Broadband in Delaware: A
Critical Economic
Development Tool
Andrew Homsey and Todd O’Boyle
University of Delaware
Institute for Public Administration
23RD ANNUAL DELAWARE INSTITUTE FOR LOCAL
GOVERNMENT LEADERS
October 24th, 2011
Sheraton Inn
Dover, Delaware
The Planning Tool
•  Aims to help bridge the gap (digital divide)
–  Frame the broadband issues in Delaware
–  Map the factors that affect the
implementation and adoption of broadband
–  Outline possible approaches for diversity of
situations
What is Broadband?
•  “The term broadband commonly refers to
high-speed Internet access that is always
on and faster than the traditional dial-up
access.” (broadband.gov)
Diverse Technologies
•  Dial-up (not broadband)
•  Satellite
•  Fixed and Mobile Wireless
•  DSL
•  BPL
•  Cable
•  Fiber optic
Why Broadband?
•  Attract new businesses
•  Develop new industry bases
•  Provide value to current and future
residents
–  Job searches/training
–  E-government
–  Distance Learning
–  Telecommuting
–  Telemedecine
–  Utility applications (e.g. remote monitoring)
Measuring Broadband's Economic Impact, Economic Development Administration, 2006
ECONOMIC EFFECTS OF INCREASED BROADBAND USE IN CALIFORNIA, Sacramento Regional Research Institute ,2007
THE ECONOMIC BENEFITS OF BROADBAND AND INFORMATION TECHNOLOGY, Patrick S. Brogan, 2009
Delaware currently has a
competitive advantage
•  But the distribution of adoption and
provision is NOT uniform
–  Geographic disparities
–  Demographic disparities
–  Availability disparities
Telecom Hurdles
•  Middle mile
•  Last mile
•  Funding
•  Planning and coordination
•  Resource maps
•  http://broadband.delaware.gov/
de_mobile/default.shtml
•  http://Brandywine.dgs.udel.edu/
broadband%20adoption
National and Local Level
Developments in Community
Broadband
Cases from Tennessee, North
Carolina, Maryland and Utah
Results from a recent survey
•  Economic development professionals have
lots of broadband questions
–  What is the impact of broadband investment?
–  How much broadband do we need?
–  Is fiber better? Or wireless?
Chattanooga EPB Fiber Optics
•  In operation since 2009, fastest consumer
connection in the country; 1 Gbps; fiber
throughout 11 county service area
•  Chattanooga as a biomedical research hub
•  Logistics – Amazon
•  Smart Metering and Smart Grid
Wilson, North Carolina
•  City of 50,000 in Eastern NC
•  Pursued PPP with Time Warner, Embarq/
CenturyLink
•  Citywide retail FTTP available beginning
1/2009
•  Public safety & Traffic management
•  Telemedicine initiatives underway
•  Experiments with growing local content
Controversies
Chattanooga EPB
•  4 Lawsuits
•  Legislative challenges
•  Policy restrictions on
funding and accounting
Wilson Greenlight
•  4 Legislative Challenges
•  1 Lawsuit
•  Newly-enacted
restrictions on future
growth
Broadband Cooperatives
•  Not-for-profit “open-access” networks
•  Public money builds out “fiber ring”
•  Private companies compete for last-mile
service
Two Examples
•
•
•
•
UTOPIA
16 member communities
around Salt Lake City,
Utah
Consumers choose a
provider of last-mile
service
Provides competition and
keeps costs low
UTOPIA Map
MDBC
•  Connects member
agencies in the public and
private sector to their
high-speed fiber
backbone across the state
•  MDBC Map
Public Provision vs Cooperatives
High Risk/High Reward
•  Capital Intensive
•  Can generate revenue …
Or Losses
•  Community development
upside
•  Potential Political, Legal
controversies
Medium Risk/Medium
Reward
•  Spreads costs
•  Less controversy
•  Fewer communityoriented upsides
Funding sources
•  Bonds: COPs & GOBs are most common
•  Grants/Loans: RUS, DOE, DOT
•  Interfund transfers
•  E-Rate – ?
The Planning Tool: Data
Analysis
•  Assist elected officials, planners, and
regulators in decision-making about
policies to promote broadband adoption
•  By mapping the features related to
broadband adoption rates among
Delaware residents
Planning Groups
The Planning Tool
Legislators
Regulators &
Planners
The Planning Tool: Data
Analysis
•  3 separate sets of factors to predict
barriers to adoption:
–  Connectivity
–  Demographics
–  Level of Service
The Planning Tool: Data
Analysis
•  Use existing geographic data
Approaches
•  Outreach and education/Stakeholder
cultivation
•  Technical assistance
•  Direct assistance
•  Incentives for providers
Downtown Wilmington
Seaford area