1. Connecting Rural Communities 3-14-07 Slide 1 Connecting Rural Communities In-service

2. Connecting Rural Communities 3-14-07 Slide 2 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

3. Connecting Rural Communities 3-14-07 Slide 3 What is Broadband? FCC Definition: Minimum speed of 200 kilobytes per second (Kbps) in at least 1 direction Typical Connections –WiredDownload Speed Digital Subscriber Line (DSL)250 – 1,500 Kbps CableInternet1,500 Kbps T345,000 Kbps Fiber10,000 Kbps –Wireless 250 – 500 Kbps –Satellite 250 – 500 Kbps

4. Connecting Rural Communities 3-14-07 Slide 4 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)

5. Connecting Rural Communities 3-14-07 Slide 5 Typical Broadband Costs

6. Connecting Rural Communities 3-14-07 Slide 6 Background Information Increasing Shift to Broadband Access

7. Connecting Rural Communities 3-14-07 Slide 7 Background Information Increasing Number of Broadband Lines

8. Connecting Rural Communities 3-14-07 Slide 8 Background Information – Locations of Broadband Providers Source: FCC Industry Analysis & Technology Division, 6-30-05

9. Connecting Rural Communities 3-14-07 Slide 9 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.htmlhttp://www.fcc.gov/wcb/iatd/comp.html

10. Connecting Rural Communities 3-14-07 Slide 10 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

11. Connecting Rural Communities 3-14-07 Slide 11 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

12. Connecting Rural Communities 3-14-07 Slide 12 Rural – Urban “Digital Divides”

13. Connecting Rural Communities 3-14-07 Slide 13 Broadband Infrastructure in Oklahoma, 2000 - 2006

14. Connecting Rural Communities 3-14-07 Slide 14 Broadband Infrastructure in Oklahoma, 2000 - 2006

15. Connecting Rural Communities 3-14-07 Slide 15 Broadband Infrastructure in Oklahoma, 2000 - 2006

16. Connecting Rural Communities 3-14-07 Slide 16 How Does Oklahoma Stack Up? 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.htmlhttp://www.fcc.gov/wcb/iatd/comp.html

17. Connecting Rural Communities 3-14-07 Slide 17 What’s Available in Your Community?

18. Connecting Rural Communities 3-14-07 Slide 18 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!

19. Connecting Rural Communities 3-14-07 Slide 19 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

20. Connecting Rural Communities 3-14-07 Slide 20 GED Equivalency –www.gedonline.com (~$45)www.gedonline.com 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

21. Connecting Rural Communities 3-14-07 Slide 21 Education Opportunities Do-it-yourself info: Car Repair –www.2carpros.comwww.2carpros.com –www.10w40.com (download repair manuals)www.10w40.com House Repair –www.thisoldhouse.comwww.thisoldhouse.com Injuries –www.webmd.comwww.webmd.com

22. Connecting Rural Communities 3-14-07 Slide 22 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

23. Connecting Rural Communities 3-14-07 Slide 23 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 http://www.census.gov/mrts/www/ecomm.html

24. Connecting Rural Communities 3-14-07 Slide 24 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

25. Connecting Rural Communities 3-14-07 Slide 25 E-Commerce Benefits Reaches distant markets Builds credibility Build brand recognition Cut operating costs Find niche markets Start new business Build an existing business

26. Connecting Rural Communities 3-14-07 Slide 26 Buy / Sell anything! –www.ebay.comwww.ebay.com –From Antiques to Electronics to Real Estate –Some people have made careers out of ebay Ebay: Entrepreneurship at its best!

27. Connecting Rural Communities 3-14-07 Slide 27 –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

28. Connecting Rural Communities 3-14-07 Slide 28 Social Groups Message Boards Voice Over Internet Protocol (VOIP) –Skype –Vonage

29. Connecting Rural Communities 3-14-07 Slide 29 Entertainment! www.youtube.com www.espn.com www.itunes.com www.sudoku.com

30. Connecting Rural Communities 3-14-07 Slide 30 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

31. Connecting Rural Communities 3-14-07 Slide 31 What Broadband Can Do For Businesses: –Increased productivity / efficiency –Attract new audiences –Create loyalty –Easier training

32. Connecting Rural Communities 3-14-07 Slide 32 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

33. Connecting Rural Communities 3-14-07 Slide 33 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

34. Connecting Rural Communities 3-14-07 Slide 34 What Broadband Can Do Community Website Examples –www.ci.anadarko.ok.us (pop. 6,600)www.ci.anadarko.ok.us –www.cityofaltus.org (pop. 21,000)www.cityofaltus.org –www.stillwater.org (pop. 39,000)www.stillwater.org –www.chandlerok.com (pop. 2,800)www.chandlerok.com –www.groveok.org (pop. 5,100)www.groveok.org

35. Connecting Rural Communities 3-14-07 Slide 35 Community Broadband Project Steps

36. Connecting Rural Communities 3-14-07 Slide 36 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.

37. Connecting Rural Communities 3-14-07 Slide 37 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

38. Connecting Rural Communities 3-14-07 Slide 38 Steps for Communities Without Broadband Importance of Champions Delivery Models Moving Forward

39. Connecting Rural Communities 3-14-07 Slide 39 Importance of Champions Someone constantly in the public eye Understand the benefits of broadband infrastructure Well-spoken & well-liked

40. Connecting Rural Communities 3-14-07 Slide 40 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

41. Connecting Rural Communities 3-14-07 Slide 41 Funding Sources UDSA Rural Development Telecommunications Programs –Community Connect Grants –Distance Learning and Telemedicine Grants –Broadband Loans –Rural Utilities Service Loans –Infrastructure Loans

42. Connecting Rural Communities 3-14-07 Slide 42 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

43. Connecting Rural Communities 3-14-07 Slide 43 Some Final Questions…

44. Connecting Rural Communities 3-14-07 Slide 44 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

45. Connecting Rural Communities 3-14-07 Slide 45 Contact Information Brian Whitacre brian.whitacre@okstate.edu (405) 744-9825 Department of Agricultural Economics Rural Development 504 Ag Hall, Stillwater, OK 74074 www.rd.okstate.edu