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Slide • 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
Agenda
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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
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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)
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Typical Broadband Costs
Installation Equipment MonthlyWired
DSL $0 - $100 $0- $80 $20 - $50Cable $0 - $100 $0 - $80 $30 - $50T3 (business use) $1,000 - $5,000 $7,500Fiber $0 - $100 $40 - $100
WirelesseConnect (NW OK) $80 - $700 $0 - $200 $30 - $40Vaxeo (Claremore) $200 $0 - $200 $60 - $80
SatelliteWildblue $200 $300 $50DirecWay $200 $300 $60
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Background Information
• Increasing Shift to Broadband Access
0%10%
20%30%
40%50%
60%70%
80%90%
100%
1999 2000 2001 2002 2003 2004 2005
Ho
use
ho
lds
None
Dial-up
High-speed
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Background Information
• Increasing Number of Broadband Lines
Number of Broadband Lines
05
101520253035404550
Dec-99
Jun-00
Dec-00
Jun-01
Dec-01
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Mil
lio
ns
of
Lin
es
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Background Information – Locations of Broadband Providers
Source: FCC Industry Analysis & Technology Division, 6-30-05
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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
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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
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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
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Rural – Urban “Digital Divides”
0
10
20
30
40
50
60
70
Per
cen
t o
f H
ou
seh
old
s
Rural - High-speedRural - Dial-upUrban - High-speedUrban - Dial-up
Current Population Survey (CPS) Data, 2000 - 2003
Source:
2000 2001 2003
0
10
20
30
40
50
60
70
Per
cen
t o
f H
ou
seh
old
s
Rural - High-speedRural - Dial-upUrban - High-speedUrban - Dial-up
Current Population Survey (CPS) Data, 2000 - 2003
Source:
2000 2001 2003
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How Does Oklahoma Stack Up?
U.S. Oklahoma Texas Arkansas Kansas MissouriDec-04 37,890,646 391,781 2,597,539 220,324 387,300 591,281Dec-05 50,237,139 502,948 3,466,494 302,881 468,146 764,717
% Change 32.6% 28.4% 33.5% 37.5% 20.9% 29.3%
2005 Population 296,410,404 3,433,496 22,270,165 2,701,431 2,662,616 5,631,910
2005 Lines per Capita 0.17 0.15 0.16 0.11 0.18 0.14
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
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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!
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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
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• 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)
Distance Learning
Education Opportunities
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Education Opportunities
Do-it-yourself info:• Car Repair
– www.2carpros.com– www.10w40.com (download repair
manuals)
• House Repair– www.thisoldhouse.com
• Injuries– www.webmd.com
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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
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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
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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
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E-Commerce Benefits
• Reaches distant markets
• Builds credibility
• Build brand recognition
• Cut operating costs
• Find niche markets
• Start new business
• Build an existing business
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Slide • Buy / Sell anything!– www.ebay.com
– From Antiques to Electronics to Real Estate
– Some people have made careers out of ebay
Ebay: Entrepreneurship at its best!
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– Basics of e-commerce
– Exploring e-commerce websites
– Planning your website
– Promoting your website
– Developing an Internet business plan
E-commerce Resources Available from OSU Extension
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Social Groups
• Message Boards
• Voice Over Internet Protocol (VOIP)– Skype– Vonage
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Entertainment!
• www.youtube.com
• www.espn.com
• www.itunes.com
• www.sudoku.com
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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
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What Broadband Can Do
• For Businesses: – Increased productivity / efficiency
– Attract new audiences
– Create loyalty
– Easier training
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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
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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
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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)
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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.
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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
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Steps for Communities Without Broadband
• Importance of Champions
• Delivery Models
• Moving Forward
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Importance of Champions
• Someone constantly in the public eye
• Understand the benefits of broadband infrastructure
• Well-spoken & well-liked
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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
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Funding Sources
• UDSA Rural Development Telecommunications Programs– Community Connect Grants– Distance Learning and Telemedicine
Grants– Broadband Loans– Rural Utilities Service Loans– Infrastructure Loans
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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
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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
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Contact Information
Brian [email protected]
(405) 744-9825
Department of Agricultural EconomicsRural Development
504 Ag Hall, Stillwater, OK 74074www.rd.okstate.edu
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