adams columbia march 7 2016

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Cooperatives and High Speed Internet Monday, March 7,2016 Lynn Pitman, UW Center for Cooperatives Mary Kluz, UW-Extension Broadband and E-Commerce Education Center

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Page 1: Adams Columbia March 7 2016

Cooperatives and High Speed InternetMonday, March 7,2016Lynn Pitman, UW Center for CooperativesMary Kluz, UW-Extension Broadband and E-Commerce Education Center

Page 2: Adams Columbia March 7 2016

Mary KluzCommunity Development [email protected] 608-890-4254

Lynn PitmanOutreach [email protected] 608-261-1355

Page 3: Adams Columbia March 7 2016

Cooperatives changing lives

1946: Marathon-Portage Electric Cooperative Board

Page 4: Adams Columbia March 7 2016

Changing lives for the better

• Disparity in charges between urban and rural electric customers

• Overcoming neighbors’ attitudes: “it takes millionaires to do it”

• “cream skimming” and “spite lines”• Minimum three farms per mile of line• Demonstration of “electric refrigeration”• World War II – suspension of operations

Page 5: Adams Columbia March 7 2016
Page 6: Adams Columbia March 7 2016

Broadband is

• “Always on”• High speed internet

access• Capable of carrying

multiple devices simultaneously

Page 7: Adams Columbia March 7 2016

Bits, Bytes, and Bandwidth• Kbps, Mbps, Gbps = bits per second• Kilobits, megabits, or gigabits per second• Measure of data transfer rates• 1 mbps is ~ 1000 times faster than 1 kbps

• KB, MB, GB = Kilobytes, Megabytes, Gigabytes• Measurement of file size (i.e. movie ~ 6000MB)

• Download and Streaming

Page 8: Adams Columbia March 7 2016

Download Speed Comparison

Dial-Up (56 Kbps):1 day, 10 hrs, 44 min.

T1/DSL (1.54 Mbps):1 hour, 15 min.

Cable (60 Mbps): 1 minute, 50 seconds

Fiber (1 Gbps):7 seconds

Page 9: Adams Columbia March 7 2016

Source: CTS technologies

Data Speed Capacity/Technology

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• Research in the U.S. shows…

• 56% of businesses and organizations say broadband is essential for remaining in current location

• 56% of households say they would definitely/likely relocate if broadband was not available

• 32% of households work from home or have a home-based business

The Internet has become the highway for technology

Source: SNG Digital Economy Database n = 19,951 businesses and 9,318 households

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Disruptive Innovation

recreation

business

work

school

health

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Interaction between factors affecting broadband development

Internet service provider activity

Availability of infrastructure

Consumer demand / adoption

Consumer confidence

Affordability

Consumer savvy

Regulations

Return on Investment

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How are people effectingsystemic change?

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Developing broadband: the players

• Federal level: – Federal Communication Commission (FCC)– National Telecommunications and Information Administration (NTIA)

• http://www.ntia.doc.gov/report/2015/broadbandusa-guide-federal-funding-broadband-projects

– US Department of Agriculture (USDA), others who administer grants and loans

• State level: – Public Service Commission (PSC)

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PSC Resources• State Broadband Office

http://www.link.wisconsin.gov/

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• Local level– Internet Service Providers, often working at

the state and federal level

– Consumers judge it according to• Capacity (including speed)• Cost• Reliability

– Government (county & municipal)

Developing broadband: the players

Page 17: Adams Columbia March 7 2016

Framework for Change

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Page 18: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Page 19: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

• Cook County was working as a Blandin Broadband Community; the cooperative sent representatives as part of the coalition

• The coalition put together an ARRA grant application, which was not funded

Page 20: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick• Surveying was done before the project to• Verify that service was needed• Gauge interest

• The cooperative analyzed the business case

Page 21: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

• Arrowhead Cooperative approached the county for a grant (funded by sales tax) to assist with construction

Page 22: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

• Arrowhead Cooperative applied for and received ARRA funding in the second round for a lesser amount ($24 mil)

• Arrowhead Cooperative developed business relationship with CTC Telephone Cooperative to handle billing and much of the customer support

Page 23: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick• Co-op hosted “grand launch” and open houses

• Co-op allowed use of broadband in their facility (job interviews, trying service on co-op computers)

Page 24: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

• Arrowhead continues to work on build out

• County coalition continues their work on community projects related to digital literacy, co-working space

Page 25: Adams Columbia March 7 2016

RS FIBERCooperative

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Page 26: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Renville and Sibley counties underserved

Local leaders recognized critical nature of missing infrastructure

Phone and cable companies not interested

Page 27: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stickOutreach to other communities: Joint Powers Board formed

Grant for feasibility study

Statistically valid survey to gauge interest

Public meetings: feedback, education, building support

Page 28: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Operator identified, developed financing plan through revenue bonding

Final plan did not have needed support

Public meetings to present feasibility study, create support for revenue bonding

Network to serve both farms and towns

Page 29: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Opt-in by 17 townships and10 cities in JPB jurisdiction

JPB to make $13.7 million loan with 20-year bond issue: phased approach

Co-op raising additional $32-35 million

RS Fiber restructured as a 308B cooperative

Page 30: Adams Columbia March 7 2016

1. Increase urgency

2. Build guiding teams

3. Get the vision right

4. Communicate the vision

5. Enable action

6. Create short-term wins

7. Don’t let up

8. Make it stick

Hiawatha Broadband Communications: network operations/service provider

Reworked financial plan to immediately invest funds to begin generating a return

Broke ground in July 2015

Phase 1: RS Fiber Air: wireless in first 6 months to 17 townships

FTTH in 10 towns in 2 years

Page 32: Adams Columbia March 7 2016

Interaction between factors affecting broadband development

Internet service provider activity

Availability of infrastructure

Consumer demand / adoption

Consumer confidence

Potential co-op role?

Affordability

Consumer savvy Regulations

Potential co-op role?

Return on Investment

Potential co-op role?

Page 33: Adams Columbia March 7 2016

Preparing a platform for the future-for consideration

• How does your organization’s need for infrastructure overlap with potential partners?

• How do you analyze the business case?• How do you measure member benefit?– Financial: costs and savings (not just on internet

service)– Quality of life: medical, education, recreation, etc

• Do you have a role to play in adoption of internet technology?

Page 34: Adams Columbia March 7 2016

Questions?

http://broadband.uwex.edu/resources/policy/

Page 35: Adams Columbia March 7 2016

Broadband & E-Commerce Education Center [email protected] Twitter @WI_Broadband 608-890-4255

Lynn Pitman, Outreach Specialist, [email protected] 608-261-1355

Mary Kluz, Community Development, [email protected] 608-890-4254

Find this presentation online: http://www.slideshare.net/WI_Broadband