WHAT A STRANGE TRIP THIS HAS BEEN – FROM 1984 TO NOW

The Rural Telecon Conference 2007

Jane Smith-PattersonThe e-NC AuthorityOctober 15, 2007

WHERE ARE WE? REALLY?

At the Hind End of the Horse

We heard from yesterday’s keynoters that we have not come far.

15th or 12th or 21st ---- All different Think Tank Groups

The real story is:

US consumers pay 2 times more what the Japanese pays for connections; and it is 20 times as slow. (Comm Daily 10/3/07)

Canada – Germany – France

E-rate

Broadband Evolution in the World

European Union (Government Intervention)

Asian Continent, Singapore, Japan, Korea, (Government Intervention)

North America (Except US) Mexico and Canada Industry Canada and President Calderon of Mexico

Middle East (Government and Private Sector)

Africa (Government and Private Sector)

Disruptive Technology of the Internet Has Changed the Game

Telephones, Laptops, Cell Phones, PDAs, IPODs, IPhones, has enlarged the category of access devices.

Replacing drums and the telegraph we still have copper, cable, satellite, wireless and fiber

BPL still not there to scale.

2007 Disruptive Tech

RFID

WEB SERVICES

SERVER VIRTUALIZATION

GRAPHIC PROCESSING

MOBILE SECURITY

The ECONOMIC End Game for Rural Areas – Move or Stay and Fight

Why is it important? US has always counted on the telecommunications industry as an important element of America’s technological leadership and economic success.

Industry accounted for half the increase in US issued patents in the decade of the 1990s.

Federal Reserve Board –two-thirds of US productivity gains since 1995 due to impact of communications and computer technology

$700 billion trade deficit compounded by $55 billion deficit in Advanced Technology Products—telecommunications items account for $27 billion

Lack of ULTRA high speed networks in US makes it impossible for US based companies to enter key new business sectors.

US venture capitalists are pushing start-up firms they fund to move R&D abroad—to Asia (Economic Strategy Institute, 2006)

Flawed Regulatory Policies

1996 Telecomm Act focused on deregulations and creating greater competition in telecom markets as sole means of fostering development and deployment of new technologies and services.

Competition doesn’t create demand necessarily… if risks too great investment and disincentives too strong, then new technology development and deployment will be retarded.

US regulators failed to put in place measures to stimulate demand except with the e-rate

A major boom then bust in 2001 when CLECs and LD carriers collapsed taking $500 billion of invested capital, $2 trillion in market cap with them.

Many US telecom makers outsourced to Asia, closed factories and slashed employment. (Economic Strategy Institute, 2006)

US Challenges and Risk for Broadband

Market Turbulence

Overly Cautious FCC

Commitment of federal and state resources

Incentive funds lacking

Digital Literacy Programs important

Equipment for all citizens

JUST DO IT!!! (e-NC Examples)

- Business & Tech Centers - Mapping/e-Communities

-PANGEA - Clay

-PINE - WinstonNet

- MAIN - Yadkin Valley Co-op

- CTC - Blue Ridge/DukeNet

- Belhaven Cable - Blue Ridge Mountain/GA

Connectivity in North Carolina: the Good News

NC Status:

December 2006

83%Penetration

US Broadband Penetration: 82.2% - Computer World, Sept. 2007

Households with Access to High-speed Service

2006New Color

Scheme

Challenges and Risks

• Market turbulence

• Incentive Funds

• Commitment of federal resources

• Overly cautious FCC

• FTTH essential

•Computers/Training for Homes

“What a Long Strange Trip It’s Been”

Critical Success Factors:

• Leadership - Legislative

• Incentives Money

• Public-Private Partnerships

• Grassroots Involvement -- e-communities

• The e-NC Authority Board

What Can you Do?

• Elect Legislators Who “Get It”

• Demand $$$ for Broadband Incentives

• Request 10-yr. Internet “Never Drop off the Net” Plan

• Know Your Communities’ Access Profile

• Take your Legislator to See How Technology is Transforming North Carolina

• Stay Current - visit www.e-NC.org

Broadband Evolution: An Anthropomorphic View

384 kps –

Baby Broadband

1.5 mbps

Toddler Speeds

45 mbps

Adolescents

80 mbps

Functional Adults

April 16-17, 2007

Hilton RDU Airport48100 Page RoadDurham NC 27703

Southeast ICT Symposium

SAVE the DATES

Webcasting Training

Up-coming sessions:

• September 11 Foothills Connects, Rutherfordton

• September 18 Northeast Technology & Business

Center, Williamston

• November 27 NC Rural Center

Registration: www.e-nc.org Cost: No charge

A Closing Thought

Early Adapters Have Benefited the Most From Disruptive Technology Movements

To Reach Us ….To Reach Us ….

The e-NC Authority

4021 Carya Drive, Raleigh

1-866-NCRURAL

www.e-nc.org