STRATEGIC COMMUNITY STRATEGIC COMMUNITY ALLIANCESALLIANCES

Delivering broadband service to rural Delivering broadband service to rural Indiana: The Public Power connectionIndiana: The Public Power connection

Raj Rao, President

Indiana Municipal Power Agency

APPA Broadband Workshop 2004

Raj Rao – IMPA Raj Rao – IMPA

Scottsburg, IndianaScottsburg, Indiana

• Southern Indiana– County seat of Scott County – 29 miles north of Louisville, Kentucky

• Population – 6,000• Mayor Bill Graham• Electric peak – 29 MW• One of 40 members of Indiana Municipal Power Agency

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The need for The need for BroadbandBroadband• Started with a vision for a high tech

center in Scottsburg– Mayor Graham realized that the educational

level of the community was falling short of state and national averages

– While the city is not far from several community colleges in the region, many of its citizens are not able to afford the cost of college, nor have the transportation to get to a regional campus

– The Life-Long Learning Center, opened in 2001 was a start, but the community realized it needed more to keep its companies and youth around.

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The need for The need for BroadbandBroadband• Technology Committee formed in

spring 2002 to begin planning the high tech Community Campus– Included business people, school system

and up-and-coming youth in the community

• Study conducted by Ball State University to assess technology needs of local businesses – 76% of respondents accessed the Internet

at least 3 times a day• 96 % of these use the Internet for business

purposes– Area heavily dependent on dial-up service

• Most of those surveyed said they would be willing to spend up to 20% more for high-speed access

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The need for The need for BroadbandBroadband• City began to contact local

telecommunications and cable providers about providing high-speed service to Scottsburg– Verizon told them the market wasn’t

large enough for them to invest in– Consultants for cable companies and

other providers wanted big $$ to simply assess the potential before they would even consider installing “the last mile” of fiber.

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The need for The need for BroadbandBroadband• About that time, Mayor Graham

began to get phone calls:– Chrysler dealership and repair

shop would have to close if high-speed access wasn’t available (costing the city 66 jobs) because all of their training and repair manuals are on-line

– Residents who worked at home in medical transcription for Louisville hospital told the mayor they would have to move because their job depended on high-speed access

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Public Power to the Public Power to the rescue!rescue!• Mayor called IMPA• IMPA called contacts in Kentucky

– Found that Owensboro was providing wireless access

• Scottsburg group visited Owensboro

• By December 2002, Scottsburg had signed with Alvarion to provide wireless technology

• Citizens Communications Corp. (C3) was launched in January 2003

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Public Power to the Public Power to the rescue!rescue!• The system was funded by the

very healthy Scottsburg Municipal Electric Department– Invested $385,000 with the

expectation of a seven-year return on investment

• Three months after the contract was signed, the first customers began receiving high-speed Internet service.

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Success! Success!

• In the first 23 days, Citizens Communications Corporation had:– 30 retail– 15 commercial– 25 residential customers signed up with over 100 on the

waiting list!

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Success!Success!

• To date (as of Sept. 24, 2004):– Total of 534 customers

•98 businesses•436 residents

– Waiting list of over 75 businesses and residents in surrounding areas

ALL OF THIS WAS ACCOMPLISHED ALL OF THIS WAS ACCOMPLISHED WITHOUT THE NEED TO DO ANY WITHOUT THE NEED TO DO ANY MARKETING! MARKETING!

The need was that great. The need was that great.

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Success!Success!

• Citizens Communications Corp. has 21 towers and serves

– Scott,– Jackson,– Washington,– Jefferson,– Jennings, and – Clark Counties

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Success!Success!

• Costs run around 40% below the average high-speed rate in Indiana– $200 a month for T-1 speed

wireless•The school system alone saves

about $6,000 a month in telecommunications costs

– Residential price: $35/month

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Successful AlliancesSuccessful Alliances

• In April 2004, Scottsburg’s Community Campus was named the 8th “Certified Technology Park” in the state– Home to the Life-Long Learning Center– Technology, Innovation and

Entrepreneurship Center – focusing on enhancing local economic development and training

– Increases Scottsburg’s vision as a high-tech center in southern Indiana

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Successful AlliancesSuccessful Alliances• Electric Utility

– funding, staffing, installation & support services

• Scottsburg businesses and industries – Served as beta-testers for the system– The founding of the Technology,

Innovation and Entrepreneurship Center allows them access to high-tech training and business start-up resources

– It also allows young people to train for and do high-tech jobs without leaving Scottsburg

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Successful Alliances Successful Alliances • Training & Retaining Scott County youth

– The addition of C3 to the community means that the city’s younger generation no longer need to find employment in larger metropolitan areas

– C3 itself provides work for many area young professionals

• Beth Konkler, 28, employee of the city now serves as C3 director

– She and others provided the energy and drive necessary to promote the service without traditional marketing means

• Many installers are recent college graduates– Scott County Schools were some of the first

to use and promote the technology• Internet “cafes” being installed in schools so

students without computers at home can use them

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Citizens Communications Corp.2 E. McClain Ave.

Scottsburg, IN 47170Office: 812.752.7204 Fax: 812.752.5332

Beth Konkler, C3 DirectorJim Binkley, Utility Superintendent

& C3 Installation Manager