SOUTH DAKOTA STRAIGHT TALK

S.D. A Leader In Broadband Access

Capital Journal

By: Chuck Clement

August 26, 2005

While South Dakota may rank 50th among the states in some areas, the state ranks among the leaders in the nation when it comes to broadband access to the Internet.

The state’s broadband access — which is on par with the Internet resources in the more urban areas of the United States — provides an important asset for South Dakota business people, according to state Public Utilities Commissioner Bob Sahr. But it isn’t enough for residents to understand broadbands importance, the state also has to drive the point home to federal officials.

Those efforts brought about the “Broadband Road Trip,” a tour arranged by PUC commissioners to show the importance of broadband and other telecommunications technology in South Dakota to Jonathan Adelstein, a member of the Federal Communications Commission.

“Broadband has provided new economic opportunities for South Dakota,” Adelstein said. “This trip has demonstrated how South Dakota is a leader in this telecommunications field, despite the challenges caused by distance and geography.”

Adelstein and PUC commissioners Sahr and Dusty Johnson met on Thursday morning with about 40 state officials and telecommunications business people in Pierre to discuss the importance of broadband access and future telecommunications development.

Adelstein, a Rapid City native, has served with the FCC since December 2002, and he received a new five-year term in December 2004. Before joining the FCC, Adelstein worked for 15 years as a staff member in the U.S. Senate. Seven of those years were served on the staff of Sen. Tom Daschle.

The PUC has concerns about proposed changes to the Universal Service Fund, a fee charged to telephone users that has helped fund broadband access in more rural parts of the nations. The FCC has considered changes that would cut the revenue collected by USF, in turn reducing the amount of money available to states such as South Dakota.

According to Sahr, the USF has provided $65 million to South Dakota, money that telecom providers have used to make improvements to their systems. He said the tour was supposed to demonstrate how the technology has improved people’s lives and provide a rural perspective for the FCC.

In a recent decision, the FCC had reclassified DSL phone lines as an information service instead of a telecom service. The reclassification would have affected the fees that go into the USF, but Adelstein said FCC officials have agreed to keep collecting USF fees from phone companies for about nine more months.

Adelstein said the USF program is under attack by some groups in Washington, D.C., but he believes the program is important in helping telecommunications providers expand and upgrade their networks.

“We need to redouble our efforts to make sure we have the Universal Service Fund for all our population,” Adelstein said.

He and the PUC members started the Broadband Road Trip on Wednesday, visiting agencies and businesses in Sioux Falls, Mitchell, Groton and Kennebec on the first day of the trip. After the breakfast meeting in Pierre, the group traveled to Eagle Butte, Philip and Deadwood.

During the Pierre meeting, Jim Edman, manager of the Dakota Digital Network, presented information about the structure of the state’s broadband computer network. The DDN offers services such as distance learning provided to schools, video conferencing, government e-mail and Internet access. Adelstein was also given a quick demonstration of South Dakota’s statewide digital radio system.

According to Adelstein, the tour was probably a first for a member of the FCC, saying he found it was important, “to get out to talk to people on the ground and find out what’s really important.”

Adelstein said the visit to Kennebec provided such an experience when the group visited the local grain elevator. The elevator’s accountant, Kim Fischer, demonstrated how broadband communication helped her and the staff coordinate activities among the business’ several grain elevators in different communities.

Staying in Kennebec after the visit to the elevator, Adelstein said another first probably also took place — the first time that an FCC member met an entire community during a barbecue at the local fire hall.

On Thursday, the group continued its trip and visited other businesses that use modern communications technology, including the Cheyenne River Sioux Tribe Telephone Authority in Eagle Butte and Philip Livestock Auction in Philip.