Image from U.S. Commerce Secretary Gina Raimondo Instagram.
Minnesota’s ambitious broadband expansion may not meet its scheduled deadlines.
Cause for delays is due to differences in state and federal definitions of proper broadband, a slow influx of federal cash, and a previous fiasco with a key funding recipient.
Last month, U.S. Secretary of Commerce, Gina Raimondo, announced that $652 million had been earmarked for Minnesota’s rural high-speed internet infrastructure, stating that this would suffice to cover the entire state. However, this claim depends on the definition of proper broadband. The federal government has lower speed thresholds than Minnesota’s, meaning the funds may fulfill federal but not state requirements.
Three critical factors are believed to impact the broadband expansion in Minnesota.
Funding Arrival Delay
Despite approval two years ago, state officials believe it might take another two years for Minnesota to utilize its portion of the $42.5 billion broadband funding package. Due to logistical complexities, including mapping and drafting an acceptable plan for using the funds, the money likely won’t reach Minnesota until 2025, as per Bree Maki, Director of Minnesota’s Office of Broadband Development.
The late arrival of these funds may not significantly aid the state’s law for universal access to broadband with 100/20 Mbps speeds by 2026.
State Goals for Speed Outweigh Federal Funds
The federal government’s lower speed standards suggest that the $652 million would be enough for Minnesota. However, due to the state’s higher speed standards, there’s a significant shortfall. Minnesota’s Broadband Task Force estimated 291,000 locations lacking adequate service, while the federal definition recognized only 134,850 such locations.
The Office of Broadband Development will distribute the federal funds while adhering to state goals, creating potential complications. The state will likely have to rely on other federal broadband programs or state money to meet its higher speed goals, potentially missing the 2026 deadline.
Avoiding Past Mistakes
In light of a previous debacle where a company named LTD Broadband failed to deliver on its contract after receiving $311 million in Minnesota from a Federal Communications Commission program, Minnesota is cautious about the new funding. To avoid a repeat, grants will be managed by Minnesota’s broadband office, offering a local perspective for fund distribution. Also, provisions have been set for returning funds if developers fail to build infrastructure within four years.
In summary, despite a significant influx of federal funding, Minnesota faces numerous hurdles to meet its broadband expansion goals on time. The state now needs to effectively manage funding and carefully coordinate efforts to ensure that all residents have access to reliable, high-speed internet.