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This case study highlights key lessons from Grant County's rural broadband initiatives, focusing on the long-term nature of success, varying impacts across regions, and the essentiality of tailored strategies. Despite an initial slow uptake of fiber-to-the-home services, the transformation accelerated with major companies setting up data centers. Key takeaways include the challenges of market penetration, the importance of diverse applications for different communities, and the necessity of flexible planning. Learn how to navigate the complexities of rural broadband implementation.
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APPLIED COMMUNICATIONS Lessons Learned from Rural Broadband Initiatives
Lesson One Success doesn’t happen overnight.
Case Study - Grant County • Grant County Public Utility District installed fiber backbone between substation. Fiber to the home roll-out began in 2001. • Initial slow take rate below projections • Quincy, WA - Population = 5,300 • In 2006 – Microsoft, Yahoo and Intuit announced plans for data centers. (Fiber + Low Power Costs) • “One Tiny Town Become Internet Age Power Point” (Wall Street Journal – 3/7/07) • 1000 new workers = Housing Shortage
DIFFUSION CURVE Rural Telecon “98”
Lesson Two “The power to transform will play out unevenly and in stages.” (Business Week 3/26/01)
THE STATS • broadbandproperties.com 2004 = 200,000 homes passed by fiber. 2006 = 4 million 2008 = 10 million 2011 = 64 million • Muni-Wireless public wireless networks/hotspots 2005 = 122 2006 = 312 2007 = 415
PEW INTERNET PROJECT In 2007 47% of all adult Americans had broadband connections. Only 31% of homes in rural areas had broadband. High Cost + Low income = Lower Penetration Rates Geraldine, MT = $59 for 1.5 mg DSL
Lesson Three One size doesn’t fit all.
Applications – Fiber or HFC • Load Management for Electric Utilities (Fiber) • Home Automation (FTTP) • Cable TV – Video Conferencing
Applications - Wireless • Public Safety – Mobile applications for Police & Fire • Public Works/City Inspectors Mobile applications • Free Internet (Wi-Fi)
Lesson Four “You can’t have always get what you want.” Source: Mick Jagger
Marshfield, WI – Case Study • Charter Cable – Regional Fiber Backbone, Fiber to Clinic & other businesses in town • Verizon – DSL, Fiber Sonet-Ring • Poor service in rural areas • No fiber in industrial parks on town’s edge • No Wi-Fi hot spots
Evaluation Measures • Cost-Benefit • Economic Development • Public Support • Financial Liability • Commitment
Lesson Five Metcalfs Law – “The Value of a network grows with the number of users.”
Take Rates • Take rates ranged from 20% - 80%. Averaged around 40-50%. • Cable take rates have been higher than Internet • Marketing surveys generally indicate higher interest level than actual take rate • Takes several years to penetrate market • Competitors might enter market (Applied Communications – Public Broadband Database)
Lesson Six There is no such thing as a 100% success rate in business or in telecommunications.
Business Plan • Select Appropriate Business Model • ROI – 5, 10, 15 years? • Risk Analysis • Marketing • Financing – Grants, fees, bonds, recapture, …
Lesson Seven Planning can be a catalyst for action.
Marshfield, WI – DSL for Hewitt • Douglas, WY – Cable Modems • Sandpoint, ID – RFP for services spurs Qwest • Havre, MT – County Commissioners allow co-location
Lesson Eight Don’t get trapped by paralysis analysis.
Strategies • Find a niche • Pilot project before full deployment • Phase in, deploy to areas of high demand to generate revenue • Decrease risks – Partner, pre-lease, piggy back on other projects
For More Information Kate McMahon Applied Communications (406)863-9255 kate@appcom.net www.appcom.net