WESRAC USC Viterbi School of Engineering Connectivity Levels the Playing Field Urban and Rural Strategies CALED Conference Ken Dozier Executive Director WESRAC 4/23/2006

WESRAC USC Viterbi School of Engineering WESRAC’S Job is to create jobs KEN DOZIER’S WESRAC TEAM AT USC IS PART OF THE NATIONAL TRADE ADJUSTMENT ASSISTANCE (TAA) PROGRAM THAT HAS RETAINED OR CREATED 48,000 JOBS IN COMMUNITIES ACROSS THE NATION SINCE 2000 THE TAA PROGRAM PROVIDES 75% OF THE COST OF TECHINICAL ASSISTANCE TO IMPORT IMPACTED MANUFACTURERS TO BECOME GLOBALLY COMPETITIVE KEN IS LOOKING FOR MORE OF THESE MANUFACTURERS WHO ARE MAKING THE COMMITMENT TO FIGHT COMPETITION, IMPROVE PROCESSES, AND GROW AND FLOURISH TAA EQUALS JOBS FOR YOUR COMMUNITY! WANT TO KNOW MORE?

WESRAC USC Viterbi School of Engineering Help Ken reach more Manufacturers fighting Import Competition Visit our WTAAC website : The “LITMUS TEST” is the first step a firm takes to provide us qualifying information: Still have some questions? CONTACT: Mary Rhedin (213)

WESRAC USC Viterbi School of Engineering WIRED Project Department of Labor Workforce Innovation in Regional Economic Development initiative "Innovation, education and entrepreneurship: those are the keys that will open the door to challenging and rewarding jobs." Governor Arnold Schwarzenegger, February 2, 2006 Interface with industry/economic development academia to support/develop education/training resources Create sustainable innovation economic development model Identify candidate companies for projects WESRAC is a funded-partner of WIRED

WESRAC USC Viterbi School of Engineering Jack Welch, Former Chairmen General Electric The Future “When the Rate of Change Outside is Greater Than the Rate of Change Inside, The End Is In Sight”

WESRAC USC Viterbi School of Engineering Lon Hatamiya, Secretary - California Trade and Commerce Agency Velocity “ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago”

WESRAC USC Viterbi School of Engineering TruthKnowledgeBelief Universal No Debate Effect Social Converge on debate Cause Personal Diverge on debate Cause 10 Philosophical Mistakes (Adler 85) What is Knowledge ?

WESRAC USC Viterbi School of Engineering “where... The ENIAC is equipped with 18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only 1,000 vacuum tubes and weigh only 1.5 tons” - Popular Mechanics, 1949 “I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ” - Bob Metcalfe, 3COM founder and inventor, 1995 “This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us” - Western Union, Internal memo, 1876 “The problem with television is that the people must sit and keep their eyes glued on a screen; The average American family hasn’t time for it” - New York Times, 1949 “There is no reason anyone would want a computer in their home” - Ken Olson, president and founder, Digital Equipment Corp., 1977 The Future Source: “The Future is Ours” Communication of the ACM, March 2001

WESRAC USC Viterbi School of Engineering Source: The world Competitiveness Yearbook IMD International 3.Finland 4.Luxembourg 5.Netherlands 6.Hong Kong 7.Ireland 8.Sweden 9.Canada 10.Switzerland Global Competition 1. 2.

WESRAC USC Viterbi School of Engineering 6-D Dimensions of Global Commerce Demassification Denationalization Despacialization Disintermediation Disaggregation Decentralization Source: The Social Life of information, Brown & Duguild

WESRAC USC Viterbi School of Engineering Chart Source: Corporate Information Systems, Applegate Make & Sell vs. Sense & Respond

WESRAC USC Viterbi School of Engineering Info-Tech Nano-Tech Bio-Tech Technologies Change Fast Copyright SRI International 2002

WESRAC USC Viterbi School of Engineering Copyright SRI International 2002 Exponential Economy An increasing attribute of our knowledge age

WESRAC USC Viterbi School of Engineering Computing Synergy Possibility for creating N(2 (N-1) -1) value Copyright SRI International 2002

WESRAC USC Viterbi School of Engineering Media Bandwidth DSL/ Cable IEEE 1394 / Firewire Gigabit Ethernet LASER / Fast Ethernet 10BaseT/CAT 5 Ethernet Microwave G2 Wireless G3 / Wireless LAN Async. Trans. Mode (ATM) G1 Wireless 10Gig Ethernet Voice Internet Access Gaming File sharing Digital Music NTSC Video VHS Video MPEG Video DV Video HDTV Video 10^11 10^10 10^9 10^8 10^7 10^6 10^5 10^4 Bandwidth Required Bits/sec (bps)

WESRAC USC Viterbi School of Engineering What up? The United States gave birth to the Internet in the 1990s It initially was the world leader in broadband deployment By 2001 it had fallen to 4th place among nations in the world in per capita broadband deployment. Now it has plunged to 19th place. Furthermore, the United States has also fallen far behind the leading nations in access to high-capacity broadband connectivity, cost per unit of bandwidth, and growth of broadband subscribers. While the United States is still first in absolute number of broadband lines, its lead will soon be overtaken by China.

WESRAC USC Viterbi School of Engineering How important is Broadband? The Brookings Institution estimated that America’s broadband decline could lead to a potential loss of $1 trillion in economic productivity over the next decade, as well as more than 1.2 million jobs that could be created by better broadband.9

WESRAC USC Viterbi School of Engineering Cities are getting it City of Amsterdam announced a project to deploy FTTU throughout the city. Paris, France, announced the goal of deploying FTTU throughout “all of Paris.” The City of Vienna, Austria, announced plans for a citywide FTTU network that will provide residents 1 Gbps of symmetrical broadband capacity.

WESRAC USC Viterbi School of Engineering The Studies are In Applied Economic Studies (AES) performed a rigorous econometric comparison of the economic development of Lake County, Florida, and the economic development of several comparable counties in Florida, in the period after Lake County began to offer municipal broadband service widely throughout the County. AES corrected for population growth and other variables that could distort the data. AES concluded: –Our findings are consistent with other analyses postulating that broadband infrastructure can be a significant contributor to economic growth. The Bureau of Economic Advisors (along with others) has stated that broadband infrastructure confers positive, public benefits on the economy, and our results provide support for presence of large external benefits from communications networks.

WESRAC USC Viterbi School of Engineering THE BALLER HERBST LAW GROUP A PROFESSIONAL CORPORATION March 4, 2006 Re: The Case For Public Fiber-to-the-User Systems To stay competitive in the emerging global economy, America greatly needs a prompt and widespread upgrade of its advanced telecommunications infrastructure. The major incumbent telephone and cable companies cannot do this alone. In similar circumstances a century ago, when electric power was the must-have technology of the day and the private electric companies could not electrify America quickly enough, thousands of municipalities stepped forward to meet their communities’ own needs. Now, hundreds of progressive municipalities are ready to help themselves in the broadband area.

WESRAC USC Viterbi School of Engineering Case for WiFi

WESRAC USC Viterbi School of Engineering The Numbers Looks Good

WESRAC USC Viterbi School of Engineering Americas Most Wired Town In 2000, Blacksburg, VA Total population: 43,849 Total Households: 15,319 Source: Demographic Profile BEV, Andrea Kavanaugh

WESRAC USC Viterbi School of Engineering Blacksburg’s Telecommunication Philosophy Public has funded parks, roads, libraries, safety and sanitation for over 50 years. Every service was once provided by the private sector Public took over to protect common good Public Investment in telecommunications is necessary for viability in the Information economy. Source: Andrew Cohill, “Telco. For neighborhood and communities”

WESRAC USC Viterbi School of Engineering Blacksburg's Level Playing Field Regulated monopoly service providers invested infrastructure in a risk free environment with a guaranteed rate of return. In many communities this is a source of income Local and regional entrepreneurial start-ups must compete against established monopolies. Source: Andrew Cohill, “Telco. For neighborhood and communities”

WESRAC USC Viterbi School of Engineering Blacksburg’s Edge Modestly Invest in four low risk telecommunications areas. Allows startups access to the infrastructure needed to remain viable in the Information Economy. This has: – Spurred further private sector investment –Created jobs –Expanded the tax base –Provided greater choice in services Source: Andrew Cohill, “Telco. For neighborhood and communities”

WESRAC USC Viterbi School of Engineering Community Investments Source: Micheal Cohill, “Telco. For neighborhood and communities” Community investment in duct allows small and regional entrepreneurial telcom companies to compete with “old” monopoly services providers may be provided by either the community or the service provider. All present and future voice, video, and data services can be delivered to the homes on a single fiber pair Multimedia Service Access points, keep local video, voice, and Internet data traffic within the community which reduce costs for all in the community Co-location facilities provide a place for service equipment. Shared facilities reduce cost for all. Duct Dark Fiber Co-location facilities Date exchange Points

WESRAC USC Viterbi School of Engineering Source: Broadband Communication Systems, Conrad High Burst Low Burst 64 K1.5M45M150M600M bps X.25 ISDN Frame Relay Switched T-Carriers Dedicated Private line and Ethernet SMDS 1.6G ATM/ BISDN Myrinet DSL Dial up High Speed Services

WESRAC USC Viterbi School of Engineering Smart Building Project The 6 packs 4 Category 7 cable 1 Fiber Optic 1 Coax Cable Energy and Efficiency Image courtesy of Johnson Controls The connection point in each cubicle / office ATM to the desktop. A coaxial and fiber optic connection for next generation high-speed bandwidth requirements like streaming video and distributive computing. Additional Ethernet ports for multiple connection.

WESRAC USC Viterbi School of Engineering Broadband over Powerlines (BPL) Source: The Christian Science Monitor, “Web access may be as lose as an electrical outlet” A third alternative to cable company or from the local telephone company for broadband. Millions of miles of powerlines already in place. Reach people left out by cable and telephone companies. BPL improves efficiency to power companies with interactivity. Utilities can quickly identify where outages have taken place, read meters remotely, and conduct preventive maintenance.

WESRAC USC Viterbi School of Engineering High Performance Grid Computing

WESRAC USC Viterbi School of Engineering Blacksburg Supercomputer Virginia Tech created cluster of 1,100 regular desktop Power Mac G5s. Performance of 10 teraflops and peak of 17 teraflops January 2004, rank its as the 3 rd fastest supercomputer in the world. Built with a budget of less than 5 million dollars Only needed 3,000 square feet with the use of small efficient rack-mounted cooling systems with outdoor chillers. Source: VirginiaTech Research Division

WESRAC USC Viterbi School of Engineering Assessing Your Technology Industry Adoption of Technology Executive’s Approach to Technology CEO Not InvolvedCEO Involved Before Technology (Non-Customer Facing) After-Technology (Customer Facing) CIO Magazine June 2002

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