Funding the

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Funding the
FAT PIPE

• Tim Owens
• Cronin Communications
• www.cronincom.com

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About Cronin Com

• Small independent consulting firm.
• Works with rural telcos across the United States.
• Conducts market feasibility studies for business
  expansion.
• Provides regulatory, operations and business
  planning services.
• Provides support to economic development
  organizations to fund broadband deployment.

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Why Were Here

• Broadband is a necessity for business growth and
  economic development (not optional).
• Funding sources are confusing.
• Broadband objectives are confusing.
• Consumer electronics are mostly driving broadband
  deployment.

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The problems we face will not be solved by the
minds that created them. Albert Einstein
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Customer Demand

• Two Thoughts
• There is a constant push / pull between capacity
  and consumer uses. Demand pressures bandwidth
  and vice-versa.
• Businesses and organization have much more
  complex networking issues.

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Broadband Adoption
Percent
Estimated Percentage of Households with Broadband
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Economic DevelopmentThrough Broadband

• What it is
• Developing leaders in our communities
• Improving social conditions in our communities
• Strengthening our community ties
• Building capacity
• Providing the resources that spur innovation

• What it is not
• Going it alone
• Chasing grants
• A quick and easy process
• A defined outcome

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Rethinking Economic Development

• Builds community capacity first.
• Views community as a system.
• Considers how community development decisions
  affect everyone.
• Strives for family wage jobs.
• Forges partnerships with neighboring communities.
• Act as a smart consumer of outside resources.

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Rethinking Broadband Funding Options

• The Pros and Cons of
• Grants
• Consortia / Partnerships
• Municipal Ownership
• Private Financing
• Government Financing
• In Missouri, 100 of RUS apps have been approved,
  serving 45 counties.

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Step One Strategic Planning

• Seeks to
• Understand the values of citizens and use them as
  a basis for planning.
• Figure out the trends and forces that are
  affecting the community.
• Get the Big Picture, and use it to guide short
  term decisions
• Develop tools to achieve a vision.

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Step Two Defining the Scope

• Local
• Regional
• Statewide

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Step Three Financial Feasibility

• Broadband (fiber) deployment ranges from 2,500 -
  4,500 per premise (residential).
• Many projects never achieve ROI.

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Growing Small Businesses

• Assess needs of current and potential
  entrepreneurs.
• Act as a nurturer and convener.
• Help broker business resources.
• Develop plan to attract lone eagles.
• Help with business financing.

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Step FiveStrengthening Community Organizations

• Government agencies
• Educational institutions
• Health care providers
• Civic organizations

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The Market Potential of Your Community

• Proximity to major population centers.
• Availability and quality of transportation to
  your community.
• Number of people currently traveling to or
  through your area.
• Type of visitor you hope to attract.
• Current and future competition.

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TOOLS
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Grant Writing Process

• Funding agency publishes Notice
• Very much like RFP
• Funding available
• Nature of projects
• Due dates
• Formats for applications
• Standard forms

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Grant Making Strategies

• Match project to funding source
• Doesnt have to be perfect, however
• Build community support
• Matching funds
• Partners

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Grant Making Strategies

• Write Application
• Build external support
• Congressional
• State

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Grant Making Risks

• Be careful what you wish for
• Odds can be pretty far
• Politics

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A Creative Funding Example

• Mid-Atlantic Broadband Cooperative
• 700 miles of fiber
• 20 counties
• 56 industrial parks
• 700,000 people
• 19,000 businesses

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The Region
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The Scope

• Conceived as a 100 million project.
• Was managed on contract.
• Became extremely political.

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The Funding

• Virginia Tobacco Commission.
• Federal appropriations.
• State appropriations.
• Economic Development Authority grants.

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Sidebar

• Took three years to secure funds and begin
  construction.
• Rural telcos are not involved in ownership or
  management (although several will link to the
  network.)

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Some Major Discretionary Granting Agencies

• Economic Development Agency (EDA)
• www.osec.doc.gov/eda
• USDA Rural Development
• www.usda.gov/rus

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Broadband Funding Summary

• Looking at your communitys needs and
  positioning.
• Choosing the right ownership.
• Having the resources to get the money.
• Accepting a different type of business model.

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Thanks and Good Luck!

• Tim Owens
• towens_at_crconincom.com
• www.cronincom.com