This document summarizes research on measuring the return on investment (ROI) of rural broadband investments in 5 counties in Minnesota. It discusses the methodology used, which included collecting existing data and holding community meetings. It provides examples of broadband's benefits according to local stakeholders. The numbers show populations and incomes rising in counties with broadband. ROI formulas calculate the annual economic benefits and increases in real estate values exceeding the public investments in each county. Broadband access was found to boost local economies and conclusions state that community adoption efforts can further increase ROI.

1. Measuring ROI of
Rural Broadband
Investments: in 5
Rural Minnesota
Counties
Ann Treacy & Bill Coleman

2. • Blandin Foundation for
community capacity building and
engagement
• Office of Broadband Development
for coordination of public
investments
• State broadband goals and task
force – in Legislation
• Role of cooperatives
MN’s Unique Broadband Environment

3. 1. What does a connected rural
community look like?
2. What are the providers and
communities doing right?
3. What is the community ROI
on public investments?
Research questions

4. Methodology
• Collect and analyze existing data from 5 communities
• Look at ROI formulas
• Hold community meetings/interviews with key
interlocutors

5. Beltrami/Bemidji – Hip and Happening
Provider – Paul
Bunyan
Fiber (Gig)
DSL (50/40)
Community Partners
Bemidji Leads and
Greater Bemidji

6. Crow Wing/Brainerd – Work Hard, Play Hard
Provider – CTC
Fiber (Gig)
DSL (50/1.5)
Community Partners
Brainerd Lakes Chamber
of Commerce, Brainerd
Lakes Area EDC
(BLAEDC), Schools

7. Goodhue/Red Wing – Hotbed of Entrepreneurs
Provider – HBC
Fiber (Gig)
Fixed Wireless (40/40)
Community Partners
Red Wing Ignite

8. Lake – Remote but Global
Provider – Lake
Connections
Fiber (Gig)
Community Partners
County Commissioners,
Lake County

9. Sibley – Stable & Determined
Provider – RS Fiber
(HBC)
Fiber (Gig)
Fixed Wireless (50/25)
Community Partners
RS Fiber

10. “I get two questions: do you have the “I get two questions: do you
have the people we need to succeed here; the second do we
have the broadband.” - Economic Developer

11. “Business involvement is key in any successful economic
development program.” – Economic Developer

12. “…that [new location in same town] coupled with
online marketing, we’ve grown 400% over my dad’s
record year.” – Business owner

13. “As we work with commercial real estate agents, they
tell us that’s a leading question – is fiber available at
that location?” – Broadband provider

14. “Having good internet makes everything move more
smoothly… bill pay…accounting … camera feeds in
our hog sites…” - Farmer

15. “We use drones to do investigating … into the jungle
[Puerto Rico] instead of sending employees.” – Xcel
Energy

16. “Broadband helps efficiency by allowing us to do things
at such a rapid pace. Before …you’d sit and wait for
things.” – Winthrop News

17. “Patients can easily be 200 miles from the
nearest health facility… the patient portal
… is tremendously convenient.” –
Healthcare

18. What do the numbers show?

19. Broadband Access Over Time

20. Beltrami – Census Stats
• 2016 Population up 3.7% (2010)
– The statewide average was 4.1
– Similar counties have seen decline
• 2015 Median Income is $44,757
– Compared $40,700 for similar
• Beltrami’s DDI is the second best
out of the counties

21. ROI Formulas
0
50000000
100000000
150000000
200000000
250000000
Beltrami Crow Wing Goodhue Lake Sibley
Public Investment vs Community Benefits
Public Investment Annual Economic Benefit Community Real Estate Increase

22. ROI Details
County Public Investment Annual
Econ Benefit*
Real Estate
Increase*
Beltrami $1,432,000 $38,631700 $102,593,266
Crow Wing $15,123,450 $67,412,150 $214,662,149
Goodhue $542,262 $32,774,600 $104,825,572
Lake $83,418,170 $13,695,550 $38,547,421
Sibley $9,850,011 $8,604,350 $20,162,085
• Annual economic benefit - $1850/household x HH
served
• Community real estate increase – 3% increase of market
(median value x HH served)

23. • Public costs?
– Minnesota Super Bowl Host
Committee (nonprofit) $60M
– Stadium (taxpayer) $500M
– Tax savings, free parking,
closed public transport…
• ROI?
– Rockport Analytics estimated
$338M
– Sports economist Victor
Matheson suspects $30M to
$130M
Just to compare

24. • Two keys to economic benefit – access and adoption
• The community benefits from broadband quickly; the
provider’s ROI may not be as “timely”
• Public funding shortens ROI for the provider
• Adoption efforts increases ROI for community
• Access the report
Conclusions

25. Thank you!
• Bill Coleman
Community Technology Advisors
bill@communitytechnologyadvisors.com
www.communitytechnologyadvisors.com
Ann Treacy
Treacy Information Services
atreacy@treacyinfo.com
treacyinfo.com - blandinonbroadband.org