Editorial: Benefits abound in broadband

Published 10:40 am Monday, February 16, 2015

A proposed expansion of the state’s broadband grant program would raise the speed limit on the information superhighway and offers a boost for technology-based economic development in rural areas.

That is the aim and that is the hope.

While one can question such government investment in what has mostly been a private enterprise, there is some argument these investments can be like investments in a strategic highway interchange that services a new manufacturing plant.

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Less than a year ago, Gov. Mark Dayton signed into law the Border to Border Broadband Development Grant program that provided about $20 million to help pay for new broadband Internet infrastructure and service. Companies and organizations submitted 40 proposals for the competitive grant program requesting $44 million.

The state only had funding for 17 projects at about $20 million. So Dayton has proposed expanding the program with new funding of $30 million, a 50 percent increase in funding.

The broadband grant program operated through the Department of Employment and Economic Development provides a 50 percent match for projects that expand high speed Internet access for mostly smaller communities not yet served by broadband service.

The grants are awarded based on the number and percentage of people underserved in an area, project cost, project partnerships, project sustainability, community support and technical assistance available in each project area.

In the recent round of approvals, grants were given to 17 projects that would serve 6,000 households, 150 businesses and 83 community groups.

R-S Fiber Cooperatives in Sibley County received $1 million to expand broadband to about 600 underserved households in the area while helping to expand the overall network to get high speed Internet to thousands more. Other private partners were committing to a 70 percent match for the overall $3.32 million program.

The Sibley County project is part of a larger nationwide technology partnership to develop an incubator for entrepreneurs to develop applications specifically for R-S Fiber Cooperative in the areas of health care, education, senior citizens and agriculture.

The Minnesota grant program requires a somewhat rigorous application process to show potential benefits to creating business, jobs and economic activity. It also requires private sector investors to match grants thereby making sure everyone has skin in the game.

It will be important to track the success of the program and detail the number and type of jobs created under this new initiative.

Dayton’s budget proposes expands the spending on this program from $20 million to $30 million, a 50 percent increase. The demand for the grants this year would have even exceeded the new proposed spending.

The Legislature should give serious consideration to this program and its expansion.

— Mankato Free Press, Feb. 12

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