Connecting Rural
Communities In-service
Slide
1
Connecting
Rural
Communities
3-14-07
Agenda
Slide
2
Connecting
Rural
Communities
3-14-07
• 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
What is Broadband?
Slide
3
Connecting
Rural
Communities
• FCC Definition: Minimum speed of 200
kilobytes per second (Kbps) in at least 1
direction
3-14-07
• Typical Connections
– Wired
•
•
•
•
Digital Subscriber Line (DSL)
CableInternet
T3
Fiber
– Wireless
– Satellite
Download Speed
250 – 1,500 Kbps
1,500 Kbps
45,000 Kbps
10,000 Kbps
250 – 500 Kbps
250 – 500 Kbps
Rural Broadband Issues
Slide
4
Connecting
Rural
Communities
3-14-07
• 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)
Typical Broadband Costs
Slide
5
Connecting
Rural
Communities
3-14-07
Wired
DSL
Cable
T3 (business use)
Fiber
Wireless
eConnect (NW OK)
Vaxeo (Claremore)
Satellite
Wildblue
DirecWay
Installation
Equipment
Monthly
$0 - $100
$0 - $100
$1,000 - $5,000
$0 - $100
$0- $80
$0 - $80
$20 - $50
$30 - $50
$7,500
$40 - $100
$80 - $700
$200
$0 - $200
$0 - $200
$30 - $40
$60 - $80
$200
$200
$300
$300
$50
$60
Background Information
Slide
6 • Increasing Shift to Broadband Access
Connecting
Rural
Communities
Households
3-14-07
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1999
None
Dial-up
High-speed
2000
2001
2002
2003
2004
2005
Background Information
Slide
7 • Increasing Number of Broadband Lines
Connecting
Rural
Communities
Number of Broadband Lines
Millions of Lines
3-14-07
50
45
40
35
30
25
20
15
10
5
0
Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun99 00 00 01 01 02 02 03 03 04 04 05
Background Information –
Locations of Broadband Providers
Slide
8
Connecting
Rural
Communities
3-14-07
Source: FCC Industry Analysis & Technology Division, 6-30-05
Background Information
Slide
9 • Dominant Types of Broadband
Connecting
Rural
Communities
All Other
7.6%
3-14-07
ADS L
38.8%
Fiber
0.9%
Cable Modem
50.9%
S DS L and Traditional
Wireline
1.7%
Source: “High-Speed Services for Internet Access: Status as of
December 31, 2005”, http://www.fcc.gov/wcb/iatd/comp.html
Background Information
Slide
10 • Does Broadband Access Impact
Connecting
Rural
Communities
3-14-07
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
Background Information
Slide
11 • Does Broadband Access Impact
Connecting
Rural
Communities
3-14-07
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
Rural – Urban “Digital Divides”
Slide
12
70
60
3-14-07
50
Percent of Households
Connecting
Rural
Communities
Rural - High-speed
Rural - Dial-up
Urban - High-speed
Urban - Dial-up
40
30
20
Source:
Current Population
Survey (CPS) Data,
2000 - 2003
10
0
2000
2001
2003
Broadband Infrastructure
in Oklahoma, 2000 - 2006
Slide
13
Connecting
Rural
Communities
3-14-07
Broadband Infrastructure
in Oklahoma, 2000 - 2006
Slide
14
Connecting
Rural
Communities
3-14-07
Broadband Infrastructure
in Oklahoma, 2000 - 2006
Slide
15
Connecting
Rural
Communities
3-14-07
How Does Oklahoma Stack Up?
Slide
16
Number of High-speed Lines By State
Connecting
Rural
Communities
3-14-07
Dec-04
Dec-05
% Change
2005
Population
2005 Lines
per Capita
U.S.
Oklahoma
37,890,646
391,781
50,237,139
502,948
32.6%
28.4%
Texas
Arkansas
2,597,539
220,324
3,466,494
302,881
33.5%
37.5%
Kansas
Missouri
387,300
591,281
468,146
764,717
20.9%
29.3%
296,410,404 3,433,496 22,270,165 2,701,431 2,662,616 5,631,910
0.17
0.15
0.16
0.11
Source: “High-Speed Services for Internet Access: Status as
of Dec 31, 2005”, http://www.fcc.gov/wcb/iatd/comp.html
0.18
0.14
Slide
17
Connecting
Rural
Communities
3-14-07
What’s Available in
Your Community?
What is a
“Connected Community?”
Slide
18
Connecting
Rural
Communities
3-14-07
• 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!
What Broadband Can Do
Slide
19
Connecting
Rural
Communities
3-14-07
• For Individuals:
– Education
• Distance Learning Opportunities
• Do-it-yourself information
– Income
• E-Bay
• E-commerce / Entrepreneurship
– Social Groups
• VOIP
• Online communities
– Entertainment
Education Opportunities
Slide
20
Connecting
Rural
Communities
3-14-07
Distance Learning
• GED Equivalency
– www.gedonline.com (~$45)
• Associate / Bachelor’s / Graduate
Degrees
– University of Phoenix
– Strayer University
– Kaplan University
– Walden University
Typical Cost:
$300 - $500 / Credit Hour
(Minimum of $10,000 to
complete a degree)
Education Opportunities
Slide
21
Connecting
Rural
Communities
3-14-07
Do-it-yourself info:
• Car Repair
– www.2carpros.com
– www.10w40.com (download repair
manuals)
• House Repair
– www.thisoldhouse.com
• Injuries
– www.webmd.com
Income Opportunities
Slide
22
Connecting
Rural
Communities
3-14-07
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
The Rise of E-commerce
Slide
23
E-commerce sales as a percentage of total retail sales,
1999 - 2006
Connecting
Rural
Communities
3-14-07
Source: U.S. Census,
http://www.census.gov/mrts/www/ecomm.html
E-Commerce Examples
Slide
24
Connecting
Rural
Communities
3-14-07
• 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
E-Commerce Benefits
Slide
25
Connecting
Rural
Communities
3-14-07
•
•
•
•
•
•
•
Reaches distant markets
Builds credibility
Build brand recognition
Cut operating costs
Find niche markets
Start new business
Build an existing business
Ebay: Entrepreneurship
at its best!
Slide
26
Connecting
Rural
Communities
3-14-07
• Buy / Sell anything!
– www.ebay.com
– From Antiques to Electronics to
Real Estate
– Some people have made
careers out of ebay
E-commerce Resources
Available from OSU Extension
Slide
27
Connecting
Rural
Communities
3-14-07
– Basics of e-commerce
– Exploring e-commerce websites
– Planning your website
– Promoting your website
– Developing an Internet business
plan
Social Groups
Slide
28
Connecting
Rural
Communities
3-14-07
• Message Boards
• Voice Over Internet Protocol
(VOIP)
– Skype
– Vonage
Entertainment!
Slide
29
Connecting
Rural
Communities
3-14-07
•
•
•
•
www.youtube.com
www.espn.com
www.itunes.com
www.sudoku.com
What Do People Do
With Broadband?
Slide
30
Connecting
Rural
Communities
3-14-07
• 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
What Broadband Can Do
Slide
31
Connecting
Rural
Communities
• For Businesses:
– Increased productivity / efficiency
3-14-07
– Attract new audiences
– Create loyalty
– Easier training
What Broadband Can Do
Slide
32
Connecting
Rural
Communities
3-14-07
• 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
What Broadband Can Do
Slide
33
Connecting
Rural
Communities
3-14-07
• For Communities:
– Attract Businesses
– Attract Residents
– Increase Public Safety (law enforcement
technology, video surveillance)
– Provide Local Information
– Create source of Pride
What Broadband Can Do
Slide
34
Connecting
Rural
Communities
3-14-07
• 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)
Community Broadband
Project Steps
Slide
35
Connecting
Rural
Communities
3-14-07
Community Broadband
Scenario Assessment
Slide
36
Connecting
Rural
Communities
3-14-07
• 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.
Community Broadband
Scenario Assessment
Slide
37
Connecting
Rural
Communities
3-14-07
• 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
Steps for Communities
Without Broadband
Slide
38
Connecting
Rural
Communities
3-14-07
• Importance of Champions
• Delivery Models
• Moving Forward
Importance of Champions
Slide
39
Connecting
Rural
Communities
3-14-07
• Someone constantly in the
public eye
• Understand the benefits of
broadband infrastructure
• Well-spoken & well-liked
Delivery Methods
Slide
40
Connecting
Rural
Communities
3-14-07
• 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
Funding Sources
Slide
41
Connecting
Rural
Communities
3-14-07
• UDSA Rural Development
Telecommunications Programs
– Community Connect Grants
– Distance Learning and Telemedicine
Grants
– Broadband Loans
– Rural Utilities Service Loans
– Infrastructure Loans
Moving Forward
Slide
42
Connecting
Rural
Communities
3-14-07
• 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
Slide
43
Connecting
Rural
Communities
3-14-07
Some Final Questions…
Additional Training
Slide
44
Connecting
Rural
Communities
3-14-07
• 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
Contact Information
Slide
45
Connecting
Rural
Communities
3-14-07
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