Leveraging broadband 040813

Leveraging High-Speed Broadband

A Catalyst To Enhance Job Creation, Economic Development, Healthcare, & Education

Prepared By Cherrystone Management Consultants Inc.

For The Martin County Board of County Commissioners April 8, 2013

Leveraging High Speed Broadband

040713 Copyright 2013 Cherrystone Management Consultants Inc. of 21

Contents Executive Summary ......................................................................................................................... 3

Demand For High Speed Broadband Connectivity ......................................................................... 5

Economic Development .................................................................................................................. 7

Job Creation .................................................................................................................................... 9

Education ...................................................................................................................................... 10

Healthcare ..................................................................................................................................... 13

Local Fiber Optic Network Deployment In The U.S. ..................................................................... 16

Broadband Connection Speeds & Adoption Rates ....................................................................... 17

Florida Broadband Scorecard ....................................................................................................... 18

End Notes ...................................................................................................................................... 20



Executive Summary This paper addresses the current environment and driving forces behind the exponential growth in demand for faster broadband connections. It builds on a January 2011 report to the Martin County Board of County Commissioners by Cherrystone Management Consultants Inc. Specifically, it examines:

• Applications and market conditions that will drive the future demand for high-speed broadband connectivity.

• Success stories where availability of high-speed broadband connections have been recognized as the primary reason that a business moved to or remained in a community.

• The value and need for high-speed broadband connectivity in the healthcare and K-20 education sectors.

• Investments in local fiber optic networks and the role played by the public sector. • Florida's broadband infrastructure and adoption rates compared to other states.

Key Highlights: Growth in Demand For Higher Speed Broadband Connectivity: Internet usage is expected to increase nearly four-fold at a compounded annual growth rate of 29 percent between 2011 and 2016. Key factors influencing this growth include: a three-fold increase in the number of devices and sensors connected to the Internet, an 18-fold increase in mobile data traffic, the addition of 1 billion global Internet users, the growth of cloud computing and data analytics ("Big Data") applications, and the exponential growth of video streaming traffic. Job Creation & Economic Development: More than 340 local communities have taken the lead to build communitywide fiber optic networks once they learned that incumbent providers were unwilling or unable to build such networks in a timely manner. The job creation and economic development success stories of these communities have increased the interest by other local governments to evaluate the benefits of building similar networks in their communities.

Federal Communications Commission Chairman,

Julius Genachowski1

"Broadband is a platform for opportunity, spurring economic growth and job creation; a platform for innovation enabling anyone, anywhere, to dream big and bring those dreams to life; and a platform for solutions to many of the major challenges facing our nation: education, healthcare, energy, and public safety."



Education: High-speed broadband connectivity is an important tool to help educators, parents and students meet the major challenges of education. The State Educational Technology Directors Association (SETDA) recommends that policymakers establish standards to increase the minimum broadband connection speeds at K-12 schools to 100 Mbps per 1,000 students and staff by fiscal 2014 - 2015 and 1 Gbps by fiscal 2017 - 2018. Healthcare: Health care provider broadband requirements continue to grow largely due to the rapid increase in digital health-related data that is collected and exchanged. The availability of high-speed broadband is also improving the delivery of healthcare to patients by removing geographic and time barriers through video consultation, remote patient diagnostics, treatment, and monitoring. A 2009 GE Healthcare survey found that the minimum broadband connection speed at midsized physicians practices should be 10 Mbps, 25 Mbps at large physician practices, and 1 Gbps at academic and large medical centers. Florida's Broadband Infrastructure Scorecard: While there is no industry consensus as to the "best" metric to measure and compare broadband infrastructure and adoption performance, most would agree that Florida lags significantly behind other states. Of five key performance indicators referenced in this paper, Florida ranked in the top 10 states for one indicator and between 20th and 31st for the other four.



Demand For High Speed Broadband Connectivity The 2012 Cisco VNI Service Adoption Forecast2 found that global Internet traffic will increase nearly fourfold at a compound annual growth rate (CAGR) of 29 percent from 2011 to 2016. An IDC forecast3 is much more bullish on the growth of Internet-generated broadband traffic, forecasting that it will increase approximately 50 percent year over year on fixed networks and double on mobile networks between 2011 and 2016. Key factors influencing this growth include:

• Devices Connected To The Internet: The number of devices per capita will increase from one in 2011 to nearly three in 2016. PC-originated traffic will grow at a CAGR of 26 percent, while TVs, tablets, smartphones, and machine-to-machine modules will have traffic growth rates of 77 percent, 129 percent, and 86 percent respectively.4

• Wireless Devices Connected To The Internet: By 2016, traffic from wireless devices will account for 61 percent of all Internet traffic, compared to 45 percent in 2011.5 Global mobile data traffic will increase 18-fold between 2011 and 2016 at a CAGR of 78 percent.6 Over the past three years, American smartphone adoption has increased from 16.9 percent to 54.9 percent.7 The exponential growth in adoption of mobile devices and applications is changing the way people work, shop, and play. Mobile search, for example, has grown four-fold in the last 4 years8 and U.S. mobile commerce nearly doubled in 2011, with high levels of activity in categories such as flash sales, local commerce, and ticket sales.9 The amount of mobile data traffic generated by tablets in 2017 will be 1.5 times higher than the total amount of global mobile data traffic in 2012.10

• Telephone Service At U.S. Households: The method of home communications has changed dramatically over the past two decades. Newer Internet-based technologies are rapidly replacing traditional landlines. As of the second half of 2011, one in three U.S. households (34.0%) had only wireless telephones, compared 10.2 percent of households with only landline telephones.11

• Internet Connected Users: By 2016, there will be 3.4 billion Internet users worldwide, representing about 45% of the world’s projected population. This compares to an



estimated 2.4 billion internet users worldwide as of June 30, 2012. Internet Users in 2012 were five times the number of users in 2000.12

• Cloud Computing: By providing on-demand access to applications and resources

anytime, anywhere, cloud computing offers businesses significant cost savings and operational scalability. Global cloud traffic will increase six-fold from 2011 to 2016 at a 44 percent CAGR. North American cloud traffic will quadruple over the same period at a 34 percent CAGR.13 The market is expected to grow at anywhere from 20% to 30% per year over the next several years.14

• Big Data: Annual global data center traffic will increase nearly four-fold from 2011 to

2016 at a 31 percent CAGR. Total global data center traffic will grow to 6.6 zettabytes annually by 2016, of which 4.3 zettabytes will be global cloud traffic. To put this in perspective, 6.6 zettabytes is equivalent to about 1.5 years of continuous music streaming for the world's population in 2016 or 7 trillion hours of business HD video streaming in 2016.15

• Video: Real-time entertainment applications accounted for 58 percent of peak Internet traffic and almost 65 percent of peak downstream Internet traffic in North America during 2012. The streaming video service Netflix alone reached a peak of 33 percent of all US downstream traffic in the same year.16 In 2016, the gigabyte equivalent of all movies ever made will cross the global Internet every 3 minutes. Globally, there are expected to be 1.5 billion Internet video users by 2016, up from 792 million Internet video users in 2011.17

• Innovation: The Web itself has evolved from simple, static brochure-ware sites to highly interactive, personalized, rich applications driven by real-time data and social feedback. Businesses of all sizes across all industries are innovating and transforming at an unprecedented rate. For example, a leading car rental brand now generates more than 95% of its rental car bookings online and has leveraged the Internet to expand into completely new business lines. The NFL is using innovative, cross-platform HD video offerings to expand its fan base and capture new revenue opportunities as the media and entertainment industry undergoes rapid evolution.18

• Broadband speeds: The average global broadband speed has doubled over the past year and is expected to increase four-fold by 2016.19



• Consumer Demand: People around the world expect constant immersion in the digital world—to be able to fulfill their need for communications, socialization, commerce, entertainment, and learning.

Economic Development “Speed” refers to the rate, commonly expressed in "megabits per second" (Mbps), that data travels from one point to another in a given amount of time. In general, higher speed Internet connectivity enables a greater flow of content, access to a wider range of services, and a better user experience. Among the many factors that affect what users can do with a broadband connection, speed is generally regarded as “the single most important technical metric … and is often positively correlated with other indices of service quality.”20 Higher-speed connections spur economic growth and productivity. At least one international ranking of cities includes broadband speed as an indicator of a vibrant economy and a strong quality of life.21 Many countries and states recognize connection speed as a source of competitive advantage and a specific measure of broadband leadership.22 A 2011 survey of economic development professionals asked for views on which business model would most likely insure their area has broadband capable to facilitate achievement of economic development outcomes. Forty-three percent of respondents indicated that a community owned or co-op owned network would insure achievement of their goals. Respondents were also asked what the minimum broadband speed their area needs by 2014 to directly impact economic development. Nearly 80 percent of responses indicated that they believe speeds of 25 Mbps or higher will be needed.23 A 2011 study conducted jointly by Ericsson, Arthur D. Little, and Chalmers University of Technology quantified the impact of broadband speed on economic development. Key findings indicated that:24

• Doubling the broadband speed for the OECD countries would increase their GDP by 0.3 percent, more than one seventh of the average annual OECD growth rate in the last decade.

• For every 10 percentage point increase in broadband penetration, GDP increases by 1 percent.25



A 2012 report prepared by the Boston Consulting Group ("BCG") estimated the size of the Internet economy in the G20 countries at around US$ 2.3 trillion or 4.1% of GDP in 2010. BCG expects the Internet economy in the G20 countries to double to $4.6 trillion by 2016, when it will employ 32 million more people than it does today.26 Research by the McKinsey Global Institute27 found that the Internet accounts for, on average, 3.4 percent of GDP across the large economies, and that the Internet's total contribution to global GDP is bigger than the GDP of Spain or Canada, and it is growing faster than the GDP of Brazil. McKinsey also found that in the advanced economies it studied, the Internet accounted for 10 percent of GDP growth over the past 15 years and that over the past five years the Internet's contribution to GDP growth in these countries doubled to 21 percent. Local governments and economic developers understand the importance of the availability of highspeed broadband services in their communities, and are increasingly building municipal networks to fulfill the unmet needs of their communities. HIGHLIGHTS 1 is a summary of economic development and job creation success stories attributed all or in part to community decisions to build community broadband networks.



1 HIGHLIGHTS: JOB CREATION & ECONOMIC DEVELOPMENT SUCCESS STORIES

Chanute, Kansas (Chanute Municipal Network)

• Spirit Aero Systems, chose Chanute for its new manufacturing facility in part due to its exceptional broadband infrastructure. The plant will create over 100 new jobs.

• MagnaTech was on the verge of leaving Chanute when private providers would not meet its telecom needs. But the municipal network connected them and kept 35 jobs in the community.

Bristol, Virginia (OptiNet)

• CGI and Northrup Grumman created 700 jobs paying twice the average wage in the community because of connections from the publicly owned network.

• Alpha Natural Resources - Considered moving its headquarters away from the region after a merger with another company headquartered in Baltimore. But the BVU Authority network allowed them to stay local.

Chattanooga, Tennessee (EPB Fiber)

• HomeServe moved its call center to Chattanooga, creating 140 new jobs after the CEO learned that the minimum connection speed on the city-owned network was faster than the maximum they had available at headquarters.

• Companies in Knoxville, 100 miles away, have decided to expand in Chattanooga to take advantage of the much lower telecom costs.

Lafayette, Louisiana (LUS Fiber)

• Pixel Magic created a studio in Lafayette after working there on a temporary basis for a movie shoot. The studio created 100-200 new jobs because LUS Fiber could connect it to studios and partners anywhere in the world.

• NuComm International brought a call center to Lafayette, announcing 1,000 new positions.

Source: "Community Broadband Creates Jobs," Fact Sheet, Institute For Local Self-Reliance at ilsr.org

Job Creation Along with its direct and positive impact on GDP, research has repeatedly shown that increased broadband penetration leads to significant job growth. A 2012 Booz & Co. study28 analyzed the relationship between Internet communications and technology (ICT) and economic development based on the ways people use digital technologies and applications. The report "found that the greatest social and economic benefits depend on factors related to adoption and usage: such as pricing, reliability, speed, and ease of use." Booz & Co. findings determined



that an increase in ICT adoption of 10 percentage points would trigger a 0.50 to 0.62 percent gain in per capita GDP. The research also found that advanced ICT adoption can significantly impact job creation in the overall economy, estimating that a 10 percent increase in ICT adoption could reduce a country's unemployment rate by 0.84 percent. A 2010 survey of over 6,000 North Carolina businesses found that, over a twelve month period, 17.5 percent of new jobs created were attributed to using the Internet. Businesses with less than 20 employees indicated that 28 percent of new jobs were attributed to the Internet. While small businesses represent 29 percent of total employees, they created 68 percent of new Internet jobs.29 Broadband can also help attract, train and retain a valuable “creative class” of workers. The presence of broadband leads to new business models and new business opportunities to employ those and other workers. Other economic effects of broadband include trade creation, lower costs for international communications, and greater access to foreign markets.

Education The National Broadband Plan30 aptly found that "broadband can be an important tool to help educators, parents and students meet major challenges in education. The country’s economic welfare and long-term success depend on improving learning for all students, and broadband enabled solutions hold tremendous promise to help reverse patterns of low achievement." The Plan highlights how broadband services enable online virtual instruction programs in Florida, Oregon, and Missouri:

• Florida Virtual Schools (FLVS) - Students earned higher AP scores and outscored the state’s standardized assessment average by more than 15 percentage points in grades 6 through 10.

• Oregon Connections Academy - Students met or exceeded state achievement averages • Florida Virtual Academy (unrelated to FLVS) - Students consistently outscore state test

averages. • Missouri Virtual Instruction Program students showed significantly improved

achievement when compared same students’ achievement in the same subject the previous year. A greater percentages of these students scored 3 or higher on AP exams than their peers.



Trends driving the need for highspeed broadband in our schools and at students residences include the introduction of digital and online learning tools, video HD streaming, digital textbooks, online collaboration between students and teachers, online learning programs for teachers, and gaming / virtual reality educational tools. HIGHLIGHTS 2 is a list of enhanced educational and training outcomes made possible through the availability of broadband services.

2 HIGHLIGHTS - POSITIVE IMPACT OF USING BROADBAND SERVICES TO ENHANCE EDUCATIONAL AND TRAINING OUTCOMES

Students

• Increased student performance

• Improved educational resources for nontraditional or disabled students, and students in geographically remote areas or poor districts

• Higher levels of education

• More personalized educational activities

• Increased student-teacher engagement through social networking

• Lower student dropout rates

• Provide flexibility to students who cannot be in school for health, child care, work or other reasons

• Household Internet access can result in better student educational performance

School Districts

• Increased teacher productivity

• Improved school enrollment rates

• Improved interaction among students, parents, teachers, and school administrators

• Lower-cost, more effective training of teachers "Progress towards BTOP Goals: Interim Report on PCC and SBA Case Studies," Prepared By ASR Analytics, LLC for the NTIA (October 15, 2012)

The State Educational Technology Directors Association (SETDA) has identified highspeed broadband connectivity as a vital component of K-12 school infrastructure, likening it to electricity, air conditioning, and heating. Given the experience of states and leading school districts, and the trends in adoption of online teaching and learning tools, SETDA recommends



that school districts and policymakers increase the minimum connection speeds at K-12 locations to achieve the following benchmarks by fiscal 2015 and 2017:31

Minimum Speed Per 1,000

Students & Staff

2014 - 2015 2017 - 2018 External Internet connection to an Internet Service Provider (ISP) 100 Mbps 1 Gbps

Internal connections between district schools & district staff locations 1 Gbps 10 Gbps

SEDTA also recommends that students and educators have easy access to robust broadband connectivity outside of schools including, but not limited to, home, library, community center, and other publicly accessible locations. In the Research Coast, Martin, St. Lucie and Indian River counties provide highspeed broadband connectivity at all or most K-12 locations using county, school district, and municipal electric fiber optic networks. HIGHLIGHTS 3 includes examples of statewide broadband network initiatives that are recognized as having provided cost-effective highspeed broadband connections to colleges, universities, and K-12 school districts.



3 HIGHLIGHTS - STATEWIDE INITIATIVES THAT PROVIDE COST EFFECTIVE HIGH-SPEED BROADBAND CONNECTIONS TO COLLEGES, UNIVERSITIES, & K-12 SCHOOL DISTRICTS

The Utah Education Network connects all of the state's colleges and universities, and 90 percent of the state's K-12 schools. All public colleges and universities connect at 1 Gbps or faster. Most public high schools and middle schools connect at similar speeds. By the end of 2012, the state expects to finish upgrading the Internet connections of 158 elementary and charter schools, 60 public libraries, and 55 Head Start centers to provide 45 Mbps connections.

A consortium made up of the Maine Department of Education, Maine State Library, Maine Office of Information Technology, and the University of Maine System created Network Maine to provide broadband connectivity to more than 900 schools and libraries at no cost to the school or library. Connection speeds range from a minimum of 10 Mbps to a high of 1 Gbps in some locations. The University of Maine System's goal is to provide 10 Gbps connectivity to all its universities through by the end of 2012.

Network Nebraska provides 212 school districts, 15 intermediate service agencies, 17 higher education institutions, and more than 350,000 K-20 students with communications networks that support Internet2, a statewide synchronous videoconferencing service, and e-learning courses. The state's Educational Service Units (ESUs) purchasing consortium aggregates, shares, and manages common clouds of Internet access across dozens of school districts. For example, 92 districts in the northeast part of the state cooperatively purchase 1,000 Mbps/month of Internet.

"The Broadband Imperative: Recommendations To Address K-12 Education Infrastructure Needs," Fox, Waters, Fletcher, & Levin, State Educational Technology Directors Association (SETDA) (2012)

Healthcare Broadband enabled solutions can play an important role to improve healthcare outcomes and reduce cost. The availability of high-speed broadband can remove geographic and time barriers through video consultation, and remote patient diagnostics, treatment, and monitoring. The Better Health Care Together Coalition estimate that remote monitoring could produce net savings of $197 million over 25 years from four chronic diseases.32 HIGHLIGHTS 4 is a list of patient benefits attributed to having wireless and wired "anywhere to anywhere" broadband connectivity at patient homes, healthcare facilities, and virtually any location where broadband is available. HIGHLIGHTS 5 is a list of healthcare provider benefits attributed to having wired and wireless broadband connectivity.



4 HIGHLIGHTS - HEALTHCARE PATIENT BENEFITS ATTRIBUTED TO WIRELESS & WIRELINE BROADBAND CONNECTIVITY

• Improved patient information resulting from ease of accessibility, interactive features, & anonymity

• Improved patient choice of provider and treatment options

• Improved treatment outcomes for physical and mental illness

• Lower patient cost in time & transportation

• More effective health promotion and disease prevention programs

• Faster, more accurate prescriptions

• Improved patient access to healthcare records and test results

• Improved ongoing care

• Improved patient outcomes by providing daily monitoring

• Reduced home care costs by reducing the number of unnecessary in-home visits

• Reduced hospital length of stay

• Improved privacy & convenience in obtaining prescription medication or ordering medications

• Greater availability of drugs for shut-in people, those who live far from a pharmacy, or those in rural areas with limited pharmacy options

• Improved access to written product information

• Reduced cost of online prescription drugs

• Reduced drug interactions resulting from multiple prescriptions from different providers

• Improved patient to patient networking and support "Progress towards BTOP Goals: Interim Report on PCC and SBA Case Studies," Prepared By ASR Analytics, LLC for the NTIA (October 15, 2012)



5 HIGHLIGHTS - HEALTHCARE PROVIDER BENEFITS ATTRIBUTED TO WIRELESS & WIRELINE BROADBAND CONNECTIVITY

• Cost savings from reduced unnecessary face-to-face time between health professionals & the "worried well"

• More convenient access to medical care because of asynchronous communications

• More complete medical records at lower cost

• Improved patient-provider relationship building

• Rapid information sharing among all health care providers for the same patient

• Improved appointment and treatment scheduling

• Improved range of health services "Progress towards BTOP Goals: Interim Report on PCC and SBA Case Studies," Prepared By ASR Analytics, LLC for the NTIA (October 15, 2012)

Health care providers’ broadband needs are largely driven by the rapidly increasing amount of digital health-related data that is collected and exchanged, video consultation session, and transmission of medical imaging. Health care provider broadband connection speed requirements vary by type and size of each facility. GE Healthcare developed the following guidelines in 2009 to assist health care providers estimate their broadband speed requirements by location category33

Location Category

Mbps

Single Physician Practice 4

Small Primary Care Practice ( 2 - 4 physicians) 10

Nursing Home 10

Rural Health Center (-5 physicians) 10

Clinic/Large Physician Practice (5 - 25 physicians) 25

Hospital 100

Academic/Large Medical Center 1,000



Local Fiber Optic Network Deployment In The U.S. Eight percent of U.S. households were provided broadband service using fiber-to-the-home (FTTH) facilities during 2012. More than 75 percent of all FTTH connections were provided by large telephone companies, primarily Verizon. Small telephone companies, municipalities, and other private sector service providers share the remaining 25 percent equally.34 Annual direct investment in FTTH networks will reach $4.7 billion by 2017 and total investment in FTTH over the next five years will be $18 billion, according to a market analysis prepared by RVA LLC.35 Verizon's aggressive deployment of its "all fiber service", nearly 1,000 smaller local telephone companies and municipalities, and Google's initiative in Kansas City are examples of projects that will fuel this growth. AT&T, the largest local telephone service provider in Florida, plans to invest $6 billion to expand its high-speed IP broadband network services to 75 percent of customer locations in its 22 state wireline service area by year-end 2015. AT&T's investment strategy does not anticipate building FTTH infrastructure. Instead, it will continue deployment of fiber to the neighborhood, which is extended to a subscribers home using copper wires. The company also plans to build fiber infrastructure to an additional 1 million business customer locations, covering 50 percent of multi-tenant office buildings in its service area by year-end 2015.36 Given the uncertainty of the intention and actions by AT&T and other service providers to modernize their local network infrastructure, many local governments have built or plan to build their own broadband networks. In fact, The Institute For Local Self-Reliance37 recently reported that it is tracking 342 community broadband networks, including:

• 89 communities with a publicly owned FTTH network reaching most or all of the community.

• 74 communities with a publicly owned cable network reaching most or all of the community.

• 179 communities with some publicly owned fiber service available to parts of the community.

• 35 communities in 10 states with a publicly owned network offering at least 1 Gigabit services.

Examples of local government community broadband network business models include:



• Forming partnerships or alliances with private sector organizations (Martin County, Chicago, Seattle, Kansas City).

• Constructing institutional networks to serve the needs of government, academic, healthcare, research and public safety institutions (Martin County, Ft. Pierce, Vero Beach, Palm Beach County, Gainesville, Cleveland (O)).

• Creating special purpose entities to market services on a wholesale basis to communications carriers and Internet service providers (South Bend (IN), Danville (VA)).

• Launching enterprises to market services directly to residents and businesses located in the communities they serve (Bristol (VA), La Fayette (LA), Chattanooga (TN)).

Broadband Connection Speeds & Adoption Rates Akamai, a leading provider of cloud platform services and network applications, prepares a quarterly "State of The Internet" report that highlights country and U.S. state network performance information. Performance factors highlighted in the report include network security, Internet disruptions, and fixed and wireless Internet adoption and connection speeds. Akamai's third quarter 2012 report found that:38

• Delaware had the highest average broadband connection speed of 10.9 mbps, followed by the District of Columbia, New Hampshire, and Vermont with speeds in excess of 10 mbps. Florida ranked thirty-first with an average speed of 6.5 mbps, compared to the U.S. average of 7.2 mbps.

• The average peak connection speed in the U.S. was 29.6 Mbps. Florida's peak speed was 28.9 Mbps, ranking twenty-seventh compared to other states.

• New Hampshire and Vermont had the highest percentage of connection speeds greater than 10 Mbps at 35 percent. Florida ranked thirtieth at a 14 percent connection rate, compared the U.S. average rate of 18 percent.

TechNet, a national, bipartisan network of CEOs that promotes the growth of technology industries and the economy, released the "TechNet 2012 State Broadband Index: Where States Rank as They Look to High Speed Connectivity to Grow Strong Economies and Vibrant Communities" report in December 2012. TechNet believes that fast and ubiquitous broadband networks, a population of online users, and an economic structure that helps drive broadband innovation and investment are the ingredients to promote economic development, build strong communities, improve delivery of government services, and upgrade educational systems. 39



The TechNet report "found that states actively investing in and utilizing broadband networks are seeing stronger economic growth, better connected communities, and enhanced quality of life. Achieving higher network speeds depends upon private investment and, where necessary, appropriate public policies and investments." 40 Washington had the highest TechNet State Broadband Index of 152 compared to the average of all states of 100. Massachusetts (146), Delaware (141), Maryland (140), and California (132) were close behind Washington, being ranked second through fifth. Florida's index score of 99 ranked twentieth.

Florida Broadband Scorecard Table 1 is a comparison of Florida's broadband infrastructure and adoption rates compared to other states and the District of Columbia. The table includes key performance indicators: percent of households passed by fiber optic services, percent of households with broadband service, percent of broadband connections at more than 10 Mbps, average broadband connection speed, and the TechNet Index. The only indicator where Florida ranks in the top 10 is the percent of households passed by fiber optic services. Florida ranked between 20th and 31st for the other indicators. While there isn't industry concurrence about the "best" metric to measuring broadband infrastructure and adoption performance, most in the industry would agree that Florida lags significantly behind other states.



Table 1. Florida Broadband Infrastructure Scorecard

Key Performance Indicator State

Ranking Florida Range of Top 10

States % of Households Passed By Fiber Optic Services41

9 22% 21% 75%

% Households With Broadband Service (2010)42 21 70% 74% 80%

% Connections At More Than 10 Mbps43

30 14% 23% 35%

3rd Quarter 2012 Average Broadband Connection Speed (Mbps) 44 31 6.5 8.4 10.9

2012 TechNet State Broadband Index (100 = U.S. Average) 45 20 99 119 146



End Notes 1 Speech by Julius Genachowski on The National Broadband Plan, Federal Communications Commission (March 2010) http://www.youtube.com/watch?feature=player_embedded&v=QYf2AVCdzZw#! (viewed April 7, 2013) 2 "The Zettabyte Era," Cisco (May 30, 2012) 3 "Power Users Drive Worldwide Internet Broadband Bandwidth Demand, According to Research from IDC ," Press Release, International Data Corporation (March 14, 2012) 4 "The Zettabyte Era," Cisco (May 30, 2012) 5 Ibid. 6 "Cisco Visual Networking Index Global Mobile Data Traffic Forecast Update, 2011–2016," Cisco (February 14, 2012) 7 "IIA 2013 Broadband Guide For The 113th Congress," Internet Innovation Alliance 8 http://digital-stats.blogspot.com/2011/10/mary-meekers-internet-trends-october.html 9 http://www.emarketer.com/Article.aspx?R=1008769 10 "Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012–2017," Cisco (February 6, 2013) 11 Blumberg SJ, Luke JV. Wireless substitution: Early release of estimates from the National Health Interview Survey, July–December 2011. National Center for Health Statistics. June 2012. Available from: http://www.cdc.gov/nchs/nhis.htm. 12 http://www.internetworldstats.com/stats.htm 13 "Cisco Global Cloud Index: Forecast and Methodology, 2011 2016," Cisco (October 2012) 14 https://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/TMT/cloud_-_market_overview_and_perspective.pdf, http://softwarestrategiesblog.com/2011/01/01/roundup-of-cloud-computing-forecasts-and-market-estimates-2011/, http://www.crn.com/news/channel-programs/225700984/cloud-computing-services-market-to-near-150-billion-in-2014.htm;jsessionid=nz3eElS4Z0YUFJdd+zrKcg**.ecappj02, http://www.zdnet.com/blog/btl/cloud-computing-market-241-billion-in-2020/47702 15 "Cisco Global Cloud Index: Forecast and Methodology, 2011 2016," Cisco (October 2012) 16 "OECD Internet Economy Outlook 2012," Organization for Economic Co-operation and Development (2012) 17 "The Zettabyte Era," Cisco (May 30, 2012) 18 "The Hyperconnected World: A New Era of Opportunity," White Paper, Akamai (2012) 19 "The Zettabyte Era," Cisco (May 30, 2012) 20 “Understanding Broadband Speed Measurements,” S. Bauer, D. Clark, and W. Lehr, MITAS Working Paper (June 2010), http://mitas.csail.mit.edu/papers/Bauer_Clark_Lehr_Broadband_Speed_Measurements.pdf. 21 , “Cities of Opportunity 2011,” PricewaterhouseCoopers (PwC) and the Partnership for New York City, New York City, New York. Accessed November 2011 at http://www.pwc.com/us/en/cities-of-opportunity. 22 "Broadband Quality Score, Broadband Quality Score III: A global study of broadband quality," (Oxford, UK: Säid Business School, University of Oxford, University of Oviedo & Cisco (October 2010), http://www.sbs.ox.ac.uk/newsandevents/releases/Pages/CiscoBQS.aspx. See also Minnesota law requiring universal availability of 10- to 20-megabit download speeds by 2015: Minnesota Statutes 2010, section 237.012 23 “Community Broadband Snapshot Report - After the Stimulus: Broadband and Economic Development,” Prepared by Craig Settles for The International Economic Development Council (October 2011) 24 “Ericsson Arthur D Little and Chalmers University Study Quantifies Broadband Speed Impact on GDP,” Peter Bernstein, Senior Editor, tmcnet.com (September 27, 2011) 25 “The Isolated Impact Of Increased Broadband Speed On GDP,” Walter Van Der Weiden, Ericsson (October 6 ,2011) ericsson.com/televisionary/blog/isolated-impact-increased-broadband-speed-gdp 26 "The Internet Economy in the G-20 - The $4.2 Trillion Growth Opportunity," Dean, DiGrande, Field, Lundmark, O'Day, Pineda, & Zwillenberg, Boston Consulting Group ( March 19, 2012) 27 “The great transformer: The impact of the Internet on economic growth and prosperity,” James Manyika and Charles Roxburgh, McKinsey Global Institute, Mckinsey & Co. (October 2011)



28 "Digitization and Prosperity The economic growth of nations in linked to one factor: adoption of information and communications technology," Bahjat El-Darwiche, Milind Singh, And Sandeep Ganediwalla, Strategy+Business, Booz & Co., (Autumn 2012) 29 "e-Strategy Report – North Carolina," Strategic Networks Group, Inc. for e-NC Authority (October 2010) 30 "Connecting America: The National Broadband Plan," Chapter 11 Education, Federal Communications Commission (2010) 31 "The Broadband Imperative: Recommendations To Address K-12 Education Infrastructure Needs," Fox, Waters, Fletcher, & Levin, State Educational Technology Directors Association (SETDA) (2012) 32 "National Broadband Plan: Connecting America," Chapter 10, Health Care, Federal Communications Commission (2010) 33 Mbps recommendations reflect compilation of the record. Numbers are guidelines, not precise measures. See, e.g., Letter from Alrc Borelli Director Global Healthcare and Workforce Policy Intel, to Marlene H. Dortch, Secretary, FCC, GN Docket Nos. 09–47, 09–51, 09–137, WC Docket No 07–10 (Dec. 16, 2009). See also, e.g., Fiberutilities Group, A Practical Review of Broadband Requirements For Healthcare Clinical Applications 6–7 (2009), available at http://www.fiberutilities.com/documents/FG_Press_Release_FCC_Briefing_Healthcare_Application_Requirements_for_Broadband_110609.pdf. 34 "Best Year for FTTH Since 2008," Steven Ross, Broadband Communities (January/February 2013) 35 "North American Fiber to the Home and Advanced Broadband Review and Forecast to 2017," Press Release, RVA LLC and the Fiber To The Home Council (January 2013) 36 "AT&T to Invest $14 Billion to Significantly Expand Wireless and Wireline Broadband Networks, Support Future IP Data Growth and New Services," AT&T Press Release (November 7, 2012) 37 "New Community Owned Network Map," Christopher Mitchell, Institute For Local Self-Reliance (February 26, 2013) muninetworks.org/content/new-community-owned-network-map 38 "The State of the Internet Third Quarter 2012 Report," Akamia, Volume 5, Number 3 (January 2013) 39 "TechNet's 2012 State Broadband Index: They Look to High Speed Connectivity to Grow Strong Economies and Vibrant Communities," John B. Horrigan & Ellen Satterwhite, TechNet (December 2012) 40 "Broadband Key Driver of State Economic, Social Growth," Press Release, TechNet (December 5, 2012) 41 "State Broadband Index 2012," TechNet (December 4, 2012) 42 "Exploring the Digital Nation: Computer and Internet Use at Home," NTIA, U.S. Department of Commerce (November 2011) 43 "The State of the Internet 3Q 2012 Report," Akamai Volume 5, Number 3 (January 2013) 44 "The State of the Internet 3Q 2012 Report," Akamai Volume 5, Number 3 (January 2013) 45 "State Broadband Index 2012," TechNet (December 4, 2012) Contact Information:

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