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Why Broadband is Needed

Why Broadband is Needed. Jean Plymale Seth Peery Virginia Tech eCorridors Group Jan. 29, 2004. Today’s Economy. Based on the creation and distribution of information Driven by information and communication technology (ICTs). ICTs.

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Why Broadband is Needed

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  1. Why Broadband is Needed Jean PlymaleSeth PeeryVirginia Tech eCorridors GroupJan. 29, 2004

  2. Today’s Economy • Based on the creation and distribution of information • Driven by information and communication technology (ICTs)

  3. ICTs • Telecommunication tools that enable direct participation at local, national and global levels. • Benefit those with access, hinders those without access • Any disparity in accessibility is a distinct disadvantage and a barrier to economic and social growth.

  4. Value • Formation of social, cultural, and economic relationships • Multiple modes of communication • Network value increases with the number of users and nodes on the network. • As cost of access decreases, potential value increases.

  5. Availability • Affordable “true broadband” networks have become synonymous with regions of economic prosperity • Usually deployed in response to market demands • In rural areas, the market may never provide these services

  6. Why does it matter? • The Bureau of Labor Statistics • jobs in IT among the fastest growing occupations • The Gartner Group • “true broadband” would increase the US GDP by up to $500 billion annually in the next 10 years • The President’s Council of Advisors on Science and Technology (PCAST) • The IT sector represents an engine of economic growth

  7. PCAST Recommends Expanded deployment of broadband with special attention to: • Development of public/private initiatives for distance education • Interagency coordination of telemedicine • Expanding and enabling the scope of telework opportunities • Investments in E-Gov applications • Enhance homeland security

  8. CSPP Recommends Must have in place to benefit in the “Networked World” • A local network infrastructure • Networked Places, Access • Networked application and services • Networked economy • Network Enablers

  9. CSPP’s Choose to Compete • Need for infrastructure development • Focus on innovation, investment and productivity • Recommends investment in technologies that will spur 21st century jobs in order to: • Compete, • Survive • Grow

  10. MDC • Strong physical infrastructure that includes telecommunications is an essential component of a sound community. • The lack of a telecommunication infrastructure puts businesses and educational institutions at a distinct disadvantage. • “people have the capacity to transform their institutions and communities”

  11. Technet Recommends: • A national strategy to connect 100M Americans by 2010 • States play key roles in achieving this goal • allow municipalities to provide services though their own networks. • Encourage citizen use of broadband through e-Gov initiatives. Citizens will increasingly choose where to live based on the availability of broadband for work and pleasure.

  12. Communities transforming • Utah Telecommunication Open Infrastructure Agency (Utopia) • iProvo • Grant County Washington • The Digital Rivers • Corporation for Education Network Initiative in California (CENIC) • The Swedish ICT Commission • Bristol, Danville, Leniwisco, Abingdon…Pulaski? NRV?

  13. Advantages In 2002 Governor Warner endorsed the Commonwealth’s economic development strategic plan: • Make VA the state with the highest percentage of home hook-ups to affordable broadband. • Encourage development of broadband capacity throughout Virginia, …”

  14. Entrepreneurship / Small business Dr. Zoltan J. Acs and Dr. David B. Audretsch claim small firms represent abundance of entrepreneurial talent. • Play key roles in the process of technological change and can effect the process by which industry evolves Dr. Andrew Cohill cites the increasing trend of small home based businesses: • predicts small, entrepreneurial home based companies will become the industry leaders of the future

  15. Our Region NRVPDC • ~ 6218 businesses • ~5735 ( 92% ) are small businesses (defined 1-20 employees) Pulaski County: • ~1043 businesses • ~959 (91%) small businesses Town of Pulaski • ~445 total, • ~420 (94%) small businesses Dublin • ~129 total, • ~114 (88%) small businesses

  16. The Facts: All these diverse groups emphasis: • true broadband is and will be necessary for the economic and social prosperity of the future • true broadband for everyone, benefits everyone

  17. Time to Decide • Do we have time to wait for “the market” to deliver broadband? • Are we willing to gamble on eventual market recognition of our value • Its time for Pulaski, the NRV to choose its future.

  18. Advice from Andrew Cohill • Construct a clear, concise vision that articulates where they want to go. • to inspire citizens and promise them a prosperous future. • Set a goal, create a vision, make it happen!

  19. What is eCorridors? • A research and outreach program within the Information Technology department at Virginia Tech • Our objectives: • To work with communities, private-sector, and municipal partners to facilitate rapid development of advanced, fiber optic, wireless, and “next generation” Internet infrastructure • To serve as a catalyst for the deployment of affordable access to fiber optic network infrastructure that is needed to create economic and educational opportunities for citizens and businesses • To educate communities about alternative technologies and business models that have worked elsewhere

  20. Rationale • Access to advanced communications infrastructure has become critical to ensuring economic competitiveness in the new Information-based economy • Inadequate services like most Cable Modems and ADSL will not give communities the ability to be producers of information goods and services • The traditional telecommunications players need to provide rural communities with true broadband service • By leveraging advanced optical technologies and alternative business models, communities can achieve a “leapfrog” advantage

  21. The eCorridors Strategy • Provide knowledge and expertise to communities to raise awareness of what communications infrastructure is needed to compete in the network economy • Suggest proven ways to leverage IT for economic development • Give communities the tools they need to design and build a reliable, affordable fiber optic network infrastructure

  22. eCorridors Research Strategic Technology Infrastructure for Regional Competitiveness in the Network Economy • 11 Volumes • Contributors included 60 network and IT professionals from VT as well as over 40 private sector company representatives • 6 month project (released March 2003) • Uses the Southwest and Southside regions as a model • The report serves as a reference guide for communities • Available for free download from http://www.ecorridors.vt.edu

  23. Volumes of the eCorridors Report • Rationale, Environment, and Strategic Considerations • Connecting the Regional Infrastructure to National and International Networks • A Fiber Optic Infrastructure Design for Southside and Southwest Virginia • Fiber Optic Infrastructure Design Guide • Financial Feasibility and Investment Rationale • Leveraging Advanced Optical and Ethernet Technologies • Speculative and Alternative Technologies • Community, Applications, and Services • Demographics for Southside and Southwest Virginia • Health Information Technology and Infrastructure • Education in the 21st Century

  24. Relevance of the eCorridors Report • A reference guide to community networking and acase study in fiber design • A rationale for community networking • Guidelines for building fiber-optic infrastructure • An example regional fiber network design and associated financial model • Familiarizes the reader with cutting-edge technology and networking concepts • Investigates key application areas such as health and education

  25. The Role of Communities • eCorridors is a catalyst to promote local empowerment and regional coordination • eCorridors exists to educate communities about applications, technologies, planning, engineering, and management of Next Generation networks • Once aware of their options, communities need to take the initiative to remain competitive in the network economy • Regional efforts can bring common interests together and create a “critical mass”

  26. Guiding Principles • Separation of services from infrastructure • Competing service providers operating over an open-access, independently owned infrastructure • Let the public and private sectors do what they do best • True broadband (multi-megabit up to gigabit per second) • Connection of every premise as an ultimate goal • The value of a network increases with the number of users • Innovation and entrepreneurship often occurs at home • Ethernet and IP-based networking protocols over least-cost solutions • Fiber-based design

  27. Bandwidth Comparisons Dial-up Cable modem DSL Gigabit Ethernet1000BaseLX T-1 10 Mbps Ethernet 100 Mbps Ethernet

  28. Limitations • More is needed for economic development and improved quality of life in a region than communications infrastructure. • The eCorridors recommendations are necessary, but not sufficient conditions for economic development • Telecommunications is a component of an comprehensive development policy along with more traditional infrastructure • Education and training is and will remain vitally important, as it improves a region’s human capital and its ability to realize the benefits of its investment in technology

  29. Contact Us For more information, contact: Brenda van Gelder bvgelder@vt.edu Jean Plymale vplymale@vt.edu John Nichols john.nichols@vt.edu Seth Peery sspeery@vt.eduhttp://www.ecorridors.vt.edu

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