8. MN Line Extension Program FAQWhat is a line extension?
A line extension would be the continuation of an existing wired broadband service from either a
pedestal/connection point already placed along the roadway to serve a location or from a nearby
neighborhood fiber node. In both instances, fiber is close to the location, but an aid-to-construction
(or excess construction) charge is a barrier to the household or business subscribing to service. For
example, many companies charge to place the drop from the roadside pedestal to the home if a
driveway exceeds a certain length. The Line Extension Connection Program will provide a grant to
the broadband provider to cover the cost to run the wire for the broadband service to the home.
The resident is then responsible for the monthly cost of service.
How quickly will line extensions be installed under this program?
This program has a number of steps built into the process. An approximate timeline would be as
follows:
Address is registered in portal (November 2022)
Every six months OBD sends list of addresses to broadband providers in Minnesota (May
2023)
Broadband providers notify OBD if they can already serve any of the addresses (May
2023)
Reverse auction begins (May 2023)
Broadband service providers have 60 days to submit bids (July 2023)
OBD selects winning bids (September 2023)
OBD enters contracts with all winning bidders (October 2023)
Winning bidders have one year to build the line extension (October 2024)
While it is possible that some line extensions could be constructed in the fall of 2023, most line
extensions from the initial list of addresses entered into the program will likely be constructed in
2024.
If you need broadband service sooner than this program provides, you may want to reach out to
broadband providers in your area to see about paying for a line extension directly (and not as part
of this program).
Is there any way to speed up the process for the Line Extension
Connection Program?
Many of the steps are laid out in statute so we cannot shorten them; or the steps include time
needed by providers to prepare responses or for OBD to complete reviews so it would be
impractical to shorten them. If we have a large number of addresses initially entered into the portal
such that it makes sense to issue that initial list before the six months allowed in statute, and we
have the resources to do so, OBD will evaluate whether to send the initial list to broadband
providers prior to May 2023.
What broadband speeds will be available after the line extension is
constructed?
Winning broadband providers will have to construct broadband service that deliver speeds of at
least 100Mbps download and 100Mbps upload. While the language in the state law says that the line
extension infrastructure must support broadband service scalable to speeds of at least 100Mbps
download and upload, this program is being funded with federal American Rescue Plan Act funding
administered by the U.S. Department of the Treasury and the federal requirements are that service
of 100Mbps download and 100Mbps upload be available at the time service is offered over the
infrastructure paid for with federal money.
Can I register my address if I want a different internet provider to serve
me?
Only locations that do not have a wired broadband service with speeds of at least 25Mbps download
and 3Mbps upload available are eligible for this program. If your address has service from an
existing wired broadband provider available at or above 25Mbps download and 3Mbps upload, it is
not eligible for this program.
Can I register my address if I want a faster internet connection then
what is available from my current provider?
If your current broadband service has speeds available that you can subscribe to that are at or
above 25Mbps download and 3Mbps upload, then your address is not eligible for this program.
Locations with service at or below 100Mbps download and 20Mbps upload are eligible for the
Border-to-Border Broadband grant program, so you may want to talk to your county, city or
township officials about whether they are working with any broadband providers for a Border-to-
Border Broadband grant application for your area.
Can I submit applications for several addresses in my neighborhood?
The statute provides that each person should enter their own address where service is not available.
The form also has a signature box for the person completing the form affirming the information
provided. Therefore, you should have each person in your area that is unserved enter their own
address. Broadband providers can then decide how to respond in the reverse auction to serve
multiple addresses under this program or possibly submit a Border-to-Border Broadband grant
application to build out the area under a larger project.
Does the Line Extension Connection Program guarantee that I will get
service from a broadband provider?
No, there is no guarantee that a broadband provider will bid on your address. It is possible that even
with a state subsidy of $25,000, the cost to serve your location is too expensive for any provider to
be able to make the business case to extend service to you. This is most likely to happen where
there are no existing facilities close enough to your home or business from which to extend service
capable of providing speeds of at least 100Mbps download and upload. Our office will be tracking
locations where no bids are received to prioritize as Border-to-Border Broadband grant project
areas under federal funding that the state will receive under the Broadband Equity, Access and
Deployment (BEAD) program.
If a broadband provider indicates that service is available already at my
address and I disagree, how can I challenge that information?
OBD will begin by checking the interactive map for the address to see what is reported as being
available. If you disagree, you can contest what the map shows (at any time, not just to register for
the line extension program), and we will work with you and the provider, to clarify the speeds
available.
Does the resident get the $25,000 grant to find a broadband provider
and pay for the line extension?
No, the resident enters their address in the portal. From that point in the process, OBD will conduct
a reverse auction, select the winning bidder, and contract with that broadband provider for the line
extension to be built. Upon completion of the line extension construction, OBD will award the
funding based on the contract terms.
What if I don't want service from the broadband provider that wins in
the reverse auction for my location?
If you do not want service from the winning bidder, when the provider reaches out for permission to
bury the line, you can refuse access. It should also be noted that this program is structured to award
funding to the broadband service provider that bids the least amount of financial support from the
state and for which OBD determines that the selected bids result in a cost-effective expenditure of
state resources. There is no language in the process outlined in statute for outside input as to which
bid should be selected (assuming multiple bidders for an address). If there are multiple unserved
addresses and the residents want to have a say in who their broadband provider is, then working
with a preferred provider to submit an application to the Border-to-Border broadband grant
program for that area would be a more suitable program.
If there are multiple bids for the same address, how will OBD select
between bidders to determine the winning bidder?
The language in the statute directs OBD to select the winning bidder by the bidder that requests the
least amount of financial support from the state, provided that OBD determines that the selected
bids represent a cost-effective expenditure of state resources. If the grant amount requested is the
same between two bidders, then OBD would look to see which provider has the more affordable
monthly rates for broadband service.
How long will the Line Extension Connection Program be available?
The state legislature appropriated $15 million of federal funding for this program, with each line
extension eligible for up to $25,000 in grant funding. If all line extension bids are received at the
maximum amount (which is unlikely), it is possible that the program would be able to fund a total of
600 line extensions. This federal funding must also be spent by December 2026, so the portal to
register addresses will be open as long as funding is available or through May 2025.