adams columbia march 7 2016
TRANSCRIPT
Cooperatives and High Speed InternetMonday, March 7,2016Lynn Pitman, UW Center for CooperativesMary Kluz, UW-Extension Broadband and E-Commerce Education Center
Mary KluzCommunity Development [email protected] 608-890-4254
Lynn PitmanOutreach [email protected] 608-261-1355
Cooperatives changing lives
1946: Marathon-Portage Electric Cooperative Board
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
Broadband is
• “Always on”• High speed internet
access• Capable of carrying
multiple devices simultaneously
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
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
Source: CTS technologies
Data Speed Capacity/Technology
• 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
Disruptive Innovation
recreation
business
work
school
health
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
How are people effectingsystemic change?
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)
PSC Resources• State Broadband Office
http://www.link.wisconsin.gov/
• 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
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
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
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
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
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
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
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)
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
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
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
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
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
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
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
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?
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?
Questions?
http://broadband.uwex.edu/resources/policy/
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