MN Broadband Conference: Blandin Foundation

1. FinleyUSA.com
Conducting a Successful
Broadband Feasibility Study
Mark Mrla & Chris Konechne – Finley Engineering Company
Blandin Foundation – 2019 Broadband Conference
Grand View Lodge – Nisswa, MN
October 9, 2019

2. FinleyUSA.com
Finley Engineering Experience
• Completed over 20 studies in the last 3 years
• 13 of those were MN counties and cities
• Nearly all of the MN studies ended with built out networks
• Those that haven’t, are too recent and are working that
direction

3. FinleyUSA.com
What Do You Want From a Feasibility Study?
• Mapping of network options
• Financial business cases
• Provider options
• Partnership options
• Funding options
• Market/needs assessment
• Audit existing network / mapping
• Community engagement guidance
• Network designs/technologies
• Costs
Typically…….

4. FinleyUSA.com
RFP Cautions
• Do research before engaging a consultant and
sending out an RFP. Some consultants are
putting out bad RFP’s
• How much are you asking to be done? Many
RFP’s are requiring steps that are not yet needed.
• Are you required to take low price?
• Can you compare apples to apples when you get
your RFP responses?
Request for
Proposal (RFP)
Assessment
GIS Maps
Provider
Assets
Budget
Design
Inventory

5. FinleyUSA.com
Key Players
• Experienced professionals (engineering,
financial, legal, etc.) at certain times
• Study owner’s team
• Potential providers
• The community
• Possibly potential investment partners
Who Should be Involved?

6. FinleyUSA.com
Options, Options, Options
• Design Options
• Technology Options
• Financing/Funding Options
There are hundreds of options that could be studied…
You can’t study them all
The key to finding the best solution is
• Gathering the right data
• Evaluating the right options
• Partnership Options
• Business Structure Options
• Timing Options

7. FinleyUSA.com
Funding
Funding Option Examples
• Cash or general funds
• Bonding – revenue, G.O., etc
• Bank or other loans
• Investors
• Federal or state grants and loans
• 3rd party grants (such as foundations)

8. FinleyUSA.com
Feasibility Studies in Minnesota are
Now More Important than Ever
• MN has one of the best broadband grant programs in the
country
• MN has successfully offered broadband grants since 2014
• MN has provided consulting to over 25 other states on language for
their proposed broadband bills/legislation & grant applications
• MN has approved 2 years of grant money for applications in 2019 &
2020
Population – 5.6 Million

9. FinleyUSA.com
Minnesota Broadband Grant Program Stats
Year Apps
Submitted
Apps
Awarded
Total App Amounts
Requested
Total Amount
Available to Award
Total Locations
Served by Apps
2014 40 16 $ 44.2M $ 20M 6,333
2015 44 15 $ 29.0M $ 10.588M 4,089
2016 57 40 $ 54.2M $ 35M 16,708
2017 70 39 $ 50.3M $ 20M 12,202
2018 $15M approved by legislature, but governor vetoed budget bill due to other contents
2019 80 $ 68.1M $20M
2020 $ 20M

10. FinleyUSA.com
Timing
• Our typical studies fall into a 2 to 4 month timeframe,
but could be shorter or longer depending upon:
• Size
• Complexity
• Details and services required
• Number of players involved
• Availability of GIS/maps and other information

11. FinleyUSA.com
Community Involvement
There is usually a need to get at least some of the community
actively involved in the process for:
• Awareness, education, needs assessment
• 2 or more champions to drive it forward
• Surveys
• Speed test verifications
• Service commitment signups to verify adequate take-rates

12. FinleyUSA.com
Study First Steps
• Assemble a team
• Educate team
• Speeds and technology
• Challenges providers are facing,
economics of broadband
• Research
• Areas of need
• Identify resources

13. FinleyUSA.com
Study First Steps
• Set Goals
• Primary
• Secondary
• Provider Engagement
• Evaluate existing providers and
their plans
• Community Engagement
• Educate Community on process and
get feedback

14. FinleyUSA.com
Provider & Project Obstacles
• Economics
• Funding Options
• Making the case
• Who will take service?

15. FinleyUSA.com
Technologies
• Fiber
• The “ultimate” solution
• Can be prohibitively expensive, can
be 7X cost of a wireless network
• Aerial v. Buried
• Time to deploy
• Low maintenance cost

16. FinleyUSA.com
Technologies
• Wireless
• Adequate for today’s needs
• Technology is steadily improving
• Cost effective
• Quick deployment
• Fight for Spectrum
• Coverage Challenges
• Tower Assets?
• What does 5G mean for rural
America

17. FinleyUSA.com
Building the Model
• Reality – We can’t know
what project might
come from a study.
• Model = Flexibility
• Factors Driving Accuracy
• Data
• Detail
• Scope

18. FinleyUSA.com
Study Results
• Providers
• Public
• Identify Next Steps
• Local Contributions
• Maintain Momentum
• Project Partners
• Singles vs. Homeruns
• Update Model as Required