First published in Blandin Foundation’s eNews…

“Work with your existing providers.” A simple statement written in almost every community broadband planning document. It is similar to health advice like “Eat less, exercise more” — easy to say, hard to do.

Improving infrastructure and services is generally the most difficult place for collaboration between communities and providers, yet this is where most and earliest interaction occurs. Communities have high hopes for infrastructure improvements; providers have expectations for high return on investment. In rural areas, these two objectives are generally incompatible. We have seen through the stimulus process that building new broadband infrastructure in many rural areas, especially ubiquitous fiber in the countryside, requires a long investment horizon plus significant subsidies.

At countywide broadband meetings, I am happy when I see the existing providers in the room and lately I am seeing more of them. The incumbent telco always feels the heat from rural residents wanting broadband. The cable company and any CLEC providers are quite happy that they are not in the telco’s position, but show no interest in investing outside municipal boundaries. With budgets as they are, rural county governments are reluctant to even consider taking on a countywide broadband project hoping that someone else will address this problem. Citizen committees are frustrated as they see no solution coming from either private or public entities, yet know that broadband is essential for economic vitality.

As I look at the Connected Minnesota maps, it seems that the most cost-efficent way to meet the state’s border to border goal of 10-20 Mb broadband service would be to upgrade existing provider networks to a fiber to the node network. These improvements may be in the providers’ long term plans, but way beyond the 2015 statewide goal timeframe.

Lacking a current statewide funding mechanism, how might a rural county and incumbent provider partner(s) develop a partnership to stimulate the necessary investment? What would it cost per household to upgrade to a FTTN network with shorter copper loops? Do existing providers know what this would cost? Would they share this information and work with a county to explore the various funding possibilities (DEED infrastructure grants, revenue bonds, property tax assessments, 2012 state bonding bill, other)? Would this open the way for a statewide solution? Blandin Foundation’s Robust Networks Feasibility Fund might be used to develop mechanisms for making this work. http://tinyurl.com/43zxrmr

Building market demand for broadband should be a simpler way to collaborate. More broadband customers means sustainability and profits or providers; their interest is clear. More users and more sophistication of use creates a smarter, more productive, more prosperous community. The Blandin Foundation’s new Digital Inclusion Community Partnership provides an opportunity for providers and communities to work together in a win-win partnership. Lack of a computer is a top barrier to the use of broadband; lack of skills is also important, but without a device to connect to the network, skills lack value. Grants of up to $25,000 are available. http://tinyurl.com/3qupbdp

My advice to communities – 1) keep asking your providers to participate in your broadband initiatives. 2) Have some quiet talks with your providers about their plans for your community. 3) Identify priority improvements that you need in your community to meet specific customer requirements and community goals.

My advice to providers – 1) Show up when invited because relationships matter; communities would rather have the local technician who knows the issues and the community than either an empty chair or someone from management who they will never see again. 2) Develop a thick skin. 3) Minimize the use of “proprietary”. In most rural markets, there is no competitor to hide information from. Lacking evidence to the contrary, communities assume that no announced plans for improvements mean no planned improvements. 4) Participate in digital inclusion initiatives that build your customer base and enhance the community’s future.