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07/26/04. Page - 2. Economic Development. Good highways?Adequate water and sewer lines?Utilities?Railheads/port facilities?Available land at reasonable prices?Skilled work force?Decent tax rates?. 07/26/04. Page - 3. Economic Development. Then Congratulations. In The Economic Development Ga
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1. Broadband’s Role in Economic Development Doris Kelley
Business Development Manager, Black & Veatch
319.235.2095
319.504.9066 mobile
kelleydj@bv.com
2. 07/26/04 Page - 2 Economic Development Good highways?
Adequate water and sewer lines?
Utilities?
Railheads/port facilities?
Available land at reasonable prices?
Skilled work force?
Decent tax rates?
3. 07/26/04 Page - 3 Economic Development
Then Congratulations. In The Economic Development Game… You Lose.
4. 07/26/04 Page - 4 Satisfying The Speed Need
5. 07/26/04 Page - 5 Primary Motivations Stimulate Economic Development
Create Educational Advantages
Enhance Medical Services
Gain Competitive Advantage
Maintain & Grow Population Base
Provide new, valuable services to the community
6. 07/26/04 Page - 6 Case Study
A Case Study on the Economic Benefits a Communication Based Utility Brings to the Community
7. 07/26/04 Page - 7 Economic Development Factor #1 - Good Highways Interstate Highway: 1-380
Federal and State Highways:
U.S.: 20, 63, 218
Iowa: 21, 57, 58
8. 07/26/04 Page - 8 Economic Development Factor #2 - Adequate Water and Sewer Lines
9. 07/26/04 Page - 9 Economic Development Factor #3 - Utilities
10. 07/26/04 Page - 10 Economic Development Factor #4 - Railheads/port facilities Local Motor Carriers: 20
Rail Service:
Chicago Central and Pacific Railroad
Iowa Northern Railway
Union Pacific Railroad
Airport:
Waterloo Municipal Airport
3 Runways
Commercial Carriers
Source: Cedar Valley Economic Development Corp
11. 07/26/04 Page - 11 Economic Development Factor #5- Available Land at Reasonable Prices
12. 07/26/04 Page - 12 Economic Development Factor #5 - Available Land at Reasonable Prices
13. 07/26/04 Page - 13
14. 07/26/04 Page - 14 Economic Development Factor #5- Available Land at Reasonable Prices Median Selling Price: 2001
Cedar Falls: $105,000
Waterloo $72,000
Average Home Sale Price: $99,649
15. 07/26/04 Page - 15 Economic Development Factor #6 - Skilled Work Force Civilian Labor Population
16. 07/26/04 Page - 16 Economic Development Factor #6 - Skilled Work Force Educational Attainment Levels
High School Graduate or Higher 79%
Bachelor’s Degree 21%
17. 07/26/04 Page - 17 Economic Development Factor #7- Decent Tax Rates Waterloo: $41.78
Cedar Falls $36.55
Sales Tax: 7% (State – 5%; Local 2%)
18. 07/26/04 Page - 18 Telecommunications Services CLEC
McLeod USA
POPs
MCI - Located in Waterloo
AT&T- Located in Waterloo
Long Distance Carriers
MCI
AT&T
Sprint
19. 07/26/04 Page - 19 Major Private Employers
20. 07/26/04 Page - 20 Major Private Employers (Cont.)
21. 07/26/04 Page - 21 Primary Motivations Stimulate Economic Development
Create Educational Advantages
Enhance Medical Services
Gain Competitive Advantage
Maintain & Grow Population Base
Provide new, valuable services to the community
22. 07/26/04 Page - 22 Stimulate Economic Development # of Businesses
Cedar Falls Industrial Park & Prairie Technology Park 125
Midport America @ Waterloo Airport 4
Evansdale Technology Park 1
Waterloo North East Industrial Park 5
23. 07/26/04 Page - 23 Target Corporation Distribution Center Largest sq. ft. Iowa Project in the last 15 Years
1,350,000 sq. ft.
$40M Building
$60M in M/E
900 Full-time & 200 Part-time Employees
$25M Annual Payroll
Fun Facts:
33 Acres Under Roof
1 ˝ Miles of Trench Footings, enough Concrete for 25 Miles of 2-lane Highway
Building can hold 90,000 Mini Vans
24. 07/26/04 Page - 24 New Construction Valuation
25. 07/26/04 Page - 25 Cedar Falls Building Value: $96 Million and Counting $100 Million in New Construction this Fiscal Year is a Distinct Possibility
“The Biggest thing During the Year was The Target Distribution Center; That Bumped Us Up Pretty Good.”
26. 07/26/04 Page - 26 C.F. Building Hits Record $100 Million “Cedar Falls Set a Cedar Valley Construction Record this Fiscal Year, Topping Out at More than $101 Million.”
“Despite a Downturn in the National Economy, The City Blew Away all Existing Records in the Fiscal Year Ending June 30.”
27. 07/26/04 Page - 27 C.F. Building Hits Record $100 Million “…Meanwhile, the city of Waterloo failed to escape the stalled economy. Suffering from declining commercial permits and no large industrial projects to boost the value, the city recorded less than $53 million in construction during the last fiscal year --- its lowest total in eight years.”
28. 07/26/04 Page - 28 Cedar Falls
Growth has been a Mix of Residential, Commercial, Corporate Office, and Industrial
Waterloo
Growth has been a Mix of Residential (25%) and Commercial/Retail (75%)
29. 07/26/04 Page - 29 Located Adjacent to the City of Waterloo, Cedar Falls’ Assessed Valuation has Increased at an Average Annual Rate of 7.4% over the Last Five Years, Despite State-Mandated Rollbacks in Residential Property and Machine and Equipment Assessment Rates. Moody’s Expects the Tax Base to Continue Showing Strong Growth due to Ongoing Residential and Industrial Development Projects.
30. 07/26/04 Page - 30 Competitive Advantages “Fiber Optics is the Key to Waterloo’s Future Growth,” (Mayor) Rooff said. “In Order for Waterloo with its Businesses to Move into the 21st Century, We Need Fiber Optic Capability.”
“I Believe it has Hurt Us Economically not to be able to Provide Fiber Optics to Businesses Locating in our City.”
31. 07/26/04 Page - 31 Competitive Advantages Waterloo Refocuses on Attracting Jobs
32. 07/26/04 Page - 32 Competitive Advantages Plans for City’s Fiber-Optic System Hits Speed Bump
33. 07/26/04 Page - 33 Competitive Advantages Qwest to Offer DSL Service in Waterloo
34. 07/26/04 Page - 34 Competitive Advantages Team Technologies
Principal Financial
Hawkeye Community Business Center
Crystal Distribution
35. 07/26/04 Page - 35 Educational Advantages Waterloo has 21 Buildings
ICN Feeds to ICN Rooms in 3 Buildings – Used for Distance Learning
Buildings are Connected to the Administration Building via a Frame Relay. All Buildings, Plus Administration have a T1 Connection
Mediacom has Agreed to Connect all 21 Buildings via Fiber
School District is Lacking the Capability of Multi Media, Streaming Video in 18 Buildings
Fiber Connection will Result in an Annual Savings of Approximately $100,000.00, Plus Costs for Equipment Support
36. 07/26/04 Page - 36 Educational Advantages Five Major Routes and Five Secondary Routes of Fiber Optic Transmission Line Link the City’s 10 School Buildings, Administrative Center, Central Services and Area Education Agency 7
Internet Service Provided Thru AEA 7 at No Cost
AEA 7 has a Fractional DS3
Fiber Connection Eliminates the Need for T1s
37. 07/26/04 Page - 37 Educational Advantages Cedar Falls Community Schools Received $1 M from the State Of Iowa to Provide Streaming Video On Demand to all School Buildings. All Classrooms will have Access to Distance Learning.
Pursuing the Opportunity of Students Accessing Streaming Video via a Home Connection using Cedar Falls’ Community-wide Telecommunications Network.
38. 07/26/04 Page - 38 Medical Advantages Hospitals
Covenant Medical Center
Allen Memorial
Sartori
39. 07/26/04 Page - 39 To Increase & Maintain Population
40. 07/26/04 Page - 40 The Winning Advantage “What’s The Difference?”
41. 07/26/04 Page - 41 Cedar Falls, Iowa
Developed a Municipally Owned and Operated Telecommunications Network
Waterloo, Iowa
Depended on Existing Providers to Meet Current and Future Needs Needs title? - comparison diagramNeeds title? - comparison diagram
42. 07/26/04 Page - 42 Telecommunications Services Municipal City-Wide Fiber Optic Network
High-speed Fiber Connection
Dedicated Connection to the Internet
Cable Modems
FTTB
T1 through DS3 Level Service
43. 07/26/04 Page - 43 Cedar Falls, Iowa2003/2004 Data
44. 07/26/04 Page - 44 Business Growth Cedar Falls Industrial Park & Prairie Technology Park
Number of Businesses 140
Number of Employees 4,250
Buildings – Sq. Footage 4.1M
45. 07/26/04 Page - 45 Major New Business Projects PIPAC Centre On The Lake
Hamilton College
Performance Bodies
Crystal Distribution (expansion)
Wingate Inn (under construction)
Mudd Video Production Center (Fall 2004)
46. 07/26/04 Page - 46 Data Center & Carrier Hotel Team Technologies LLC
12,000 Square Foot Data Center and Carrier Hotel
Feature World-Class Security
Power and Environmental Control Systems Specifically Designed for IT and Telecom Services
50-Mile Fiber Optics MAN
Extending the Network to Chicago, Des Moines and Internet National Access Points
47. 07/26/04 Page - 47 New Construction Value 2003: $80 Million
2004: $92 Million
48. 07/26/04 Page - 48 Increase in Land Value Increase in Price Per Acre
From $35,000 to $50,000
To $35,000 to $70,000
Increase in Property Tax
From $36.55 to $36.95 for FY 2005
49. 07/26/04 Page - 49 Moody’s Investors Service “Moody’s Upgrades to A1 from A2 the Rating on the City of Cedar Falls’ (IA) Sewer Revenue Bonds, Affecting $5.1 Million of Outstanding Parity Debt, Including Current Issue.Sound Financial Operations Providing Ample Liquidity and Favorable Coverage Ratios.”
50. 07/26/04 Page - 50 Industrial & Technology Park Develop Into a City Within a City “The City of Cedar Falls is Extremely Pleased with our Strong Continued Economic Development Growth that has Exceeded our Expectations. We Continue to Expand our Industrial & Technology Park while Maintaining our Focus on Quality Development and Job Creation,” Said Bob Seymour, Cedar Falls Community Services Manager. “The Cedar Falls Industrial & Technology Park has Basically Developed into a City Within a City.”
51. 07/26/04 Page - 51 Lasting Effects Commerce
Politics
Philosophy
Art
Education
52. 07/26/04 Page - 52 Information Revolution “(Communities) that Harness its Power and the Opportunities it Presents will Stand Tall as Great Powers and those that do not will Shrink in Every Aspect of Civilization.”
53. Small Cable System Thrives Shrewsbury Electric and Cable Operations Thomas Josie
54. 07/26/04 Page - 54
55. 07/26/04 Page - 55 What We Offer
56. 07/26/04 Page - 56 Municipal Fiber Network
57. 07/26/04 Page - 57 Value Added to Community
58. 07/26/04 Page - 58 Value Added to Community
59. 07/26/04 Page - 59 Keys to Success Apply business/investment principles
Know Your Market – Keep it Local
Offer Competitive Services – Technology & Price
Integrate with Community – Schools, PEG Access, Local Businesses, Town Government
Customer Service – Keep Control!
Use Proven Technology
60. 07/26/04 Page - 60 Vitals
61. 07/26/04 Page - 61 Vitals - Rates
62. 07/26/04 Page - 62
63. Moving The ComplexTo The Understandable John Reynolds
Integrated Architectures
64. 07/26/04 Page - 64 Thoughts For The Day Subscriber services drive all revenues.
Service providers are key to success.
Municipal networks’ customers are service providers.
Low costs and high volumes are the goal.
The success lies in flow-through automation.
65. 07/26/04 Page - 65 A Subscriber’s Simple Needs Crystal clear telephone calls
Crisp video reception that does not blotch
Responsive interactive access to the Web
Bulk delivery of large content with no disruption of other services
66. 07/26/04 Page - 66 Sample Services List Voice:
Number portability
Emergency services
Directory assistance
Operator assistance
Caller ID
Data:
High speed Internet
Variable bandwidth
Differentiated services
Wireless hotspots w/roaming
VPN privacy
Security controls
Environmental controls
Meter reading Video
Cable
Local
Satellite
Video on Demand
Virtual DVD
Personal videoconferencing
Radio
Streaming channels
Music on demand
iTunes
User-provided services
Content
Application portal
67. 07/26/04 Page - 67 Service Providers: Wholesale Partners
68. 07/26/04 Page - 68 Access Paths to a Subscriber
69. 07/26/04 Page - 69 Key Network Operator OSS Processes Service Creation
Service Provider Acquisition
Service Activation
Service Registration
Service Assurance
Billing
70. 07/26/04 Page - 70 Service Creation
71. 07/26/04 Page - 71 Service Provider Acquisition
72. 07/26/04 Page - 72 Service Provisioning and Activation
73. 07/26/04 Page - 73 Service Registration
74. 07/26/04 Page - 74 Service Assurance
75. 07/26/04 Page - 75 Billing
76. 07/26/04 Page - 76 The Big Picture
77. 07/26/04 Page - 77 The Larger Context
78. 07/26/04 Page - 78 Opportunities for Outsourcing Network Operators
Technical Assistance Center
Flow-through activation
Dispatch
Wholesale (access) billing
Revenue sharing distributions
Roaming and settlement
Service Providers
Full OSS system, or:
Customer care
Interface to support providers
Activation gateway
TAC center
Retail billing
Access mediation gateway
Revenue sharing and roaming settlements
79. 07/26/04 Page - 79 Summary Service provider’s financial viability will be through the delivery of differentiated services.
Everyone’s margins depend on automation of the high volume transactions.
Network operators will expand their revenues by acquiring an optimal number of service providers.
There are many opportunities emerging to reduce costs and complexity through outsourcing selected OSS operations.
The systems integration can be somewhat complex, but you don’t have to do it all yourself.