stimulating broadband adoption
TRANSCRIPT
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Stimulating BroadbandAdoption in Delaware:A Planning ToolDecember 2011
authorsAndrew HomseyTheodore PattersonTodd OBoyle
assistant
Margaret Coleman
principal investigator/project leaderDouglas Tuttle
Institute for Public Administration
School of Public Policy & Administration
College of Arts & Sciences
University of Delaware
www.ipa.udel.eduserving the public good, shaping tomorrows leaders
published in coordination with and funded through
State of Delaware Department of Technology and Information
www.dti.delaware.gov
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Preface
AsDirectoroftheInstituteforPublicAdministration(IPA)attheUniversityofDelaware,I
ampleasedtoprovidethisreport,StimulatingBroadbandAdoptioninDelaware:APlanning
Tool.Thisresearchispartofamulti-phaseeffortundertakenbyIPAundercontractwiththeDelawareDepartmentofTechnologyandInformation(DTI)throughagrantfromthe
NationalTelecommunicationsandInformationAdministration(NTIA).NTIAisan
executivebranchorganizationthatfocusesonadvancingtheadoptionofInternet
broadbandaccessnationwide,withparticularattentiontodisparitiesinaccess,inorderto
fostergrowthandinnovation.
WhileDelawarehasenjoyedveryhighconnectivityandbroadbandspeedscomparedto
otherstatesnationwide,thisaccessisnotuniformacrossthestate.Thisdisparity,known
asthedigitaldivide,isparticularlypronouncedbetweenthenorthernportionofthestatetheurbanizedcorridornorthoftheC&DCanalandthesouthernportions,
particularlyinKentandSussexCounties.Inthislatterregionprovisionandadoptionof
broadbandhasbeenlimited,andsomeareascompletelylackadequateoptionsforhigh-
speedInternetaccess.Inadditiontogeographicfactorsaffectingtheadoptionof
broadband,therearedemographicfactorsthatalsocanhaveanegativeeffectonadoption.
Increasingly,theworldwillbedividedintothetechnologicalhavesandhave-nots,a
situationthatwillplacethosewithoutaccesstothepowerandresourcesofferedbyrobust
Internetaccessatacompetitivedisadvantage.Inmanyaspectsofpeopleslives,including
business,medicine,education,andgovernment,thenegativeeffectsofthisdisadvantagewillbeincreasinglypronounced.Theresearchhereattemptstoframetheissues
associatedwithdifferentialsinbroadbandadoptionrates,andpinpointtheareasofthe
statewhereproblemsexist.
PartofIPAsservicemissioninthestateofDelawareistoassistlocalgovernmentsto
bettermeettheneedsofconstituents,businessestogrow,andcommunitiestoprosper.
Broadbandaccessisincreasinglybecomingacriticalfactortowardthisend.Wehave
soughttoframethisissueforDelawareansbyprovidingmodelsandcasestudies,
identifyingphysicalanddemographicbarriers,anddevelopingspecificstrategiesthatcanbeappliedindifferingcircumstances.Ihopethatwecanmakearealdifferencein
Delawareandplayapartinexpandingprovisionoffast,reliable,anduniversalbroadband
accesstopositionourstateforcurrentandfuturechallenges.
JeromeR.Lewis,Ph.D.
Director,InstituteforPublicAdministration
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InstituteforPublicAdministration
TheInstituteforPublicAdministration(IPA)preparedthisreport.AunitwithintheCollege
ofArts&SciencesSchoolofPublicPolicy&AdministrationattheUniversityofDelaware,
IPAlinkstheresearchandresourcesoftheUniversitywiththemanagementandinformationneedsoflocal,state,andregionalgovernmentsintheDelawareValley.IPA
providesassistancetoagenciesandlocalgovernmentsthroughdirectstaffsupportand
researchprojectsaswellastrainingprogramsandpolicyforums.IPAsAndrewHomsey,
ToddO'Boyle,andTedPattersonwereinvolvedwiththeresearchandwritingofthis
report,withassistancefromMaggieColeman.
InstituteDirector
JeromeR.Lewis,Ph.D.
ProjectTeam
AndrewR.Homsey,AssociatePolicyScientist
TheodorePatterson,AssistantPolicyScientist
ToddOBoyle,ResearchAssistant
MargaretColeman,ResearchAssistant
EditorialReview
MarkDeshon,AssistantPolicyScientist
Acknowledgements
Thisstudywasmadepossiblethroughthegeneroussupportandguidanceofpersonnel
fromtheDelawareDepartmentofTechnologyandInformation(DTI)underagrantfrom
theNationalTelecommunicationsandInformationAdministration(NTIA).
ToddOBoyleperformedthebackgroundandframeworkresearchonthetechnicalaspects
ofbroadbandandpolicyapproachesforencouragingitsadoption.AndrewHomseywas
theprimarydeveloperofthequantitativeanalysismethodologyofthemappingoffactors
relatingtobroadbandadoptioninDelaware.SpecialthanksgotoIPAsDougTuttlefor
guidanceandprojectleadershipandTedPatterson,whohelpedwithmuchoftheproject
design,writing,andediting.
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TableofContents
IntroductionandOverview:IPAsRoleinIncreasingBroadbandCapacityin
Delaware..................................................................................................................................................1
StructureoftheBroadbandPlanningToolDocument......................................................................3
Chapter1.GettingtheMostOutofBroadband...........................................................................4
TheLastMileisActually4Problems2Technical,1Educational,1Economic..............5
HowMuchCanBroadbandActuallyDoforYourCommunity?....................................... ..............6
DifferentTechnologies,DifferentNeeds.................................................................................................7
DoesntWirelessInternetSolvetheLast-MileProblem?........................................... ..............7
SatelliteBroadband..................................................................................................................................7
DigitalSubscriberLine(DSL)...............................................................................................................8
CableInternet..............................................................................................................................................8FiberOptics..................................................................................................................................................9
Public-SectorInvolvementinBroadband:Federal,State,andLocal......................................10
FederalPolicy............................................................................................................................................10
StateandInterurbanPolicyInitiatives......................................... ............................................ .....11
MarylandBroadbandCooperative........................................... ............................................ .....11
UTOPIA..................................................................................................................................................12
MunicipalCaseStudies........................................... ............................................ ...................................12
BristolOptinet...................................................................................................................................13
WilsonGreenlight....................................... ............................................ ..........................................13
ChattanoogaEPB..............................................................................................................................14
PickingtheRightApproach......................................... ............................................ ...................................14
AligningGoals,Technology,andPolicy......................................... ............................................ .....15
Livability......................................................................................................................................................15
JobCreation................................................................................................................................................15
Incentives........................................ ............................................ ............................................. ............15
Public-PrivateCooperative..........................................................................................................16
PublicProvision................................................................................................................................16
BlendingJobsandCommunityDevelopment........................................... ...................................16
ConcludingThoughts....................................... ............................................. ............................................ .....16
Chapter2.FactorsAffectingtheAdoptionofBroadbandinDelaware............................18
Introduction......................................................................................................................................................18
FactorsRelatingtotheAdoptionofBroadband...................................... ..........................................20
PhysicalConnectedness......................................... ............................................ ...................................20
ConnectednessDataLayers......................................... ............................................ ....................21
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Demographics...........................................................................................................................................23
DemographicsDataLayers..........................................................................................................24
LevelofService.........................................................................................................................................25
Level-of-ServiceDataLayers....................................... ............................................ ....................27
Validation...........................................................................................................................................................29
Appendices...........................................................................................................................................30
Appendix1:FinalMapsShowingPredictedLikelihoodofBroadbandAdoption..............31
MapA1PhysicalConnectedness...................................................................................................31
MapA2DemographicFactors........................................................................................................32
MapA3LevelofService.....................................................................................................................33
Appendix2:UsingthePlanningToolCaseStudies.......................................... ...........................34
Introduction...............................................................................................................................................34
Strategies.....................................................................................................................................................35
StatusQuo............................................................................................................................................35AggregationofDemand.......................................... ............................................ ...........................35
BroadbandCooperatives........................................ ............................................ ...........................35
LocalNetworkandInfrastructureProvision............................................ ...........................36
Scenarios.....................................................................................................................................................36
DowntownWilmingtonUrbanAccessDesert....................................... ...........................36
WesternKentCountyRuralIsolation........................................ ..........................................42
Seaford,DelawareSmall-TownPotential......................................... ..................................47
Appendix3:PotentialFundingSources...................................... ............................................. ............53
CommunityConnectRuralBroadbandGrantProgram...................................... ....................53
DistanceLearningandTelemedicineProgram(DLT)......................................... ....................54
FarmBillLoanProgam........................................... ............................................ ...................................55
TelecommunicationsInfrastructureLoanProgram...................................... ...........................56
UniversalServiceRuralHealthCarePilotProgram...................................... ...........................56
UniversalServiceSchoolsandLibrariesProgram......................................... ...........................57
References............................................................................................................................................58
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IntroductionandOverview:IPAsRolein
IncreasingBroadbandCapacityin
DelawareInmid-December2009,thestateofDelawarewasawardedfundstoresearchandpublish
broadbandoptionsforitscitizens.GovernorJackMarkelldesignatedtheDepartmentof
TechnologyandInformation(DTI)astheagencytoreceive,apply,andimplementthe
funds,accordingtotheguidelinesandmandatesoftheNationalTelecommunicationsand
InformationAdministration(NTIA).
In2010thebroadband-mappingportionofthisprogramwasinitiatedbyDTI,consistingof
datacollection,thedevelopmentofastatewidebroadband-availabilitymap,transmission
ofthosedatatoNTIAforthedevelopmentofitsnationalbroadbandmap,andthelong-
termmaintenanceofthesedatabythestate.TheUniversityofDelawaresInstitutefor
PublicAdministration(IPA)isassistingDTIwithproject-datacollection,publicoutreach,
andpublicpolicydevelopmentthatincludesthefollowing:
DelawareBroadbandMapThemappingwebsitewaslaunchedbyDTIinspring2011.Gotobroadband.delaware.govtolocateplacesinDelawarethatofferpublic
InternetaccessandlearnaboutInternetaccessinDelaware.
CommunityAnchorInstitution(CAI)InventoryCAIsarepotentialpublicInternet-accesslocationssuchaslibraries,seniorcenters,schools,andhospitals.IPAconductsaCAIinventorytwiceayeartofindnewCAIs,gainmoreinformationaboutCAIs,and
providethepublicwithinformationaboutwheretogotoaccessahigher-quality
Internetconnection.
BroadbandPlanningToolThebroadbandplanningtoolwillseektoquantify,andmakespatiallyexplicit,thefactorsthatencourageorinhibitwideradoptionofhigh-
speedInternetaccess.Thetoolwillconsistofspatiallyexplicitinformationthatserves
toidentifytheviabilityofhigh-speedInternetconnectivityacrossthestateofDelaware
basedonphysical,demographic,andeconomicfactors.Measuresaregroupedintothree
separateandindependentcategories:
PhysicalConnectedness(howphysicallyconnectedalocationistoexistinginfrastructure,populationcenters,orprojectedgrowthareas)
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DemographicRiskFactors(howatriskanareaistonotadoptingbroadbandtechnologiesbasedoncharacteristicssuchasage,educationlevel,income,etc.)
LevelofService(thedegreetowhichbroadbandisavailable,affordable,andofsufficientspeedtoenableapopulationtotakefulladvantageofInternet-based
resources)
Togetherthesemeasureswillformapictureofthedegreetowhichbroadband
adoptionisfacilitatedordeterredbythesefactors.Dependingonthescoreswithineach
category,thepreferredstrategytoaddresstheproblemofbridgingthedigitaldivide
willvary.
TechnologyPlanningTeamsTheBroadbandDataImprovementActauthorizesgrantstocreateandfacilitatelocaltechnologyplanningteams.TheStateofDelaware
hasidentifiedthreebroadbandusergroupstobetargetedlocalgovernments,smallbusinesses,andagriculture.
IPAisengagingrepresentativesofeachofthesethreegroups,who,asmembersof
technologyplanningteams,willhelptoidentify:
Issuesaffectingthedeploymentandfulluseofbroadband.
Broadbandbestpracticesfortheircommunityofinterest.
Potentialprojectsforexpandingtheuseanddeploymentofbroadbandinthesecommunities.
Anyoneinterestedinparticipatinginthisbroadbandtechnologyplanningendeavoris
encouragedtocontactIPABroadbandProjectteamleaderDougTuttle
TechnicalAssistanceThiscomponent,startinginfall2011,involvestheprovisionoftechnicalassistancetomunicipalities,nonprofitcommunity-serviceorganizations,and
thesmallbusinesscommunityandisessentialtoexpandingtheawarenessofandengagementwithissuesrelatedtobroadbandavailabilityanduse.IPAwillleverageits
establishedrelationshipswithDelawareslocalgovernments,grant-in-aidrecipients,
andeconomic-developmentagentstobuildahigherunderstandingofbroadband
capabilitiesandneeds.Currentlyavailabledigital-literacyinitiativeswillbeidentified,
catalogued,andevaluated.Enhancedbroadbandeducationprogramswillbedeveloped
throughestablishedpartnershipswithorganizations(e.g.,theDelawareMunicipalWeb
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DevelopersGroup)andwillbemadeavailabletocommunity-supportentitiesthrough
anongoingprogramoftrain-the-trainersessions.Broadbandliteracywillbeexplicitly
incorporatedintotheestablishedprogramsofcertificatetrainingandprofessional
developmentthatIPAprovidesforlocalelectedandappointedofficialsandtheirstaff.
Fielddeploymentofagraduate-levelbroadbandresearchassistantwillresultin
expandeddirect-assistancecapabilitiesthrougheconomiesthataresimilartothose
associatedwiththeAmericorpsVISTAprogram.
StructureoftheBroadbandPlanningToolDocument
TheBroadbandPlanningTool,whichthecurrentdocumentrepresents,includesthe
followingcomponents.
Chapter1.GettingtheMostOutofBroadband framestheissuesrelatedtobroadbandin
Delawarebyexploringthebenefitsofbroadband,comparingavailabletechnologies,and
examiningthechallengestoimprovingconnection.Chapter2.GeospatialAnalysisofthe
FactorsAffectingtheAdoptionofBroadbandinDelawaredescribesandquantifiesthe
factorsthatcontributetobroadbandconnectivityordigitalisolation.
Appendix1providesmapsofthelatestdataavailabletovisualizecommunityhotspots
andcoolspotsofconnectivityacrossDelaware.Appendix2outlineshowtousethe
BroadbandMappingTool.Thetoolenablesplannersandlocalgovernmentofficialsto
evaluatetheirownbroadbandchallengesandopportunities.ItincludesthreeDelaware
broadbandcasestudiesfromacrossthestatetodemonstratehowtoimproveconnectivity.Appendix3listsfederalgrantandloanprogramsavailabletocommunitiesandagencies
acrossthestate.Eachentryintheresourcelistincludesadescriptionofthepurposeof
funding,andqualificationsforeachprogram,alongwithcontactinformation.
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Chapter1:GettingtheMostOutof
Broadband
BroadbandiscriticaltoDelawaresfutureinthe21stcentury.MuchlikethestatesothercrucialphysicalinfrastructurethePortofWilmington,Interstate95,anditsraillinesa
high-qualityandaffordableconnectionfacilitateseconomicdevelopment.Yet,connecting
householdsandbusinesseshasbeenachallengenationallyandglobally.Aminimal
connectionisnolongerenough.Bandwidthiskey.
Whydoesbroadbandmatter?
BusinessFirmsincreasinglyconsiderthelevelofbroadbandwhencitingoperations. WorkforceDevelopmentLibrariesandschoolsmakeuseofqualityconnectionsto
educatetheworkforce.
HelpingtheunemployedManyemployersonlyacceptonlinejobapplications. QualityofLifeForend-users,todayswebapplicationsrequirebroadband
connectionstofunctionproperly.Afastconnectionallowsuserstoconnectwith
distantrelativesviavideoconferencing(e.g.,Skype)oruploadhomemoviestoshare
withgrandparents.Additionally,moreandmoreapplicationsaremovingintothe
Cloud,whichwillrequireevermorebandwidthtostayregionallyandinternationally
competitiveinthenearfuture.Choosingthewrongbroadbandstrategymeansthat
communitieswillnotreapallthebenefitsofbroadbandinvestments.
WhatistheCloud?
TheCloudisanewparadigmforcomputing,whichallowscommoditycomputerswithfast
connectionstoperformhigh-endtasks.IntheCloud,high-capacityservershandlethedata-
intensivetasksandthencommunicatebackwiththeend-userscomputer.Examplesof
Cloud-basedwebapplicationsincludeDropbox,whichkeepsdocumentsinsyncacross
everycomputeryouuse.GoogleusestheCloudtokeepyourcontactsandcalendars
syncronizedbetweenyourphoneandcomputer.MicrosoftiscurrentlytestingaCloud
versionofOfficetoallowteamstocollaborateondocuments.
InruralDelawareorlow-incomeareas,broadbandoftenisnotavailableatall.Wherebroadbandisavailable,consumersusuallyhaveachoiceof,atmost,twoproviders:the
localDigitalSubscriberLine(DSL)orcableInternetprovider.Cabletendstoout-perform
DSL,sothetypicalconsumerhasonlyonetruehigh-speedoption.Clearly,thesearenot
optimalmarketconditions,and,assuch,thepublicandnonprofitsectorshavearoletoplay
inimprovingthedeliveryoftelecommunications.
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TheLastMileisActually4Problems2Technical,1
Educational,1Economic
Physicallywiringhouseholdsandbusinessesisreferredtoaslast-mileservice.This
processiscapital-intensive,sothelast-mileproblemisusuallythoughtofasaneconomicissue.Inreality,thelast-mileproblemrepresentsfourrelatedissues:levelofservice,
technicalcompetency,physicalavailabilityofinfrastructure,andaffordability.Figure1.1
illustrates.
Figure1-1.FourFactorsinthelast-mileproblem
LevelofService(LoS)Istheconnectionfastenough?TheFederalCommunications
Commission(FCC)targetsaminimumof4/1MbpsbandwidthforfunctionalInternetusage
in2010(FCC,2010b).Dataneedsareonlylikelytogrowinthefuture,sothisfigureis
probablyamovingtarget.Communitiesshouldplanforbringinginthehighestbandwidth
feasiblypossible,asdiscussedbelow.
Whydoesupstreambandwidthmatter?Mostsubscriberspayattentiontodownstreambandwidth,whichmeasureshowquickly
userscandownloaddatafromservers.Usersoftenforgetaboutupstreambandwidth,
whichmeasuresthespeedatwhichdatagobackouttothenetwork.Taskslikereal-time
videoconferencing,distancelearning,andtelemedicinerequirequalityupstream
bandwidth.UpstreamneedswillgrowasmoretasksmovetotheCloud.
TheLastMile
LevelofService
TecnicalCompetency
Affordability
PhysicalAvailability
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TechnicalCompetencyDoestheend-userknowenoughaboutusingacomputerto
makethemostofbroadband?Seniorsareoftennottechnologicallysophisticated,and
othertargetcommunitymembersmightwishtousecomputersbutlacktraining.
Fortunately,thereavarietyofresourcesforbothissues.
AffordabilityResearchbythePewFoundationshowsthatthenumberonehurdleto
broadbandadoptionbyconsumerswhohaveaccesstoitiscost(Horrigan,2009,p7).For
thepoor,theupfrontpriceofacomputerisafrequentdeterrent.Manyotherhouseholds
cannotjustifythemonthlyexpense.
PhysicalAvailabilityThisisthetraditionaldefinitionofthelast-mileproblem.Cana
potentialusergetaconnectionthatoffersreasonablespeedatanaffordableprice?
However,themerepresenceofagoodconnectiondoesnotmeanthatthecommunitywill
getthemostoutofbroadband.
HowMuchCanBroadbandActuallyDoforYour
Community?
Inthepast20years,politicians,technologyenthusiasts,andinvestorshaveweighedinon
thepoweroftheInternet.TherosiestandgloomiestscenariosofhowtheInternetwould
changelifehavethusfarproveninaccurate.However,broadbanddoesplayanimportant
roleinshapingthewaypeopleinteract,conductbusiness,andbecomeinformed.
TheInternetcanplayaninstrumentalroleincommunitydevelopment.Teacherscanuse
theInternettoimproveclassroominstruction.Senior-centeremployeeshavestoriesof
helpingseniorsdiscovervideosoftheirfavoriteoldiesonYouTubeorimmigrantsusing
Skypetoconnectwithrelativesbackhome.
However,intermsofeconomicdevelopment,broadbandonitsowncreatesrelativelyfew
jobs.Thoughthereareanecdotalcasesofcitiestransformedbybroadband,theresearchso
farshowsthatbroadbandimpactseconomicdevelopmentaspartofabroader
developmentstrategythataddressesthetraditionalissuesofqualityschools,reliable
roads,andsoon(see,forexample,Atasoy,2011;Brogan,2009;VanGaasbecketal.,2007;andGillettetal.,2006).
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DifferentTechnologies,DifferentNeeds
Deliveringservicetothelastmileisacomplexproblem.Therearenoeasysolutions.
Differentsectorsandpopulationsofusershavedifferenttechnologyneeds,andso
policymakersshouldconsiderwhattechnologythepublicsectorshouldpromote.
DoesntWirelessInternetSolvetheLast-MileProblem?
Next-generationwirelessInternet,knownas4G,offersonesolution.Theadvantageof
wirelessisthatasubscribercouldpurchaseaconnectionforthehomeandonthego,and
haveaccesstotheInternetviaaUSBmodemattachedtohis/herlaptop.Theservice
marketedas4Gistypicallyoneofseveralcompetingwirelesstechnologies,suchasLTE,
HSPA+,orWiMAX.However,nomatterthewirelesstechnologyused,therearea
numberofcaveats,andwirelessInternetshouldnotbeconsideredapanacea.
Currently,CLEAR,thelargestretailerof4Gservices,offershomeandmobileInternetinthe
WilmingtonareabutnowhereelseinDelaware.CLEARspeedsareroughlycomparableto
ComcastCableInternetinthesamearea.OpenRange,anotherwirelessoperator,hada
similarservicefootprint,butwasmuchlesscompetitive.Table1.2comparestheofferings.
Provider LowTier HigherTier
Comcast 1.5/.384Mbps@$40.95 6/1Mbps@$49.95CLEAR 1.5/.5Mbps@$35.00 6/1Mbps@$45.00
OpenRange 1/.5Mbps@$30.00 1.5-3/1Mbps@$38.95
Table1-2.ComparisonofCLEARandOpenRangetoComcast
Ofnote,CLEARslowertierisonlyforin-homeusage.Tofullyrealizetheadvantagesof
wirelessInternet(specifically,accessanywhereonthego),theuserhastopurchasethe
highertier.Moreover,thesepricesareforadvertisedspeeds.OutsideofCLEARs4G
servicearea,theuserhastocontendwithmuchslower3Gspeeds.Underoptimal
conditions,CLEARoffersuserssufficientbandwidthtoaccomplishbasicInternettaskslike
sharingphotosorwatchingshortvideoclipsonline.Additionally,OpenRangehasrecently
filedforbankruptcy,renderingitsfutureuncertain(Schrader,2011).
SatelliteBroadband
SatellitebroadbandistheonlyoptioninafewareasofruralDelaware.Satelliteproviders
likeHughesofferlowspeedsathighprices.Forthesereasons,plannersaroundthestate
shouldnotprioritizesatelliteservice.
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However,wirelessInternetshouldnotbeviewedasamajordriverofeconomic
development.Data-intensivefirmswillnotrelocatetoacommunitythatonlyhaswireless
Internetavailable.Moreover,wirelessInternetisnotaguaranteedfixforthelast-mile
problem.Aswithothertechnologies,providersmaynotbeinterestedinbuildingout
infrastructureinareaswithlowpopulationdensity.Currently,CLEARhasnotstated
publiclywhenitmightexpandits4GnetworkoutsideoftheWilmingtonarea.Additionally,
andperhapsmostcritically,manywireless-Internetcompanieshaveconsideredcreating
monthlyusagecaps.AsmoreroutinecomputeractivitiesmovetotheCloud,usagecaps
createasignificantbarriertogettingthemostoutofbroadband.Finally,anywireless
broadbandtowerrequireshigh-capacityfiber-opticwiringtoconnectuserstothewider
Internet.
Tosummarizethestrengthsandweaknessesofwirelessbroadband:
PRO CONOffersusersconnectivityonthego Speedsnotsufficienttodriveeconomicdevelopment.Highertiercomparableinpriceandspeedto
cable
Pricemaybeoutofreachformanylower-incomehouseholds.
Mayarrivesoonerthanhigh-speedcableorfiber Nosignfromprivateproviderswhentheywillofferhigh-speedwirelessoutsideofWilmingtonarea.
Table1-3.Strengthsandweaknessesofwirelessbroadband
DigitalSubscriberLine(DSL)
Fromadevelopmentstandpoint,DSLtechnologiesaretheleastattractivebecausetheyare
theslowestandmostdifficulttoupgradetonext-generationspeeds.AnexampleisAT&Ts
U-Verse,whichthecompanymarketsasfiberopticsbutisactuallyahybridfiber-and-DSL
network.U-Versedelivershighthroughput,butthetransitionfromtraditionalDSLto
hybridfiberhasbeenexpensiveandfraughtwithdelays.AT&Thasindicatedsome
ambivalencetowardsexpandingU-Versedeploymentstoareasnotalreadyserved
(Godinez,2010).Therefore,plannersandlocaladministratorsacrossDelawareshouldnot
countonhigh-speedDSLbecomingavailableinthenearterm.Nevertheless,DSLcanmeet
basicdataneeds,andDelawaresseniors,forexample,mayfindDSLsufficientforthe
exchangephotosofgrandchildrenviaemail.However,eventhoughDSLallowsforbasic
websurfingtoday,thatmaychangequickly,ascomplexwebsitesdemandevermore
bandwidth.
CableInternet
CableInternetofferssufficientcapacitytomanylocalnonprofits,smallerbusinesses,and
consumers.UnlikeDSL,cablecanbeupgradedquicklyandaffordablythroughthe
transitiontoanewtechnologyknownasDOCSIS3.Mostmajorcablevendorsalreadyhave
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planstoupgradetoDOCSIS3,inwhichcasepublic-privatepartnershipsandincentives
maybeusefultoacceleratethosedeploymentstoend-users.Aweaknesswithcable,
however,isthatittypicallylagsinupstreamcapacity,makingitapoorfitforreal-time
interaction.
FiberOptics
Businesses,schools,hospitals,andothercommunityanchorinstitutions(CAIs)standto
benefitmostfromfiber-opticconnectionsthatprovidethehighest-bandwidthupstream
anddownstreamspeeds.
Simplyput,qualityfiberopticsofferthegreatesteconomicandcommunitydevelopment
opportunitytolocalgovernmentsthroughoutDelaware.Furthermore,sincefiberoptics
uselighttotransmitdataandnothingtravelsfasterthanthespeedoflight,fiberopticswill
notsoonbedisplacedbyanothertechnology.However,fiberisthemostcapital-intensive.VerizonoffersitsFiOSserviceinDelaware,mostlyinNewCastleCountyandinthebeach
towns.
Togetthemostoutofbroadband,localgovernmentsshouldlookforanyopportunityto
promotefiberopticsintheircommunities.Table4comparesfibertoothertechnology
optionsanddemonstratestherelativestrengthsandweaknessesofeach.Otherbenefitsof
fiberandstrategiestoimprovefiber-opticpenetrationareoutlinedbelow.
Technology Downstream Upstream IdealFit Strengths Weaknesses
Wireless LowtoMed Low Homeuserswhodonotuseupstreambandwidth
GoodchoiceforruralDelaware
Suffersfrominterference;unknowndeploymenttimeframe
Satellite Low Low Geographicallyremotelocaleswherenootheroptionsexist
Ubiquitousavailability
Veryuncompetitiveprices,lowspeeds
DSL LowtoMed Low Cost-consciousconsumerswithminimaldataneeds
Lowprice,goodfornon-data-intensiveapplications
Lowspeeds;difficulttoupgrade
Cable MedtoHigh Med Nonprofits,smallbusinesses,consumers
Goodspeeds,easilyupgraded
Lowupstream;pricemaybeoutofreachforsome
FiberOptics High High Cities BestSpeeds Highcapitalcost
Table1-4.Comparisonofbroadbandtechnologies.
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Public-SectorInvolvementinBroadband:Federal,State,andLocal
FederalPolicy
ComparedtomostotherWesterneconomies,thetelecommunicationsindustryinthe
UnitedStateshasdevelopeduniquely.InseveralcontinentalEuropeannations,for
example,thegovernmentlaidthewiringforInternetconnections.Thepublicsector,in
turn,allowsanyprivateproviderstobuyaccesswholesaleandofferretailservicetolocal
customers.Suchenhancedcompetitionhasloweredpriceandimprovedlevelofservice.
Thisarrangement,knownasopenaccess,allowsmultipleprovidersandensurespro-
consumercompetition.Incontrast,theUnitedStateshastakenamuchmorehands-off
approachtothediffusionofInternetconnections.ResearchattheBerkmanCenterfor
Internet&SocietyatHarvardUniversityhaslinkedopen-accessprovisionswiththehigh
levelofserviceinotherdevelopednationstoAmericasslideasabroadbandleader
(Benkler,2010).Asanexample,AmericanspaymorethanSwedesandBritishcitizens,
whethertheyarebuyinghigh-speedorlow-speedservice(Losey&Li,2010).Evenatthese
relativelyuncompetitiveprices,FCCresearchnotesthatthetypicalAmericanbroadband
consumerpurchasesservicemarketedas7-8Mbpsdownload,buttypicallyonlyrealizes3-
4Mbpsinthroughput(FCC,2010a).TheOrganizationforEconomicCooperationand
Development(OECD)nowrankstheUnitedStates,onceagloballeaderinconnectedness,
the14thmostconnectednation(OECD,2010).
TheObamaadministrationappearsdissatisfiedwiththestatusquoand,asapartoftheAmericanRecoveryandReinvestmentActof2009(ARRAorstimulus),appropriated$7.2
billionforbroadband.Inadditiontothevariousbroadband-mappingprojectsand
BroadbandTechnologyOpportunityProgram(BTOP)grants,thestimuluscalledfora
NationalBroadbandPlan(NBP).
InMarch2010,theFCCreleaseditsNBP,withadetailedlistofpolicyobjectivestoimprove
broadbandpenetrationandspeedsintheUnitedStates.TheFCCproposedatwo-pronged
approach,withonesetofsolutionsforareasthatwillbeeasiertoconnectduetoexisting
infrastructure,andonesetforareasthataremoredifficulttoconnectbecauseof
geographicisolationorlowincome.Thetwinproposalsare,respectively,the1002
initiativeandtheConnectAmericaFund(CAF).The1002initiativeaimstoconnect100
millionhouseholdstoa100/50mbpsconnectionby2020(FCC,2010b).TheCAFsuggests
reformingtheUniversalServiceFund(USF)thatisaddedtophonebills.TheUSFmoneyis
currentlyusedtoconnectschoolsandlibrariesthroughthee-Rateprogram,which
supportstheLifelineandLinkupprogramsthatmaketelephonyavailabletothe
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impoverished.Withlegislativeauthorization,thatmoneycouldbeusedtoprovide
computersandInternetconnectionstothoseinfinancialneed.
WhiletheNBPhasimportantaims,itincludesanumberofprovisionsthatdependupon
Congressionalaction.Atthistime,itisunclearwhetherthecurrentCongresswillfindtime
onthelegislativecalendartoconsiderNBPrecommendationsand,ifso,howtheywould
fare.TheNBPwasmetwithcriticismbyseveralconservativeRepublicans,whotook
controloftheU.S.Housefollowingthe2010elections.Ayearafteritsintroduction,the
NationalBroadbandPlanhasnotachievedmanyofitsgoals.Newsheadlineshavederided
theplanasmovingatdial-upspeed(Romm&Krigman,2011).TheFCCitselfhasstated
publiclyontwooccasionsthatitisdissatisfiedwiththespeedoftheplansimplementation
(Engebretson,2011).GiventhequestionssurroundingtheNationalBroadbandPlan,the
bestexamplestofollowmaycomefromthestates.
StateandInterurbanPolicyInitiatives
ThestoryofAmericanbroadband,however,hasnotbeenoneofuninterruptedlossof
globalposition.States,municipalities,andnonprofitsacrossthenationhavedeveloped
innovativesolutionstodeliverhigh-speedandreasonablypricedtelecommunicationsto
underservedmarkets.Infact,anarrayofpolicytoolsrelevanttoDelawaressituationis
availabletopolicymakersandplanners,afewofwhicharediscussedbelow.
MarylandBroadbandCooperative
JustacrosstheborderinMaryland,outlyingcommunitiesacrossthestatefromFrederick
inWesternMarylandtoSalisburyatthesouthernendoftheDelmarvaPeninsulaworkedtogethertocreateapublic-privatepartnership.TheMarylandBroadbandCooperative
(MdBC)isapublic-privatepartnership,inthatthepublicsectorutilizeslocalandfederal
moneytoinstallInternetbackhaulcapacityandprivateproviderstofostereconomic
development.Backhaulreferstotheconnectionsthatlinkbackboneofthenetworktoits
periphery.
TheMdBCsemphasishasbeenonsolvingthelast-mileproblem.Publicmoneylaysthe
fiber-opticbackbonebetweencommunitiesandmaintrunklines,whileprivateproviders
offerthelast-mileservice.Twenty-sixofthe60memberagenciesareInternetservice
providersthatconnectindividualhomesandbusinesses.Theventurehasbeenaneffective
meansofconnectingrurallocationsinMaryland.Asasignoftheprojectspromise,the
federalgovernmentawardedtheMdBC$115millioninstimulusfundsforbroadband
(MarylandBroadbandCooperative,2010).
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UTOPIA
InUtah,16municipalitiesaroundSaltLakeCitypooledtheirresourcestoinstallalarge
fiber-opticloopconnectingthecities,formingtheUtahTelecommunicationOpen
InfrastructureAgency(UTOPIA).Thesystemisopen-access,andmorethanadozen
providerscompetetoreselltheservicetohomesandbusinesses.Thecompetitive
marketplacehascontainedprices,evenasconsumerspurchasesomeofthehighestspeed
serviceinthecountry.UTOPIAsuccinctlymakesthispointontheirwebpage,advertising
itselftoresidentswiththepitchthat
Sinceyourcommunityownsthenetwork,you'renotdependentonasingleservice
provideryoucanchoosefromUTOPIA'swidevarietyofserviceproviderstobest
meetyourneeds.Andsincethey'recompetingforyourbusiness,yougetthebest
qualityandthebestservices(UTOPIA,n.d.).
MunicipalCaseStudies
Public,nonprofitprovisionisanotheravenueforpolicymakerstoconsider.Underthis
model,thelocalgovernment,oroneofitssubsidiariessuchasautilityauthority,uses
publicmoneytoprovidehigh-qualityserviceonanot-for-profitbasis.Typically,themoney
isintheformofGeneralObligationBonds(GOBs)orCertificatesofParticipation(COPs).
Publicprovisionisappealingforanumberofreasons.Forone,publicnetworksoftenserve
allneighborhoodswithinthecityandcanbeavectorforsimultaneouslypromoting
economicandcommunitydevelopment.Second,asnonprofits,theyaremotivatedby
publicservice,ratherthanshareholdervalue.Assuch,theyareeithercheaperforend-
usersorelseofferhigherlevelofserviceatcomparableprices.Finally,localnetworkskeep
localmoneyinthecommunity.
Nevertheless,publicprovisionisnotwithoutriskandinsomecaseshasresultedin
financialproblemsforthemunicipalityifsubscribershipdoesnotmeetprojections,asin
Burlington,Vt.(Briggs,2011).Moreover,municipalnetworksusuallyfaceoppositionfrom
incumbentfor-profitproviders,astheadministratorsofthePhiladelphia,Pa.,andLafayette
Parish,La.,networksfoundout.InPennsylvania,lobbyistsforthetelecommunications
industryquicklyshepherdedadefactobanonanyfurthercommunitynetworksfollowing
Philadelphiaswirelessinitiative(Blevins,2009).InLouisiana,despiteresidentsvotingin2005tocreateafibernetwork,incumbentproviderBellSouth(nowAT&T)tooktheparish
governmenttocourttohavethevoteoverturnedontechnicalgrounds.Afterseveral
roundsoflegalchallengesandre-votes,servicebecameoperationalinearly2009
(Perlman,2009).
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BristolOptinet
Anexampleofamunicipalbroadbandsuccessstorycomesfromruralsouthwestern
Virginia.Bristol,acitythathadwatcheditscoal-miningeconomydeclineinrecentyears,
hadbeenoperatingafiber-opticnetworkforinternaldata-managementpurposes.
Administratorsbegantohearfromresidentswhowantedaccesstohigh-speedandreliable
data,sothenetworkwasmadeavailabletobusinessesandhouseholds.Optinethasbeen
centraltothecityseconomic-developmentstrategyandhashelpedluremajordefense
contractorstothearea(TheEconomist,2009).Itnowoccupiesa62percentmarketshare
andhasbeensuchasuccessthattheNationalBroadbandPlanevenmakesexplicitmention
ofitandsuggeststhatfederalpolicymakersconsiderlocalmunicipallyoperatednetworks
asaviablepolicytool(FCC,2010b,p.153).
Neighboringcommunitieshavealsobenefited.Inadditiontotheaerospacejobsthat
qualityinformationinfrastructurerecruited,Bristolandsurroundingcountieswon$28
millioninstateandfederalfundingtoexpandOptinetsfiber-opticbackboneacrosstheregion(BVU,2010).
AnunforeseenbenefittothecityfromOptinethasbeeninconsultingwithotherlocal
governmentsonmanagingtheirownmunicipalnetworks.ThetownsofDavidsonand
Mooresville,N.C.,contracteduntilrecentlywithBristolforthemanagementoftheirown
networkMI-Connection(Marusak,2010).
WilsonGreenlight
Wilsonisacommunityof50,000anhoureastofthebustlingTriangleregionofNorth
Carolina.LikeBristol,Wilsonhasseenitsbedrockindustriesoftobaccoandtextilesfalterand,inanefforttoreinvigoratethecity,createdamunicipalfiber-opticnetworkin2008.
CityeldersmodeledtheirGreenlightnetworkonOptinet.Asinothercases,ithasproven
controversial,andthetelecommunicationsindustryhassoughtlegislationrestricting
municipalbroadbandonfouroccasionssincethecityfirstcontemplatedGreenlight.
Speedsstartat10/10Mbpssymmetric(CityofWilson,n.d.).Thisbandwidthismuch
higherthaneitheroftheincumbentproviders,andtheupstreamcapacityisnotable.
Upstreambandwidthiscrucialforreal-timeteleconferencing,distancelearning,
telecommuting,andothernext-generationWebapplications.Thecompetitionhasalsoincreaseditsspeedstoretaincustomers,andhasbeenmuchslowertoraisepricesin
Wilsonthaninsurroundingareaswithlesscompetition.Presently,Greenlights150/150
Mbpsservicetieroffersthehighestspeedinthestate(Moore,2011).Already,Wilsonhas
reportsoffamiliesmovingtothecityjusttohaveaccesstohigherbroadbandspeeds
(Bowman,2011).
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Despitelegislativechallenges,Greenlighthasbeenatremendoussuccess.Around5,700
membershavesignedup,beatingtheirthree-year,30percentmarket-penetrationgoals,
andtheserviceismakinganoperatingataprofityearsaheadofschedule(Moore,2010a,
2010b,2011).ReflectingonGreenlight,WilsoncitymanagerGrantGoingsstated,Well,
youcanttalkaboutjobswithouttalkingabouttheinfrastructurethatbringsthemand
keepsthem.Shortandsimpleadvancedbroadbandiscriticalinfrastructure(Moore,
2011).
ChattanoogaEPB
Inanotherhigh-profilemunicipalnetwork,theChattanoogaElectricPowerBoard
(ChattanoogaEPB)inChattanooga,Tenn.,operatesanetworkthatcurrentlydeliversthe
fastestavailablespeedsinthecountry.Themunicipalutilityofferspackagesofserviceup
to1Gbpsforresidentsandbusinesses.ChattanoogaEPB,asawingofthelocalelectric
utility,alsoallowscustomerstousesmart-gridtechnologies,whichholdsignificant
environmentalandeconomicadvantages.
Anetworkthatfasthasallowedthecitytopositionitselfasanenclaveforbiomedical
research(Bregel,2011).TheEPBisaninformationinfrastructuresopowerfulthatit
allowsChattanoogatocompetedirectlywithNorthCarolinasResearchTriangleParkand
Cambridge,Mass.,forhigh-qualitybiotechjobs.
PickingtheRightApproach
Policymustmeetlocalneeds,andasingleapproachwouldnotworkinDelawarestatewide.Specifically,inlower-incomeurbanareas,broadbandmaybeavailable,butunaffordable.
Intheseareas,theLifelineandLinkupprogramsmayprovideausefulmodelforimproving
broadbanduptakeinpoorerareasofDelawarebyofferinglow-incomecitizensvouchers
withwhichtopurchasecomputerequipmentandabroadbandInternetconnection.
Plannersshouldnotoverlookcost;itisoneofthemostcommonreasonswhyconsumers
choosenottopurchasebroadbandevenwhenitisavailable(Smith,2010).
Toreiterate,differentusershavedifferentneeds,andacommunitymayhavesufficient
wirelesscoverageforitshomeconsumersbutinsufficientcableforitssmallbusinesses.Inthesecases,localadministratorsshouldlookforcreativewaystomatchpolicytoolswith
technologyneeds.Thebesttechnologytopursuedependsonthepolicygoals.Thissection
includesanoverviewofbroadbandstrategyconsiderations.Anin-depthdiscussionof
broadbandplanningisavailableinAppendix1,completewithbroadbandcasestudies
drawnfromacrossthestate.
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AligningGoals,Technology,andPolicy
Acriticaldecisionforlocalplannersisgoal-setting.Thissectionoutlinessomestrategies
forimprovingbroadband,dependingontheplannersgoal.
Livability
Iftheaimistoenhancelivabilitybyofferingafunctionalbroadbandconnectionforhome
users,thenapublic-privatepartnershipwithawirelesscompanymayworkwell.The
followingtableoutlinesthemajorissuesinvolvedincreatingawirelesspublic-private
partnership,fromtheperspectiveofconsumersandproviders.
Stakeholder PotentialIssue ActionItem
Consumers Price Offerbroadbandvouchers.
Reliability Incentivizereliableservicewithprovider.
Provider UnsureaboutROIinasmallorlow-incomecommunity
Lureproviderswithfinancialincentives.
Table1-5.Apublic-privatepartnershipforwirelessbroadband
JobCreation
Researchanddesignandlogisticsfirmsprocesslargeamountsofdata.Datacentershave
proventobeacrucialgeneratorofhigh-payingjobsinruralareasacrosstheSoutheast,but
managerswillnotmovetoalocationwithlowdatacapacity.Evenagriculturaloperations
constantlyprocessweatherandpriceinformation,whichrequireareliableInternetconnection.Totapintotheeconomic-developmentpotentialoftheInternet,plannersmust
focusonimprovingfiber-opticconnectionsintheircommunity.Again,evenifthe
communityfocusesonwirelesstechnologyintheirbroadbandplan,wirelesstowers
requirefiber-opticconnections,sofibercannotbeignoredinanycase.
Aspreviouslystated,fiberiscapital-intensive,andtheprivatesectorhasbeenslowto
provideit.Therearethreemajorstrategiesforimprovingfiberoptics:incentives,public-
privatecooperative,andpublicprovision.
IncentivesThestateshouldconsidertaxcreditsforcapitalinvestmenttospurtheexpansionofquality
connections.Localgovernmentscanwaivethepropertytaxesonrights-of-waydedicated
tobroadbandinfrastructure.
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Public-PrivateCooperative
Closelysituatedsmall-andmedium-sizedtownsmayconsideracooperativefiber
installationinthemodelofUTOPIA.Themunicipalitieswouldundertaketheinstallationof
afiberringamongthecommunitiesthatwouldlinkCAIs,majoremployers,and(ideally)
households.Privateproviderscouldthencompetetoprovidetheserviceandsupportto
subscribers.ThismodelwouldbeidealforplacessuchasMiddletown,Odessa,and
Townsend.InmunicipalitiessituatedalongtheMarylandborder,findinginnovativeways
topartnerwiththeMarylandBroadbandCooperativeshouldbeapriority.Thecooperative
ensurescompetitionandspreadstheriskofthecapitalexpenditurewhileavoidingmanyof
thepoliticalcomplicationsassociatedwithpublicprovision.
PublicProvision
Publicprovisionisahigh-risk,high-rewardoption.Thecommunitiesinvolvedmust
borrowsubstantialfundsandthentakeontheday-to-dayoperationofafiber-optic
network.Typically,privateprovidersobjectvociferouslyandmountlegalchallenges.Nevertheless,inmanysmallertownstheprivatesectormaynotbeinclined,evenwith
incentives,toofferstate-of-the-artconnections.
Publicprovisionhasitsownadvantages.Researchshowsthatpublicprovisionisa
substantialdriverofeconomicgrowth(Ford&Koutsky,2005;Kelley,2004).The
communitycapturesmoreofthatprosperityandrevenuewhenitownsthenetwork.
Finally,localgovernmentsarealreadypayingfordata,andoperatingtheirownnetworks
maybemorecost-efficient.
BlendingJobsandCommunityDevelopment
Ahybridoptionisalsoavailable.Plannerscanworkwithawirelessprovidertobringbasic
servicetohouseholdswhilesimultaneouslybuildingacooperativefiberringforbusinesses
andCAIs.
ConcludingThoughts
Findingtherightbalanceofpublic-,private-,andnonprofit-sectorinvolvementisnosimple
task.Yetitisacrucialtask,asthestateofDelawareseconomiccompetitivenessrestson
thequalityofitsinformationalinfrastructure.Fromtheclassroomsthataretrainingour
nextgenerationofentrepreneurstothefarmerswhoneedweatherandpriceinformation,
reliableandqualityaccesstodataisanecessarycomponentofanyeconomic-development
strategy.Inaglobalage,thestatescompetitioncomesnotjustfromitsneighborsbutfrom
aroundtheworld.Severaldevelopednationsalreadyhavenationalbroadbandplans,
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manyofwhichsetmuchmoreambitiousgoals.Australiaalsohasplansforanationwide
fiber-opticnetwork.SouthKoreaplanstoachieve2Gbpsnationwideby2012(Falch&
Henten,2010).Delawarecommunitiesdonothavetheluxuryoftimetodeliberateover
whetherthepublicsectorhasaroletoplayininformationservicesprovision.Yet,with
adequateplanningandpublicinvestment,Delawarecanassureitssuccessinthe
technologicallydriveneconomiesofthefuture.
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Chapter2:FactorsAffectingtheAdoption
ofBroadbandinDelaware
Introduction
Itisbeyondquestionthataccesstotheresourcesandinformationavailablethroughthe
Internetplaysamajorroleinthedegreetowhichpeopleareempoweredboth
economicallyandpolitically.Thedigitaldividebetweenthosewhoarehighlyconnected
throughthisworld-widenetworkandthosewhoarenotmirrorsthatbetweenthewealthy,
educated,upwardlymobilesectorsofsocietyandthosewhoaredisadvantagedand
isolatedfromthemainstreameconomy.
Overall,DelawarehasoneofthehighestInternetconnectionspeeds(Akamai,2011);however,theprovisionofbroadbandservicevariesgreatlybygeographiclocationwithin
thestate.Inparticular,moreruralandeconomicallydisadvantagedareasoftenonlyhave
accesstomuchslowerandlessrobustconnectivity.Barriersinsomecasesexistdueto
economicorculturalconditions,inothersduetophysicalisolationorbusinessstrategy
decisionsonthepartofproviders.Someareas,especiallyinthemoreruralsouthernpart
ofthestatedonothaveaccesstothelevelsofserviceenjoyedinthemorehighlyconnected
urbanlocations.Thisurban-ruralInternetgaphasbeennotedintheliterature(LaRoseet
al.,2007),ashasthedigital
dividebasedoneconomicor
otherdemographicfactors
(see,forexample,FCC,2009).
Thequestionoftheuse,
availability,andviabilityof
Internetusageismulti-layered,
relatednotonlytothe
technicalaspectsofphysical
connectedness(forinstance,
whetherthroughcable,telephonelines,fiber-optic
cable,orwirelesssignals),but
alsotosocio-economic,
demographic,andgeographic
factors.Makingthedistributionandadoptionofbroadbandaccessmoreuniversal,acrossa
largercross-sectionofthepopulationwillgofarinhelpingtobridgethedigitaldivide.
Figure2-1.Schematicrepresentationofthefactorsusedtodetermine
barrierstobroadbandadoptioninDelaware
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Thespatialanalysisdevelopedinthisdocumentseekstoquantifyandmakespatially
explicitthefactorsthatencourageorworkagainstwideradoptionofhigh-speedInternet
access.Theanalysiscombinesawidevarietyofspatialinformationtoidentifytheexpected
viabilityofbroadbandadoptioninDelawarebasedonthreefactorsphysical,
demographic,andeconomic.Thethreeseparateandindependentcategoriesare:
PhysicalConnectednesshowphysicallyconnectedalocationistoexistinginfrastructure,populationcenters,orprojectedgrowthareas
DemographicRiskFactorshowat-riskanareaistolackofadoptionofbroadbandtechnologies,basedoncharacteristicssuchasage,educationlevel,income,etc.
LevelofServicethedegreetowhichbroadbandisavailable,affordable,andofsufficientspeedtoenableapopulationtotakefulladvantageofInternet-based
resources
SeeFigure2.1onthepreviouspageforaschematicrepresentationofthefactorsaffectingbroadbandadoptionasdefinedinthePlanningTool.Eachmeasureislargelyindependent
oftheothers,andtogethertheyformapictureofthedegreetowhichbroadbandadoption
isfacilitatedordeterred.Areasinthestatearerankedonarelativescaleintooneofeight
levelsbasedonthecombinationoffactorswithineachset.Therankingsdonotseekto
quantifyaprecisepredictionofbroadbandadoptionratesinaparticularareabutto
broadlyindicatewhere,
basedonindependent
factors,thereisagreateror
lesserlikelihood.Figure2.2indicatestherelative
scaleshowing
representativeareasonthe
mapwherebothhighand
lowlevelsofInternet
serviceexist.
Dependingonthescores
withineachcategory,the
preferredstrategyto
addresstheproblemofthe
digitaldividewillvary.For
instance,subsidizedaccessorinvestmentinCAIsprovidinghigh-speedWebaccessmight
bemostappropriateinareaswherethereisagreatdealofprovisionofservice,butlow
adoptionratesduetodemographicfactors.
Figure2-2.Representativemapdetailshowingtherelativescaleofthe
likelihoodofbroadbandadoptionbasedonfactorsrelatedtolevelofservice
provision
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FactorsRelatingtotheAdoptionofBroadband
PhysicalConnectedness
Thedegreeofphysicalconnectednessisexpressedasanimpedance,orresistancetoovercomingabarrierofdistancetoagivenfeaturerepresentingacertainlevelof
connectedness.Examplesofconnectednessrelatetophysicalinfrastructure,utilities,and
plannedgrowthareas;thefartheroneisfromsuchfeaturesorregions,themoredifficultor
unlikelyinteractionwillbe.Forinstance,CAIs,whichofferpublicaccesstohigh-speed
Internet,aremostlikelytobeusedbythoseclosesttothem.Thelikelihoodofsomeone
usingthefacilityisassumedtodecreasewithincreasedtraveldistancetothatfacility.The
notionofadistancedecayintheinteractionbetweenactorscorrelateswiththephysical
modelofgravity.WilliamJ.Reilly(1931)extendedtheideaofgravitytointeractions
betweentradecentersandpotentialcustomers.Modifiedforthisproject,thedistance-
decayfunctioncanbestatedas:
I=!
!!(!
!)!
Where:
I=impedance,withzeroindicatingnoimpedance,and1indicatinginfinite
impedance
d=distance(e.g.,inkilometers),fromthefeatureorfacility
p=powerterm,indicatingthedegreeofresistanceforeachunitdistancefromthe
featureorfacility
Withthepowerterm,p,setto1,thisequationsimplifiesto:
I=!
!!!
Figure2.3illustratestherelationshipbetweenthedistance(inkilometers)andthe
impedancetobroadbandadoption,accordingtothismodel.Alloftheinputsrelatedto
PhysicalConnectednessusethisgeneralequationtodetermineresistanceorimpedance
basedondistance,exceptthemeasureofroaddensity,whichisbasedonthesizeoftraffic
analysiszoneunits.
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Figure2-3.Relationshipbetweendistanceandresistancetobroadbandadoption
Toderivethismeasure,aspatial-datalayerrepresentingthephysicaldistance(in
kilometers)ofeachlocationinthestatetotheinputfacilityorfeatureisgeneratedand
thenusedtocalculatetheimpedancefigure.Impedance,orresistanceduetoseparationbydistance,isconsideredtobezeroatorwithinthefeature(oradesignatedbufferaround
thefeature).Forinstance,inthecaseofCAIs,impedanceiszeroatthesiteofthe
institution,increasingasafunctionofdistancetoit.Forarealfeatures(suchasmunicipal
boundaries),impedanceisconsideredtobezerowithintheboundaries,increasingasa
functionofdistanceawayfromthoseboundaries.
Todetermineanoverallscoreforimpedance,asummationofallinputimpedances,divided
bythetotalpossibleimpedance,isused.Basedonthefinalscore,eachlocationis
categorizedbasedonthresholdvaluesintoseveraldiscretelevels.MapA1inAppendix1
illustratesthelevelofconnectednesssummarizedforthenineinputfactors,symbolizedby
differentcolorsforeachoftheeightlevels.Thelevelsshownonthemapwereestablished
usingtheJenksNaturalBreaksClassificationmethod.
ConnectednessDataLayers
MunicipalBoundaries
Basedonthecurrentmunicipalboundaries,impedanceiscalculatedasafunctionofthe
squareofthedistancetoanygivenmunicipality,withareaswithinthemunicipality
havingzeroimpedance(i.e.,ahighlevelofconnectedness).
GrowthandAnnexationArea
Areasoffuturegrowthareidentifiedineachtownscomprehensiveplan.Withinthese
areas,impedanceiscalculatedtobeidenticaltotheimpedancefromthenearest
municipalboundary.Outsideeachgrowtharea,theimpedanceisthelesserofeither
theimpedancecalculatedformunicipalboundariesortheimpedancecalculatedas
functionofdistancetotheannexationzone.
4 6 8 10distance , km
.4
.5
.6
.7
.8
.9
impedance
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CountyGrowthZones
Eachcountyhasdeterminedareasinwhichgrowthistobeencouraged.Impedance
willincreasewithdistanceoutsidethesezones,asnotedabove.
AccesstoDARTRoutes
UsingabufferofmilesaroundaDARTbusroute,whichcorrelatestothedistance
peoplecancomfortablywalkin15minutes,thebarriertoaccesstopublic
transportationiscalculatedbasedondistancebeyondthislimit.
SewerandWaterDistricts
Publicsewerandwaterdistrictsarepowerfulfactorsinfocusingwherepeoplesettle
and,therefore,correlatetooverallconnectedness.Waterandsewerareasarebasedon
currentCertificatesofPublicConvenienceandNecessity(CPCNs)andotherservice-
areaboundaries.Impedanceisbasedonproximitytotheseexistingareasofsewer
provisionandpublicwateravailability.
CommunityAnchorInstitution(CAI)
Distancefromexisting,identifiedCAIshasadirectimpactontheabilityofpeople
withoutbroadbandserviceathometoaccesstheInternet.Impedanceincreasesbased
ondistancefromtheCAI.
RoadDensity
Roaddensityisusedtocharacterizelocationsbasedontheiroveralllevelofroad
infrastructure.Themorephysicallyconnectedwithinaroadnetwork,themorelikely
thatalocationwillhaveaccesstootherinfrastructuresuchasbroadband.Insteadof
usingthegravitymodel,ascoringsystembasedonthemeasuredareaofModifiedGrid
polygonsisusedasaproxyforroaddensity.ModifiedGridgeographicunits(similarto
TrafficAnalysisZones)arerankedbasedonsizeandplacedintooneoffourdensity
categories.
DistancetoMajorRoadArteries
BasedonDelDOTslayerofmajorarteriesinDelaware,whichincludeinterstates,
federalroutes,andnumberedstateroutes,amilebufferwillbeestablished.
Impedancewillbedeterminedbasedondistancefromthisbuffer.
UrbanAreas
TheU.S.Census(2000)identifiesareasofurbanization(definedasUrbanAreasor
UrbanClusters),whichincludecensusblockswithadensityof1,000peopleper
squaremileormore,plusadjacentblockswithadensityof500peoplepersquaremile
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ormore.Impedanceiscalculatedbasedondistancefromthesedefinedurbanized
areas.
Demographics
Manydemographicfactorsofapopulationcorrelatewiththeadoptionofbroadband,
independentofthelevelofinfrastructureoritsprovisioninanarea.Whileresearchonthe
topicisstillfairlyyoungbroadbandadoptioninthehomehasonlybecomewidespreadin
thelast10to15yearsseveralstudiesindicatethatdemographicfactorsincludingage,
income,educationallevel,andethnicityhaveaneffectontheratesofbroadbandadoption
(AronandBurnstein,2003;LaRoseetal.,2007;FCC,2009).
TheapproachhereusesdemographicdatafromtheU.S.CensusBureauandothersources
torankcertainfactorsbasedonthedegreetowhichitisexpectedthattheywillconstitute
asystemicbarriertobroadbandadoption.Geographicanddemographicdatawerecompiledatthesmallestphysicalareaavailable.Centroids(pointscorrespondingtothe
centerofgravity)foreachgeographicunit(CensustractorCensusblock)weregenerated,
andrankingsassignedtoeachpoint.Theimpedance(i.e.,degreetowhichthedemographic
factorisabarriertoadoptionofbroadband)wascalculatedonascaleof0(noimpedance)
to1(highestimpedance),foreachpoint,basedonthedemographicparameter(e.g.,
medianhouseholdincomeofthepopulation).Arastersurface,representingimpedance
valuesforareasacrossthestate,wasthencalculatedbyinterpolatingvaluesfromthe
centroids.Ingeneralthefunctiontodetermineimpedancewas:
! = (1 !!),forcharacteristicswhereimpedancedecreaseswithrankvalue(Figure2.4a)and
! = (!!),forcharacteristicswhereimpedanceincreaseswithrankvalue(Figure2.4b)
Where:
I=impedance,withzeroindicatingnoimpedanceand1indicating
infiniteimpedance
f=demographicfactor,onascaleof0to1;basedonhighestandlowest
valuesofthepopulationvaluep=powerterm;determinestherelationshipbetweenthefactorand
impedancetoadoption(setto0.5).
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(a)
(b)Figures2-4aand2-4b.Relationshipofscaleddemographicfactor
(x-axis)toimpedancetobroadbandadoption(y-axis)
Toderiveafinalvalueforoveralldemographicfactors,impedancesweresummedand
dividedbythetotalpotentialimpedance.MapA2inAppendixAdepictsamapofthelevelofresistancetobroadbandadoptionbasedondemographicfactors.
DemographicDataLayers
MedianHouseholdIncome
UsingU.S.CensusAmericanCommunityService(ACS)datafor2005-2009,atthe
Censustractlevel,anindexvaluescaledbetween0and1basedontherangeofmedian
householdincomeinDelawareiscalculated.Thehighertheincomeinatract,thelower
theimpedancetoadoptionofbroadband.
Age65andOlderSinceresearchshowsthatratesofbroadbandadoptionpeakwiththoseinearly
adulthoodandfallsoffconsiderablywithage,thepercentageofthepopulationofage65
andaboveCensustractsisdeterminedusingACSdatafor2005-2009.
0.2 0.4 0.6 0.8 1.0rank value
.2
.4
.6
.8
1.0
impedance
0.2 0.4 0.6 0.8 1.0rank value
.2
.4
.6
.8
1.0
impedance
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CollegeDegree
Censustractsarecategorizedbasedonpercentageofthepopulationage25andolder
withacollegedegree(basedontheACS).Basedontherankedvalueofeducational
attainment,theimpedanceforeachtractisdetermined,withimpedancedecreasing
withhigherpercentagesofcollegegraduates.
VehicleOwnership
Accesstoavehicleisconsideredadeterminantinanindividualsabilitytouse
broadbandatCAIsorotherprovidersofaccess.Basedonthepercentageofhouseholds
inaCensustractowningatleastonepersonalvehicle(basedontheACS),impedanceis
determined,withhigherimpedanceascribedtoareaswithlowerratesofvehicle
ownership.
PercentageMinority
Sincebroadbandadoptiontendstobelowerinareaswithhigherproportionsofminorities,thepercentageofnon-whiteminoritiesareusedasariskfactorforlow
broadbandadoptionrates.U.S.Censusdataforthe2010DecennialCensusisusedto
summarizeinformationattheCensusBlocklevel,andimpedanceiscalculatedbasedon
therankingofminoritypercentage.
PopulationDensity
Populationdensityindicatesareasofhigherlevelsofurbanizationandthus
connectednesstoexistinginfrastructure.Broadbandprovidersaremorelikelyto
developbroadbandinfrastructureinareaswithalargepotentialcustomerbase,aswell
asareasclosetoexistingconnectivity.Impedanceisdeterminedbasedoncalculated
populationdensity,withhighervaluesassociatedwithlessdenselypopulatedCensus
blocks.
LevelofService
BasedonresearchconductedbyDTIanditssubcontractors,existingprovisionof
broadbandwasassessed,andaseriesofparameterswasdevelopedindicatingthelevelof
service.Byquantifyingthedegreeofbroadbandconnectivityinanarea,gapsinthelevelof
serviceprovisioncanbeidentified.Considerationstodeterminelevelofserviceincludegeographicextentofbroadbandbycommercialorotherproviders,classificationbasedon
thehighestadvertisedspeedofservice,numberofavailabletechnologies,numberof
competingproviderswithinanarea,andcostofservicebasedonadownloadrateperunit
price.StatisticsonactualratesofadoptionwithinaCensusunitwouldbeaninformative
metric,whichcouldindicatewithahighdegreeofcertaintytheactuallevelofadoption;
however,suchdatafromtheprovidercommunityhavenotbeenreportedatasufficient
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levelofdetailtobeuseful.ItshouldberecognizedthatthePlanningToolsabilityto
accuratelyevaluatethelevelofbroadbandserviceacrossthestateisaffectedbydata-
collectionmethodsaswellasdatagapsduetocontractuallimitationssuchasnon-
disclosureagreements.
Aswiththedemographicfactors,level-of-servicefactorsarefirstrankedonascaleof0to
1,andimpedancetobroadbandadoptioniscalculatedfromthis.CentroidsforCensus
blocksareusedasthebasisforinterpolatingasurfacerepresentingtheimpedance.The
functionsfordeterminingimpedancearegivenby(subsequentreferencestothese
functionswillbereferencedbytheletterinparentheses):
! = (1 !!),forcharacteristicswhereimpedancedecreaseswithrankvalue(Figure2.5a)(a)
! = (!!),forcharacteristicswhereimpedanceincreaseswithrankvalue(Figure2.5b).(b)! = (1/(1+ !!.!),forcharacteristicswhereimpedancedecreaseswithrankvalue(Figure2.5c).(c)
Where:
I=impedance,withzeroindicatingnoimpedanceand1indicating
infiniteimpedance
f=levelofservicefactor,onascaleof0to1;basedonhighestand
lowestvaluesoftherangeofvalues
(a)0.2 0.4 0.6 0.8 1.0 rank value
0.2
0.4
0.6
0.8
1.0
impedance
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(b)
(c)Figures2-5a,2-5b,and2-5c.Functionsemployedtodetermine
impedance.ImpedanceiscalculatedforeachCensusblockcentroid,
andastatewidedatalayerisgeneratedbyinterpolatingthesepoints.
Block-leveldataanalysisincludedGISprocessingtocalculatethemetricfromfieldsinthetabulardata.Areasinwhichservicewasnotavailableweregivenametricvalueof0.A
finallayerofimpedancetobroadbandadoptionwasgenerated,usingthesamemethodsas
describedinthesectionsabove.MapA3inAppendixAdepictsamapofthelevelof
resistancetobroadbandadoptionbasedonlevel-of-servicefactors.
Level-of-ServiceDataLayers
MaximumDownloadSpeedAvailable
Basedonprovider-reportedmaximumdownloadspeedwithinaCensusblock.Missing
blockswerenotincludedintheanalaysis.Impedancewascalculatedbasedonfunction
(a),previouspage.
CostperUnitDownloadSpeed
Basedonprovider-reportedmaximumdownloadspeedandrepresentativecostof
servicetypeasreportedbyDTIdocumentation,thelowestavailablecostpermegabit
persecond(Mbps)downloadspeedisdeterminedforeachCensusblock.Generally,
0.2 0.4 0.6 0.8 1.0rank value
.2
.4
.6
.8
1.0
impedance
0.2 0.4 0.6 0.8 1.0rank value
.6
.7
.8
.9
1.0
impedance
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thismeasureislowestforthefastestandmostcostlyservice.Thisspeedisrankedona
scaleof0to1,andimpedancecalculatedaccordingtoformula(b),page26.SeeTable1
foralistoftechnologieswithrepresentativespeedsandcostsofservice.
NumbersofBroadbandProviders
Thelistofuniqueprovidersforeachblockweretotaledandusedtogeneratethe
interpolatedsurfacebasedonfunction(c),page26.
NumberofTechnologiesAvailable
Thelistofuniquetechnologiesforeachblockweretotaledandusedtogeneratethe
interpolatedsurfacebasedonfunction(c).Technologiesweredividedintofourtypes:
DSL(assymetricandsymmetricDSLwereconsideredasasingletechnologyforthis
analysis),copperwire,cable,andfiberoptic.
DistancetoMiddle-MilePointMiddle-milepointsarefacilitiesthatlinkaproviderscorenetworktothelocalloops
thatconnecttolocalserviceareas.Distancetotheselocationswasusedasaproxyto
determinehowremovedalocationisfromthecoreInternetbackbone(see
impedancecalculationfunctionfromthesectiononPhysicalConnectedness,page20).
Technology Speed CostPerMo. CostPerMbps*
aDSL 768kbs-1.5mbs 20 13.33
aDSL 1.5mbs-3mbs 30 10.00
aDSL 3mbs-6mbs 40 6.66
aDSL 6mbs-10mbs 40 4.00
aDSL 10mbs-25mbs 40 1.60
sDSL 768kbs-1.5mbs 20 13.33
sDSL 1.5mbs-3mbs 30 10.00
sDSL 3mbs-6mbs 40 6.66
copperwire 768kbs-1.5mbs 41 27.33
copperwire 1.5mbs-3mbs 30 10.00
copperwire 3mbs-6mbs 45 7.50
copperwire 6mbs-10mbs 60 6.00
copperwire 10mbs-25mbs 70 2.80cable 10mbs-25mbs 70 2.80
cable 50mbs-100mbs 115 1.15
cable 50mbs-100mbs 115 1.15
fiber >1gbs 200 0.20
fiber 50mbs-100mbs 150 1.50Table2-6.Technologiesusedandrepresentativespeedandcostofservice,per
monthandpermegabitpersecond*approximate
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Validation
Itisintendedthatthisanalysisbepresentedtobroadbandplanninggroupsorganizedby
theInstituteforPublicAdministration(IPA)forfeedbackandtodeterminewhetherthe
factorsaffectingbroadbandpaintarealisticpictureofthesituationontheground.IPAhasconvenedthreeworkinggroups,includingmembersfromtheagriculturalcommunity,the
privatebusinesssector,andthegovernmentalandpublicservicesector.Feedbackwillalso
besoughtfrominterestedmembersofthebroadbandplanningandprovisioncommunity
beyondthethreeworkinggroups.Inparticular,itisanticipatedthatmorerefined
estimatesofthevariousfactorsaffectingbroadbandadoptionmightbedevelopedby
refiningthethresholdvaluesanddevelopingspecificdefinitionsforeachofthediscrete
levels.
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Appendices
Appendicesfollowonthenextseveralpages.
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Appendix1:FinalMapsShowingPredictedLikelihood
ofBroadbandAdoption
MapA1PhysicalConnectedness
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MapA2DemographicFactors
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MapA3LevelofService
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Appendix2:UsingthePlanningToolCaseStudies
Introduction
Typically,ithasbeendifficulttodirectlyquantifythepreciselevelofbroadbandadoptionduetothecostofconductingsurveysandthereluctanceofprivateproviderstofurnish
detailedbusinessdata.Thepresentmethodofquantifyingthelikelihoodofbroadband
adoptioninanareaofDelawareusesindirectfactorssuchasconnectedness,
demographics,andthelevelofserviceavailabletoinferthebarrierstothisadoption.Such
inferredadoptionbarriersaresupportedbystudiesnationwide.SincetheAmerican
RecoveryandReinvestmentActof2009(ARRA),therehasalsobeenanincreasedlevelof
fundingfor,andawarenessof,theneedsofunderservedsectorsofthepopulationand
geographicareas.Thefirstissuetoaddressistofindoutwherebroadbandaccessand/or
adoptionislackingandtothenaddressthecausesofthisdeficiency.
ThespatialanalysisdevelopedinthisPlanningToolisanattempttoidentifygeographic
areaswherephysicalandsocialbarriersaremostlikelyaffectingadoptionrates.This
sectionpresentssomescenariosforaddressingtheseneedsinareasacrossthestate,in
whichvariouschallengesandsolutionsmightapply.Threedistinctusergroupshavebeen
identifiedthebusinesscommunity(particularlysmallbusinesses),thegovernmental
sector,andtheagriculturalcommunity.Eachofthesehasadistinctgeographiclocation,
constituency,andneedsorissuesofconcern.Likewise,basedonthemappingconducted
forthePlanningTool,itisevidentthatdifferentareasofthestatehavewidelydiffering
challengestoadoptionofbroadband.Byunderstandingtheneedsoftheconstituentpopulationinanarea,basedonphysicalandsocialfactorsaffectingadoptionrates,aseries
ofbroadrecommendationshavebeendevelopedtomeeteachareasuniquesetofneeds.
Nationwide,thepercentageofhouseholdswithoutaccesstohigh-speedInternetis
relativelylow,dependingonwhatmeasurementsareused.Forexample,in2009the
percentageofhouseholdswithaccesstohighspeed(>4Mbitsdownloadspeed)was
between85and90percent(Elliot,2010).Adoptionrates,however,differwidely,
dependingonthesectorofthepopulationisconsideredandwherethosepeoplelive.
Minorities,theelderly,less-educatedpopulations,andthoseinruralareashavelower
adoptionrates,evenwherethereisavailability(Horrigan,2009).Theissueofdifferential
accessandbarrierstoaccesstypicallybecomesanissueforDelaware,inareasoutsidethe
metropolitancorridor(thenorthernportionofNewCastleCountyinDelaware),andin
areaswhosepopulationislesspronetomakeuseofavailabletechnologyduetoeconomic,
social,ordemographicfactors.Thefollowingsectionlaysoutsomebroadstrategiesthat
havebeenusedtobridgethesegapsinareasacrossthecountry.Next,severalscenarios
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arepresentedforvariousareaswithinthestateofDelawarethatfacedistinctchallenges
basedonimputedfactorshighlightedbythePlanningToolmaps(seeAppendixA).Then,
potentialstrategiestoaddresstheshortcomingsateachlocationarediscussed.
Strategies
Thefollowingpresentsomebroadstrategiesemployedinareasaroundthecountry,as
identifiedbyMixetal.(2009).Thereissomeoverlapamongtheseapproaches,anditis
unlikelythatasinglesolutionwillbeapplicableinallareasandatallgeographicscales.
SomecombinationoftheseapproachesislikelytobeappropriateinDelaware.
StatusQuo
Thestatusquoentailsnofurtherexpenditureorplanningeffortstoboostimplementation
andadoptionofbroadband.Thisapproachreliesonexistingandfutureprivateprovision
ofboththeinfrastructurerequiredtoimplementbroadbandconnectivity,aswellasthe
provisionoftheserviceitself.Thishastraditionallybeenthemodelformostareasofthe
country(andinDelaware),andhasresultedinafairlycompletelevelofcoverageat
reasonablyhighspeedsandreliability.Themaindrawbackisaresultingdivideinthe
coverageintoareasofhavesandhave-nots.Inareasofhighdemand,thisisanefficient
methodforquicklybuildingbroadbandpenetration.If,however,thebusinesscaseisnot
favorableforprovisionatagivenlocation,infrastructurewillnotbeextendedthere.
Likewiseifthereisnotdemandinanareaduetoeconomic,social,ordemographicfactors,
providerswillnotbelikelytoprovideservicewithoutfurtherincentives.
AggregationofDemand
Aggregationofdemandisastrategythatseekstoestablishaprocessbywhichthelevelof
demandinanareacanbebroughttoalevelthatwillbeconsideredprofitablebythe
providers.Thisprocessbeginsbydevelopinganeducationandoutreachefforttoinform
thepopulationofthepotentialinandbenefitsofaccesstobroadband.Organizationssuch
aschambersofcommerce,governments,andcitizen-actiongroupscouldhelpproviders
seethebusinesscaseforextendingservice.Thenextstepisassuringthattechnical
assistanceisavailable,bothtoadviseontechnologiesappropriateforprovisionofservice
andtocoordinateeffortsamongprivate,nonprofit,andgovernmentalsectors.Ongoing
coordinationandbuildingofacommunityofstakeholdersisessentialtoensurethat
implementationiscarriedoutsuccessfully.
BroadbandCooperatives
Astrategythathasseengreatsuccessinbringingprovisionofutilitiessuchaselectric
powerandwatertoruralandunderservedareasistheideaofacooperative,ornot-for-
profitorganizationwithprovidersasmembers.Whilethecooperativemightownsome
infrastructure(cablesandswitches)itself,itsprimaryroleisasabrokerbetween
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end-usersandprivateproviders.Theprovidergainsaccesstoalargegroupofcustomers
andcanleverageexistinginfrastructureandserviceagreements.Theend-usergetsaccess
toawiderrangeofprovisionoptionsatcompetitiveprices.Sincethecooperativeisquasi-
public,providersalsooftenrealizebenefitsintermsofstreamlinedpermittingandaccess
topublicrights-of-way.AprominentandsuccessfulexampleofthismodelistheMaryland
BroadbandCooperative,referencedinChapter1,whichservesallofMarylandandsome
portionsofneighboringstates.
LocalNetworkandInfrastructureProvision
Thepreviousstrategieshavetheadvantageofrelyingprimarilyonprivate-sector
investment,and,therefore,requirelesspublicinput.Providingpublicsupportfornetwork
andinfrastructureprovisionisastrategythathasseensomesuccessnationally,though,in
general,successtendstobelocalizedanddependentonproperplanning,technical
expertise,andpoliticalwill.Dependingonthenatureofpublic-privatepartnerships,this
optioncanbemoreorlesscostlytoalocality.Withproperplanning(includingidentificationofstakeholders,assessmentofneeds,implementationofappropriate
technicalsolutions,andrealizationofmaterialbenefitstothecommunity)thiscanbea
viableapproachinDelaware.Implementationofthisstrategycanrunthegamutfrom
installationofaWiMAXorWiFihotspotstotaxincentivesforcompaniesthatprovidehigh-
qualityaccesstotargetedareasorgroupstodirectsubsidiesfororganizations(e.g.,CAIs
suchaslibrariesandcommunitycenters)toextendpublicservices(e.g.,byprovidingmore
computers,expandingaccess,orincreasingconnectionspeeds).
Scenarios
Eachofthefollowingsectionsdescribesanareaofthestateinwhichthereareparticular
challengestotheadoptionofbroadband.Whereoneormoreofthefactorsaffecting
broadbandadoption(physicalconnectedness,demographicfactors,andlevelofservice)
rankslowrelativetootherareas,certainstrategiesmaybeemployedtoovercomethose
barriers.Intheareaspresented,relyingonpuremarketforces(i.e.,thestatusquostrategy)
toadequatelyfulfilltheprovisionofbroadbandisnotlikelytobefruitful.Various
approachesforeachscenariopresentedarediscussed.Theseapproachesaretermed
tactics,todistinguishthemfromthebroaderstrategiesoutlinedabove;theyareconcrete
actionsthatmightbeconsideredtoaddresseachuniqueneed.
DowntownWilmingtonUrbanAccessDesert
DowntownWilmington(roughlybetweentheBrandywineandChristinaRivers,andeastof
Interstate95)ischaracterizedbyaCentralBusinessDistrictofmostlyhigh-andmid-rise
officebuildings,surroundedbyafairlydensepopulationofmostlylower-income,largely
minorityresidents.Asthestateslargestcityandcenterofmanymulti-nationalbusinesses,
thisareaisamongthemosthighlyconnected,withthehighestlevelofbroadbandservice
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inthestate.Thedemographicprofile,however,indicatesthattherearepotentiallyother
significantbarrierstobroadbandadoption.SeeFiguresA1-A3onthefollowingpages(38-
40)formapsoftherelativelikelihoodofadoptionbasedonthethreefactors.FigureA4on
page41illustratesthisscenariographically.
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FigureA1.Wilmingtonpredictedadoptionbasedonconnectivityfactors
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FigureA2.Wilmingtonpredictedadoptionbasedondemographicfactors
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FigureA3.Wilmingtonpredictedadoptionbasedonlevel-of-servicefactors
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FigureA4.DiagramshowingWilmingtonconnectivitystrengthsandchallenges
OutreachandEducation/StakeholderCultivation
Often,oneofthegreatestchallengesincultivatingdemandforbroadbandiseducatingthe
targetpopulationabouttheadvantagesforindividualsandthecommunityasawholethat
high-speedInternetaccessaffords.Acoregroupoflocalgroupsshouldbeidentifiedand
informationonthepossibilitiesofandopportunitiesforbroadbandpresented.In
particularthebenefitsintermsofjobaccess,jobtraining,distancelearning,accesstosocial
programs,andtechnicalskillsdevelopmentcouldbeofcriticalimportancetomany
residentsofthearea.Theinfluencethatexistingneighborhoodandcivicgroupsalready
havewithlocalresidentscouldbeleveragedtobotheducateandprovidetheaggregated
demandtoattractcompetitionamongserviceproviders.Aconnectedneighborhoodcan
thenbecomemoreofamagnetforresidentswhosuccessfullyadvanceintheireducationor
employmenthorizons;ifthosepeoplechoosetostayintheneighborhoodtotake
advantageoftheamenitiesandconnectednessaffordedbyproximitytothedowntown,
theycanserveasmodelsforfuturegrowth.
TechnicalAssistanceThereisaneedforongoingtechnicalsupportatalllevelsofgovernment,aswellas
coordinationamonggovernmentalandnon-governmentalagencies.Organizationssuchas
theDelawareEconomicDevelopmentOffice(DEDO),theWilmingtonDepartmentof
EconomicDevelopment,andtheUniversityofDelawaresInstituteforPublic
Administrationcanprovidetheseservices.Closecoordinationwithkeystakeholder
groupswillensurethatstepstakenareeffectiveandlong-term.
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DirectAssistance
City,county,orstategovernmentscanassistlocalneighborhoodgroupsorothernonprofit
organizationsthroughdirectgrantsforcomputerworkstations,buildingspace,or
extensionofhoursand/oraccesstofacilities.Wilmingtonalreadyhasarichnetworkof
CAIs,whichcanformthebackboneofaconnectedcity.Assessmentofeachofthese
facilitiesiskeytodeterminewhetherthecapacityissufficientforthedemand,bothcurrent
andfuture,andifthereareanyissuesorshortcomingsthatneedtobeaddressed.
Examplesoflow-costoptionsforextendingtheefficacyofCAIsataddressingdisparitiesin
broadbandaccessincludeextendinghoursofoperationofcertainfacilities,providingmore
workspaceorcomputers,augmentingsecurityatsites,assuringhigh-qualitydata
connections,andencouragingmoreopenpublicaccesstolocationssuchasseniorcenters
andfirestations.
IncentivesforProviders
Tostimulateinvestmentbyprivateserviceprovidersregulatorsmayofferincentives,ofteninexchangeforexpeditedapprovalsofbusinessplansorotherconsiderations.Therecent
offerbyComcasttoprovidelower-costservicetonewcustomerswhomeetaneeds-based
testaspartofadealtoacquireNBCUniversalisanexampleofthis.
WesternKentCountyRuralIsolation
WesternKentCountyisaprimarilyagriculturalareawithsomelargetractsofforestanda
relativelysparsenetworkofroads.Thoughnotphysicallyfarfromthestatescapital,the
areaisrelativelyisolated,withthelowestlevelsofexistingbroadbandserviceinthestate
(seeFiguresA5andA7).Withsomeexceptions,thebarriertobroadbandadoptionbased
ondemographicprofileisnotsignificant(FigureA6).Sincetheareaisquitesparselypopulated,thereisaverylowavailabilityofCAIstofulfillthedemandsforInternetaccess
forthosewithoutconnectivity.
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FigureA5.WesternKentCountypredictedadoptionbasedonconnectivityfactors
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FigureA6.WesternKentCountypredictedadoptionbasedondemographicfactors
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FigureA7.WesternKentCountypredictedadoptionbasedonlevel-of-servicefactors
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OutreachandEducation/StakeholderCultivation
Sincethereisalowpopulationdensity,developingabroadbaseofaggregateddemandand
stakeholdergroupswouldbeachallenge.Outreachefforts,therefore,shouldbe
coordinatedbyexistingchannels,suchastheDelawareDepartmentofAgricultureandthe
UniversityofDelawaresCooperativeExtension.Dependingontheagriculturalsector(e.g.,
poultryoperations,graincrops,fruitandvegetablefarming,etc.)theremaybevarying
levelsofawarenessofandadoptionofInternettechnologiestoaidbusinessventuresand
meetpersonalneeds.Therefore,educatingeachsectorofthepotentialandopportunities
forleveragingcommunicationandtechnologiesisapriority.Sinceaggregatingdemand
wouldlikelynotresultinrobustprovisionofconnectivityonthepartofprivatecompanies,
andsincethecurrentneedsofthecommunitymightbeadequatelyservedbythelevelof
serviceaffordedthroughwirelesstechnologies(e.g.,3Gand4Gmobileservice),useof
smartphonedevicesshouldbeconsideredaviableapproachtoaugmentingbroadband
penetration.Asthesetechnologiesmature,coverageisincreasinglybecominguniversal,
andspeedsapproachingorexceedingthresholdssetbytheFCCforclassificationasbroadbandconnectivityarebeingrealized.Therefore,theutilityofthesedevicesandthe
potentialapplications,particularlyforagriculturalapplications,shouldbestressedinany
educationandoutreachefforts.ConnectivitychallengesandopportunitiesinwesternKent
CountyarevisuallydepictedinFigureA8.
TechnicalAssistance
GroupssuchasextensionservicesatuniversitiesandthroughtheDepartmentof
Agri