understanding broadband to influence business growth (price county wi)
DESCRIPTION
Understanding Broadband to Influence Business Growth (Price County WI), presentation by the Broadband & E-Commerce Education CenterTRANSCRIPT
Understanding and Using Broadbandto Influence
Business Growth and Expansion
Price County Economic Development AssociationFall Membership Meeting
September 24, 2014
Presenters:Jill HietpasUWEX Broadband [email protected]
Gail HuyckeUWEX Price County CNRED [email protected]
Matt KuresUWEX Center for Community and Economic DevelopmentGIS [email protected]
Discussion Objectives• Understand What Broadband Is and Who
Provides Broadband Services• Look Back at Price County Demand Survey and
What the Data Tells Us• Examine What Broadband Access Means for
Economic Development• Explore Options for Moving Forward
What is Broadband?
• Federal Communication Commission (FCC) definition (for residential service):
– Current: 4 Mbps Down/1 Mbps Up
– Proposed: ~10 Mbps/3 Mbps (maybe greater)
• Alternative definition:
– Connection that does not limit application (i.e. VoIP, web-based video streaming, future innovations?)
Broadband=Many Different FlavorsWireless
Fiber
Cable DSL
Satellite
Speed Matters….
Dial-up+ (56 Kbps): 1 day, 10 hrs, 44 min
T1/DSL (1.54 Mbps): 1 Hour, 15 min
Cable (10 Mbps ): 11 min, 44 sec
Fiber (1 Gbps): 7 sec
Technology (Data Pipe)
Files/Data (Megabytes)
Wired or Wireless?
“Ya got to
have em
both…”
Broadband Access and Technologies in Price County
• Wired Progress and Providers
• Wireless Progress and Providers
• Fixed Wireless Progress and Providers
Wired Broadband
Price County Wired Broadband Wired Providers CenturyTel, Inc. Charter Communications Frontier North, Inc. Packerland Broadband Price County Information Systems LLC Price County Telephone Company
Wired Broadband Neighboring Counties
Bruce Telephone Company, Inc.Chequamegon Communications CooperativeChoicetel LLCCitizens Telephone Cooperative, Inc.Frontier North, Inc.Indianhead Telephone CompanyKarban TV Systems, Inc. (KTVS)Midway Telephone Company, LLCNorvadoRhinelander Telephone Company
Mobile Wireless
Price County Mobile Wireless Broadband
Mobile Wireless ProvidersAT&T Mobility LLCCellComVerizon WirelessSurrounding CountiesT-Mobile USA, Inc.CTC TelecomSprint Corporation
Fixed Wireless
Fixed Wireless Providers
Fixed Wireless in PriceNone
Surrounding CountiesAirRunner Networks, LLCCountry Wireless, LLC SonicNet Inc.
So What Does All of This Mean for Price County and Economic Development?
Price County Economic Development Association Priority Project
• Coordinate and promote technology transfer through internet and/or related telecommunications and technical abilities, thereby expanding Website abilities/capacities.
History
Gather information with broadband presentation at fall membership meeting
Apply for a PSC grant to participate in Broadband Demand Survey
Partner with UW-Extension to conduct Business and Residential Demand Surveys
Meet with providers on preliminary data
PCEDA Action Items
PSC Demand Survey Data• How PCEDC Collected
Responses (543)
• Residential Demand Highpoints
• Business Demand Highpoints
“Affordable and Reliable Broadband Access”
Overview of Economic and Business Development
• Rural Economy Classifications• Economic vs. Business Development– Impacts of Broadband– Partnerships between chamber of Commerce, Small
Business to Understand Broadband Needs• Price County Businesses– Job Establishments– Cottage-based Industries
1 2 3 4 5 6 7 8 9-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Percent Change in Population 2000 to 2010By Rural-Urban Continuum Code
United States
State of Wisconsin
Rural-Urban Continuum Code
Perc
ent C
hang
e in
Pop
ulati
on
Data Source: U.S. Census Bureau
YourEconomy.org
http://Youreconomy.org(1995-2013)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500Total Price County Jobs by Establishment Stage – 1995 to 2012
Self-Employed (1)
Stage 1 (2-9)
Stage 2 (10-99) Stage 3 (100-499)
Stage 4 (500+)
Tota
l Job
s
Data Source: National Establishment Time Series Database extracted from YourEconomy.org
19701972
19741976
19781980
19821984
19861988
19901992
19941996
19982000
20022004
20062008
20102012
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Change in Wage and Salary EmploymentPercent Change in Employment Since 1970
All Counties with RUCC of 9Price CountyUnited StatesState of Wisconsin
Perc
ent C
hang
e Si
nce
1970
Data Source: Bureau of Economic Analysis
19701972
19741976
19781980
19821984
19861988
19901992
19941996
19982000
20022004
20062008
20102012
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Change in PopulationPercent Change in Employment Since 1970
All Counties with RUCC of 9
Price County
State of Wisconsin
United States
Perc
ent C
hang
e Si
nce
1970
Data Source: Bureau of Economic Analysis
Change in Employment by Industry - 2003 to 2013Industry 2003 2013 Numeric Change Percent ChangeAll Industries 6,486 5,566 -920 -14.2%Natural Resources & Mining 108 119 11 10.2%Construction 188 69 -119 -63.3%Manufacturing 2,402 2,084 -318 -13.2%Trade and Utilities 911 698 -213 -23.4%Transportation & Warehousing 119 124 5 4.2%Information 63 54 -9 -14.3%Finance & Insurance 173 161 -12 -6.9%Real Estate & Rental & Leasing 41 30 -11 -26.8%Professional & Technical Services 148 174 26 17.6%Business Services 107 94 -13 -12.1%Educational Services 424 337 -87 -20.5%Health Care & Social Assistance 846 784 -62 -7.3%Arts, Entertainment & Recreation 34 49 15 44.1%Accommodation & Food Services 352 285 -67 -19.0%Other Services 156 128 -28 -17.9%Public Administration 415 376 -39 -9.4%
Data source: Quarterly Census of Employment and Wages
Price County Cottage-based Industry at a Glance
• 2013 D& B - 727 Home-based Businesses (59% of all D&B business establishments)
• For every storefront or commercial business there are 1.44 home-based business (This is a bit higher than the state 1.22)
Top “Cottage” Businesses in Price CountyFor every 1 commercial business space in the county, there are an estimated 1.44 “cottage” businesses (state level = 1.22)
NAICS Code Industry Description Number of Establishments
561990 All Other Business Support Services 167
112120 Dairy Cattle and Milk Production 25
722410 Drinking Places 19
484110 General Freight Trucking - Short Haul 13
721110 Hotels and Motels 13
111998 Miscellaneous Crop Farming 11
812112 Beauty Salons 11
236115 Single-Family Housing Construction 10
561730 Landscaping Services 10
111421 Nursery and Tree Production 9
451110 Sporting Goods Stores 9
484121 General Freight Trucking - Long Distance 9
524210 Insurance Agencies and Brokerages 9
541990 Other Professional, Scientific, and Technical Services 9
All Other Industries 404
Data Source: National Establishment Time Series Database
Establishments Jobs0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%Price County Share of Jobs and Share Establishments by Stage (2013)
Self-Employed (1)Stage 1 (2-9)Stage 2 (10-99)Stage 3 (100-499)Stage 4 (500+)
Data Source: National Establishment Time Series Database extracted from YourEconomy.org
Examining Price County Sectors and Trends in Relation to
Broadband
• Woods Industry • Tourism Industry• Aging Population/Health Care Industry• Youth and Our Next Generation
Woods Industry
• Foresters• Loggers• Haulers• Wood Products
Q3 1990
Q2 1991
Q1 1992
Q4 1992
Q3 1993
Q2 1994
Q1 1995
Q4 1995
Q3 1996
Q2 1997
Q1 1998
Q4 1998
Q3 1999
Q2 2000
Q1 2001
Q4 2001
Q3 2002
Q2 2003
Q1 2004
Q4 2004
Q3 2005
Q2 2006
Q1 2007
Q4 2007
Q3 2008
Q2 2009
Q1 2010
Q4 2010
Q3 2011
Q2 2012
Q1 20130
100
200
300
400
500
600
700
800
900
Price County Employment Trends - Q3 1990 to Q3 2013Forestry and Logging (NAICS 113) and Wood Product Manufacturing (NAICS
321)Forestry and Logging (NAICS 113)
Wood Product Mfg. (NAICS 321)
Tota
l Qua
rter
ly E
mpl
oym
ent
Data Source: U.S. Census Bureau Local Employment Dynamics
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
50
100
150
200
250
300
208 211
252
223
196178
166157 154 157
Forestry and Logging (NAICS 113)Number of Non-Employers 2003 to 2012
Num
ber o
f Non
-Em
ploy
ers
Data Source: U.S. Census Bureau Non-Employer Statistics
Implications
• Currently many regions lack even basic cell coverage
• Access to GIS Mapping software is critical• Processor to Mill connections is becoming
vital• Access shortens equipment downtime• Safety increases with coverage
Tourism Industry
• Second home owners• Restaurants• Lodging• Gas• Entertainment
Housing Units by Tenure (2008 to 2012 Five Year Estimates)
Geography Price County
State of Wisconsin
United States
Total Housing Units 10,799 2,620,401 131,642,457
Owner Occupied Units 50.3% 59.9% 57.3%
Renter Occupied Units 13.5% 27.4% 30.2%
Vacant Units 36.2% 12.7% 12.5%
Vacant Units: Seasonal or Recreational Use 30.0% 6.7% 3.8%
Data Source: U.S. Census Bureau, 2008-2012 American Community Survey. Based on a 90% Confidence Interval. Figures are subject to a margin of error.
Results: “Northwoods Wisconsin” SurveyHow much longer would you stay in the Northwoods of Wisconsin
each year if you had access to broadband internet?
Answer Options Response Percent Response CountI would not stay any longer than I currently do 47.1% 112
Up to 2 weeks 8.4% 202-4 weeks 13.4% 321-2 months 16.8% 403-4 months 5.9% 145-6 months 2.9% 76-12 months 5.5% 13
Answered Question 238
Northwoods Broadband and Economic Development Coalition
Second Home Study
http://www.slideshare.net/WI_Broadband/economic-impact-of-broadband-second-homes-high-speed-bits
IMPLAN Results(These numbers need to be updated)
Impact Type Employment Labor Income Output
Direct Effect 1,454 $23,528,923 $55,778,505
Indirect Effect 109 $4,294,936 $12,867,676
Induced Effect 188 $7,281,161 $22,466,186
Total Effect 1,751 $35,105,021 $91,112,368
Northwoods Broadband and Economic Development Coalition
Implications
• Potential to increase visitor stays• Overall increase in economic impact to
county (groceries, gas, restaurants, entertainment, etc.)
• Increase in second home ownership• Increase in telecommuting
Aging Population/Health Care Industry
• Telemedicine• Emergency services• Home Care Services• Medical Records
Implications• Hospital and Clinics rely heavily on
telemedicine, investing in infrastructure• Independent Providers struggle with
affordability of speed vs needs• Individual patients lack high speed access
from home and or adopt broadband• Industry reimbursement standards will be
based on telemedicine• Industry is moving more to telecommuting
SupportingYouth and Our Next Generation
• Population Size• School Enrollment, Enabling Our
Schools to Compete• Workforce
0 to 4 5 to 9 10 to 14
15 to 19
20 to 24
25 to 29
30 to 34
35 to 39
40 to 44
45 to 49
50 to 54
55 to 59
60 to 64
65 to 69
70 to 74
75 and Over
-80
-60
-40
-20
0
20
40
60
80Price County Net Migration Rates by Age
2000s1990s1980s1970s
Net
Mig
ratio
n pe
r 100
Indi
vidu
als
Source: Age-Specific Net Migration Estimates for US Counties, 1950-2010. Applied Population Laboratory, UW-Madison, 2013
2010 2015 2020 2025 2030 2035 2040 -
50
100
150
200
250
300
Projected Convergence of the Population Age 18 and Age 65in Price County – 2010 to 2040
Age 18
Age 65
Num
ber o
f Res
iden
ts
Data Source: Wisconsin Department of Administration.
Implications
• Quality of Life Issue • Lack of technology prohibits
telecommuting• Shifts in population will influence
available workforce • Limit access to Higher or
Alternative Education
Next Steps• Collect More Data (PSC Tools)
– Bandwidth Assessment Tool– Mobile Pulse– Broadband playbook– Anecdotal Stories and Case Studies
• Prepare for and Explore Funding Opportunities• Create a Technology Council—who’s in the game?• Consider Regulations and Policies• Include Broadband in Comprehensive Plans• Continue Education and Outreach
Public Service Commission Tools• Playbook for Broadband• LinkWISCONSIN Mapping Efforts and Wisconsin
Dashboard• Cost Model• Broadband Assessment Tool (BAT)•Mobile Pulse
Regulations and Policies“Smart Growth” Comprehensive PlansBusiness Growth/DeclineEducation and Outreach
Next Steps: Collect Data, Strategize, Educate, Implement
Wisconsin’s Playbook for Broadband Progress
http://www.link.wisconsin.gov/lwi/docs/WI_Playbook.pdf
Wisconsin Dashboardhttp://wisconsindashboard.org/
Bandwidth Assessment Tool (BAT)
Broadband Assessment Tool (BAT)
The BAT SurveyAreas of Assessment
• Current service – location, current speed, type of service, etc.
• User profile – concurrent users, PCs/tablets, avg hours use per user, VOIP, etc.
• Video – streaming time, minutes down/up loading, avg video use per user, etc.
• Social Media – concurrent users, time on media per user per day, etc.
• Audio – streaming time, minutes down/up loading, avg audio use per user, etc.
• Online apps and gaming – concurrent users, avg online app hours per user, etc.
• Basic web – concurrent users, number sites per user per day, email/attm qty, etc.
• Data files, smart phones/tablets – software installs/updates per month, concurrent cloud users, megabytes backup per day per user, etc.
Provider Portal
Fixed Residential Broadband Prices (Average in the U.S.)
Average Monthly Price$(2011 PPP*)
Rank Among OECD and other Countries with Developed Broadband Markets
Average Monthly Price of a Broadband Package
$69.75 32nd out of 38
Download speed of 1-5 Mbps
$34.93 14th out of 24
Download speed of 5-15 Mbps
$43.71 21st out of 33
Download speed of 5-15 Mbps
$56.50 26th out of 32
Source: The National Broadband Plan Goals: Where Do We Stand? http://www.fas.org/sgp/crs/misc/R43016.pdf
Cost Analysis
http://www.verizonwireless.com/wcms/consumer/shop/shop-data-plans/more-everything.html
Verizon Wireless example: $375 + $15 * 35 GB = $900 per month for the heavy user using 85 GB per month.
According to a 2012 OPASTCO study, broadband users now consume 5-20 GB data per month on average, and heavy users consume 70-100 GB per month, with 10 percent of users consuming 90% of the bandwidth. Usage has increased eightfold within the last five years and is predicted to increase threefold again by 2016.Page 72, http://bbcmag.epubxp.com/title/13001
Affordability for Price?
MEDIAN
INCOME
1.50% (Year)
1.5% (Month)
3% (Year)
3% (Month)
5% (Year)
5% (Month)
Price $42,206 $633.09 $52.7575 $1266.18 $105.515 $2110.3 $175.86
• We don’t know…• We Continue to Ask the Question
and Look for Research• Based on National/International
Studies, affordability in Price could be….
Build a CAN/Build Subscribership
Strategies to Enhance Broadband
See: http://broadband.uwex.edu/wp-content/uploads/2014/05/Collected-Broadband-Regulations-6-11-14.pdf
Regulations and Policies• Develop a plan (more on the Comprehensive Plan…)• Adopt a resolution that states the broadband priorities for
the County (Position the County for potential funding and partnerships)
• Lease public infrastructure (towers, high rooftops, poles, water towers, road ROW’s, etc.
• Create Public/Private Partnerships• Inform State Legislation/funding decisions• Facilitate conversations that connect consumers with
providers