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Connecting Rural Communities In-service

Connecting Rural Communities In-service. 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)

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Connecting Rural Communities In-service

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  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. What’s 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 • GED Equivalency • www.gedonline.com (~$45) • Associate / Bachelor’s / Graduate Degrees • University of Phoenix • Strayer University • Kaplan University • Walden University Distance Learning Typical Cost: $300 - $500 / Credit Hour (Minimum of $10,000 to complete a degree)

  21. Education Opportunities • Car Repair • www.2carpros.com • www.10w40.com (download repair manuals) • House Repair • www.thisoldhouse.com • Injuries • www.webmd.com Do-it-yourself info:

  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/www/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 don’t have websites; government sites are mostly directory listings; schools have wired access only. Many in the community don’t know what’s 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 • What’s 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@okstate.edu (405) 744-9825

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