This case study is part of our report Beyond connectivity: The role of broadband in rural economic growth and resilience. This report is a deep dive into the impact of broadband access on rural communities.
In Beltrami County, collaboration is key. The local broadband cooperative extends its reach across the community, meeting today’s infrastructure needs and laying the groundwork for sustainable growth.
The city of Bemidji has long recognized the importance of balancing progress with the preservation of its unique Northwoods character. Central to this vision is the development of essential infrastructure that supports both the community’s daily life and its long-term aspirations. The city’s mission of “Responsible Growth with Northwoods Character, preserving our history and providing diverse opportunities for success” reflects its commitment to blending tradition with progress. This vision is well-supported by the region’s tradition of locally rooted utility cooperatives whose members share the benefits: the Beltrami Electric Cooperative and Paul Bunyan Communications.
The establishment of the Beltrami Electric Cooperative in 1940 was a response to the dire need for electrification in rural areas at a time when the quality of life gap between urban and rural communities was high — in 1935 less than 11% of American farms had access to electricity. Commercial power companies were often unwilling to invest in rural electrification, leading local farmers to band together to create their own cooperatives. This initiative not only brought electricity to the area, transforming the agricultural landscape by enhancing productivity and living standards, but also laid the groundwork for future community-driven initiatives.
Paul Bunyan Communications, founded in 1952 and originally known as Paul Bunyan Telephone, has been instrumental in enhancing connectivity in Bemidji and its surrounding rural areas. Named after the legendary lumberjack whose mythical footprints are said to have created Minnesota’s 10,000 lakes, Paul Bunyan Communications has grown from a modest telephone service provider to a comprehensive telecommunications cooperative. It now offers a wide range of services, including high-speed internet, television, and voice services, fulfilling the critical mission of connecting the community to the broader world and supporting the region’s economic and social development. Indeed, as Paul Bunyan Communications CEO Gary Johnson said, “If you look at our mission statement, it talks about us being a driver of economic development. It talks about us having the goal of improving the lives of members we serve in our region.”
Paul Bunyan Communications has been a pioneer in deploying advanced telecommunications infrastructure, such as high-speed gigabit fiber services called the Gigazone, making it one of the largest all-fiber optic rural broadband networks in the country. Figure 9 below shows that Beltrami County’s fiber access at 99% of locations far outpaces both Minnesota and the nation. This is significant as fiber broadband is the gold standard of broadband infrastructure. While more expensive to install, it offers better long-term value because it is more durable, easier to maintain, and ensures smoother online experiences for uses like video calls and streaming due to symmetrical download and upload speeds. It is also considered to be “future-proof” and scalable because its high data transmission capacity can handle current and future broadband demands, while ensuring much faster speeds and more reliability. For these reasons, and the cooperative’s guiding philosophy — “working together to focus on service rather than profit, on shared values rather than share value” — Paul Bunyan Communications decided in 2004 that an all-fiber network would be the best long-term and high-value option for their residential and business customers.
Paul Bunyan Communications’ growth from a local telephone cooperative to a leading broadband provider reflects a broader trend of community-driven infrastructure development. The cooperative’s investments, including the $100 million GigaZone project, northern Minnesota’s first high-speed gigabit fiber network, have positioned Bemidji and surrounding areas as innovative, connected communities. To further enhance its services, Paul Bunyan Communications also offers a range of value-added broadband services. For residential areas they provide SmartHome services complete with enhanced parental controls and advanced network security powered by their GigaZone mobile app. To support WiFi roaming they have implemented the SmartTown initiative, providing outdoor WiFi in public spaces and ensuring that residents and businesses stay connected, even in previously underserved areas. Additionally, the SmartBiz program caters to the specific needs of local businesses by offering secure networks, easy-to-manage employee access, and redundancy options to safeguard against power outages — all without the need for extensive IT support. This is particularly beneficial for small businesses that might not otherwise afford these enterprise-level services.
Beltrami County’s cooperatives, Paul Bunyan Communications and Beltrami Electric Cooperative, have a collaborative history characterized by shared ventures and mutual support within their community-focused missions. One of their notable partnerships was the formation of Cooperative Development, LLC in 1996, a joint initiative between the two cooperatives to create Bemidji’s Technology Park. This business park was established to provide a conducive environment for technology-oriented businesses, offering advanced communication and infrastructure services. Supporting new tech businesses is beneficial for the community, as tech jobs are high-paying and high-growth jobs that help ensure that the region remains competitive and resilient in an increasingly digital economy.
And based on Beltrami County’s steady business growth it seems Paul Bunyan Communications’ approach is paying off. Since 2010, the number of businesses in Beltrami County has grown by 12.1% (which amounts to an average annual increase of 1.1%), outperforming both the state and the country as a whole (see Figure 10 above). AirCorps Aviation General Manager Erik Hokuf said that the exceptional broadband services in Bemidji have made it possible to expand their business, generating $4 million in annual revenue instead of an estimated $300,000-$400,000 without fiber. In addition to the growth of new businesses and revenue, the per capita income in Beltrami County also increased by 7% between 2020-2022.
Greater Bemidji — the region’s innovative economic development organization — has built off this momentum to highlight entrepreneurship, innovation, and quality of life as key goals in their strategic planning. Through initiatives like LaunchPad, a startup support initiative that provides education, capital, and community resources to aspiring entrepreneurs and early-stage companies, and the Headwaters Angel Network, which provides access to capital, Greater Bemidji actively encourages entrepreneurs and supports business growth and expansion. These efforts have allowed the community to connect with broader economic opportunities and capitalize on its broadband infrastructure to expand its tech and entrepreneurship capabilities, due in no small part to the support of community-engaged cooperatives like Paul Bunyan Communications, who helped build the LaunchPad through donations of equipment and gigabit internet service.
Figure 11 below shows that these varied broadband services and community partnerships that leverage broadband infrastructure make Beltrami County stand out when it comes to business growth. Startups like Hemo Research, a technology design and development firm, are leading examples of how local innovation paired with a supportive ecosystem can drive economic vitality. Hemo Research was a finalist in the NORTHSTARtup pitch competition that takes place during Paul Bunyan Communications’ GigaZone TechXpo, and a $25,000 prizewinner at the Minnesota Startup Cup. Startups like Hemo Research not only create high-quality jobs — electric, computer, firmware, and software engineers in Hemo Research’s case — but also foster wealth and prosperity for residents by growing economic benefits locally, supporting other businesses, and contributing to a more resilient and prosperous community.
As a cooperative, Paul Bunyan Communications also has the unique ability to reinvest in its members, reflecting their deep commitment to the community’s well-being. In 2020, they demonstrated this dedication by achieving a record-high capital return and distributing $4.1 million back to their members — a powerful testament to the success and sustainability of their operations. This commitment to the community was further highlighted when the FCC recognized Paul Bunyan Communications for their significant COVID-19 response through the Digital Opportunity Equity Recognition (DOER) Program, partnering with schools to set up free broadband for families in need and free WiFi hotspots for students and families in unserved areas. In 2023, in recognition of their contributions to Bemidji, Paul Bunyan Communications CEO Gary Johnson, Marketing Supervisor Brian Bissonette, and Technology Experience Manager Leo Anderson received Excellence Awards from NTCA-The Rural Broadband Association, highlighting their contributions to healthcare and economic development in the region.
The county has also capitalized on broadband infrastructure and strong broadband service provider partnerships to meet critical healthcare needs that help build the important foundational elements for economic growth. For example, Paul Bunyan Communications partnered with local healthcare providers to enhance telemedicine services. One of their major clients, Sanford Health, has been a leader in this effort by offering virtual obstetrics telemedicine. This service supports expecting parents in nearby communities who lack access to local birthing facilities, some of whom would otherwise have to drive two or more hours for a visit. These types of partnerships are crucial for healthcare access in rural regions like Beltrami County that have experienced hospital closures, and, in winter months, experience dangerous road conditions that make long travel to medical care risky. Research highlights that better internet access significantly boosts telemedicine usage, demonstrating strong demand for these services, especially in rural areas.
Counties with better broadband availability experienced a 47% increase in telehealth utilization, reflecting that when reliable internet is accessible, more people use telemedicine.45 Service providers like Paul Bunyan Communications, and medical providers like those at Sanford Health demonstrate the importance of supporting fiber broadband expansion, as its capacity for high symmetrical speeds directly enhances |telemedicine access and performance, and supports healthcare needs in underserved communities. Not only are these healthcare access improvements beneficial for the health of the community, but improved health outcomes and healthcare access are vital for economic stability, as a healthier population is more productive and capable of sustaining economic growth.
Events like the GigaZone Gaming Championship and TechXpo (a Paul Bunyan Communications event) not only showcase the region’s advanced broadband capabilities but also serve as a gateway for young people to explore technology and technology careers in a fun and competitive environment. The GigaZone Gaming Championship is one of the biggest rural gaming events in the country. The connection between the GigaZone Gaming Competition and the burgeoning esports team at Bemidji High School is a prime example. By supporting these initiatives, Paul Bunyan Communications is helping to cultivate a new generation of tech-savvy students who are exposed to tech at an early age.
This early exposure is crucial, as it can inspire students to pursue careers in tech or tech-related fields that pay well and contribute to economic growth in the region. The GigaZone TechXpo, held in tandem with the GigaZone Gaming Competition, is a key event for the region, drawing a growing audience to explore technological innovation and discover pathways toward tech careers. This event provides startups and companies with a platform to showcase their technologies to a wider audience and help build connections with potential employees. It also offers educators and educational institutions a valuable opportunity to promote their technology training programs, further strengthening the region’s tech ecosystem. The TechXpo highlights the diversity of tech skills and solutions available in the region, featuring events like the gaming competition, the NORTHSTARtup pitch competition, and more. The connection to tech workforce development was not a simple byproduct of the Gigazone Gaming Competition, but the result of forward thinking and purposeful action on the part of Paul Bunyan Communications. As Gary Johnson said, “Why not get those folks exposed to employers right in our area that would love to hire them, and schools right in our area that would love to add to their technical skills and offer them training programs? Again, right at their back door.”
Moreover, these events don’t just impact young people; they also affect parents and the wider community, raising awareness about the opportunities in the tech sector. Research has shown that having children in the home is associated with higher rates of broadband adoption. As students develop their skills and interests, their families are introduced to the possibilities that tech careers can offer, further embedding technology into the community’s fabric. This comprehensive approach is integral to building a robust entrepreneurial tech ecosystem, where a skilled workforce is the foundation for long-term economic prosperity. Paul Bunyan Communications’ efforts, including their support for numerous scholarships, are helping to ensure that the region’s residents are not just participants but leaders in the growing tech economy.
As more residents gain access to these resources, new opportunities open up and they can pursue careers or launch businesses that were previously out of reach due to geographical and infrastructure limitations. This access not only improves individual financial outcomes but also contributes to the overall economic vitality of the region. The growth in per capita income, as shown in Figure 12 reflects this positive trend. As the county continues to leverage its strong broadband infrastructure and support for innovation, it is witnessing a steady increase in per capita income. Beltrami County stands out as a rural community helping to build prosperity for its residents by effectively utilizing and leveraging fiber optic broadband technology
Bemidji stands as a powerful example of what’s possible when a community comes together to invest in its future. With the right infrastructure, community partnerships, and commitment to innovation, rural regions like Beltrami County can find themselves on the path to thriving.