Why Broadband is Needed

1. Why Broadband is Needed Jean PlymaleSeth PeeryVirginia Tech eCorridors GroupJan. 29, 2004

2. Today’s Economy • Based on the creation and distribution of information • Driven by information and communication technology (ICTs)

3. ICTs • Telecommunication tools that enable direct participation at local, national and global levels. • Benefit those with access, hinders those without access • Any disparity in accessibility is a distinct disadvantage and a barrier to economic and social growth.

4. Value • Formation of social, cultural, and economic relationships • Multiple modes of communication • Network value increases with the number of users and nodes on the network. • As cost of access decreases, potential value increases.

5. Availability • Affordable “true broadband” networks have become synonymous with regions of economic prosperity • Usually deployed in response to market demands • In rural areas, the market may never provide these services

6. Why does it matter? • The Bureau of Labor Statistics • jobs in IT among the fastest growing occupations • The Gartner Group • “true broadband” would increase the US GDP by up to $500 billion annually in the next 10 years • The President’s Council of Advisors on Science and Technology (PCAST) • The IT sector represents an engine of economic growth

7. PCAST Recommends Expanded deployment of broadband with special attention to: • Development of public/private initiatives for distance education • Interagency coordination of telemedicine • Expanding and enabling the scope of telework opportunities • Investments in E-Gov applications • Enhance homeland security

8. CSPP Recommends Must have in place to benefit in the “Networked World” • A local network infrastructure • Networked Places, Access • Networked application and services • Networked economy • Network Enablers

9. CSPP’s Choose to Compete • Need for infrastructure development • Focus on innovation, investment and productivity • Recommends investment in technologies that will spur 21st century jobs in order to: • Compete, • Survive • Grow

10. MDC • Strong physical infrastructure that includes telecommunications is an essential component of a sound community. • The lack of a telecommunication infrastructure puts businesses and educational institutions at a distinct disadvantage. • “people have the capacity to transform their institutions and communities”

11. Technet Recommends: • A national strategy to connect 100M Americans by 2010 • States play key roles in achieving this goal • allow municipalities to provide services though their own networks. • Encourage citizen use of broadband through e-Gov initiatives. Citizens will increasingly choose where to live based on the availability of broadband for work and pleasure.

12. Communities transforming • Utah Telecommunication Open Infrastructure Agency (Utopia) • iProvo • Grant County Washington • The Digital Rivers • Corporation for Education Network Initiative in California (CENIC) • The Swedish ICT Commission • Bristol, Danville, Leniwisco, Abingdon…Pulaski? NRV?

13. Advantages In 2002 Governor Warner endorsed the Commonwealth’s economic development strategic plan: • Make VA the state with the highest percentage of home hook-ups to affordable broadband. • Encourage development of broadband capacity throughout Virginia, …”

14. Entrepreneurship / Small business Dr. Zoltan J. Acs and Dr. David B. Audretsch claim small firms represent abundance of entrepreneurial talent. • Play key roles in the process of technological change and can effect the process by which industry evolves Dr. Andrew Cohill cites the increasing trend of small home based businesses: • predicts small, entrepreneurial home based companies will become the industry leaders of the future

15. Our Region NRVPDC • ~ 6218 businesses • ~5735 ( 92% ) are small businesses (defined 1-20 employees) Pulaski County: • ~1043 businesses • ~959 (91%) small businesses Town of Pulaski • ~445 total, • ~420 (94%) small businesses Dublin • ~129 total, • ~114 (88%) small businesses

16. The Facts: All these diverse groups emphasis: • true broadband is and will be necessary for the economic and social prosperity of the future • true broadband for everyone, benefits everyone

17. Time to Decide • Do we have time to wait for “the market” to deliver broadband? • Are we willing to gamble on eventual market recognition of our value • Its time for Pulaski, the NRV to choose its future.

18. Advice from Andrew Cohill • Construct a clear, concise vision that articulates where they want to go. • to inspire citizens and promise them a prosperous future. • Set a goal, create a vision, make it happen!

20. What is eCorridors? • A research and outreach program within the Information Technology department at Virginia Tech • Our objectives: • To work with communities, private-sector, and municipal partners to facilitate rapid development of advanced, fiber optic, wireless, and “next generation” Internet infrastructure • To serve as a catalyst for the deployment of affordable access to fiber optic network infrastructure that is needed to create economic and educational opportunities for citizens and businesses • To educate communities about alternative technologies and business models that have worked elsewhere

21. Rationale • Access to advanced communications infrastructure has become critical to ensuring economic competitiveness in the new Information-based economy • Inadequate services like most Cable Modems and ADSL will not give communities the ability to be producers of information goods and services • The traditional telecommunications players need to provide rural communities with true broadband service • By leveraging advanced optical technologies and alternative business models, communities can achieve a “leapfrog” advantage

22. The eCorridors Strategy • Provide knowledge and expertise to communities to raise awareness of what communications infrastructure is needed to compete in the network economy • Suggest proven ways to leverage IT for economic development • Give communities the tools they need to design and build a reliable, affordable fiber optic network infrastructure

23. eCorridors Research Strategic Technology Infrastructure for Regional Competitiveness in the Network Economy • 11 Volumes • Contributors included 60 network and IT professionals from VT as well as over 40 private sector company representatives • 6 month project (released March 2003) • Uses the Southwest and Southside regions as a model • The report serves as a reference guide for communities • Available for free download from http://www.ecorridors.vt.edu

24. Volumes of the eCorridors Report • Rationale, Environment, and Strategic Considerations • Connecting the Regional Infrastructure to National and International Networks • A Fiber Optic Infrastructure Design for Southside and Southwest Virginia • Fiber Optic Infrastructure Design Guide • Financial Feasibility and Investment Rationale • Leveraging Advanced Optical and Ethernet Technologies • Speculative and Alternative Technologies • Community, Applications, and Services • Demographics for Southside and Southwest Virginia • Health Information Technology and Infrastructure • Education in the 21st Century

25. Relevance of the eCorridors Report • A reference guide to community networking and acase study in fiber design • A rationale for community networking • Guidelines for building fiber-optic infrastructure • An example regional fiber network design and associated financial model • Familiarizes the reader with cutting-edge technology and networking concepts • Investigates key application areas such as health and education

27. The Role of Communities • eCorridors is a catalyst to promote local empowerment and regional coordination • eCorridors exists to educate communities about applications, technologies, planning, engineering, and management of Next Generation networks • Once aware of their options, communities need to take the initiative to remain competitive in the network economy • Regional efforts can bring common interests together and create a “critical mass”

28. Guiding Principles • Separation of services from infrastructure • Competing service providers operating over an open-access, independently owned infrastructure • Let the public and private sectors do what they do best • True broadband (multi-megabit up to gigabit per second) • Connection of every premise as an ultimate goal • The value of a network increases with the number of users • Innovation and entrepreneurship often occurs at home • Ethernet and IP-based networking protocols over least-cost solutions • Fiber-based design

29. Bandwidth Comparisons Dial-up Cable modem DSL Gigabit Ethernet1000BaseLX T-1 10 Mbps Ethernet 100 Mbps Ethernet

30. Limitations • More is needed for economic development and improved quality of life in a region than communications infrastructure. • The eCorridors recommendations are necessary, but not sufficient conditions for economic development • Telecommunications is a component of an comprehensive development policy along with more traditional infrastructure • Education and training is and will remain vitally important, as it improves a region’s human capital and its ability to realize the benefits of its investment in technology

31. Contact Us For more information, contact: Brenda van Gelder bvgelder@vt.edu Jean Plymale vplymale@vt.edu John Nichols john.nichols@vt.edu Seth Peery sspeery@vt.eduhttp://www.ecorridors.vt.edu