Connecting Rural Communities In-service

1
Connecting Rural Communities In-service
2
Agenda

• 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

3
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

4
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)

5
Typical Broadband Costs
6
Background Information

• Increasing Shift to Broadband Access

7
Background Information

• Increasing Number of Broadband Lines

8
Background Information Locations of Broadband
Providers
Source FCC Industry Analysis Technology
Division, 6-30-05
9
Background Information

• 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
10
Background Information

• 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

11
Background Information

• 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
12
Rural Urban Digital Divides
13
Broadband Infrastructure in Oklahoma, 2000 - 2006
14
Broadband Infrastructure in Oklahoma, 2000 - 2006
15
Broadband Infrastructure in Oklahoma, 2000 - 2006
16
How Does Oklahoma Stack Up?
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
17
Whats Available in Your Community?
18
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!
19
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

20
Education Opportunities
Distance Learning

• GED Equivalency
• www.gedonline.com (45)
• Associate / Bachelors / 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)
21
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

22
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

23
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/ww
w/ecomm.html
24
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

25
E-Commerce Benefits

• Reaches distant markets
• Builds credibility
• Build brand recognition
• Cut operating costs
• Find niche markets
• Start new business
• Build an existing business

26
Ebay Entrepreneurship at its best!

• Buy / Sell anything!
• www.ebay.com
• From Antiques to Electronics to Real Estate
• Some people have made careers out of ebay

27
E-commerce Resources Available from OSU Extension

• Basics of e-commerce
• Exploring e-commerce websites
• Planning your website
• Promoting your website
• Developing an Internet business plan

28
Social Groups

• Message Boards
• Voice Over Internet Protocol (VOIP)
• Skype
• Vonage

29
Entertainment!

• www.youtube.com
• www.espn.com
• www.itunes.com
• www.sudoku.com

30
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
31
What Broadband Can Do

• For Businesses
• Increased productivity / efficiency
• Attract new audiences
• Create loyalty
• Easier training

32
What Broadband Can Do

• 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

33
What Broadband Can Do

• For Communities
• Attract Businesses
• Attract Residents
• Increase Public Safety (law enforcement
  technology, video surveillance)
• Provide Local Information
• Create source of Pride

34
What Broadband Can Do

• 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)

35
Community Broadband Project Steps
Analyze
Implement
Implement
Vision
Design
Assess
Analyze
Goals
Design
36
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 dont have
  websites government sites are mostly directory
  listings schools have wired access only. Many in
  the community dont know whats available or how
  to use it.

37
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

38
Steps for Communities Without Broadband

• Importance of Champions
• Delivery Models
• Moving Forward

39
Importance of Champions

• Someone constantly in the public eye
• Understand the benefits of broadband
  infrastructure
• Well-spoken well-liked

40
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

41
Funding Sources

• UDSA Rural Development Telecommunications
  Programs
• Community Connect Grants
• Distance Learning and Telemedicine Grants
• Broadband Loans
• Rural Utilities Service Loans
• Infrastructure Loans

42
Moving Forward

• Community Assessments
• Whats 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

43
Some Final Questions
44
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

45
Contact Information
Department of Agricultural Economics Rural
Development 504 Ag Hall, Stillwater, OK
74074 www.rd.okstate.edu
Brian Whitacre brian.whitacre_at_okstate.edu (405)
744-9825