Broadband in Delaware: A Critical Economic Development Tool Andrew Homsey and Todd O Boyle University of Delaware Institute for Public Administration 23RD ANNUAL DELAWARE INSTITUTE FOR LOCAL GOVERNMENT LEADERS October 24 th, 2011 Sheraton Inn Dover, Delaware
The Planning Tool Aims to help bridge the gap (digital divide) Frame the broadband issues in Delaware Map the factors that affect the implementation and adoption of broadband Outline possible approaches for diversity of situations
What is Broadband? The term broadband commonly refers to high-speed Internet access that is always on and faster than the traditional dial-up access. (broadband.gov)
Diverse Technologies Dial-up (not broadband) Satellite Fixed and Mobile Wireless DSL BPL Cable Fiber optic
Why Broadband? Attract new businesses Develop new industry bases Provide value to current and future residents Job searches/training E-government Distance Learning Telecommuting Telemedecine Utility applications (e.g. remote monitoring)
Measuring Broadband's Economic Impact, Economic Development Administration, 2006
ECONOMIC EFFECTS OF INCREASED BROADBAND USE IN CALIFORNIA, Sacramento Regional Research Institute,2007
THE ECONOMIC BENEFITS OF BROADBAND AND INFORMATION TECHNOLOGY, Patrick S. Brogan, 2009
Delaware currently has a competitive advantage But the distribution of adoption and provision is NOT uniform Geographic disparities Demographic disparities Availability disparities
Telecom Hurdles Middle mile Last mile Funding Planning and coordination Resource maps
http://broadband.delaware.gov/ de_mobile/default.shtml http://brandywine.dgs.udel.edu/ broadband%20adoption
National and Local Level Developments in Community Broadband Cases from Tennessee, North Carolina, Maryland and Utah
Results from a recent survey Economic development professionals have lots of broadband questions What is the impact of broadband investment? How much broadband do we need? Is fiber better? Or wireless?
Chattanooga EPB Fiber Optics In operation since 2009, fastest consumer connection in the country; 1 Gbps; fiber throughout 11 county service area Chattanooga as a biomedical research hub Logistics Amazon Smart Metering and Smart Grid
Wilson, North Carolina City of 50,000 in Eastern NC Pursued PPP with Time Warner, Embarq/ CenturyLink Citywide retail FTTP available beginning 1/2009 Public safety & Traffic management Telemedicine initiatives underway Experiments with growing local content
Controversies Chattanooga EPB 4 Lawsuits Legislative challenges Policy restrictions on funding and accounting Wilson Greenlight 4 Legislative Challenges 1 Lawsuit Newly-enacted restrictions on future growth
Broadband Cooperatives Not-for-profit open-access networks Public money builds out fiber ring Private companies compete for last-mile service
Two Examples UTOPIA 16 member communities around Salt Lake City, Utah Consumers choose a provider of last-mile service Provides competition and keeps costs low UTOPIA Map MDBC Connects member agencies in the public and private sector to their high-speed fiber backbone across the state MDBC Map
Public Provision vs Cooperatives High Risk/High Reward Capital Intensive Can generate revenue Or Losses Community development upside Potential Political, Legal controversies Medium Risk/Medium Reward Spreads costs Less controversy Fewer communityoriented upsides
Funding sources Bonds: COPs & GOBs are most common Grants/Loans: RUS, DOE, DOT Interfund transfers E-Rate?
The Planning Tool: Data Analysis Assist elected officials, planners, and regulators in decision-making about policies to promote broadband adoption By mapping the features related to broadband adoption rates among Delaware residents
Planning Groups The Planning Tool Legislators Regulators & Planners
The Planning Tool: Data Analysis 3 separate sets of factors to predict barriers to adoption: Connectivity Demographics Level of Service
The Planning Tool: Data Analysis Use existing geographic data
Approaches Outreach and education/stakeholder cultivation Technical assistance Direct assistance Incentives for providers
Downtown Wilmington
Seaford area