Garden Valley Technologies is a cooperative established in 1906 that provides broadband internet to rural areas of Minnesota. It has expanded broadband access through several grant projects starting in 2005 with a fiber-to-the-home conversion. Recent projects include a 2016 grant to serve 330 households in Thief River Falls, a 2017 grant to serve 214 households in Bejou, and receiving support through the FCC's CAFII reverse auction in 2018/2019. Garden Valley continues pursuing opportunities like the USDA ReConnect program and Minnesota Border-to-Border grants to expand broadband access to remaining unserved areas.

1. Pursuing Broadband:
The Garden Valley Story
Blandin Foundation
2019 Broadband Conference
October 7, 2019

2. Garden Valley Technologies History
• Garden Valley was established in 1906
• One of the largest member owned cooperatives in the state of Minnesota
• 87 Employees (+5 with Minkota Technologies)
• RUS borrower (last loan in 2018 for $20.36 Million)
• 2019 – Switched from a High Cost company and opted into FCC’s ACAMII model
• ILEC area:
• 3,700 square miles
• 24 exchanges
• Started our Fiber-to-the-Home conversion in 2005
• Over 85% Fiber to the Home (100% by 2022)
• More than 5,000 route miles of fiber

3. CLEC Activity
• 2016
Garden Valley Telephone Company – Rural Thief River Falls East – GRANT: $2,027,035 (48%)
This middle and last mile project will serve 330 unserved households, 23 unserved businesses, and 2 community anchor institutions in rural
Thief River Falls in northwestern Minnesota. In a funding partnership with the State of Minnesota, Garden Valley Telephone will improve
unserved levels to 1 Gigabit per second up and down, exceeding the 2026 state speed goal. Over 100 residents and businesses in Pennington
and Marshall Counties submitted petitions nearly a year in advance to support Garden Valley’s B2B broadband grant application. They made
both an economic and community vitality case, including the fact that two large Thief River Falls-based companies --DigiKey and Arctic Cat --
struggle to find employees and spend considerable resources advertising for them. Broadband is essential to economic prosperity in rural
communities. It enables employees to work from home when applicable and provides their children improved access to homework and
educational resources.
Total eligible project cost is $4,222,990 Local match is $2,195,955.
• 2017
Garden Valley Telephone Company – Bejou – GRANT $1,304,421 (50%)
This last mile project will serve 214 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 2026 state speed goal. 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.
Total eligible project cost is $2,608,842 Local match is $1,304,421

4. CLEC Activity
TRF East (48%) Bejou (50%) Combined Total GV Cost
Grant Project cost Estimate $4,222,990.00 $2,608,841.00 $6,831,831.00 $3,500,375.30
Grant Project Cost Actual $3,560,563.00 $2,000,000.00 $5,560,563.00 $2,851,492.76
Cost savings $662,427.00 $608,841.00 $1,271,268.00 $648,882.54
% of savings 15.69% 23.34% 18.61% 18.54%
Miles Plowed Estimate 218 118 336 336
Miles Plowed Actual 263.5 130 393.5 393.5
Cost per mile Estimate $19,371.51 $22,108.82 $20,332.83 $10,417.78
Cost per mile Actual $13,512.57 $15,384.62 $14,131.04 $7,246.49
Subs Per Mile of cable Estimate 0.61 0.50 0.57 0.57
Subs Per Mile of cable Actual 0.67 0.63 0.66 0.66
per sub total build cost Estimate $11,895.75 $10,961.52 $11,520.79 $5,902.83
per sub total build cost Actual $9,106.30 $9,756.10 $9,329.80 $4,784.38
Total Subs Estimate 355 238 593 593
Total Subs Actual 391 205 596 596

5. CLEC Activity
• 2018/19 – CAFII Reverse Auction
• Awarded $880,346 in support for 95 locations over 10 years ($88,034.60 each year)
• Locations mainly in areas around grant areas.
• 2019
• Submitted two Minnesota Border-to-Border Broadband grants
• TRF West
• Euclid
• USDA ReConnect Grant opportunity
• 2020 opportunities
• RDOF Reverse Auction (aka CAFIII)
• USDA Reconnect II
• Always open to conversations with local communities!

6. Thief River Falls
• Original ILEC area
• Remaining communities needing FTTH
• New CLEC areas through two B2B grants
• 2016 – Thief River Falls East
• 2017 – Bejou
• 2018/19 CAFII Reverse Auction blocks
• 2019 MN B2B Grant application areas
Super applications?

8. Pursuing Broadband:
The Garden Valley Story
Blandin Foundation
2019 Broadband Conference
October 7, 2019