnesotans to get connected. Just a few years ago, most people did not even know what broadband was, let alone how it could benefit their lives. Now, though, a growing number of Minnesotans realize what a home broadband connection can mean for them, but many cite cost as a reason for not subscribing to the service.

Recent efforts by providers as well as governmental and non-profit agencies are attempting to address the cost issue. For example, the Federal Communications Commission’s Connect to Compete initiative recently brought together government officials, for-profit companies, and non-profit organizations to provide affordable broadband service to targeted populations and help them learn how to use a host of online tools.

As part of the 2011 Residential Technology Assessment, Connect Minnesota examined the prices that Minnesotans pay for their broadband service, how changes in price affected their decisions to subscribe, and how cost impacts some consumers’ decision to adopt broadband.

Among the findings from this survey:
·      On average, Minnesota broadband subscribers spend 49.46 a month on home broadband service. About 810,000 Minnesota adults (28% of broadband subscribers) report spending $50 or more on their broadband subscription.
·      When asked to rate their satisfaction with the price, 15% of broadband-connected Minnesotans (representing about 432,000 adults) gave a rating of “5 out of 5.”
·      More than one out of five subscribers (21%, representing 607,000 adult residents) say that price was a factor in their decision to subscribe, either because the price went down, or they realized that the cost was worth the extra price per month.
·      Approximately 1.1 million adult Minnesotans do not subscribe to broadband service. Cost is the main barrier to adoption for 26% of them (approximately 297,000). This includes those who say that the monthly cost of broadband service is too high (17.5%), the cost of a computer is too expensive (5.5%), and the activation and installation fees are too expensive (3.3%).
·      The cost of home broadband service is cited as a barrier by many at-risk groups, including low-income households and minorities; across Minnesota, approximately 37,000 minority households do not subscribe to broadband primarily due to the cost barrier.

On average, Minnesota broadband subscribers who know their monthly price say they pay $49.46 per month for their home broadband service.  By comparison, home broadband subscribers across all of the states surveyed by Connected Nation pay $45.73.

Average Price Paid by Home Broadband Subscribers

It should be noted that Minnesota broadband subscribers who know their advertised download speed subscribe to service that is significantly faster than other states surveyed by Connected Nation; Minnesota broadband subscribers who know their advertised download speed report an average speed of 6.0 Mbps downstream, compared to the Connected Nation average of 4.8 Mbps. As such, one would expect a higher average price in Minnesota.

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Governor Mark Dayton Names 15 to Task Force on Broadband

Connect Minnesota Applauds Important Step in Increasing Vital Broadband

ST. PAUL, MN – Connect Minnesota applauds the naming today of 15 members to the Governor’s Task Force on Broadband. The Task Force is charged with developing policies to promote the expansion of broadband access in Minnesota. Governor Dayton’s stated goal is “border-to-border” high-speed Internet and cell phone access throughout Minnesota.

Connect Minnesota research has repeatedly shown the economic and quality of life benefits of expanded broadband. This announcement comes a week before the 2011 Broadband Conference co-hosted by Connect Minnesota and Blandin Foundation. The conference is taking place in Duluth on November 16 and 17.

“Connect Minnesota looks forward to supporting and informing the work of the Governor’s Task Force on Broadband in the months ahead,” said Connect Minnesota Program Manager Bill Hoffman. “The Task Force’s work on access and adoption issues will play a key role, in conjunction with efforts underway in the private and public sectors across the state, to ensure Minnesotans maximize the economic and social benefits of broadband.”

According to Governor Dayton, the Task Force will develop an action plan for identifying and correcting disparities in access and adoption of broadband in all Minnesota communities – urban, rural, and suburban. Dayton says that action plan will help ensure that homes, schools, hospitals, and businesses have access to the technology and information resources they need to thrive in a global economy.

Connect Minnesota research shows that 28 percent of the state’s residents are still not subscribing to broadband for a number of reasons.

Members of the Task Force represent a cross-section of broadband interests, including consumers, business and residential users, educational and healthcare institutions, telephone and cable companies, wireless providers, and government.

The Minnesota Department of Commerce, which houses the state’s Broadband Development Office, will work closely with the Governor’s Task Force on Broadband.

“For the short- and long-term success of our economy, every school, business, and consumer in Minnesota must have affordable, high-speed access to information and the online marketplace,” said Commerce Commissioner Mike Rothman. “That is what the work of this Task Force is all about.”

Members of the Task Force are:

• Shirley Walz, Senior director of technology for Thomson Reuters
• Bernadine Joselyn, Director of Public Policy and Engagement for the Blandin Foundation
• Margaret Anderson Kelliher (Chair), Director of the Minnesota High Tech Association
• Steve Lewsader, President of the Communication Workers of America (CWA), Local 7201
• Duane Ring, President of the nine-state Midwest Region of Century Link
• Gary Evans, CEO of Hiawatha Broadband Company
• Dick Sjoberg, Sjoberg’s Cable
• Daniel Richter, President of MVTV Wireless
• Danna MacKenzie, Director of Information Systems for Cook County
• Maureen Ideker, Director of Telehealth, Essential Health
• Matt Grose, Superintendent, Deer River Public Schools
• Steve Peterson, Bloomington City Council
• Bob Bass, Bloomington, AT&T Wireless
• Keith Modglin, Information Systems Director for the Mille Lacs Band of Ojibwe
• Bao Vang, President/CEO of the Hmong-American Partnership

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Connect Minnesota Releases 2011 Residential Broadband Adoption Survey Results

28% of Minnesota residents still do not have broadband at home

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ST. PAUL, MN – Today, Connect Minnesota released new residential broadband adoption survey results revealing the top trends in technology use among key demographics in Minnesota. The preliminary indicators from the survey are available online, which gives a comprehensive view of the challenges and opportunities for expanding broadband in targeted sectors. According to the survey, approximately 28% of the population still does not subscribe to broadband. Most notably, the majority of low-income, senior, disabled adult, and Hispanic households are without broadband at home, leaving them facing an uphill battle in keeping up with essential online resources, job and educational opportunities, and social services.

The survey reveals that:

• 39% of Minnesotans living in rural areas do not subscribe to broadband service at home.

• When comparing to the 72% of all households that do subscribe, there remain large gaps among key demographics:

   o 53% of low-income households;

   o 51% of Hispanic households; and

   o 68% of seniors are without broadband.

• 54% of low-income households with children are without access to this essential tool at home.

• The biggest gap is among low-income seniors. Only 21% of low-income seniors subscribe to broadband and only 32% have a computer at home.

• The largest barrier to non-adopters is relevance - 29% of non-adopters say there isn’t Internet content worth viewing. The second most commonly cited barrier is that it is too expensive.

• The number one reason Minnesotans say they started using broadband is because they needed it for business.

These results and comparisons to many others are available on Connect Minnesota’s new consumer trends widget. This interactive tool gives people the ability to view, share, and download the results. Connect Minnesota will use these survey results to target solutions in communities based on the demographic and economic barriers that the surveys indicate are most relevant to those communities.

Connect Minnesota’s 2011 residential survey was conducted in the summer of 2011 and includes responses from 3,100 residents.

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Minnesota Releases New Broadband Availability and Adoption Statistics Report

(ST. PAUL, MN) St Paul, MN – The state of Minnesota made an empowering move today towards increasing high-speed Internet access and adoption across the state. The Minnesota Department of Commerce and its partner, Connect Minnesota, released an in-depth report that takes a state-wide snapshot of Minnesota’s technological landscape. The Minnesota Broadband Availability and Adoption Statistics report, now available on Connect Minnesota’s website (http://www.connectmn.org/research/), is a key element for strategic planning and further development of high-speed Internet access and adoption programs across the state.

“We are focused on ensuring Minnesota has the broadband access we need for our consumers, businesses and institutions to provide opportunity and competiveness in our global economy,” said Mike Rothman, Commissioner of Commerce, the designated agency partner for Connect Minnesota for the federally-funded broadband mapping initiative. “This map is an important first step in the progress for access to broadband Internet.”

This assessment of the broadband market in Minnesota is conducted by Connect Minnesota in partnership with the Minnesota Broadband Task Force and the Minnesota Department of Commerce. This working paper aims to provide a detailed review of the current state of broadband in Minnesota that will spark discussion across multiple broadband stakeholders in the state on key policy and strategies to expand and enhance the broadband experience for all Minnesotans.

“The data contained in this detailed report will serve as an integral resource for spurring broadband development and adoption plans,” said Brian Mefford, CEO of Connect Minnesota’s nonprofit parent organization, Connected Nation. “This research will assist in facilitating the fulfillment of technological modernization goals that have been set for Minnesota.”

Highlights from the report:

• Minnesota’s broadband marketplace is interesting when comparing the few urban areas of the state with their rural counterparts. Because three-fifths of Minnesotans reside in the Minneapolis-St. Paul area, broadband inventory data shows high availability of upper speed tier broadband in the state.

• The outlook, however, for the state’s remaining households indicates fewer choices and slower speeds. Furthermore, while only available to less than 4 percent of Minnesota households, fiber to the home broadband is available in more than 50 of Minnesota’s 87 counties.

• An estimated 66,647 Minnesota households (3.41 percent) lack basic broadband service and remain unserved by terrestrial, fixed broadband. It is further estimated that approximately 93.76 percent of Minnesota households have broadband available at download speeds of 3 Mbps or more. This implies that an estimated 118,313 Minnesota households have basic broadband available but lack fixed broadband service of at least 3 Mbps downstream.

• The adoption percentage of households across Minnesota that have broadband service in the home is 72 percent; by comparison, national surveys show that 67 percent of American households subscribe to home broadband service.

• Statewide, 85 percent of all residents own a home computer. This translates into over 588,000 adults without a home computer, with 73 percent of those without a computer saying they do not believe they need one.

According to this report’s findings, Minnesota does appear to be different from the much of the rest of the country in one important way.

• Broadband speeds at higher speed tiers are significantly higher than many other states.

• Minnesota’s availability of broadband at the 50 Mpbs and 100 Mbps speed tiers is significantly greater than many other states. Also interesting is the prevalence of fiber-to-the-home broadband. While fiber is only available to 3.98 percent of households in Minnesota, this FTTH availability is spread across more than 50 of our counties, and not concentrated in just a few areas.

Connect Minnesota is the state’s designated entity for the statewide broadband mapping and planning initiative under the U.S. Department of Commerce’s National Telecommunications and Information (NTIA) State Broadband Data and Development (SBDD) program. Over the course of a five-year award period the project aims to expand broadband access and use across the state through broadband mapping, identifying barriers to broadband adoption, generating statewide awareness, creating local technology planning teams, and establishing computer ownership and Internet access programs.

Connect Minnesota provided the mapping data used in the National Broadband Map which was released by the NTIA last week. Connect Minnesota will continue to gather semi-annual updates on the broadband maps over the next four years. Citizens are encouraged to visit the map and offer feedback to ensure the highest level of accuracy.

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Minnesota Awarded $2.7 Million for Additional Broadband Mapping and Planning Initiatives

Mapping and Planning Efforts Expanded for the Full Five Year Program

St. Paul, MN — The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has awarded Connect Minnesota approximately $2.7 million, under the State Broadband Data and Development Grant Program (SBDD), to further implement broadband initiatives over the original five-year award period.

The additional Recovery Act funding will allow mapping efforts under the SBDD program to continue for three additional years, while the program also focuses on projects that relate to broadband planning activities, such as the identification of barriers to the adoption of broadband service and information technology services.

“This program will meet NTIA’s intent for developing high-quality projects designed to gather granular data on broadband availability, technology, speed, and infrastructure across the state,” according to Brian Mefford, CEO of Connected Nation, Connect Minnesota’s parent organization. “Through this project Connect Minnesota will support the work of the 15 member Minnesota Broadband Advisory Task Force in carrying out its functions, including the production of its annual progress report benchmarking progress toward meeting Minnesota’s 2015 broadband goals of a minimum of 10-20 MB to all residents and businesses.”

Connect Minnesota will continue to engage in broadband data collection activities that will capture complete and up-to-date datasets from the state’s broadband providers and will result in regularly-scheduled updates and further enhancements to the state’s interactive broadband map.

Under the SBDD program, the Connect Minnesota initiative released its first iteration of the broadband map in May 2010, and this funding will allow the state to prioritize and track progress over a longer period of time. This data will populate the comprehensive, interactive, and searchable national broadband map that NTIA is required by the Recovery Act to create and make publicly available by February 17, 2011.

As the designated entity for broadband mapping in the North Star State, Connect Minnesota is a public-private partnership working to unite local governments, businesses, and citizens in the goal of increasing broadband service in the state’s underserved areas.

To access a summary of the grant project please visit http://www2.ntia.doc.gov/grantee/connected-nation-minnesota.

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Connect Minnesota Launches Powerful Interactive App for Improving Statewide High-Speed Internet

New Broadband Coverage Maps Go Live on Connect Minnesota Website

St Paul, MN – Connect Minnesota has launched a powerful new broadband app in the effort to bring affordable, high-speed Internet to the entire state. Available on Connect Minnesota’s website, www.connectmn.org, BroadbandStat is the interactive state mapping resource that puts all the latest information on the broadband landscape directly at your fingertips. Connect Minnesota is a subsidiary of Connected Nation and operates as a nonprofit in the state of Minnesota.

“Minnesota has been a national leader on creating awareness and driving broadband expansion across its state,” explains Brian Mefford, CEO of Connect Minnesota’s parent organization, Connected Nation. “We are proud to support the effort through this new mapping app that empowers citizens, businesses, community developers, and policy makers to make informed plans for high-speed Internet expansion in their communities.”

Since 2008, Connect Minnesota has served as the broadband mapping entity for Minnesota. Connect Minnesota has been able to gather and verify state-specific data on the availability, speed, location, and type of broadband services in order to create an accurate picture of the state’s broadband landscape. Starting this year, the program has also focused on gathering data on the adoption and availability of broadband at community anchor institutions across the state to identify the need for services at schools, libraries, and hospitals. The meeting of this milestone is a result of a several-month long process of aggressive outreach to providers and community anchor institutions across the state, and extensive verification and validation of the data collected from these entities.

The maps represent the coverage areas of 93 Minnesota broadband providers. The newly unveiled map confirms that approximately 84,391 households are still without any broadband service option at all. 95.55% of Minnesota households have access to broadband service of at least 768 Kbps downstream and 90.56% of rural Minnesota households have access. There are approximately 78,848 unserved rural households (excluding mobile and satellite service).

A public demonstration of the mapping app was held via webinar on Friday to encourage citizen feedback and to demonstrate the broadband expansion scenario building that can be achieved using the tool.

Connected Nation’s GIS team will continuously refine the maps as more data is gathered - relying upon citizen feedback as part of the validation process. Residents, businesses, and any interested party with knowledge of the state broadband landscape are asked to go to Connect Minnesota’s website to provide input that will be used to verify and ensure the highest level of accuracy for the broadband maps.

As the designated entity for broadband mapping and planning in the state of Minnesota, Connect Minnesota is a public-private partnership uniting local governments, businesses, and citizens in the goal of increasing broadband service in the state’s underserved areas. In December 2009, the U.S. Department of Commerce the National Telecommunications and Information Administration awarded Connect Minnesota $1.7 million in Recovery Act funding under the State Broadband Data and Development grant program (SBDD) to support the effort to increase the availability and use of high-speed Internet service in the state. The funding enables the state to collect data and develop maintain a detailed map of existing broadband service over two years and conduct planning efforts for a period of five years.

The data released are in compliance with the NTIA’s Notice of Funding Availability (NOFA) for the SBDD grant program. Ultimately, these data will populate the comprehensive, interactive, and searchable national broadband map that NTIA is required by the Recovery Act to create and make publicly available by February 17, 2011.

Connect Minnesota Receives Recovery Act Funding

NTIA Awards $1.7 Million to the Connect Minnesota Broadband Mapping Initiative to Improve High Speed Internet Access Across State

St. Paul, MN – Yesterday, the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) awarded Minnesota a $1.7 million grant to support a comprehensive broadband mapping and planning initiative through the Connect Minnesota program.

Connect Minnesota (www.connectmn.org) is a partnership between the Minnesota Department of Commerce and Connected Nation to increase broadband Internet access throughout Minnesota. The grant is comprised of $1.2 million for broadband data collection and mapping activities over a two-year period and almost $500,000 for broadband planning activities over a five-year period in Minnesota, bringing the total grant award to approximately $1.7 million. The award provided through NTIA’s State Broadband Data and Development Grant Program is a matching grant and part of the American Recovery and Reinvestment Act of 2009.

The data collected from the Connect Minnesota initiative will be displayed in the national broadband map, which will help inform policymakers and provide consumers with improved information on broadband Internet services available in the United States. The national broadband map is scheduled for release in February 2011. Connect Minnesota will also be implementing a brand new interactive mapping tool for viewing, analyzing and validating Minnesota’s broadband data. Called BroadbandStat, the new interactive mapping platform is a multi-functional, user-friendly way for local leaders, policymakers, consumers and technology providers to devise a plan for the expansion and adoption of broadband. BroadbandStat was developed by Connected Nation in conjunction with ESRI, the world market leader in geographic information system (GIS) software.

Minnesota has been a leader in bringing broadband-enabled technology to its citizens. In the fall of 2008, the Minnesota Department of Commerce first began working with Connected Nation through its subsidiary non-profit, Connect Minnesota, to assess the level of broadband connectivity statewide through an initial broadband mapping process. On June 30, 2009, Connect Minnesota released an updated version of the statewide broadband inventory map that illustrates the extent of broadband services available across Minnesota. The Connect Minnesota map, which represented broadband availability data from 110 broadband providers across the state, has served as a key asset for providers within the state as they seek federal stimulus funding to support broadband investment.

“We are honored that Connect Minnesota has been recognized by this award and proud to be continuing our partnership with the Minnesota Department of Commerce,” said Brian R. Mefford, Connected Nation’s chief executive officer. ”The funding provided by this award is going to allow us to make valuable updates to Minnesota’s broadband maps and gather critical information for the expansion of broadband service and use throughout the state over the next few years.”

Related Links:

ARTICLE: Minnesota Census Block Level Data on Connected’s Broadband Maps (TMC.net, 07/27/09)

PRESS RELEASE: Connect Minnesota Launches New Maps and Data Tools for Tapping Broadband Stimulus Dollars (07/24/09)

PRESS RELEASE: Connect Minnesota Updates Broadband Inventory Maps to Prepare for Federal Stimulus (06/30/09)

ARTICLE: At Issue: Connecting The State (Minnesota Public Radio, 02/13/09)

PRESS RELEASE: Connect Minnesota Releases Broadband Inventory Map to Highlight Available Service and Identify Remaining Gaps (Minnesota House of Representatives, 02/05/09)

ARTICLE: New Map Shows Speeds of the Information Superhighway (Minnesota Public Radio, 01/26/09)

PRESS RELEASE: Connect Minnesota Launches Web Site to Promote Universal Broadband Access (12/16/09)

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