Frontiers of Broadband, Electronic and Mobile Commerce (Contributions to Economics)

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Innovation in digital technology has allowed rapid growth in mobile telephone and Internet adoption among consumers. The implication underlying the high rates of subscription growth is that consumers generally place a high valuation on telecommunication services. Moreover, since mobile telephone and Internet are predominantly telecommunication services, it is reasonable to presume that the network effect may be largely responsible for this growth. However, to date there have been few attempts to measure the change in consumer welfare as networks increase.

Following Hausman , this paper measures the change in consumer surplus based on the compensating variations approach. If you have any other questions, you can email the Broadband office at deed. Broadband development projects located in unserved or underserved areas are eligible for the Border to Border Broadband Development Grants. An unserved area is an area of Minnesota in which households or businesses lack access to wire-line broadband service at speeds that meet the FCC threshold of 25 megabits per second download and 3 megabits per second upload.

An underserved area is an area of Minnesota in which households or businesses do receive service at or above the FCC threshold but lack access to wire-line broadband service at speeds megabits per second download and 20 megabits per second upload. An interactive map showing areas reported by providers as being unserved and underserved areas is available on the OBD website.

Eligible applicants for this program are an incorporated business or partnership, a political subdivision, an Indian tribe, a Minnesota nonprofit organization organized under chapter A, a Minnesota cooperative association organized under chapter A or B, or a Minnesota limited liability corporation organized under Ch.

Mobile telephony and internet growth: impacts on consumer welfare

The Border-to-Border Broadband Development Grant Program can pay up to 50 percent of the broadband development costs for a qualifying project, including the acquisition and installation of middle-mile and last-mile infrastructure that support broadband service scalable to speeds of at least megabits per second download and megabits per second upload. Construction of broadband infrastructure may include any of the following: project planning; obtaining construction permits; construction of facilities, including construction of both "middle mile" and "last mile" infrastructure; equipment; and installation and testing of the broadband service.

These wage rates must be figured into your project budget.


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Find the rates for your county. Prevailing wage rates do not apply to last-mile portions of your project. Contact SHPO for information on reviews prior to construction for possible disturbances of historic, archaeological sites. This would include a records search for existing archaeological sites, recommendations for surveying areas along the route if any and recommendations on avoiding the sites that have been identified "historic. Natural Heritage Sites might include rare plant species, animals, and protected areas, for example. In a funding partnership with the State of Minnesota and Fillmore County, AcenTek will improve broadband levels to a minimum of 1 gigabit per second Gbps download and megabits per second Mbps upload, exceeding the state speed goal set for the year With fiber optic cable installation, rural Rushford will see many advancements in medicine, education, and agriculture.

These three industries impact nearly every home in rural Rushford and Rushford Village. Agriculture producers will have opportunities for technology advancement, employees of area medical facilities may have options for telecommuting, and students will have faster Internet speeds for research and study materials.

The Rural Grant, Stevens and Wilkin Counties fixed wireless project will serve unserved households, unserved businesses, and 8 unserved community anchor institutions in eligible areas across these three western Minnesota counties. In a funding partnership with the State of Minnesota, Advantenon will improve broadband service levels to Mbps download and Mbps upload, exceeding the state speed goal set for the year This project delivers the goal of Border to Border coverage for all residents of the covered counties, benefiting residents, businesses and public entities alike through enhanced access to healthcare services, education options, entertainment and business connectivity not previously possible.

This last mile project will extend the existing Albany Fiber-to-the-Home network to serve unserved households and home-based businesses in an area northeast of Albany in Stearns County. In a funding partnership with the State of Minnesota, Albany Mutual Telephone Association will improve broadband service levels to exceed the state goal of 25 Mbps download and 3 Mbps upload. The all-optical network will provide more opportunity for the creation of new businesses, educational advances and access to healthcare services including wearable technology and home monitoring devices. This middle and last mile project will upgrade approximately unserved households and 60 unserved businesses in the Pelican Rapids rural area of Otter Tail County.

A funding partnership with the State of Minnesota and Arvig will improve broadband service levels to at least Mbps download and Mbps upload, meeting or exceeding the and state speed goals. These investments will improve quality of life and business development opportunities. The project will serve unserved households and 73 unserved businesses in the area northeast of Rice in Benton and Morrison Counties with improved broadband service levels that meet or exceed the state goal of Mbps download by 20 Mbps upload.

Having this advanced access will improve quality of life in these rural Rice areas, including opening opportunities for business, education, health care, and telecommuting options. This last mile project will serve 25 unserved households and 30 unserved businesses in the Delavan SE Rural Project located in Faribault County. The use and development of broadband will open up various home-based business options, stimulate economic growth, and encourage innovation and investment.

Education, health care, energy efficiency, and public safety will improve with high-speed Internet access. This last mile project will serve 15 unserved households and 17 unserved businesses in the rural Freeborn area, in Freeborn County, completing a Border-to-Border grant build begun there two years ago. In a funding partnership with the State of Minnesota, Cannon Valley Telecom will improve broadband service levels to 1 Gbps down and 1 Gbps up, exceeding the and state speed goals.

The project will open up opportunities for business development including various home-based business options, stimulating economic growth, innovation and investment. This last mile project will serve 35 unserved households and 21 unserved businesses in the rural Granada area located in Martin County, completing a Border-to-Border grant build begun there one year ago.

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In a funding partnership with the State of Minnesota, Granada Telephone Company will improve broadband service levels to 1 Gbps download and 1 Gbps upload, exceeding the and state speed goals. This use and development of broadband will provide various home-based business options, stimulate economic growth, and encourage innovation and investment. The project will leverage federal CAF II funding available to Frontier Communications combined with State of Minnesota grant dollars to bring enhanced broadband to currently unserved households in the western one-third of Carlton County in northeastern MN, in and around the communities of Cromwell and Kettle River.

The project will improve broadband service levels to the state speed goal of at least 25 Mbps download by 3 Mbps upload. Work, school, and family life will be vastly improved with students being able to do homework at home, along with expanded options for telecommuting and growing or starting businesses that require sufficient bandwidth to be competitive in local and world markets from this remote area. This last mile, fiber-to-the-home project will serve unserved households, 7 unserved businesses, and one unserved community anchor institution in Fish Lake Township in rural Chisago County.

In a funding partnership leveraging federal CAF II , state grant and local township funding, CenturyLink will improve broadband service levels to 1 Gbps down and 1 Gbps up, exceeding the state speed goal. This state-of-the-art advanced broadband network will have a significant positive impact on people in the project area.

Consumers will be able to work from home, have better access to education and healthcare, and businesses will be better able to compete locally and globally.


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  8. This last mile project will serve unserved households and 17 unserved businesses with fiber-to-the-home in Fredenberg Township near Duluth in St. Louis County. In a funding partnership with the State of Minnesota, CenturyLink will improve broadband service levels to 1 Gbps download and 1 Gbps upload, exceeding the and state speed goals in an area that for the most part, can currently obtain no more than 4 Mbps download speed.

    A state-of-the-art advanced broadband network will have a significant and positive impact on people in the project area. This last mile project will serve unserved households, 15 unserved businesses, and 5 community anchor institutions within the City of Watson and several unserved areas of southwest Lac qui Parle County in western Minnesota. In a funding partnership with the State of Minnesota and the City of Watson, Farmers Mutual Telephone will improve broadband service levels to 1 Gbps down and 1 Gbps up, exceeding the state speed goal.

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    Broadband infrastructure has been identified as a high priority in the regional strategic plan. The investments will help support job creation and economic prosperity throughout the region, helping numerous businesses create jobs and be more competitive. New jobs related to farming, home-based business start-ups, and commercial expansions are all possible with improved broadband infrastructure.

    It will also provide improved accessibility for all residents to health care and education opportunities. This last mile project will serve up to unserved homes, 8 unserved businesses, and 1 community anchor institution in a project area in the Fond du Lac Indian Reservation in northeastern Minnesota. This area also includes the town of Brookston. A funding partnership with the State of Minnesota and the Fond du Lac Band of Lake Superior Chippewa will improve broadband service levels up to 1 Gbps down and 1 Gbps up, exceeding the state speed goals.

    It will also add needed additional network redundancy for the Fond du Lac Reservation. The fiber-to-the-home network will open up many opportunities such as telemedicine, Home Health Care, and improved and secure electronic health records; and online education and improved business development and more. All these factors will assist in creating a more vibrant community and region. This last mile project will serve unserved households, 17 unserved businesses, and 7 unserved community anchor institutions in Bejou and surrounding rural areas within Mahnomen County, including portions of the White Earth Reservation in northwestern Minnesota.

    In a funding partnership with the State of Minnesota, Garden Valley Telephone will improve broadband service levels to 1 Gbps down and 1 Gbps up, exceeding the state speed goal.

    E-Commerce and Market Competition

    Bejou and White Earth leaders agree that the area is in desperate need of fast reliable Internet service to help the area progress, especially as technology continues to advance around them. This last mile project will serve 32 unserved households and 10 unserved businesses in Douglas County near Alexandria. In a funding partnership with the State of Minnesota, Gardonville Cooperative Telephone Association will improve broadband service levels to 1Gbps per second down and 1Gbps up, exceeding the state speed goal.

    This project will improve this neighborhood's quality of life, from gaining the ability to perform daily activities such as at-home online homework and telecommuting options, to opening new doors for business development and improved health care. This last mile project will serve 18 unserved households and 6 unserved businesses in the Pospisil Drive Development near Alexandria in Douglas County. In a funding partnership with the State of Minnesota, Gardonville Cooperative Telephone Association will improve broadband service levels to 1Gbps down and 1Gbps up, exceeding the state speed goal.

    This project will continue a build-out begun last year further expanding this neighborhood's quality of life, from gaining the ability to perform daily activities such as at-home online homework and telecommuting options, to opening new doors for business development and improved health care.

    Benchmarking global competitiveness

    This Fiber-to-the-Premise project will serve unserved and underserved locations in Pope County, including: unserved households and unserved businesses; and underserved households and underserved businesses and 11 underserved community institution. In a funding partnership with the State of Minnesota, Hanson Communications will improve broadband service levels to 1Gbps down and 1Gbps up for rural subscribers in the Starbuck Exchange and the Lake Minnewaska Area in west central Minnesota, exceeding the state speed goal.

    Hanson worked together with Pope County officials to identify those areas in the rural portions of the county receiving less than sufficient broadband services. The primary customers will be residential customers and traditional family-owned farms, all to be served by reliable, affordable, high quality broadband to improve community and economic development opportunities. This last mile project will bring broadband service to unserved households, 18 unserved businesses, and 3 community anchor institutions in the Sand Creek Township area of Scott County by constructing fiber to the premises.

    Trends in the Information Technology sector

    In a funding partnership with the State of Minnesota, Jaguar will improve broadband service levels up to 1 Gbps down and 1 Gbps up, exceeding the state speed goal. Jaguar's project will connect residents and businesses to a redundant, stable, substantial fiber optic ring, creating pathways to fully participate in today's digital society and economy. This last mile project will serve unserved households and 9 unserved businesses in the rural Canisteo and Ashland Townships located south of Kasson in Dodge County in southeastern Minnesota.

    In a funding partnership with the State of Minnesota, KMTelecom will improve broadband service levels to 1 Gbps down and 1 Gbps up, exceeding the state speed goal. Currently the City of Kasson has an all-fiber network. This rural Kasson Fiber Build is an extension of these broadband speeds to rural Kasson, bringing access to education, healthcare and work. The network will also assist area farms by increasing productivity through access to digital technologies for agricultural production and agribusiness.

    In a funding partnership with the State of Minnesota, Mediacom will leverage its existing hybrid fiber and coaxial network in the City of Fountain in Fillmore County in southeastern Minnesota, to increase and extend advanced broadband to unserved households and 20 unserved businesses, exceeding the state speed goal of 25 Mbps down and 3 Mbps up. The project will unlock opportunities for distance learning, telemedicine, and telecommuting and other increased business development. In a funding partnership with the State of Minnesota, Mediacom will leverage its existing hybrid fiber and coaxial network in the City of Medina in Hennepin County, to increase and extend advanced broadband to 22 underserved households and 12 underserved businesses, exceeding the state speed goal of 25 Mbps down and 3 Mbps up.