Broadband Update
Aerial and underground construction is in progress on Merit Network’s Round 1 fiber-optic installation in the NLEA region. Funding for 1,017 miles of fiber was made possible by the 2009 "Stimulus Package". Merit Network hired seven Michigan-based contractors to install the fiber. The fiber will connect Community Anchor Institutions, such as libraries, education, government and health care to Broadband services. Round 1 work is expected to be 60-70% complete by the end of 2011. Once fiber is in place, local Internet Service Providers (ISPs) will have the option of offering connecting Broadband services to homes and businesses.
Broadband Availability
Merit Network has been working with organizations throughout the NLEA region to make high-speed internet (Broadband) available. Merit is in the process of building an over 2,200 mile fiber-optic backbone network throughout the state of Michigan as well as spurs in Wisconsin and Minnesota. This network is being constructed with the assistance of two American Recovery and Reinvestment Act (ARRA), Broadband Technology Opportunities Program grants in the amount of $102 million along with a 20 percent match in funds from Merit and its seven sub-recipients. The REACH-3MC project is one of the largest BTOP projects in the country and is expected to serve 52 counties in both the Upper and Lower Peninsula's.
Working with the NLEA is Merit’s Member Relations Manager for the Upper Peninsula and Northern Lower Michigan, Eric Grandstaff of Petoskey. For the past 40 years Merit—hosted at the University of Michigan—has provided networking services to schools, colleges and universities, libraries, governmental entities, and hospitals. Now, partnering with several for-profit networking companies, Merit will be constructing highly cost-effective “middle mile” fiber optic networking to local for-profit and non-profit local Internet service providers (“ISP”). Once construction is completed, those local ISP’s will be able to offer residential and business Internet services in areas in Northern Michigan that are either un-served or under-served.
NLEA is assisting local organizations, communities, and businesses to identify and communicate their needs and assets to maximize services for all. The availability of affordable broadband internet throughout our region will take a few more years, but this is a major component to our New Economy model.
Leveraging Technology to Stimulate Economic Growth
Broadband is a powerful, enabling technology that is fast becoming the engine of economic growth in America. Increasingly, businesses seeking to open or expand operations look to see not only whether a community has robust broadband access, but also whether potential workers have digital literacy skills and tools. The economic future of Michigan communities depends not only upon whether robust broadband infrastructure is present but also upon whether businesses and individuals fully utilize that technology to grow and develop local economies.
According to a Connect Michigan study, 70% of all Michigan businesses subscribe to broadband. These businesses report median annual revenues that are $200,000 higher than businesses that do not use broadband (also maintaining a website nearly triples this additional revenue).
USDA Farm Bill Broadband Loan Program
The Farm Bill Broadband Program is designed to provide loans for funding, on a technology neutral basis, for the costs of construction, improvement, and acquisition of facilities and equipment to provide broadband service to eligible rural communities.
Eligibility:
- Cooperative, nonprofit, limited dividend or mutual associations
- Limited liability companies
- Indian tribes and tribal organizations
- Commercial organizations
Applications are accepted on a competitive basis for:
- Direct Cost-of-Money Loan
- Private Loan Guarantee
- Direct 4 percent Loan
Fund Uses:
- Finance the construction, improvement, and acquisition of facilities and equipment to provide broadband service
- Finance broadband facilities leased under the terms of a capital lease, as defined in generally accepted accounting principles; financing limited to 5 years of lease costs
- Finance acquisition by an eligible entity of another system, lines or facilities if the acquisition is necessary and incidental to furnishing or improving rural broadband service
- Refinance an outstanding obligation on another telecommunications loan made under the RE Act.
Distance Learning and Telemedicine Grant
The Distance Learning and Telemedicine Program (DLT) is designed specifically to meet the educational and health care needs of rural America. Through loans, grants and loan/grant combinations, advanced telecommunications technologies provide enhanced learning and health care opportunities for rural residents.
Eligibility:
- Entities providing education and medical care via telecommunications including corporations or partnerships
- Indian tribes or tribal organizations
- state or local units of government
- consortia
- private for-profit or not-for profit corporations
Applications:
- DLT 100% grant applications are accepted through a competitive process
- Applicants are required to provide a minimum 15 percent match
- Awards can range from $50,000 to $500,000
Fund Uses:
- Acquisition of audio and video equipment, terminal equipment, inside wiring, computer hardware and software, computer network components, other facilities that further DLT services
- Acquisition of instructional programming that is a capital asset
- Acquisition of technical assistance and instruction for using eligible equipment
NLEA’s Team of Economic Development Specialists can assist communities in finding the most effective approach to meet their needs. To learn more about our services and full range of community development solutions, please contact us at 231-582-6482, or by email.