A Ray of Economic Sunshine for Maine’s Future:

Broadband Expansion Provides an Opportunity for Growth

Three Take Away-Facts• Maine is positioned to have one of the best high-

speed Internet infrastructures in the Nation• The opportunity for new businesses and jobs in rural

Maine communities is real• Maine businesses, entrepreneurs and economic

development leaders should study future opportunities now

What is ‘Broadband’?• The term broadband refers to high-speed Internet access that is

always on and faster than the traditional dial-up access• The National Broadband Plan recommends as a national

broadband availability target:– Every household in America must have access to affordable broadband

service offering actual download (i.e., to the customer) speeds of at least 4 Mbps and actual upload (i.e., from the customer) speeds of at least 1 Mbps

– This target was derived from analysis of user behavior, demands this usage places on the network, and recent experience in network solutions.

– It is the minimum speed required to stream high-quality-event if not high definition-video while leaving sufficient bandwidth for basic web browsing and e-mail.

Broadband Comparison: Maine, the U.S. & our international competitors

• Study: – U.S. is falling behind our global

competitors when it comes to having/building a broadband infrastructure

– The current broadband access in the United States tends to be slower and less capable than in many other industrialized nations.

• Estimates by the Organization for Economic Cooperation and Development (OECD):– The U.S. price-per-megabit of

connection speed is more than 10 times as high in the United States as in Japan.

Why Lack of Access to Broadband Matters to Maine’s Economy

• Opportunity Cost- Businesses that didn’t move to rural Maine• Competitive Disadvantage- Small businesses & the post office• Individual People- Education & training• “My children are at a disadvantage in school because they can’t

get on the Internet to access information to get their homework done the way kids living in Portland can- and they can’t get on the Internet at all if someone needs to use the phone at night.” – Participant at Sacopee Valley Forum, Feb. 2010

• “I’m a nurse and I can’t take the continuing education courses online that I need to be current on to keep my job.” – Participant at Sacopee Valley Forum, Feb. 2010

The Good News: Maine is Poised To Be A National Leader

• New National Broadband Strategy- Bipartisan- Akin to rural electrification or building of the federal highway system

• Maine- First Round Grant: $25.4 Million to build Three Ring Binder

Impact & Opportunity• 1,100 miles; over 100

towns• 288 strands vs. 12/14• Open access and

competition• Regionally- MA/NH/VT

all won second round grants based on Maine’s model

A Reason To Be Hopeful About Maine’s Economy

What do we know about Maine’s economic potential?1. Mainers are passionate about our state2. We have nearly unrivaled ‘quality of place’3. We have incredibly hard working people4. Our real estate, especially rural, is far cheaper than many other places

The Three Ring Binder high-speed, redundant infrastructure opens all varieties of opportunity to leverage these advantages

- Also offers low environmental impact

Broadband is a key to Maine’s Economy

• “The overwhelming consensus is that access to broadband services is a significant economic development tool for small businesses and home-based businesses, and enables telecommuting, rural education, and telemedicine.”

-ConnectME Authority 2010 Annual Report

• “Technological connectivity is essential for economic growth and the well being of Maine’s residents. This technology allows companies to compete in the greater global economy and enables entrepreneurs to live and work in communities across the state.”

-Maine Development Foundation’s Investment Imperative II

Specific Example: Beals Island, Maine Population 618

• Business: AC, Inc.• Since access to Broadband:

1. 100 % Growth by speeding purchase and sales processes.

2. Reduced cost of compliance with Dept. of Marine Resources reporting requirements.

Specific Example: Powell, Wyoming, Population 5,524

• Business: Eleutian• Since Access to Broadband:

1. Attracted $1.5 million in venture funding2. Hired 100 English teachers to use videoconferencing

to teach students in South Korea

Specific Example: Lebanon, Virginia, Population 3,273

• Business: Local Economic Planning Commission

• Since Access to Broadband:1. Converted an old strip mall into a job-training center to

provide high school equivalency courses and train

workers for IT-related jobs2. 1,200 new jobs3. $55 million in new private investment4. $35 million in new payroll income

Conclusion• Broadband allows regions and communities to:– Compete globally– Attract new firms, investments and jobs with next-

generation communications infrastructure. • Looking ahead, communities without broadband will

find themselves left out of the digital revolution. • Local economic development plans and federal

programs must take this into account when assessing the economic prospects of a community.

Conclusion Continued• Maine is in a position to have one of the best high-

speed Internet infrastructures in the Nation• The opportunity for new businesses and jobs in rural

Maine is real• Maine businesses, entrepreneurs and economic

development leaders study future opportunities now

Keep Up To Date• Channels:

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• What you’ll find there:– Status Updates on Three Ring Binder Construction.– Educational Opportunities Offered by GWI

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