Broadband 101: Utilization Drives Impact

Earlier this month Derek Murphy, SNG’s VP of Project Delivery, and I attended the Rural TeleCon Conference in Arizona – put on by the Rural Telecommunications Congress (RTC). The RTC describes itself as a “national membership organization dedicated to assuring that rural areas in the United States have access to the information and support they need to obtain and use advanced telecommunications services and technology for social and economic development.” 

Leaders of regional broadband initiatives from across the United States gathered to discuss the challenges and opportunities they face in 2011 and beyond.  Representatives from approximately 25 states expressed that while their opportunities (driven in large part by broadband stimulus) are significant – the challenges accompanying them seemed to be overwhelming to most. A key discussion topic at the conference was around looking for ways to leverage broadband for regional development.

From my perspective, there was a sea-change in the broadband discussion because of this focus on regional development. Beyond the “supply-side” of broadband, people started taking a serious look at the “demand-side” of the broadband equation. It’s the utilization that drives impact and benefits.

Hilda Legg, a former RUS administrator, noted in her keynote that it is imperative to the success of broadband initiatives is moving away from “business as usual” where telcos drive infrastructure build-out according to population and instead look to where utilization and accompanying impacts are the most significant.

So how do you overcome this? How do you help to ensure that your hefty investment has an even “heftier” impact?  Step one? “Identify needs, gaps, and demand.” Much of the broadband stimulus allocation was based on “gaps” and “needs” – areas that are under or un-served.  But this does not ensure use – unlike “Field of Dreams,” building broadband does not ensure people will come.

Instead of building a baseball field in a cornfield, make sure that you map demand – benchmark utilization of e-solutions throughout your region to uncover where the deepest and most long-lasting impacts will occur.

This exercise will not only help you know areas most likely to adopt broadband, it has the added benefit of driving awareness among businesses, organizations, and households.  So what? Well this helps to drive adoption, application development, and ultimately the economic and social impacts of the network.

Washington’s State’s Broadband Policy and Programs Manager Angela Wu summed it up best: “Don’t just map supply, map demand too!”

SNG’s Michael Curri Appointed to RTC Board

At the annual conference, SNG president Michael Curri was appointed to the Rural Telecommunications Congress Board.

“We’re thrilled to be part of the RTC as we’re extremely excited about the direction the organization is moving,” says Curri. “SNG looks forward to helping organizations understand how to map demand to leverage broadband investments for maximum impact.”

Collaboration Means Cost Savings for You! 

Identifying demand is just the first step to ensuring success along the Broadband Lifecycle. 

As you move to planning and strategy (steps 2 and 3), benchmarking utilization of broadband and e-solutions uncovers synergies and potential partnerships to share in e-solutions investments. This can be among government entities, organizations, or industries with shared goals and interests. The key is that drivers for change be identified and quantified in terms of impacts and benefits that each stakeholder group can expect by committing to a collaborative project.In the US, there is a unusual paradigm many regions face as they receive heavy investment in the form of broadband stimulus – while at the same time are seeing their operating budgets slashed and pressure to reduce staff. 

States investing in broadband can have an even greater impact by finding areas where collaboration amongst different stakeholders on innovative uses of broadband applications makes sense.

A widespread broadband deployment offers a chance for every organization to examine how they currently deliver services. Broadband offers the opportunity to improve service, extend reach, and increase the scale and scope of efficiencies – all critical in today’s fast-paced (and budget cutting) world. 

SNG Facts:  SNG’s 2010 survey of County and Municipal governments in the State of North Carolina reveals that 75% of county and municipal governments view the opportunity to reduce costs and increase efficiencies as a very important motivation for adopting e-solutions, while 56% see this as an opportunity to undertake collaborative initiatives with other organizations. However, only 19% are currently collaborating with other organizations on the provision of shared services with another 12% actively considering such collaboration. 

The current economic downturn and the severe budget reductions that governments at all levels are facing is a ‘burning platform’ and an opportunity for breaking down existing silos and changing cultures towards sharing infrastructure and services. With responsible spending and efficiencies a front and center concern, now is the time to change how services are delivered.  SNG’s e-Solutions Benchmarking can help you identify where the opportunities for collaboration are – and where the most immediate and significant impacts lie.  Without clear insights, trying to drive collaboration is a little like trying to boil the ocean… theoretically possible, but practically unachievable.

How do you communicate “sharing” broadband infrastructure with potential partners and citizens? Start by asking – does it make sense that each airline have their own airport? An American Airlines airport, a Continental airport, etc. would all be required had the airlines not agreed long ago that sharing infrastructure – even with their competitors – was the most efficient way to leverage infrastructure and deliver quality service.

SNG’s experience has consistently pointed to and developed strategies for collaboration with quantifiable benefits that double the investment.  And as our recent study in North Carolina shows, citizens are poised for collaboration, efficiencies, and change.  This is the time – how will you capture the opportunities for your region? 

Making a “New” Old Brooklyn

by Jim Nice

Northeast Ohio continues to be recognized globally as a model of regional broadband implementation as the Intelligent Community Forum (ICF) once again tabbed it as one of their 21 global “smart communities.”Part of the ongoing efforts in the Cleveland area to separate the region from competitors includes the Northeast Ohio Broadband Coalition (NEOBC). This organization is bringing together stakeholders and vendors involved in both access technologies/hardware with those that develop content and applications to revitalize a West side neighborhood of Cleveland called Old Brooklyn.

Cleveland Councilman Kevin Kelly parlayed a number of financial resources and spearheaded by the local community development corporation, the Old Brooklyn neighborhood is in the early stages of deploying a wireless broadband infrastructure. His vision is a neighborhood that will attract and retain business while utilizing the Internet to enhance the attractiveness of the community and its workforce – while at the same time serving as a model for other Cleveland neighborhoods. 

Key success factors for the model Old Brooklyn used include:

A holistic approach that embraces collaboration is a fundamental platform for success. A coalition representatives of every aspect of citizenry is involved in Old Brooklyn’s course of action – from residents to organizations, companies and associations sure to be impacted by access to a ubiquitous broadband network. This includes education, health care, senior citizens, public safety, utilities, community groups, economic development professionals and more. By focusing on stakeholder needs, Old Brooklyn demonstrates how focusing on awareness and adoption is a model that can be replicated throughout each of the cities and the rest of the region. 

As always, thank you for your continued support. If you have any questions or feedback, please don’t hesitate to get in touch!

Earlier this month Derek Murphy, SNG’s VP of Project Delivery, and I attended the Rural TeleCon Conference in Arizona – put on by the Rural Telecommunications Congress (RTC). The RTC describes itself as a “national membership organization dedicated to assuring that rural areas in the United States have access to the information and support they need to obtain and use advanced telecommunications services and technology for social and economic development.” 

Leaders of regional broadband initiatives from across the United States gathered to discuss the challenges and opportunities they face in 2011 and beyond.  Representatives from approximately 25 states expressed that while their opportunities (driven in large part by broadband stimulus) are significant – the challenges accompanying them seemed to be overwhelming to most. A key discussion topic at the conference was around looking for ways to leverage broadband for regional development.

From my perspective, there was a sea-change in the broadband discussion because of this focus on regional development. Beyond the “supply-side” of broadband, people started taking a serious look at the “demand-side” of the broadband equation. It’s the utilization that drives impact and benefits.

Hilda Legg, a former RUS administrator, noted in her keynote that it is imperative to the success of broadband initiatives is moving away from “business as usual” where telcos drive infrastructure build-out according to population and instead look to where utilization and accompanying impacts are the most significant.

So how do you overcome this? How do you help to ensure that your hefty investment has an even “heftier” impact?  Step one? “Identify needs, gaps, and demand.” Much of the broadband stimulus allocation was based on “gaps” and “needs” – areas that are under or un-served.  But this does not ensure use – unlike “Field of Dreams,” building broadband does not ensure people will come.

Instead of building a baseball field in a cornfield, make sure that you map demand – benchmark utilization of e-solutions throughout your region to uncover where the deepest and most long-lasting impacts will occur.

This exercise will not only help you know areas most likely to adopt broadband, it has the added benefit of driving awareness among businesses, organizations, and households.  So what? Well this helps to drive adoption, application development, and ultimately the economic and social impacts of the network.

Washington’s State’s Broadband Policy and Programs Manager Angela Wu summed it up best: “Don’t just map supply, map demand too!”

SNG’s Michael Curri Appointed to RTC Board

At the annual conference, SNG president Michael Curri was appointed to the Rural Telecommunications Congress Board.

“We’re thrilled to be part of the RTC as we’re extremely excited about the direction the organization is moving,” says Curri. “SNG looks forward to helping organizations understand how to map demand to leverage broadband investments for maximum impact.”

Identifying demand is just the first step to ensuring success along the Broadband Lifecycle.

 

As you move to planning and strategy (steps 2 and 3), benchmarking utilization of broadband and e-solutions uncovers synergies and potential partnerships to share in e-solutions investments. This can be among government entities, organizations, or industries with shared goals and interests. The key is that drivers for change be identified and quantified in terms of impacts and benefits that each stakeholder group can expect by committing to a collaborative project.
In the US, there is a unusual paradigm many regions face as they receive heavy investment in the form of broadband stimulus – while at the same time are seeing their operating budgets slashed and pressure to reduce staff.

States investing in broadband can have an even greater impact by finding areas where collaboration amongst different stakeholders on innovative uses of broadband applications makes sense.
A widespread broadband deployment offers a chance for every organization to examine how they currently deliver services. Broadband offers the opportunity to improve service, extend reach, and increase the scale and scope of efficiencies – all critical in today’s fast-paced (and budget cutting) world. 

 

SNG Facts:  SNG’s 2010 survey of County and Municipal governments in the State of North Carolina reveals that 75% of county and municipal governments view the opportunity to reduce costs and increase efficiencies as a very important motivation for adopting e-solutions, while 56% see this as an opportunity to undertake collaborative initiatives with other organizations. However, only 19% are currently collaborating with other organizations on the provision of shared services with another 12% actively considering such collaboration.

 

The current economic downturn and the severe budget reductions that governments at all levels are facing is a ‘burning platform’ and an opportunity for breaking down existing silos and changing cultures towards sharing infrastructure and services. With responsible spending and efficiencies a front and center concern, now is the time to change how services are delivered.  

SNG’s e-Solutions Benchmarking can help you identify where the opportunities for collaboration are – and where the most immediate and significant impacts lie.  Without clear insights, trying to drive collaboration is a little like trying to boil the ocean… theoretically possible, but practically unachievable.

How do you communicate “sharing” broadband infrastructure with potential partners and citizens? Start by asking – does it make sense that each airline have their own airport? An American Airlines airport, a Continental airport, etc. would all be required had the airlines not agreed long ago that sharing infrastructure – even with their competitors – was the most efficient way to leverage infrastructure and deliver quality service.

SNG’s experience has consistently pointed to and developed strategies for collaboration with quantifiable benefits that double the investment.  And as our recent study in North Carolina shows, citizens are poised for collaboration, efficiencies, and change.  This is the time – how will you capture the opportunities for your region?

by Jim Nice

Northeast Ohio continues to be recognized globally as a model of regional broadband implementation as the Intelligent Community Forum (ICF) once again tabbed it as one of their 21 global “smart communities.”

Part of the ongoing efforts in the Cleveland area to separate the region from competitors includes the Northeast Ohio Broadband Coalition (NEOBC). This organization is bringing together stakeholders and vendors involved in both access technologies/hardware with those that develop content and applications to revitalize a West side neighborhood of Cleveland called Old Brooklyn.

Cleveland Councilman Kevin Kelly parlayed a number of financial resources and spearheaded by the local community development corporation, the Old Brooklyn neighborhood is in the early stages of deploying a wireless broadband infrastructure. His vision is a neighborhood that will attract and retain business while utilizing the Internet to enhance the attractiveness of the community and its workforce – while at the same time serving as a model for other Cleveland neighborhoods.

Key success factors for the model Old Brooklyn used include:

A holistic approach that embraces collaboration is a fundamental platform for success. A coalition representatives of every aspect of citizenry is involved in Old Brooklyn’s course of action – from residents to organizations, companies and associations sure to be impacted by access to a ubiquitous broadband network. This includes education, health care, senior citizens, public safety, utilities, community groups, economic development professionals and more. By focusing on stakeholder needs, Old Brooklyn demonstrates how focusing on awareness and adoption is a model that can be replicated throughout each of the cities and the rest of the region.

By Art Brodsky
Communications Director, Public Knowledge
Click to Read on The Huffington Post’s Website

After all the shouting has died down, after the House elects its Republican leaders and after the Senate sorts itself out, the reality is that policy in the telecom sector will likely remain where it has been for the past two years — in state of suspended animation. That’s a shame, because the people who can most benefit by some reasonable and common-sense changes may not have the opportunity to do so.

The two issues at the top of the list are Net Neutrality and the wonky-sounding “reclassification” of broadband services. Net Neutrality is the simple concept that those who control the telecommunications networks shouldn’t be able to play favorites with the content that is transmitted over those networks. It’s an old concept, as Prof. Tim Wu pointed out in his book, Master Switch: The Rise and Fall of Information Empires. The simple, fair idea is that everyone online should have the same ability to make his or her voice or service known to the rest of the world.

President Obama campaigned in part on restoring an Open Internet. Julius Genachowski, his chairman of the Federal Communications Commission (FCC) hasn’t delivered, and probably won’t. As his pattern of activity has developed, Genachowski has ducked the major issues to which the big telecommunications companies, aided by the congressional Democratic Blue Bells and by all congressional Republicans, have objected. He has the votes of the other two Democratic FCC commissioners, but that’s not enough for him.

As a result, Genachowski has taken the pressure off of Congress to do anything to ensure an Open Internet, in which everyone, not simply the big phone and cable companies, can benefit. (The fact that 95 Democrats who signed a Net Neutrality pledge lost on Tuesday is irrelevant. They would have lost anyway in the GOP landslide.)

As with any issue when the battles are controlled by big companies, it’s the small ones who get overlooked and/or crushed. In a recent blog post, Kevin Warhus, marketing manager for the Scottsdale, Ariz., digital marketing company StringCan Interactive, wrote about the link between a neutral Internet and what he sees as Web 3.0, which seeks to personalize the Web experience for consumers. Warhus is particularly concerned about telecom control over the mobile Web and the effect on small businesses his company helps to support. He wrote:

As we evolve into the age Web 3.0 in which our information, likes and dislikes, and online habits help create a personalized web experience, Net Neutrality stands as an important stepping stone to ensure the proper development of Internet interaction and the protections of our freedoms.”Allowing a handful of powerful corporations to decide what websites and information we should be able to access defeats the purpose of this open source frontier. The Internet has always stood as an environment where anyone can make a website or blog and receive equal opportunities to be heard and to grow. By taking away those rights we are essentially handing over our freedoms and going against the foundational values that make The Internet what it is today and what it may or may not be tomorrow.

 

Congressional Self-Interest Should Be A Factor

But the larger issue, and the one in which the enlightened self-interest of all members of Congress should kick in, is the reclassification of broadband services. Again, the concept is fairly simple. Until 2005, the FCC had jurisdiction over the telecommunications connection that connected people to the Internet. The Bush-era FCC “reclassified” that service from one with explicit authority to gray areas — without any outside huffing and puffing that it should be a congressional decision that such a thing be done.

Since then, the FCC has deregulated all but the most basic voice-line services and removed any requirements that may help consumers. This shaky structure survived until April 6 this year, when the U.S. Appeals Court for the District of Columbia ruled that the FCC did not have authority over broadband services in the way the agency claimed it did.

After typically dithering around for a couple of months, the Commission proposed a compromise that would allow some regulatory authority but not the full slate of regulations. Typically, the industry and their congressional allies overreacted, starting the meme that the FCC wanted to “regulate the Internet” and that Congress had given the Commission no such authority.

That argument is total nonsense. No one is regulating the Internet. The FCC wants its jurisdiction back over broadband access. Members of Congress, particularly from rural districts, should want the FCC to have that authority. By denying the Commission that jurisdiction, representatives, particularly those from rural areas, are working against the interest of their constituents.

The Universal Service Fund, which provides financial support to rural phone companies, only is directed to help plain old dial-up service. If those members of Congress want their constituents to have the benefit of support for broadband, and to allow their constituents to participate in the broadband economy, then the FCC has to be able to make some changes, switching the support to broadband services. It can’t do that unless it has the authority and jurisdiction.

Big telecom and cable companies and their ideological allies oppose reclassification. Interestingly, however, the Communications Workers of America, which sided with the industry opposing Net Neutrality, signed a letter endorsing reclassification.

If we needed any more evidence of how important broadband is to rural areas, a new study by the Strategic Networks Group for the e-North Carolina authority (e-NC) has some fascinating new statistics that show how crucial broadband is to the economy in general and to job-generating small business in particular. Some of the study’s findings:

• Nearly one in five (18%) of new jobs were created as a direct result of Broadband Internet. Small businesses (less than 20 employees) are especially dependent on Broadband Internet as 28 percent of new jobs in that sector are attributed to using the Internet.

• More than half of all businesses (54%) said that they would not be in business if they did not have broadband while two in five (41%) would have to relocate if broadband was not available in their community;

• The number of households either currently running (31%) or planning to run a business from their home in the next twelve months (14%) is nearly half (45%) of North Carolina’s broadband households;

• Even more broadband households are either now using (41%) or planning to use (24%) broadband to sell items online. That’s nearly two-thirds (65%) of broadband households using it to at least supplement their income;

• Most (85%) of home-based businesses said that broadband was essential to their business.

The study also went into some detail about the problem of pockets of areas generally served with broadband that don’t have it; how areas served with inferior broadband are at a competitive disadvantage, and lots of broadband service is really very slow and unhelpful.

The Authority the FCC Should Cede

Over the past few months, Genachowski has shown a willingness to cede his agency’s authority to Congress. He wouldn’t act on Net Neutrality or reclassification, wishing instead that a last-ditch effort by current House Commerce Committee Chairman Henry Waxman (D-CA) to negotiate a Net Neutrality bill might come to fruition. It was a gallant effort, but the House Republicans killed it.

Genachowski sat out the blackouts of millions of TV viewers from favorite channels, including the most recent fight between Fox and Cablevision, which blacked out three million people in the New York City area and Philadelphia. He said the FCC doesn’t have the tools to intervene. He declined to take any action on a petition for rulemaking filed by Public Knowledge and others to reform the retrans system, based on the part of the law that gives the FCC authority to “enact regulations as necessary” to carry out the law that gave broadcasters the right to exact payments from cable companies. Instead, he wants Congress to work out the problem.

So far, the one area in which Genachowski has not conceded congressional authority is the one he should — universal service reform. Holding up USF reform until the agency’s authority over broadband is clear will force those members of Congress who care more about their constituents’ welfare than silly Tea Party talking points to take the Commission’s authority seriously. If members of Congress don’t give the FCC the authority it needs, the areas they represent suffer.

We shall wait for Congress to act (or for the FCC to act, for that matter) on these crucial issues as we wait for Godot.

Follow Art Brodsky on Twitter: www.twitter.com/artbrodsky

 

Current Economic Impact of Broadband and Opportunities Revealed in e-Solutions Benchmarking and e-Strategy Reports from SNG 

(October 28, 2010) e-NC and SNG announced today the findings of a comprehensive study of residents and businesses in the state of North Carolina.  In all, 30,000 households and 70,000 businesses and organizations were surveyed to uncover utilization of broadband and e-solutions statewide, with 1,492 households and 6,266 businesses and organizations responding. The e-Solutions Benchmarking and accompanying e-Strategy report from SNG was funded by a grant to the e-North Carolina Authority by the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce.

The e-North Carolina Authority (e-NC), and its predecessor the Rural Internet Access Authority, have worked to improve both the supply and demand side of the broadband issue since 2001.  The SNG study, conducted between February and October 2010, revealed the potential of broadband for competitiveness and economic opportunity:

“We see in these findings how important broadband is to creating new jobs and improving quality of life in North Carolina,” said Michael Curri, president of SNG. “We now have the data that shows why it is so critical to promote broadband infrastructure along with adoption in North Carolina. e-NC has been and continues to be a leader in this field in making sure that North Carolina captures the benefits of broadband in the years ahead.”

The e-Strategy report revealed clear and direct paths to further leverage broadband and available resources to expand broadband’s reach.  E-NC will be tackling the state’s challenges with strategies for:

By employing e-strategies on multiple fronts, North Carolina will be poised to further leverage broadband for job development and economic growth.

“Findings show thirty-nine percent of households say they would likely relocate if broadband was not available, while 55 percent of organizations say broadband is essential for staying where they are,” says Jane Patterson, Executive Director of e-NC.  “These numbers illustrate why it is important for all of us to continue to address the issue of broadband expansion in North Carolina. The e-NC Authority will continue to work with all providers to encourage greater broadband coverage across the state. We will also place a special focus on working with small businesses to show how they can increase their revenue potential through use of the Internet.”

About e-NC Authority

The e-NC Authority is the state initiative to link all North Carolinians – especially those in rural areas – to the Internet. The purpose of this organization is to use the Internet as a tool for helping people to improve their quality of life. Affordable Internet service will provide North Carolinians with increased access to commerce, health care, education and government services. Through the Internet, rural North Carolinians can utilize resources not located in their areas, contact friends and experts, grow their businesses and increase their personal knowledge – all while preserving the lifestyle that is an integral part of who they are. The e-NC Authority was preceded by the Rural Internet Access Authority, and was created on Aug. 2, 2000 by the N.C. General Assembly. The organization became fully functional in January 2001 and is governed by a commission appointed by the governor and the N.C. General Assembly. By legislative mandate, the e-NC Authority is housed and staffed by the N.C. Rural Economic Development Center. Visit www.e-nc.org.

DEi Expands to Score Industry Sectors 

In June, we announced SNG’s popular new offering: the Digital Economy index (DEi).  A composite score of how organizations use seventeen (17) Internet-enabled applications, or “e-solutions,” DEi is a unique assessment tool that can be used at any industry, sectoral, or geographic analysis of businesses and organizations to drive productivity and competitiveness.

DEI enables businesses and organizations to see where they stand relative to their peers. It can also produce customized scorecards at an individual organizational level showing where improvements can be made to be more productive and competitive in the 21st century knowledge economy.

As SNG’s DEi is a composite score of how organizations use Internet-enabled applications, or “e-solutions,” to drive productivity and competitiveness, DEi can also be shown strengths and weaknesses within industry sectors. 

As we’ve just completed our latest work in North Carolina, let’s take a look at the DEi results by industry and sectors for North Carolina. The overall median DEi for all organizations surveyed in North Carolina is 6.99, with 50 percent of organizations falling between a DEi of 5.34 and 8.45. These scores compare utilization of e-solutions between industry sectors and we’ll explore what that means below.


Opportunities for increasing DEi, with resulting economic benefits, can be identified for potential action to increase the utilization of e-solutions by businesses and organizations.

For example, in North Carolina, the Construction industry (DEi = 6.17) and Information Services industry (DEi = 8.16) have among the lowest and highest median use of 17 types of Internet applications or processes.  The average DEi for North Carolina was 6.99 (high is better).

Some of the differences in the DEi score reflect unique characteristics of the structure of that industry. For example, the Construction industry has very high use of certain applications, such as supply chain management and document transfer, while having low use of tele-working.

One interesting example of using the DEi is a comparison of the Education industry (high DEi of 7.96) and Health and Human Services industry (low DEi of 6.60). Comparing these two industries highlights the extent to which the Education industry has pioneered such Internet uses as direct service delivery and remote counselling, while Health and Human Services lag significantly in these areas.

SNG’s proprietary DEi analysis is very useful in designing initiatives aimed at increasing the level and productivity of broadband adoption. For proponents of broadband as a critical tool for economic development, DEi shows where organizations and industries are leveraging broadband – and where they should be employing more e-solutions.

Back to Down Under

It took several weeks to sort out, but Australia’s hung parliament emerged with the Labor party still in power – and the National Broadband Network (NBN) very much alive and well.  As a refresher, the proposed plan by the Labor party for a $43 billion National Broadband Network (NBN) will provide 100 megabits per second broadband access to approximately 93 percent of the Australian premises.  Currently around 62 percent of households have broadband now but – for the most part – it is slow and expensive. In conjunction, the plan calls for a boost in broadband investment for businesses with hopes that it will directly support economic growth during the rollout.

The influential Australian Industry Group lobby calls the NBN an “unprecedented opportunity” for business innovation and with the ubiquitous nature of the fibre roll-out – bringing with it unparalleled speed and reliability. The group cites the long term opportunities that broadband “everywhere” brings, creating an environment where Australian businesses are able to create services and business models that do not yet exist on a network which will give Australia the fastest internet access in the world.

Some of the NBN’s first cables are being laid in Willunga. This is trial site in Southern Australia; one of five across mainland Australia. The state of Tasmania is already offering fibre-based services as part of the NBN roll-out and hopes to complete its roll-out by 2015; at least 3 years ahead of the mainland.

The Australian roll-out target is expressed in terms of coverage: any premise in a street with fibre rolled down it must be connected within a few days of demand. Naturally, free connections are being offered as the roll-out takes place. Activation only occurs where a customer asks a retail service provider to provide service over the fibre.

Surprisingly, only 50 percent of households in Tasmania have taken the free connection compared with over 80 percent in the mainland trial sites. It is not clear what explains Tasmania’s experience.  Perhaps communication is poor (i.e. low or no awareness campaign activity) and customers expect Telstra’s copper network to remain; Telstra is planning to migrate all its customers to the new network. Tasmania is passing legislation requiring customers to provide written notice if they wish to opt-out of a free connection (versus opt-in as now). 

Worse, less than 1 in 10 customers connected in Tasmania have chosen to activate a broadband service over fiber. Perhaps, the offers made by several internet service providers are not attractive. A leading provider, iiNet, is providing exactly the same plans on fiber in terms of price and down load caps as it offers for ADSL2+ except that until June 2011 the down/up stream speeds will be increased from 25/2 (same as ADSL2+) to 100/8 Mb/s. Customers may prefer to stay with their current connection on ADSL2+ than become “guinea pigs” on the NBN network. That coupled with the “hassle” of changing providers, the question becomes whether the broadband status quo is unacceptable enough for people to spend the time and money to switch to the NBN? And do citizens understand the value of the opportunities afforded by the new fibre network?

The uptake challenges illustrate what we always say – Field of Dreams is a nice movie, but “build it and they will come” does not work in the real world.  To ensure that individual businesses, organizations and households connect to the NBN, Australia’s leaders need to promote adoption of those e-solutions that are customized to their needs.  To maximize the return on investment requires addressing local / regional drivers and barriers and with it appropriate awareness and adoption programs at a regional level. By following the Broadband Lifecycle, Australia will see major payoffs for their broadband investment in terms of productivity, competitiveness, and quality of life.

As always, thank you for your continued support. If you have any questions or feedback, please don’t hesitate to get in touch!

Current Economic Impact of Broadband and Opportunities Revealed in e-Solutions Benchmarking and e-Strategy Reports from SNG

(October 28, 2010) e-NC and SNG announced today the findings of a comprehensive study of residents and businesses in the state of North Carolina.  In all, 30,000 households and 70,000 businesses and organizations were surveyed to uncover utilization of broadband and e-solutions statewide, with 1,492 households and 6,266 businesses and organizations responding. The e-Solutions Benchmarking and accompanying e-Strategy report from SNG was funded by a grant to the e-North Carolina Authority by the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce.

The e-North Carolina Authority (e-NC), and its predecessor the Rural Internet Access Authority, have worked to improve both the supply and demand side of the broadband issue since 2001.  The SNG study, conducted between February and October 2010, revealed the potential of broadband for competitiveness and economic opportunity:

“We see in these findings how important broadband is to creating new jobs and improving quality of life in North Carolina,” said Michael Curri, president of SNG. “We now have the data that shows why it is so critical to promote broadband infrastructure along with adoption in North Carolina. e-NC has been and continues to be a leader in this field in making sure that North Carolina captures the benefits of broadband in the years ahead.”

The e-Strategy report revealed clear and direct paths to further leverage broadband and available resources to expand broadband’s reach.  E-NC will be tackling the state’s challenges with strategies for:

By employing e-strategies on multiple fronts, North Carolina will be poised to further leverage broadband for job development and economic growth.

“Findings show thirty-nine percent of households say they would likely relocate if broadband was not available, while 55 percent of organizations say broadband is essential for staying where they are,” says Jane Patterson, Executive Director of e-NC.  “These numbers illustrate why it is important for all of us to continue to address the issue of broadband expansion in North Carolina. The e-NC Authority will continue to work with all providers to encourage greater broadband coverage across the state. We will also place a special focus on working with small businesses to show how they can increase their revenue potential through use of the Internet.”

Visit the e-NC site to see the complete results>>

About e-NC Authority

The e-NC Authority is the state initiative to link all North Carolinians – especially those in rural areas – to the Internet. The purpose of this organization is to use the Internet as a tool for helping people to improve their quality of life. Affordable Internet service will provide North Carolinians with increased access to commerce, health care, education and government services. Through the Internet, rural North Carolinians can utilize resources not located in their areas, contact friends and experts, grow their businesses and increase their personal knowledge – all while preserving the lifestyle that is an integral part of who they are. The e-NC Authority was preceded by the Rural Internet Access Authority, and was created on Aug. 2, 2000 by the N.C. General Assembly. The organization became fully functional in January 2001 and is governed by a commission appointed by the governor and the N.C. General Assembly. By legislative mandate, the e-NC Authority is housed and staffed by the N.C. Rural Economic Development Center. Visit www.e-nc.org.

About Strategic Networks Group

SNG is a group of broadband economists who develop strategies for most effectively leveraging broadband investments. We look to help make the most broad-reaching and transformational impacts that broadband can bring enable businesses, communities and regions by delivering the data and analysis decision makers need to maximize broadband’s potential.   Our goals: economic development, social advancement, increased productivity and competiveness. Learn more about SNG online at www.sngroup.com and discover how broadband market analytics can accelerate regional economic development.

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In June, we announced SNG’s popular new offering: the Digital Economy index scorecards.  A composite score of how businesses and organizations use seventeen (17) online practices, or “e-solutions,” the Digital Economy index (DEi) is a unique assessment tool that can be used at any industry, sectoral, or geographic analysis of businesses and organizations to drive productivity and competitiveness.

DEI enables businesses and organizations to see where they stand relative to their peers. SNG personalizes the value of online practices to individual businesses and organizations by producing customized scorecards that show where improvements can be made to be more productive and competitive an increasingly online economy.

As SNG’s DEi is a composite score of how organizations use online practices to drive productivity and competitiveness, DEi can also be shown strengths and weaknesses within industry sectors.

As we’ve just completed our latest work in North Carolina, let’s take a look at the DEi results by industry and sectors for North Carolina. The overall median DEi for all organizations surveyed in North Carolina is 6.99, with 50 percent of organizations falling between a DEi of 5.34 and 8.45. These scores compare utilization of e-solutions between industry sectors and we’ll explore what that means below.


Opportunities for increasing DEi scores, with the accompanying economic benefits, can be identified and prioritized for action by businesses and organizations.

For example, in North Carolina, the Construction industry (DEi = 6.17) and Information Services industry (DEi = 8.16) have among the lowest and highest median use of 17 types of Internet applications or processes.  The average DEi for North Carolina was 6.99 (high is better).

Some of the differences in the DEi score reflect unique characteristics of the structure of that industry. For example, the Construction industry has very high use of certain applications, such as supply chain management and document transfer, while having low use of tele-working.

One interesting example of using the DEi is a comparison of the Education industry (high DEi of 7.96) and Health and Human Services industry (low DEi of 6.60). Comparing these two industries highlights the extent to which the Education industry has pioneered such Internet uses as direct service delivery and remote counselling, while Health and Human Services lag significantly in these areas.

SNG’s proprietary DEi benchmarking capability is a critical tool for proponents of broadband and economic development because DEi shows where organizations and industries are leveraging broadband – and where they should be adopting online practices that will keep them competitive and relevant in a digital economy.

It took several weeks to sort out, but Australia’s hung parliament emerged with the Labor party still in power – and the National Broadband Network (NBN) very much alive and well.  As a refresher, the proposed plan by the Labor party for a $43 billion National Broadband Network (NBN) will provide 100 megabits per second broadband access to approximately 93 percent of the Australian premises.  Currently around 62 percent of households have broadband now but – for the most part – it is slow and expensive. In conjunction, the plan calls for a boost in broadband investment for businesses with hopes that it will directly support economic growth during the rollout.

The influential Australian Industry Group lobby calls the NBN an “unprecedented opportunity” for business innovation and with the ubiquitous nature of the fibre roll-out – bringing with it unparalleled speed and reliability. The group cites the long term opportunities that broadband “everywhere” brings, creating an environment where Australian businesses are able to create services and business models that do not yet exist on a network which will give Australia the fastest internet access in the world.

Some of the NBN’s first cables are being laid in Willunga. This is trial site in Southern Australia; one of five across mainland Australia. The state of Tasmania is already offering fibre-based services as part of the NBN roll-out and hopes to complete its roll-out by 2015; at least 3 years ahead of the mainland.

The Australian roll-out target is expressed in terms of coverage: any premise in a street with fibre rolled down it must be connected within a few days of demand. Naturally, free connections are being offered as the roll-out takes place. Activation only occurs where a customer asks a retail service provider to provide service over the fibre.

Surprisingly, only 50 percent of households in Tasmania have taken the free connection compared with over 80 percent in the mainland trial sites. It is not clear what explains Tasmania’s experience.  Perhaps communication is poor (i.e. low or no awareness campaign activity) and customers expect Telstra’s copper network to remain; Telstra is planning to migrate all its customers to the new network. Tasmania is passing legislation requiring customers to provide written notice if they wish to opt-out of a free connection (versus opt-in as now). 

Worse, less than 1 in 10 customers connected in Tasmania have chosen to activate a broadband service over fiber. Perhaps, the offers made by several internet service providers are not attractive. A leading provider, iiNet, is providing exactly the same plans on fiber in terms of price and down load caps as it offers for ADSL2+ except that until June 2011 the down/up stream speeds will be increased from 25/2 (same as ADSL2+) to 100/8 Mb/s. Customers may prefer to stay with their current connection on ADSL2+ than become “guinea pigs” on the NBN network. That coupled with the “hassle” of changing providers, the question becomes whether the broadband status quo is unacceptable enough for people to spend the time and money to switch to the NBN? And do citizens understand the value of the opportunities afforded by the new fibre network?

The uptake challenges illustrate what we always say – Field of Dreams is a nice movie, but “build it and they will come” does not work in the real world.  To ensure that individual businesses, organizations and households connect to the NBN, Australia’s leaders need to promote adoption of those e-solutions that are customized to their needs.  To maximize the return on investment requires addressing local / regional drivers and barriers and with it appropriate awareness and adoption programs at a regional level. By following the Broadband Lifecycle, Australia will see major payoffs for their broadband investment in terms of productivity, competitiveness, and quality of life.