applied communications lessons learned from rural broadband initiatives
TRANSCRIPT
APPLIED COMMUNICATIONS
Lessons Learned from Rural Broadband Initiatives
Lesson One Success doesn’t happen overnight.
Case Study - Grant County Grant County Public Utility District installed fiber backbone
between substation. Fiber to the home roll-out began in 2001. Initial slow take rate below projections Quincy, WA - Population = 5,300 In 2006 – Microsoft, Yahoo and Intuit announced plans for
data centers. (Fiber + Low Power Costs) “One Tiny Town Become Internet Age Power Point” (Wall
Street Journal – 3/7/07) 1000 new workers = Housing Shortage
DIFFUSION CURVE
Rural Telecon “98”
Lesson Two“The power to transform will play
out unevenly and in stages.”
(Business Week 3/26/01)
THE STATS broadbandproperties.com
2004 = 200,000 homes passed by fiber.2006 = 4 million2008 = 10 million 2011 = 64 million
Muni-Wireless public wireless networks/hotspots2005 = 1222006 = 312 2007 = 415
PEW INTERNET PROJECTIn 2007 47% of all adult Americans had broadband
connections. Only 31% of homes in rural areas had broadband.
High Cost + Low income = Lower Penetration Rates
Geraldine, MT = $59 for 1.5 mg DSL
Lesson ThreeOne size doesn’t fit all.
Applications – Fiber or HFC Load Management for Electric Utilities (Fiber)
Home Automation (FTTP)
Cable TV – Video Conferencing
Applications - Wireless•Public Safety – Mobile applications for Police & Fire
•Public Works/City Inspectors Mobile applications
• Free Internet (Wi-Fi)
Lesson Four“You can’t have always get what you want.”
Source: Mick Jagger
Marshfield, WI – Case Study Charter Cable – Regional Fiber Backbone,
Fiber to Clinic & other businesses in town Verizon – DSL, Fiber Sonet-Ring Poor service in rural areas No fiber in industrial parks on town’s edge No Wi-Fi hot spots
HIGH PRIORITY LOW PRIORITY
HIGH COST Proceed Only If Strategy Ranks High on Other
Factors
Do Not Proceed
LOW COST Proceed Find a Partner to Undertake Strategy
Evaluation Measures Cost-Benefit Economic Development Public Support Financial Liability Commitment
Lesson FiveMetcalfs Law – “The Value of a network grows
with the number of users.”
Take Rates
Take rates ranged from 20% - 80%. Averaged around 40-50%.
Cable take rates have been higher than Internet Marketing surveys generally indicate higher interest level
than actual take rate Takes several years to penetrate market Competitors might enter market
(Applied Communications – Public Broadband Database)
Lesson Six
There is no such thing as a 100% success rate in business or in telecommunications.
Business Plan Select Appropriate Business Model ROI – 5, 10, 15 years? Risk Analysis Marketing Financing – Grants, fees, bonds, recapture, …
Lesson Seven
Planning can be a catalyst for action.
Marshfield, WI – DSL for Hewitt
Douglas, WY – Cable Modems
Sandpoint, ID – RFP for services spurs Qwest
Havre, MT – County Commissioners allow co-location
Lesson Eight
Don’t get trapped by paralysis analysis.
Strategies Find a niche Pilot project before full deployment Phase in, deploy to areas of high demand to
generate revenue Decrease risks – Partner, pre-lease, piggy
back on other projects
For More Information
Kate McMahonApplied Communications
(406)863-9255
www.appcom.net