BROADBAND IN MINNESOTA

Critical Issues For Consideration

The MN Ultra High Speed Broadband Task Force is charged

with advising the 2010 MN Legislature on state broadband

policy.

What do you want them to know?

Agenda Topics

• What is broadband and why do we want it?

• Where are we now?• Where do we want to go?• How do we get there?

Where are we now?

• As a nation• Minnesota• In this region• In your community

My assumption: The best broadband is high-speed, low-cost, ubiquitous and reliable!

International Comparisons - OECD

0

5

10

15

20

25

30

35

40

Denmark

Netherl

ands

Icelan

d

Norway

Switzerl

and

Finlan

dKore

a

Sweden

Luxe

mbourg

Canad

a

United

Kingdo

m

Belgium

France

German

y

United

States

Austra

liaJa

pan

Austria

New Z

ealan

dIre

land

Spain

Italy

Czech

Rep

ublic

Portug

al

Hunga

ry

Greece

Poland

Slovak R

epub

lic

Turkey

Mexico

Source: OECD

DSL Cable Fibre/LAN Other

OECD Broadband subscribers per 100 inhabitants, by technology, December 2008

OECD average

USA

United Kingdom6%

Germany8%

Rest of OECD38%

United States30%

Japan11%

France7%

Total broadband subscriptions, percentage of total OECD, top 5 countries, June 2007

0% 10% 20% 30% 40% 50% 60%

Ireland

Sw itzerland

Netherlands

Iceland

Italy

Hungary

United States

Czech Republic

Norw ay

Denmark

OECD

Slovak Republic

Sw eden

Korea

Japan

Percentage of fibre connections in total broadband subscriptions, December 2008

18.464.95

3.853.56

3.223.16

2.822.65

2.442.27

2.101.92

1.741.72

1.581.511.441.42

1.161.15

1.111.031.02

0.950.92

0.410.350.34

0.25

MexicoTurkey

CanadaPoland

HungaryBelgium

Czech RepublicUnited States

Slovak RepublicPortugal

NorwayAustria

SpainSwitzerland

IrelandLuxembourg

GermanyItaly

United KingdomNetherlands

IcelandGreeceDenmark

New ZealandAustralia

FinlandSwedenKorea

FranceJ apan

115.0141.42

110.5173.83

46.3122.07

15.6026.66

54.1813.35

20.9922.73

43.2774.60

22.2816.51

19.1722.24

13.1645.20

37.2946.70

26.0786.02

160.9668.76

98.804.48

27.9186.00

0.10 1.00 10.00 100.00 1000.00

MexicoTurkey

CanadaPoland

HungaryBelgium

Czech RepublicUnited States

Slovak RepublicPortugalNorw ayAustria

SpainSw itzerland

IrelandLuxembourg

GermanyItaly

United KingdomNetherlands

IcelandGreece

DenmarkNew Zealand

AustraliaFinland

Sw edenKorea

FranceJapan

Range of broadband prices per Mbit/s, October 2008, all platforms, logarithmic scale, USD PPP

Global Comparison - Price per MB

USA

Pew Center

Minnesota Broadband Statistics

• Center for Rural Policy – Late 2007 data– Broadband Users

• 52.3% of rural residents• 57.8% statewide average• 63% metro residents

– Dial Up Users• 38% statewide say broadband too expensive• 30% rural say broadband not available

Ubiquity ScenariosMetro Area

• Metro Area– Duopoly almost everywhere– Prime business areas (Downtowns, Eagan,

Eden Prairie, etc.) served by multiple fiber networks by CLECs

Ubiquity- Greater Minnesota• Duopoly (cable and DSL) in county seats and other towns over 1,000• CLEC

– 100% CLEC overbuild in limited number of Qwest communities– Cherry-picking CLEC in many Qwest areas via fiber and leased copper

• Broadband in rural countryside highly variable depending on provider• Certain coverage in rural coops• General coverage in private rural companies• Increasing coverage by smaller investor owned providers• Limited coverage by larger investor owned providers

• Wireless coverage– Fixed wireless dependent on topography and trees– Mobile wireless dependent on market

• Smallest communities – Single provide or no provider depending on local telephone company and

wireless coverage

• According to Connected Minnesota, over 90% of MN households have available broadband services of at least 786k.

Pink – Cable modem Purple – DSL Grey – Unserved

Where do we want to go?Discussion

• What goal for bandwidth?• What applications are important to you now

and into the future?• Should the goal have tiers, depending on

location, user types and applications?• Should mobile broadband be a part of this

discussion?• Broadband – essential utility or market

service?

What are the best ways to stimulate broadband development?

• Free markets and private investment

• Government incentives• Government mandates• Public-private partnerships • Public networks with private

providers• Public utilities

• Private

• PublicWhere do cooperatives fit into this list?

Why do we want broadband?Application examples

• Regional and Local Examples– Health– Education– Community

• Tool Kit– http://broadband.blandinfoundation.org

Input for the Task Force

What is this region’s message?Who will speak?