Issue 7, September 13, 2009

“Broadband-to-the-home is essential for economic development”
… or why communities should focus more on “broadband to the home”

Whereas it has long been considered a nice-to-have by households, evidence shows that today “broadband in the home” is increasingly seen as an essential service – this is most obvious in communities where broadband choice has been limited or non-existent. In fact, SNG research shows that 57% of households now (strongly) say that not having broadband would have a significant negative impact on their lifestyle. People now understand that broadband is creating new economic opportunities for household members – as well as the possibility to interact with their social networks in ways not possible before. This is perception is growing faster in suburban and rural communities with smaller populations, fewer businesses and services, and at a distance from major urban centers.

Important for improved lifestyle

From a social perspective, broadband enables new ways to stay connected beyond traditional telephone and email contact – which is especially important when over 60% of households communicate with family and friends on a daily basis. Parents with children away at college, family members living in different cities, grandparents who can see their grandchildren online: broadband allows for more frequent and intimate real-time communication, including video, while file sharing of photos and other documents becomes easier. With broadband, general research and online purchasing all become easier and more effective.

Other uses of the Internet take a whole new dimension with broadband (adult skills and continuing education, schoolwork research and online courses, access to health information and services, access to government services), whereas things such as streaming media, software and media downloads (free or purchased) are simply not possible without broadband.

Important for healthier (small) business

Broadband also offers tangible economic benefits for households. People now understand that tele-working and home businesses provide viable alternative income opportunities, allowing people to work in their community of choice while offering benefits of improved life-work balance. Either tele-working for a remote employer or operating their own home-based business, an increasing number of households have at least one member that works from home. SNG research shows that over 48% of tele-workers would not be employed in their present position without having broadband, and that tele-working has allowed 42% to avoid relocating to find suitable employment. Similarly, 55% of home business owners say that broadband is “essential” for their business to work effectively, and 25% would relocate to obtain broadband access.

Important for the community

Broadband allows people to stay connected to the global economy no matter where we live – and now we are fully aware of that fact. So much so that 45% of households would consider relocating to obtain broadband service (and 11% would “definitely” relocate)! Political leaders take notice. Because this new awareness has very significant importance to communities: for retaining and attracting population (with all of its implications for maintaining the local labor force), for maintaining property values and the local tax base, and for spending with local businesses.
Teleworking, in particular, extends employment opportunities well beyond the local community – as it brings about not only in an increase (or leveling) of local employment, but also in a “diversification” of the employment base to other industries And in a not-so-virtual way: with 72% of them spending more on goods and services within their community by working from home, gainfully employed tele-workers who would relocate without broadband surely help to maintain the local economy.


Broadband fosters a more attractive environment for new businesses to open or relocate in the community – as networked workers enjoy a better lifestyle, and are usually better educated. As more and more “social added-value” services are offered online (business services, social, health, and education services, and government services) it becomes increasingly important to ensure that the household consumer base has access to affordable broadband. Because household broadband contributes to the overall health and vitality of the (suburban and rural) community, we strongly suggest that municipalities should view broadband as an essential infrastructure and a strategic priority for their economic development.

By Gary Dunmore, SNG

Click here to download this SNG position paper

If you think we can help, or would like to learn more about our broadband sustainable adoption services, please contact us.


Issue 6, August 21, 2009: “Broadband adoption is about more than technology”

Why communities need to put in place a solid support structure

Today, most people and businesses are computer literate, and aware of the Internet’s potential – at least in general terms: about 70% of households have a computer at home with some form of Internet access (increasingly broadband), many others have access to computers and the Internet at other locations (such as the workplace or school) and virtually every business uses computers and over 85% have Internet access. Many households and businesses don’t “use” broadband mostly because it is not available in their area. However that’s changing fast – as private and public investments help make broadband increasingly more available and adoption more straightforward. The proof: current research shows that US household broadband adoption increased from 55% to 63% in the past year, while dial-up Internet use dropped from 10% to 7% over the same period.

But this also means that up to 30% of households remain “unconnected” to the Internet – for a variety of reasons, including uncertain relevance, affordability, and availability. And, while connected to a greater degree, many small businesses face the same issues when it comes to broadband adoption.

What it is missing?

For many, it is a complicated matter: firstly understanding what broadband can do for them, and then understanding that it is worth doing, and finally understanding how to make it happen. Increasing the understanding of broadband relevance contributes to the adoption of broadband by new users and increases the “benefits” of broadband by those that have it.

But the truth is that sustainable broadband adoption requires more than simply making broadband available. We can call it a virtuous circle of sort: the way households and businesses use broadband – in ways that are relevant and beneficial to them – creates broadband value. This value increases not only the sustainability of network investments through increased revenues, but also increases the social and economic benefits for households, businesses and communities. The key is education and support: meaningful support at the local level (to educate and facilitate on how to get the most out of broadband) is essential to for the full value of broadband to be realized. Businesses themselves, especially SMEs (small and medium enterprises), recognize their need for support in a number of areas: understanding broadband and e-solutions benefits, assessing and selecting relevant e-solutions, and implementing and maintaining e-solutions. Over 70% of SMEs do not have the time or resources themselves and 65% would seek external support. However, 63% say that the lack of local external resources is a critical or challenging barrier for progress in adopting e-solutions.

Key role for communities

Intermediary organizations, such as community groups, economic development organizations, chambers of commerce, etc., can play a key role in reaching out to the community of broadband users. The fact is that communities that take an active role in building capacity locally to support broadband users achieve higher impacts from broadband availability. Local support must be driven by an understanding of the fact that what is good for business growth and retention is good for the local economy, and that adoption of e-solutions contributes to business success in a global economy. Whichever organizations play this role, local economic development needs to be the driver. For households, which are contributors to the local workforce, broadband offers new opportunities for education, skills development, employment, and home businesses. For businesses, broadband offers the means to transform their operations and open new business opportunities.

Broadband support 101

Business support can be provided in a number of ways, including: access to useful information resources and tools; workshops and seminars; and local collaborative approaches to sharing experiences and best practices on what is possible and how to stimulate innovation. Success breeds success, and contributes to a positive business environment. Households and individuals can also benefit from local outreach and awareness, including training at various levels through schools, libraries, and community access centers.

Measurable results

Measurable results Not only can these support activities benefit broadband users and encourage sustainable adoption, but they help retain direct investment in broadband initiatives within the community through public and private support services. Building local capacity for broadband creates direct local opportunities for youth and re-employment. Sustainable broadband adoption and the benefits this brings require investment in “people infrastructure” as well as technology infrastructure.

By Gary Dunmore, SNG

Click here to download this SNG position paper

If you think we can help, or would like to learn more about our broadband sustainable adoption services, please contact us.


Issue 5, August 14, 2009: “Ideas about the challenge of SME broadband adoption”

… or why a ‘new angle’ is required to talk business owners into broadband

We are all connected now, aren’t we? Internet connectivity is simply an essential in a globally connected economy. Large enterprises know this, and have long had the wherewithal to integrate networked applications into their business operations. (At SNG, we talked about this integration as “e-solutions.”) Of course, the increasing availability of affordable broadband Internet access has opened up the same opportunities for small and medium enterprise (SMEs). So, why are many SMEs still unable or reluctant to take on e-solutions? We would like to share a few ideas.

Of course, there are always the (not so) early (by now) adopters. Where broadband is available, a good number of SMEs do not need a lot of convincing about the cost-benefit of taking service – whether it be via DSL, cable, fiber, or wireless access. For them, higher connection speeds speak for themselves: no need for a complex business case to prove that being able to do the same things faster and more efficiently improves productivity; or that having an affordable ‘always on’ connection can save on phone connection costs or expensive T1 circuits.

And beyond the day-to-day efficiencies, there are the things they couldn’t do before broadband, such as: the promotions company that couldn’t transfer artwork files quickly between its offices and remote contract artists and was spending a fortune on time and costs of transportation; or the precision machining company that needed to be able to receive and send complex drawings online simply to be “eligible” to bid for major clients’ business. In fact, SNG research shows that over 60% of SMEs rate broadband as very important for making everyday operations easier and allowing them to make more effective use of resources.

However, more than 50% of SMEs have not (yet) internalized how broadband can increase revenues, reduce costs, or evolve how they do business. Here is the real challenge: why are so many SMEs still not taking full advantage of what broadband can offer?

Answers

Looking “inside” the businesses themselves can help. Firstly, some business owners don’t recognize the benefits of broadband. When it comes to “technology and the connected economy,” they often “don’t know what they don’t know” – and they have limited time or resources to figure it out. And, if the case isn’t made in terms of savings, growth or competitiveness they don’t allow much time for convincing. Also, there is often an assumption by business owners that implementing e-solutions requires technical know-how, or is something a small business cannot afford to implement or maintain. In fact, our research tells us that over
two-thirds of SMEs view the cost of development and maintenance and their lack of internal expertise and knowledge as important barriers to adopting e-solutions.

A different angle

We believe that SME owner-managers need to be enlightened about the transformative effects of technology, and the significant benefits they could reap from jumping on the broadband train. Without the jargon, they need to be informed about what happens when technology intersects with business processes; when it becomes possible to do different things and do things differently – creating new operating models and new business opportunities. This is the e-solutions moment. Rather than about speed and bits, business owners should think about “any business activity that can leverage the power of the Internet.”

Beyond e-commerce, SMEs should get a stronger, better feel for the opportunities that connectivity offers to transform how they conduct business (increased market reach, easier processing of orders, cheaper product delivery, smoother – when done right – customer service and technical support, etc.). Business owners, especially those who don’t want to sell online, need to be told about the good news – that there are many affordable e-solutions available online for them – and solutions that don’t need to be complicated to have big impacts, such as: sales force management and CRM tools to more effectively generate revenue, collaborative networks to enhance internal and external interactions and sharing, online national and global supply chain networks to uncover new opportunities, or remote access and tele-working packages to extend out-of-office reach. And of course, because not all solutions are applicable (or important, or useful, or affordable…) for every business, owner-managers need support in navigating through the mass of information, and in figuring out the “what works for my business; what solutions are appropriate; where is the greatest benefit; what should be done first, and what later?” questions.

An important focus

We know because we have been there too: support organizations have long had a hard time convincing the reluctant owners to act. However, we believe that the time has come when many SMEs will be receptive to effective support to find that intersection between technology and their business that works for them – provided it’s done without adding excessive burden that detracts from their business focus. Because making such support available to SMEs is as important as making broadband available in the first place it is becoming an urgent priority for public policy. Let’s keep in mind that that SMEs are a key engine for employment and economic growth (95% of businesses have less than 50 employees). More SMEs adopting e-solutions, enabled by broadband, improves growth, productivity, and competitiveness, with positive effects not only for SMEs but also for their communities and the economy overall. After all, that’s what sustainable adoption is all about.

By Gary Dunmore, SNG

Click here to download this SNG position paper

If you think we can help, or would like to learn more about our broadband sustainable adoption services, please contact us.


Issue 4, August 6, 2009: “Fine-tune your broadband data strategy: augment and verify”

Why you should ensure you’ve got visibility on carrier-provided broadband data

NTIA administrator Larry Strickling recently expressed his confidence that broadband service providers will not only provide the detailed supply data requested by his agency (which includes more data elements than has ever been provided for a broadband mapping project), but also that they would waive the confidentially provisions that keep this data from being associated with specific companies. Though we certainly hope Mr. Strickling is correct, we don’t believe this will happen. And, just in case we are right, we recommend that states be ready to gather as much broadband data as they can – without relying too much on carrier cooperation.

We suggest a two-pronged approach. On one hand, states should work closely, in good faith, with carriers to develop ways in which they can provide the data elements set forth in the NOFA while preserving their confidentiality. However, we warn states against becoming too dependent on carrier cooperation in the design and execution of their broadband mapping programs.

The reason: carriers may perceive the public interest goals of NTIA’s broadband mapping effort as too much at odds with their own self interests. Because the truth is: these companies are run to maximize shareholder value—not the public interest.

On the other hand, states need to build their mapping programs to include a strong multi-source data collection process that not only satisfies NTIA’s requirement for verification of carrier-supplied data, but also can “fill-in” for that data if carriers are either unwilling or unable to provide it. That’s what we call an “augment and verify” strategy.

Isn’t that what Strickling means when he says that if carriers refuse to comply, “There are other ways to collect this [data]: there are survey techniques and other ways to collect this information short of the carrier?” “We have appropriated $350 million” to this task, he continues, and “we are expecting the states to be creative, to be collaborative, to work together, and to find some new ways to collect the data, whether or not it is supplied by the carrier.” And he concludes: “Once that is made clear to [the carriers] at the most senior levels, then this thing will work itself out.”

It’s not so simple…

That’s where we beg to differ. Our guess is that, if we just hope “this thing will work itself out,” it probably won’t – because carriers have decades of practice in stonewalling to get their way. However we agree that, as Strickling suggests, the best way to get carrier cooperation may very well be for each state to gather as much broadband data as it can without relying on them, while continuing to invite their cooperation in a shared national effort to serve the public interest.

We strongly believe that if we heed Strickling’s invitation to be creative and collaborative and “work together… to find… new ways to collect the data,” things may work out just fine mapping efforts can succeed. The choice is up to state decision makers as they evaluate their options in the next two weeks. Our suggestion: work respectfully with carriers to obtain their data on mutually acceptable terms, but also augment and verify.


Issue 3, August 4, 2009: Don’t forget ($500,000 broadband) planning

Why you should launch a “planning” program as well as a “mapping” one

In the rush to apply for mapping grants, states should not forget the opportunity to leverage up to $500,000 of federal stimulus funds for broadband planning. So, if you are about to submit to the NTIA a broadband mapping proposal for your state, we urge you to take the parallel step of launching a planning program too.
That planning program should aim to organize the most efficient way to help your state’s businesses and communities overcome the barriers to adopting BEST practices – hence reaping their benefits of their broadband effort.

Because it’s worth remembering that the real value of broadband is not only measured by availability, speed or price — though all of these are important enabling factors. Rather, that value is most directly tied to the benefits of broadband connectivity combined with e-Solutions – an e-Solution being “a way to do what we’ve already doing, only better thanks to the Internet”. Thanks to over 10 years of hands-on experience, we know that the winning equation for the country must be: “broadband connectivity + e-Solutions = self-sustaining stimulus.”

And we also know that the key to maximizing broadband and e-Solutions benefits is to develop a “combined understanding” of both barriers to adoption and use and BEST (broadband e-Solutions transformative) practices, and an ongoing involvement of teams and people on the ground, in our communities, businesses and organizations. Achieving that requires solid planning!

As noted above, up to $500,000 is available to each state mapping project to support such planning activities.

But to take advantage of this federal support for broadband planning, states need to submit a planning proposal and budget along with their mapping proposal. And they need to do so by NTIA’s August 14 deadline. Because if they don’t, the $500,000 available for planning effectively disappears for their state. So, don’t miss it. In our view, decision makers in every state should take advantage of this opportunity to set a course toward “self-sustaining stimulus.”

Do you need help?

For states concerned about how to come up with the 20% matching funds, we suggest careful consideration of ways to cover some, or all, of this amount through in-kind contributions. According to the NOFA, these can include “employee or volunteer services; equipment; supplies; indirect costs; computer hardware and software; use of facilities; [and] expenditures for existing programs presented as part of the [planning] project proposal.” Based on our experience, there’s a lot of value that can be derived from these forms of in-kind contribution.

Also, to help communities understand and plan the move up the BEST practices learning curve, we’ve developed tools such as e-Solutions Benchmarking (to establish a baseline and direction for planning investments in broadband infrastructure and sustainable adoption programs) and Evaluation and Adoption Analytics (to help evaluate the impacts of these investments and adjust plans and strategies based on clear and measurable evidence).


Issue 2, August 1, 2009: Broadband mapping: carriers can’t be trusted – but don’t hold it against them

…or why broadband planners shouldn’t rely solely on carrier-provided broadband data

NTIA administrator Larry Strickling is wrong: carriers shouldn’t be trusted – certainly not to share broadband data. That’s because you shouldn’t rely on carriers to agree to serve the public interest. Not that they are inherently bad corporate citizens; but because carriers’ interests and the public’s interest are not aligned. And never will be. Consequently, carriers are never going to take
steps that would entail favoring the public’s interest over theirs. It’s just plain logic; economic logic – unencumbered by the hardcore free-market ideology that telecom lobbyists always talk about.

Let’s look at the facts. To put it simply, free markets don’t quite work in the broadband world. Everywhere you look, you find a juxtaposition of local oligopolies: a limited number of firms serving a sub-

regional market. Where are there more than three telcos competing in the same county? We’re certainly not saying that telcos are plotting to rip off consumers – we’re simply noticing that they have no real incentive to be very aggressive commercially.

That’s why we believe one shouldn’t trust carriers too much. But that’s all right: because carriers are working for their shareholders. Whereas public authorities looking to foster broadband deployment and adoption are working on behalf of their constituencies. The truth is that broadband is a public responsibility, not something that should be entrusted solely to the private sector. Within that context elected officials and the government can actually have a say.

Here is a little background story. Back in the early 2000s the French incumbent, France Telecom, spent three years fighting a law meant to enable public bodies (“départements” and “regions”) to start building broadband infrastructure – and in 2004, it lost. Then, when it became clear that public networks would start sprouting out all over the country, France telecom decided to work with small, alternative, local telcos and public-private partnerships planning and running public networks. If you can’t beat them, join them. Today, five years later, 96% of the French population enjoys broadband (and there they mean over 3 Mb) access for less than 30€ ($42 dollars) a month. They can’t be trusted – but in the end carriers cooperate when they’re pushed!

At SNG, we think it is important that public officials understand this context, so that elected decision-makers can decide to allocate the required resources to do their own broadband mapping – without relying on the goodwill of carriers to share their broadband data. Because, as Art Brodsky writes today: “At the end of the day, somebody is going to be in control of the mapping. It will either be the public, and the public interest, as represented by NTIA, or the industry.”

If you think we can help, or would like to learn more about our broadband planning support services, please contact us.


Issue 1, July 23, 2009: Broadband mapping for the public interest

Introducing Strategic Networks Group, Inc.

“You wouldn’t make a major investment in your business without knowing all the facts – investing in broadband is no different.” At SNG, we help our clients build solid, credible, and successful, business cases for necessary e-solutions, ICT and connectivity infrastructure investments within their communities. We have the experience and the tools to show clients where ICT investments can shorten the path to local economic growth. We adapt our methodologies to de-risk investment decisions and accelerate uptake rates for client broadband initiatives. We can help you now make the most of the broadband stimulus package funds – for the good of your constituents.

Specifically, we have developed a unique approach to broadband supply and demand mapping – the only way to gather all the info needed to prepare the right deployment plans – and strong grant requests.

“Broadband mapping should be done in the public interest”

“[It could be that North Carolina might be] the latest state in which the economic and political clout of incumbent service providers is being exercised at cross-purposes to the public interest goals of broadband mapping. This is especially troubling today, since very large amounts of public money will soon be spent to generate data, maps and analysis that are supposed to serve the public interest.

Read more »


2010: TechJournal South

SNG enables E-NC to seek input about broadband access and use statewide, presented in TechJournal South ( click here)


2009: BuddeComm

SNG’s Michael Curri has a recent position paper posted on BuddeComm ( click here)


2009: National Post

The National Post (Canada) presents the innovative survey conducted by SNG on behalf of the National Golf Association: “Golf big contributor to economy, says survey” ( click here)


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