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WHAT A STRANGE TRIP THIS HAS BEEN – FROM 1984 TO NOW The Rural Telecon Conference 2007

WHAT A STRANGE TRIP THIS HAS BEEN – FROM 1984 TO NOW The Rural Telecon Conference 2007. Jane Smith-Patterson The e-NC Authority October 15, 2007. WHERE ARE WE? REALLY?. At the Hind End of the Horse We heard from yesterday’s keynoters that we have not come far.

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WHAT A STRANGE TRIP THIS HAS BEEN – FROM 1984 TO NOW The Rural Telecon Conference 2007

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  1. WHAT A STRANGE TRIP THIS HAS BEEN – FROM 1984 TO NOW The Rural Telecon Conference 2007 Jane Smith-Patterson The e-NC Authority October 15, 2007

  2. WHERE ARE WE? REALLY? At the Hind End of the Horse We heard from yesterday’s keynoters that we have not come far. 15th or 12th or 21st ---- All different Think Tank Groups The real story is: US consumers pay 2 times more what the Japanese pays for connections; and it is 20 times as slow. (Comm Daily 10/3/07) Canada – Germany – France E-rate

  3. Broadband Evolution in the World European Union (Government Intervention) Asian Continent, Singapore, Japan, Korea, (Government Intervention) North America (Except US) Mexico and Canada Industry Canada and President Calderon of Mexico Middle East (Government and Private Sector) Africa (Government and Private Sector)

  4. Disruptive Technology of the Internet Has Changed the Game Telephones, Laptops, Cell Phones, PDAs, IPODs, IPhones, has enlarged the category of access devices. Replacing drums and the telegraph we still have copper, cable, satellite, wireless and fiber BPL still not there to scale.

  5. 2007 Disruptive Tech RFID WEB SERVICES SERVER VIRTUALIZATION GRAPHIC PROCESSING MOBILE SECURITY

  6. The ECONOMIC End Game for Rural Areas – Move or Stay and Fight Why is it important? US has always counted on the telecommunications industry as an important element of America’s technological leadership and economic success. Industry accounted for half the increase in US issued patents in the decade of the 1990s. Federal Reserve Board –two-thirds of US productivity gains since 1995 due to impact of communications and computer technology $700 billion trade deficit compounded by $55 billion deficit in Advanced Technology Products—telecommunications items account for $27 billion Lack of ULTRA high speed networks in US makes it impossible for US based companies to enter key new business sectors. US venture capitalists are pushing start-up firms they fund to move R&D abroad—to Asia (Economic Strategy Institute, 2006)

  7. Flawed Regulatory Policies 1996 Telecomm Act focused on deregulations and creating greater competition intelecom markets as sole means of fostering development and deployment of new technologies and services. Competition doesn’t create demand necessarily… if risks too great investment and disincentives too strong, then new technology development and deployment will be retarded. US regulators failed to put in place measures to stimulate demand except with the e-rate A major boom then bust in 2001 when CLECs and LD carriers collapsed taking $500 billion of invested capital, $2 trillion in market cap with them. Many US telecom makers outsourced to Asia, closedfactories and slashed employment.(Economic Strategy Institute, 2006)

  8. US Challenges and Risk for Broadband Market Turbulence Overly Cautious FCC Commitment of federal and state resources Incentive funds lacking Digital Literacy Programs important Equipment for all citizens

  9. JUST DO IT!!! (e-NC Examples) • - Business & Tech Centers - Mapping/e-Communities • PANGEA - Clay • PINE - WinstonNet • MAIN - Yadkin Valley Co-op • CTC - Blue Ridge/DukeNet • Belhaven Cable - Blue Ridge Mountain/GA

  10. Connectivity in North Carolina: the Good News NC Status: December 2006 83% Penetration US Broadband Penetration: 82.2%- Computer World, Sept. 2007

  11. Households with Access to High-speed Service 2006 New Color Scheme

  12. Challenges and Risks • Market turbulence • Incentive Funds • Commitment of federal resources • Overly cautious FCC • FTTH essential • Computers/Training for Homes

  13. “What a Long Strange Trip It’s Been” • Critical Success Factors: • Leadership - Legislative • Incentives Money • Public-Private Partnerships • Grassroots Involvement -- e-communities • The e-NC Authority Board

  14. What Can you Do? • Elect Legislators Who “Get It” • Demand $$$ for Broadband Incentives • Request 10-yr. Internet “Never Drop off the Net” Plan • Know Your Communities’ Access Profile • Take your Legislator to See How Technology is • Transforming North Carolina • Stay Current - visit www.e-NC.org

  15. Broadband Evolution: An Anthropomorphic View 80 mbps Functional Adults 45 mbps Adolescents 1.5 mbps Toddler Speeds 384 kps – Baby Broadband

  16. SAVE the DATES April 16-17, 2007 Hilton RDU Airport 48100 Page Road Durham NC 27703 Southeast ICT Symposium

  17. Webcasting Training • Up-coming sessions: • September 11 Foothills Connects, Rutherfordton • September 18 Northeast Technology & Business Center, Williamston • November 27 NC Rural Center Registration: www.e-nc.org Cost: No charge

  18. A Closing Thought Early Adapters Have Benefited the Most From Disruptive Technology Movements

  19. To Reach Us …. The e-NC Authority 4021 Carya Drive, Raleigh 1-866-NCRURAL www.e-nc.org

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