connecting rural communities 3-14-07 slide 1 connecting rural communities in-service

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Connecting Rural

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Connecting Rural Communities In-service

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Slide • Introduction– What is broadband? – Status of broadband in U.S. / Oklahoma– What is a “connected community?”

• What broadband can do (Demand Side)– Households– Businesses– Communities

• Steps for areas without broadband (Supply Side)– Delivery models (private vs. public)– Moving forward

Agenda

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What is Broadband?

• FCC Definition: Minimum speed of 200 kilobytes per second (Kbps) in at least 1 direction

• Typical Connections– Wired Download Speed

• Digital Subscriber Line (DSL) 250 – 1,500 Kbps• Cable Internet 1,500 Kbps• T3 45,000 Kbps• Fiber 10,000 Kbps

– Wireless 250 – 500 Kbps– Satellite 250 – 500 Kbps

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Rural Broadband Issues

• DSL: Limited to 3 mile-radius from central office

• Cable: Limited to households with access to general cable

• Fiber: $$$ to install• Wireless: Natural interferences (terrain)

– Best hope for rural areas?

• Satellite: Performance issues (weather, latency)

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Typical Broadband Costs

Installation Equipment MonthlyWired

DSL $0 - $100 $0- $80 $20 - $50Cable $0 - $100 $0 - $80 $30 - $50T3 (business use) $1,000 - $5,000 $7,500Fiber $0 - $100 $40 - $100

WirelesseConnect (NW OK) $80 - $700 $0 - $200 $30 - $40Vaxeo (Claremore) $200 $0 - $200 $60 - $80

SatelliteWildblue $200 $300 $50DirecWay $200 $300 $60

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Background Information

• Increasing Shift to Broadband Access

0%10%

20%30%

40%50%

60%70%

80%90%

100%

1999 2000 2001 2002 2003 2004 2005

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Dial-up

High-speed

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• Increasing Number of Broadband Lines

Number of Broadband Lines

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101520253035404550

Dec-99

Jun-00

Dec-00

Jun-01

Dec-01

Jun-02

Dec-02

Jun-03

Dec-03

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Jun-05

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Background Information – Locations of Broadband Providers

Source: FCC Industry Analysis & Technology Division, 6-30-05

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• Dominant Types of Broadband

Source: “High-Speed Services for Internet Access: Status as of December 31, 2005”, http://www.fcc.gov/wcb/iatd/comp.html

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• Does Broadband Access Impact Economic Development?– 2001 Study: Broadband represents a

$500 Billion / year opportunity– 2002 Study: 1.2M jobs would be

created from a nationwide network– Individual community studies in 2003

found positive economic impacts

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• Does Broadband Access Impact Economic Development?– 2005 study - “…It appeared unlikely that a ‘build it and

they will come’ strategy regarding ICT deployment had much effect on economic development in these communities”

– 2006 study – “The mean growth in rent, employment, number of establishments, and share of establishments in IT-intensive sectors were all higher in the

communities with broadband”

Mixed Results

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Rural – Urban “Digital Divides”

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Rural - High-speedRural - Dial-upUrban - High-speedUrban - Dial-up

Current Population Survey (CPS) Data, 2000 - 2003

Source:

2000 2001 2003

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40

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Per

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Rural - High-speedRural - Dial-upUrban - High-speedUrban - Dial-up

Current Population Survey (CPS) Data, 2000 - 2003

Source:

2000 2001 2003

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Broadband Infrastructure in Oklahoma, 2000 - 2006

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How Does Oklahoma Stack Up?

U.S. Oklahoma Texas Arkansas Kansas MissouriDec-04 37,890,646 391,781 2,597,539 220,324 387,300 591,281Dec-05 50,237,139 502,948 3,466,494 302,881 468,146 764,717

% Change 32.6% 28.4% 33.5% 37.5% 20.9% 29.3%

2005 Population 296,410,404 3,433,496 22,270,165 2,701,431 2,662,616 5,631,910

2005 Lines per Capita 0.17 0.15 0.16 0.11 0.18 0.14

Number of High-speed Lines By State

Source: “High-Speed Services for Internet Access: Status as of Dec 31, 2005”, http://www.fcc.gov/wcb/iatd/comp.html

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What’s Available in Your Community?

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What is a “Connected Community?”

• 3 basic components:– Broadband infrastructure– Effective use by residents

• Learning opportunities• Income opportunities

– Effective use by organizations• Attract new residents / businesses

Connected Communities are PROACTIVE!

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What Broadband Can Do

• For Individuals: – Education

• Distance Learning Opportunities• Do-it-yourself information

– Income• E-Bay• E-commerce / Entrepreneurship

– Social Groups • VOIP• Online communities

– Entertainment

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• GED Equivalency– www.gedonline.com (~$45)

• Associate / Bachelor’s / Graduate Degrees– University of Phoenix– Strayer University– Kaplan University– Walden University

Typical Cost: $300 - $500 / Credit

Hour (Minimum of $10,000 to

complete a degree)

Distance Learning

Education Opportunities

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Education Opportunities

Do-it-yourself info:• Car Repair

– www.2carpros.com– www.10w40.com (download repair

manuals)

• House Repair– www.thisoldhouse.com

• Injuries– www.webmd.com

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Income Opportunities

E-Commerce: What is it?

• More than just selling online

• It is: – Using online resources to do

business better– Making money and saving money

online

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The Rise of E-commerce

E-commerce sales as a percentage of total retail sales, 1999 - 2006

Source: U.S. Census, http://www.census.gov/mrts/www/ecomm.html

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E-Commerce Examples

• www.nopudge.com– 3 employees making low-fat

brownies brought in $800,000

• www.sumerset.com– Allows customers to see boats as

they are built

• www.adirondackcraft.com – Received orders from all over nation

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E-Commerce Benefits

• Reaches distant markets

• Builds credibility

• Build brand recognition

• Cut operating costs

• Find niche markets

• Start new business

• Build an existing business

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Slide • Buy / Sell anything!– www.ebay.com

– From Antiques to Electronics to Real Estate

– Some people have made careers out of ebay

Ebay: Entrepreneurship at its best!

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– Basics of e-commerce

– Exploring e-commerce websites

– Planning your website

– Promoting your website

– Developing an Internet business plan

E-commerce Resources Available from OSU Extension

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Social Groups

• Message Boards

• Voice Over Internet Protocol (VOIP)– Skype– Vonage

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Entertainment!

• www.youtube.com

• www.espn.com

• www.itunes.com

• www.sudoku.com

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What Do People Do With Broadband?

• 11% create their own blog

• 17% create their own webpage

• 32% share something online – pictures, artwork, videos – Equals 36 Million Americans

Source: May 2006 PEW Internet Study

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• For Businesses: – Increased productivity / efficiency

– Attract new audiences

– Create loyalty

– Easier training

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• For Businesses: – All firms need a website

• Necessary for younger generations to believe a company exists

– All firms need more than a website! • Real people to talk to• Customized service, products,

information

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• For Communities: – Attract Businesses

– Attract Residents

– Increase Public Safety (law enforcement technology, video surveillance)

– Provide Local Information

– Create source of Pride

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• Community Website Examples– www.ci.anadarko.ok.us (pop. 6,600)– www.cityofaltus.org (pop. 21,000)– www.stillwater.org (pop. 39,000)– www.chandlerok.com (pop. 2,800)– www.groveok.org (pop. 5,100)

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Community Broadband Project Steps

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Community Broadband Scenario Assessment

• ACCESS SITUATION: A small community has a single broadband provider that only reaches the city limits. The monthly price is $50. Limited local technology support.

• USE SITUATION: Most local businesses don’t have websites; government sites are mostly directory listings; schools have wired access only. Many in the community don’t know what’s available or how to use it.

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Community Broadband Scenario Assessment

• In this situation, what would we like to see happen?

– Residents understand what digital technologies are and how others use them

– Businesses develop e-commerce websites – Governments and schools develop

interactive websites– Access extends beyond the city limits– Technology is more affordable– Greater bandwidth is brought into the

community

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Steps for Communities Without Broadband

• Importance of Champions

• Delivery Models

• Moving Forward

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Importance of Champions

• Someone constantly in the public eye

• Understand the benefits of broadband infrastructure

• Well-spoken & well-liked

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Delivery Methods

• Private Sector– Driven by return on investment– Network owner determines what services are

offered

• Municipal– Typically found in areas with existing phone

or electric utilities– Significant capital risk

• Public / Private Partnership– Public entity grants right-of-way on its

infrastructure in return for expanded service

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Funding Sources

• UDSA Rural Development Telecommunications Programs– Community Connect Grants– Distance Learning and Telemedicine

Grants– Broadband Loans– Rural Utilities Service Loans– Infrastructure Loans

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Moving Forward

• Community Assessments– What’s there??? First step is to agree what

“connected community” means– Where are the gaps?

• Needs assessment• Community assets (mapping)

– Focus• Technology• Formal organizations• Individuals

• Community Digital Development– Engages local talent– Encourages diffusion and adoption

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Some Final Questions…

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Additional Training

• E-commerce Strategies for small businesses and communities

• June 4-6, 2007

• Nebraska City, NE

• Early bird registration due TOMORROW!

• http://srdc.msstate.edu/ecommerce/07training/index.html

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Contact Information

Brian [email protected]

(405) 744-9825

Department of Agricultural EconomicsRural Development

504 Ag Hall, Stillwater, OK 74074www.rd.okstate.edu

connecting rural communities 3-14-07 slide 1 connecting rural communities in-service

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