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Case Study: Broadband & The Digital Divide: The New Role of Public Libraries

Thursday, December 3rd, 2009

In Northeast Ohio, the Cuyahoga County Public Library System (CCPL) has established a new beachhead for bridging the digital divide. After five years of experimenting with ultra-broadband and integrating it into the library’s menu of services, CCPL is now known across the country as a pace-setting library system and an early innovator in ultra- broadband applications for servicing the public.

For communities all over the country, the public library – often the only agency offering free access to Internet-based services – is playing an increasingly relevant role in helping to bridge the digital divide. The opportunities for impact are profound, however the challenges are numerous: Access to funding and bandwidth are critical ingredients for responding to rising public need and demand, and the ability to effectively track impact remains elusive. Yet for populations across the country, having digital access, or not, may also mean: Acquiring new skills or not. Learning English or not. Applying for a job … or not. In these times of national economic stress, the role of public libraries in the digital-divide equation may be more critical than ever.

CCPL’s experiences provide lessons for pursuing a broadband vision that can impact the digital divide in communities around the country. In the wake of CCPL’s advances in Northeast Ohio, a new threshold of innovation has dawned, and for public libraries nationwide, so has the opportunity to serve as beacons of hope to the millions of Americans in danger of being left behind in the digital divide.

For a thorough analysis of CCPL’s experience, download “Broadband & The Digital Divide: The New Role of Public Libraries,” a case study supported by the Knight Foundation.

Appendices:

Appendices A to C
Appendix D
Appendix E
Appendix F
Appendix G
Appendices H to I

Tags: broadband, Broadband Expansion, CCPL, community, Cuyahoga County Public Library, digital, digital divide, economy, education, infrastructure, innovation, Internet, Knight, library, network, Northeast Ohio
Posted in Cleveland Experience series, Digital news, broadband | No Comments »

SUPERCOMM 2009 brings up interesting broadband issues

Wednesday, November 18th, 2009

A recent event that didn’t get a lot of attention but managed to bring in a lot of the communication industry’s heavy hitters was SUPERCOMM 2009, held in Chicago during late October.

Speakers presenting on their insights and strategic plans included top-ranking officials from many major communications companies such as Verizon Communications, AT&T Operations, NBC Universal and Cox Communications – just to name a few. Verizon Communications Chairman Ivan Seidenberg delivered a keynote address touching on using networking technology to create a “smarter planet, smarter health care and smarter education.”

Private sector interests were also represented by Hardik Bhatt, Chicago’s chief information officer; Jonathan Adelstein, administrator, Rural Utilities Service; Larry Strickling, assistant secretary for Communications and Information and administrator, National Telecommunications and Information Administration; Blair Levin, executive director, Omnibus Broadband Initiative, Federal Communications Commission; and Aneesh Chopra, U.S. chief technology officer and associate director for technology in the White House Office of Science and Technology Policy, who delivered a keynote address on how he feels broadband will change the U.S. economy.

The event featured a number of suppliers showcasing the latest in broadband innovation as well as exhibits that demonstrated an industry-wide commitment to “green broadband,” which explores green regulations, recent studies on business opportunities in the low-carbon economy and how applications like intelligent monitoring can help reduce the energy burden of broadband.

Despite “always on” operation, broadband devices typically don’t consume a large amount of energy on their own, according to a U.S Department of Energy report. However, the appreciable indirect energy consumption they cause through extended use of related devices is proving to be significant. Figures presented at SUPERCOMM showed the standby power-draw from routers in 61 million U.S. homes served with broadband represents enough energy to meet the needs of the entire city of Oakland, Calif.

SUPERCOMM 2009’s complimentary programming also focused on broadband solutions. Technology-focused sessions took a forward-looking approach at how certain technologies were deployed in a network or how a service was applied, and how that technology or service will evolve to apply to future needs. Educational sessions covered topics such as the upcoming national broadband plan, digital content, service-oriented networks and social media.

While a number of interesting topics were discussed, it was good to see such a diverse group of key public and private sector thinkers convene to discuss how future innovation benefits everyone. It’s evident that key players in the communications game are placing an emphasis on broadband technology and the kinds of services and applications it can potentially power.

Tags: Aneesh Chopra, AT&T, Blair Levin, Broadband Expansion, California, Chicago, Cox Communications, digital, digital content, digital divide, economy, electricity, FCC, Federal, green broadband, Hardik Bhatt, high-speed, Illinois, infrastructure, innovation, Internet, Ivan Seidenberg, Jonathan Adelstein, Larry Strickling, national broadband plan, National Telecommunications and Information Administration, NBC Universal, NTIA, Oakland, Omnibus Broadband Initiative, Rural Utilities Service, RUS, service-oriented network, social media, SUPERCOMM 2009, U.S. Department of Energy, utilities, Verizon
Posted in Digital news, broadband | No Comments »

Coalition inspires greater broadband adoption and use through new report

Thursday, November 12th, 2009

report In any national broadband strategy, adoption and use need to play a major role. We’ve seen numerous examples of broadband driving future applications that will enhance lives. Advances in education, health care and economic development are out there, and many Americans are going to need to increase their technological competencies in order to realize the benefits.

While the U.S. Broadband Coalition submitted a report on a national broadband strategy to the Federal Communications Commission (FCC) Sept. 24, it recently submitted another that offers more detailed policy suggestions.

The Broadband Adoption and Use Working Group, chaired by Charles Benton, of the Benton Foundation; Link Hoewing, of Verizon; Karen Archer Perry, of the Knight Center of Digital Excellence; and Kenneth Peres of Communications Workers of America, collaborated with more than 30 authors representing over 25 different firms to create a new report that was delivered to the FCC Oct. 29 and will be showcased in a public forum at the FCC Hearing Room in Washington D.C. Nov. 13 at 1 p.m. EST.

“Broadband Adoption and Use: Bridging the Divide and Increasing the Intensity of Broadband Use Across All Sectors of the Economy,” is a robust document focusing on policy options that promote: inclusion, increased intensity of broadband use, interoperability, integration of broadband and technology into other programs, and expanded innovation. The report’s hundred plus policy ideas address each of these principles directly.

Inclusion

As more functions in our society move online, the cost of digital exclusion continues to escalate. Conversely, the value associated with any given Internet-enabled service increases as more people or devices access that service. This report includes specific recommendations to bridge the digital divide. Its universal design principles seek to bring access to people with disabilities. The benefits of broadband can potentially reach 40 percent of American adults who currently have inadequate or no access.

Intensity of Broadband Use

While broadband appears to be well integrated in some sectors of our nation’s economy, we’re actually in the beginning stages of broadband adoption as a whole. The potential to further leverage broadband technologies across society and the economy creates unparalleled opportunities to grow our economy and enrich lives.

The report covers a number of policy options designed to increase adoption and use in the areas of economic development, health care, public safety, education, energy and sustainability, and democracy and civic engagement.

Interoperability

While broadband developments to-date are founded on the natural interoperability of Internet Protocol (the method by which data is sent from one computer to another), more application-level interoperability is needed to accelerate development across sectors and constituencies such as in health care and public safety. The report points out where policy and standardization can drive additional deployment and create new, more effective use models.

Integration of Broadband into Everything

Broadband technology and Internet-based applications can no longer be managed and funded in “technology silos” of policy and investment. Information and Communications Technology (ICT) is integral to social services, education, health care, safety, civic rights and engagement, and all other sectors of the economy. The report recommends ICT investment and policy be incorporated into other federal and state programs such as housing, social services, education, and health care as integral funded and mission-aligned program components.

Investment

Strategic investments such as those made through the American Recovery & Reinvestment Act’s broadband stimulus funding, Universal Service Funds and USDA Rural Health programs are critical to filling gaps in the market in terms of access, adoption and applications.

Innovation

The hallmark of the Internet age has been innovation. While change is necessary to broaden and deepen the impact of broadband across the U.S., changes must also preserve and encourage continued innovation at all levels of the economy and market. A number of recent studies have shown the Internet is the new platform for innovation not only in the U.S. but globally. Consider the number of new applications and devices over the past few years.

Could any of us have accurately predicted this exact kind of innovation would take place? Can we accurately predict the future possibilities that exist? Probably not.

But as the Coalition suggests, we can encourage policies that will “focus not on protecting status quo but in continuing to create a fertile environment for U.S.-based innovation, expansion as well as adoption and use.”

Over 30 industry experts from 25 firms contributed to “Broadband Adoption and Use: Bridging the Divide and Increasing the Intensity of Broadband Use Across All Sectors of the Economy,” In addition to the report co-chairs, Alcatel-Lucent, Net Literacy, Telcordia, Utilities Telecom Council, PC Rebuilders and Recyclers, Joint Center for Political and Economic Studies, OneCommunity and many others contributed to this report.

Each report section includes a statement on the opportunity, barriers and possible policy options to be implemented at the federal, state or local levels of government. While the report reflects a few areas of contention, there is strong overall agreement that increasing the adoption and use of broadband technology and services is good for America and for Americans.

With the Internet celebrating only its 40th birthday and search functions just over 10 years old, this is still a field in the early stages of growth and value. There is much we can do to create greater inclusion in adoption and to drive for greater value across those sectors where broadband is already in use and this report includes a menu of serious options for consideration.

Future events

The “Broadband Adoption and Use: Bridging the Divide and Increasing the Intensity of Broadband Use Across All Sectors of the Economy” report will be publicly released Nov. 13 and will be showcased in live and webcast events at the FCC Headquarters on the same day at 1 p.m. EST. Please check the Knight Center website for more details, go to www.BB4US.net or contact Karen Archer Perry at kperry@knightcenter.org.

Tags: Alcatel-Lucent, American Recovery & Reinvestment Act 2009, bandwidth, benton foundation, broadband, Broadband Adoption and Use, Broadband Adoption and Use Working Group, Broadband Expansion, Charles Benton, Communications Workers of America, digital, digital divide, economy, education, FCC, Federal Communications Commission, healthcare, ICT, Information and Communications Technology, infrastructure, innovation, Internet, Interoperability, Joint Center for Political and Economic Studies, Karen Archer Perry, Kenneth Peres, Knight Center of Digital Excellence, Link Hoewing, national broadband plan, Net Literacy, network, OneCommunity, PC Rebuilders and Recyclers, public safety, rural communities, stimulus, Telcordia, telemedicine, U.S. Broadband Coalition, underserved, Universal Service Funds, USDA Rural Health, utilities, Utilities Telecom Council, Verizon, Washington D.C.
Posted in Digital news, Knight Center of Digital Excellence, broadband, national broadband plan | No Comments »

Real-time online gaming scores high with broadband consumers

Wednesday, October 21st, 2009

Here’s a sentence you’ve probably seen in a number of recent Knight Center of Digital Excellence articles: “AT&T has publicly stated that real-time gaming is an ‘aspirational service’ and not a core broadband application.”

The statement has been used multiple times as an example the growing debate between service providers and other industries since Federal Communications Commission (FCC) Chairman Julius Genachowski’s Sept. 21 net neutrality webcast at the Brookings Institution.

Let’s take a closer look at AT&T’s statement, though. Should real-time gaming be considered an “aspirational service” and not a core broadband application? After all, video games are more or less for kids, right?

Not quite. Growing survey data presented in a 2008 Harvard Business School study on video games and broadband revealed the traditional gamer stereotype of the teenage boy is outdated. Consider these recent Entertainment Software Association numbers:

The average gamer is 35 years old and has been playing for 12 years.
Forty percent of all gamers are women. Additionally, “women over 18 years of age” is one of the industry’s fastest growing demographics. Adult women represent a greater portion of the game-playing population (34 percent) than boys age 17 or younger (18 percent). In addition, 57 percent of online gamers are male and 43 percent are female.
Twenty-five percent of gamers are over the age of 50, an increase from 9 percent in 1999. This figure is expected to rise in coming years with nursing homes and senior centers across the nation now incorporating video games into their activities.
Forty-two percent of homes in America have a video game console.
Thirty-seven percent of heads of households report they play games on wireless devices such as a cell phone or PDA, up from 20 percent in 2002.

The statistics regarding wireless devices are particularly interesting because the FCC is still considering how issues such as net neutrality will affect wireless Internet. Regardless of what the FCC is thinking now, numbers seem to indicate devices that have a strong gaming component are likely to gain the attention of consumers.

The Harvard Business School study demonstrated that innovative devices, ubiquitous broadband access, improved games and increased reach led to U.S. sales of software, hardware and accessories reaching $18.9 billion in 2007, an almost 40 percent growth over 2006 sales. The Nintendo DS, a handheld broadband gaming device, was the top-selling gaming device in 2007 with 8.5 million units sold. Overall, more than 12 million handheld broadband video game devices were sold that year, in addition to 13 million console units that are capable of real-time online gaming.

The application side of online gaming claims a large audience as well. World of Warcraft, an extremely popular online role-playing video game, claimed 11.5 million monthly subscribers in August 2009. Facebook, the popular social media application with over 130 million subscribers, offers a number of “freemium” video games such as “Farmville” and “Mafia Wars” that not only attract millions of players, but also revolve around social networking. Gamesbrief (a video game industry blog) analyst Nicholas Lovell has claimed that many “freemium” games on Facebook make close to $20 per player on average, as players have the option to pay real money for virtual items that enhance play.

Non-video game device manufacturers are paying attention to these numbers. At a recent media gathering, Apple showed off updates to its line of iPods, pointing out there are more than 21,000 game available on the company’s App store for its iPhone and iPod Touch. In an interview with the New York Times, Apple CEO Steve Jobs said the company’s customers saw the iPod Touch as a strong gaming platform.

Major gaming device companies such as Microsoft, Sony and Nintendo have typically written off Apple as a major threat to their industry status. However, that hasn’t stopped those companies from moving in Apple’s arena as well. Both Sony’s PSP Go and Nintendo’s DSi are relatively new efforts by traditional handheld video game manufacturers to add more broadband-heavy functions to devices.

Could AT&T’s statement be pushback rhetoric from a service provider whose infrastructure can’t support gaming? Is AT&T trying to undermine not only competitors but also an entire platform of innovation that millions of Americans take advantage of on a daily basis?

Possibly. But the point is that while AT&T may want to classify real-time gaming as an “aspirational service,” it seems that device manufacturers, online application creators and American consumers are taking a more serious stance.

Tags: Apple, aspirational service, AT&T, bandwidth, broadband, broadband applications, Broadband Expansion, Brookings Institution, cell phone, digital, digital divide, economy, Entertainment Software Association, Facebook, Farmville, FCC, Federal Communications Commission, Gamesbrief, Harvard Business School, high-speed, infrastructure, innovation, Internet, iPhone, iPhone Touch, Julius Genachowski, KCoDE, Knight Center of Digital Excellence, Mafia Wars, Microsoft, network, New York Times, Nicholas Lovell, Nintendo, Nintendo DS, Nintendo DSi, online gaming, PSP Go, real-time gaming, Sony, Steve Jobs, video games, wireless, wireless devices, World of Warcraft
Posted in Digital news, Knight Center of Digital Excellence, broadband | No Comments »

The FCC and net neutrality: Part four of four

Tuesday, October 20th, 2009

The final piece in a four-part series on the Federal Communication Commission’s six net neutrality principles:

During a recent webcast from the Brookings Institute, Federal Communications Commission (FCC) Chairman Julius Genachowski explained six principles of net neutrality and proposed making them official rules. Let’s take a closer look at proposed rules five and six, which focus on devices and competition.

No. 5: Broadband providers can’t block or demote lawful traffic, or privilege their own content over that of their competitors.

The FCC’s fifth rule touches on a number of examples we’ve discussed in previous parts of this series, such as AT&T’s classifying real-time gaming as an “aspirational [broadband] service,” and Verizon Wireless being taken to task for blocking text messages from a political organization.

A scenario the Knight Center of Digital Excellence proposed in a previous blog is that if the FCC’s net neutrality rules are not enacted: A service provider could favor information from Microsoft over Google by purposely slowing Goggle’s content delivery to create a competitive disadvantage.

Since Genachowski’s webcast, a more critical eye has been turned to service providers that had been trying to find ways to better position themselves for a future Internet stranglehold. Verizon was recently taken to task for its numerous handset exclusivity deals, for example. (It has since responded by publicly stating it would work to reduce these type of deals.)

No. 6: Broadband providers must be transparent about their services.

Both the fifth and sixth principles have recently been added to a list the FCC has been touting for quite some time, but have caused the heaviest debate between various providers. The sixth principle, in particular, has been a major sticking point.

Major broadband providers feel strongly that the billions of dollars they’ve poured into their networks should provide them the exclusive right to operate those networks however they want. That includes offering premium services over their lines to differentiate themselves from competitors – and earn a healthy return on their investments in the process.

If all providers are forced to be transparent about their services (as well as follow other rules that limit handset exclusivity, for example), it becomes increasingly difficult to establish a competitive advantage and handicap smaller providers from having equal access to consumers. It could also lead to consumers having complete freedom to choose what device they want to use and what service that device will use to connect. No one, for example, will be forced to choose AT&T as a provider because he or she simply wants an iPhone.

Those are great scenarios for consumers, aren’t they? Imagine: Instead of providers trying to ignore or hide new types of innovative programming, they’ll simply have to develop the infrastructure to support it, right?

Not necessarily. Both broadband providers opposing Genachowski’s proposal and Republicans that sit on the FCC and in Congress have expressed the opinion that network neutrality regulations would likely discourage broadband providers from expanding and upgrading their systems.

How do you view that statement? Are major providers trying to make the point that falling profit margins would simply lead to a lack of research and development dollars? Or is it a threat to essentially hold innovation hostage until they get what they want?

No matter how you view it – or any of the examples we’ve provided throughout this series – the fact remains that there are a lot of complicated issues to sort through – even well after the five-member FCC votes on Genachowski’s net neutrality proposal Thursday, Oct. 22.

For his part, Genachowski commented in a recent interview that as long as cable and telecommunications networks are delivering “high-speed, affordable broadband to all consumers in a given area,” marketplace limitations should be sufficient. However, if they “fall short” in any area or attribute, he said the FCC will propose “alternative and creative solutions” as part of its plan.

Further reading:

• Part one
• Part two
• Part three

Tags: AT&T, bandwidth, Brookings Institution, competition, Congress, digital, economy, FCC, Federal Communications Commission, Google, high-speed, infrastructure, innovation, Internet, iPhone, Julius Genachowski, KCoDE, Knight Center of Digital Excellence, Microsoft, Net Neutrality, network, Republican party, Verizon
Posted in Knight Center of Digital Excellence, broadband | No Comments »

One hand clapping - broadband availability without adoption doesn’t have much sound

Friday, October 16th, 2009

When the federal government announced its investment in broadband, the broadband community applauded. Financial assistance would be in place to augment commercial investments in rural areas, provide opportunities for expanded municipal wireless networks and supplement middle-mile fiber builds connecting schools and government buildings.

Buried in the $7.2 billion funding allocation was a relatively miniscule allotment of $250 million for “sustainable broadband adoption,” with $150 million to be dispersed in the first round of funding. Yet, this small Sustainable Broadband Adoption (SBA) pool drew 328 applications totaling nearly $2.5 billion in “asks” - 10 times the amount of funding available. Why so much interest?

It’s simple. Broadband availability without adoption, use and innovative product and service development is like one-hand clapping - not much of a sound and very little real connection. The pool of 328 applications to the SBA fund indicates a huge pent-up demand, a desire to create change and the know-how to promote broadband adoption.

The Federal Communications Commission (FCC) recognized as much in a recent report, saying the “Internet creates value only if applications are adopted by consumers; greater adoption yields greater value.”

The challenge becomes one of holding out a vision that Americans can embrace - one they can see and understand how their individual lives can benefit from broadband. As the FCC has outlined, broadband provides:

Individuals a platform for education and training, wherever one lives, whatever one’s circumstances;

Businesses a platform for innovation, greater cost efficiency and access to world markets; and

Governments a platform that improves efficiency and responsiveness,

One stimulus application designed to connect broadband networks with quality of life in communities is the Connect Your Community (CYC) proposal from the Knight Center of Digital Excellence. The plan is to engage, train, equip and support communities across the county to develop and test training tools, in-depth tracking and analysis. But CYC is just one of the many proposals vying for the tiny pool of SBA funds.

Given the great demand and very limited funding for broadband adoption initiatives, we risk developing broadband networks that may result in under-usage. This is due to many Americans not understanding the benefits of new high-speed, high-capacity communications and how to participate in them fully. Part of the federal government’s job in considering applications is to weigh priorities. We hope this basic first step - of getting Americans up to speed with the what the ramifications of these new high-speed Internet highways can be - will get the attention it deserves.

America applauds the building of broadband networks, because we see the vision of a better life as a result. Our national investment in broadband will take on new relevance and excitement in communities across our nation.

Tags: American Recovery & Reinvestment Act 2009, broadband, broadband availability, Broadband Expansion, Broadband Technology Opportunities Program, community, Connect Your Community, CYC, digital, economy, FCC, Federal Communications Commission, high-speed, infrastructure, innovation, Internet, KCoDE, Knight Center of Digital Excellence, Middle Mile, network, stimulus, stimulus watch, sustainable broadband adoption
Posted in Knight Center of Digital Excellence, Stimulus Package, broadband | No Comments »

The FCC and net neutrality: Part three of four

Wednesday, October 14th, 2009

The third in a four-part series on the Federal Communication Commission’s six net neutrality principles:

During a recent webcast from the Brookings Institute, Federal Communications Commission (FCC) Chairman Julius Genachowski explained six principles of net neutrality and proposed making them official rules. Let’s take a closer look at proposed rules three and four, which focus on devices and competition.

No. 3: As long as they don’t damage the network, consumers can connect any legal devices of their choosing.

If you follow the wide-ranging discussion on devices, you’ll find there’s a lot of overlap. The third principle would seem to relate only to third-party devices like Sling Media’s Slingbox (a TV and video streaming device that is blocked on some 3G networks), but many industry executives involved in the net neutrality debate are also chiming in on what devices are used to connect directly to broadband networks.

We’ve seen the obvious example at work – a cell phone. But when considering the phrase “any legal device of their choosing,” the FCC’s third principle includes any non-phone device that contain Wi-Fi modules, such as Apple’s iPod Touch, Microsoft’s ZuneHD and Blu-Ray players that offer integrated Netflix streaming. Internet radio devices, web-connected home security systems and cameras with integrated wireless connectivity should be considered as well.

With all these devices in play, the net neutrality issue quickly becomes handset exclusivity – a practice where wireless carriers make exclusive deals with device manufacturers. Two examples at work currently include Google’s partnership with Verizon Wireless and Apple’s partnership with AT&T.

Both the FCC and Congress have spent some time looking into wireless handset exclusivity arrangements, especially as it plays into the FCC’s fourth net neutrality principle:

No. 4: Consumers have a right to competition.

The FCC’s fourth principle would ensure customers have the right to competition across the Internet spectrum, not simply in terms of choosing a service provider.

Net neutrality advocates claim there is a necessity to regulate the infrastructure and prohibit private enterprise from implementing methods to alter or promote one entity over another.

A worst-case scenario would be if a service provider would favor information from Microsoft over Google by purposely slowing Goggle’s content delivery to create a competitive disadvantage. Another would be a wireless carrier making enough exclusive deals with equipment manufacturers to effective eliminate smaller competitors and force consumers to choose between device or service.

An Internet stranglehold by a handful of organizations could also limit across-the-board innovation. Consider AT&T’s public statement that real-time gaming is an “aspirational service” and not a core broadband application. It’s an interesting statement, considering a Harvard Business School study on the video game industry demonstrated that innovative devices, ubiquitous broadband access, improved games and increased reach led to U.S. sales of software, hardware and accessories reaching $18.9 billion in 2007, an almost 40 percent growth over 2006. The Nintendo DS, a handheld broadband gaming device, was the top-selling gaming device in 2007 with 8.5 million units sold.

Could this statement be pushback from an infrastructure that can’t support gaming and is trying to undermine not only a competitor, but also an entire platform of innovation that millions of Americans take advantage of on a daily basis?

The rise of various, multi-tasking devices that can provide broadband access and other services has various industry leaders looking for ways to best position themselves as the market begins to take a more concrete shape. The FCC’s net neutrality principles as they relate to devices and competition (and how it eventually chooses to enforce them) will play a major role in that process.

Further reading:

• Part one
• Part two
• Part four

Tags: 3G, Apple, AT&T, Blu-Ray, broadband, Broadband Expansion, Brookings Institution, competition, Congress, digital, economy, FCC, Federal Communications Commission, Google, Harvard Business School, infrastructure, innovation, Internet, Internet radio, iPod, Julius Genachowski, Microsoft, Net Neutrality, Netflix, network, Nintendo DS, security system, Sling Media, Slingbox, Verizon, video games, Wi-Fi, ZuneHD
Posted in Digital news, broadband, national broadband plan | No Comments »

Seen and unseen possibilities: Broadband means economic growth

Thursday, October 8th, 2009

By Doug Adams, Knight Center of Digital Excellence

Our nation’s broadband economic stimulus plan – part of the American Recovery & Reinvestment Act – is placing a bet that our economy will improve with the expansion of high-speed Internet.

Of course, there are the jobs created just through basic construction, such as the building of broadband networks including fiber and towers. This is no different from jobs created through construction of a building. But if a region builds an office building with no use – with hardly any potential tenants – the economic impact will be short-lived and limited to the building project itself.

So what will we do with all of this broadband once we have it? The promise of broadband is much more significant than opportunities a new office park might provide. Faster and more pervasive Internet service provides a platform for innovation, research and development for all citizens – bringing with it new products, services and most importantly, revenue streams.

What kinds of products and services? Well without broadband, there would have been no impetus for the iPod, Kindle and digital cameras – and no explosive growth in the electronics market. Without broadband, there would be no way to communicate with your doctor over Internet-enabled video conferencing, potentially leaving health care costs to skyrocket even more than they already have. And without broadband, there would be no way to watch your favorite shows from anywhere on your laptop or smart phone – and along with that, there would be no growth in online advertising revenues.

To understand the economic benefit of massive broadband expansion, you need to appreciate the benefits known and unknown, seen and unseen. Early in the decade, as broadband became more common, there was no way to predict the economic impact each development would have. We wanted faster access to Web pages. The iPod and Kindle weren’t even ideas yet.

Beyond platitudes or the hypothetical, what proof do we have that broadband actually has a significant impact on our economy?

In a 2006 study funded by the U.S. Department of Commerce, researchers from the Massachusetts Institute of Technology and Carnegie Mellon University concluded that broadband access “does enhance economic growth and performance, and that the assumed economic impacts are real and measurable.” Looking at a cross-section of communities across the nation, the study found that between 1998 and 2002, communities that had mass-market broadband experienced more rapid growth in employment and in the number of businesses, especially in technology-intensive sectors, compared to communities without broadband.

Another study titled, “Broadband and Economic Development: A Municipal Case Study from Florida,” by the consulting firm Applied Economic Studies, found that as a result of municipal investment in broadband networks in the early half of this decade, Lake County, Fla., experienced roughly 100 percent greater growth in economic activity than other comparable counties in Florida by a combination of indicators.

And finally, earlier this summer a report from the World Bank Group found developing countries saw an increase in economic growth of 1.3 percentage points for every 10 percentage-point increase in broadband.

Beyond the economic benefits derived from building a platform for innovation, broadband impacts productivity – making us more effective, freeing up our creative energies and allowing us to focus on the next big idea. Broadband shrinks our world and enables telecommuting for collaborative projects across the country or across the globe, making tomorrow’s iPod or Kindle a reality faster – and with it, infusing capital into our markets.

So unlike the construction of an empty building, one we hope to fill with tenants, the investment in broadband construction is sure to fill our nation with hope and change, in the form of innovation and opportunities, as we were promised last November.

Also read “It’s ‘patent-ly’ obvious: U.S. needs better broadband.”

Doug Adams oversees public information efforts for the Knight Center of Digital Excellence based in Akron, Ohio. The center is operated by Cleveland-based technology nonprofit OneCommunity, in partnership with The John S. and James L. Knight Foundation, and is dedicated to creating connected communities through strategies that utilize information technologies to drive civic progress and economic development. To learn more about the Knight Center, go to www.knightcenter.org or e-mail info@knightcenter.org.

Tags: American Recovery & Reinvestment Act 2009, broadband, Broadband Expansion, Carnegie Mellon University, community, digital, digital camera, Doug Adams, economy, education, Florida, high-speed, infrastructure, innovation, Internet, iPod, Kindle, Knight Center of Digital Excellence, Lake County, Massachusetts Institute of Technology, MIT, network, smart phone, stimulus, stimulus watch, U.S. Department of Commerce, World Bank Group
Posted in ARRA, Knight Center of Digital Excellence, Opinion, Stimulus Package, Uncategorized | No Comments »

U.S. Broadband Coalition releases report on national broadband strategy

Thursday, September 24th, 2009

After more than 18 months of discussion and debate, the U.S. Broadband Coalition released its report on a national broadband strategy at a meeting at the Federal Communications Commission (FCC) Sept. 24.

Led by President Jim Baller, who has served as a contributor to the Knight Center of Digital Excellence blog and e-newsletter, the nonprofit coalition includes large and small communications providers, technology companies, manufacturers, labor unions, educational institutions, utilities, consumer groups, public interest organizations, units of state and local government, and other stakeholders committed to our broadband future. (For a more detailed history of the coalition, read Baller’s guest viewpoint “The birth of a broadband coalition.”)

The 49-page report includes sections on opportunities that universal, affordable broadband connectivity could create; federal policy options designed to stimulate broadband investment, adoption, use, availability, progress assessments and accountability; and a general set of overall plan goals, which include:

• Every American home, business and public and private institution should have access to affordable high-speed broadband connections to the Internet.

• Access to the Internet should, to the maximum feasible extent, be open to all users, service providers, content providers and application providers.

• Network operators must have the right to manage their networks responsibly, pursuant to clear and workable guidelines and standards.

• The Internet and broadband marketplace should be as competitive as reasonably possible.

• U.S. broadband networks should provide Americans with the network performance, capacity and connections they need to compete successfully in the global marketplace.

In addition, there are sections detailing more specific narrative goals, timetables for where the coalition believes the U.S. should be in 2015 and 2020 in terms of speed and availability, and how topics such as open access, network management and competition should be handled.

According to Baller, very few groups were calling for a national broadband strategy at the time his began this effort in early 2008. The report, which also includes a complete listing of all coalition members, shows how important the discussion has become and how many have come to the table to be a part of it. With the FCC tasked to prepare a national broadband plan by Feb. 17, the coalition’s work could play a major part in how that document is formed.

However, the coalition isn’t finished yet. A final, more thorough report is scheduled for a Nov. 1 release.

Tags: Baller Herbst Law Group, broadband, Broadband Adoption and Use, Broadband Expansion, digital, economy, FCC, Federal Communications Commission, infrastructure, innovation, ISPs, Jim Baller, Knight Center of Digital Excellence, national broadband plan, open Internet, open network, U.S. Broadband Coalition
Posted in broadband, national broadband plan | No Comments »

Illinois unveils new public/private broadband partnership

Thursday, September 24th, 2009

Illinois Governor Pat Quinn’s vision for broadband Internet is simple: He wants to see world-class networks in every community.

That vision is moving closer to reality with the launch of the state’s pioneering public/private partnership between state and local governments, Norlight Telecommunications, Motorola and Royell Communications to bring high-speed, affordable broadband Internet service to rural Macoupin and Montgomery counties. Norlight will supply the infrastructure, Motorola the equipment and Royell the retail service. Wholesale service to existing Internet providers will also be available. Service is expected to be available in 2010.

Quinn said the pilot partnership, part of the Vince Demuzio Broadband Initiative, would ensure high-speed broadband Internet is offered in the two counties – even though they lack a large concentration of customers. The idea is that affordable broadband service will allow Macoupin and Montgomery counties to attract new kinds of capital to the region and stimulate economic development.

“The future of Illinois depends on our ability to use the latest in technology,” Quinn said during a recent speech announcing the partnership, “and I am proud to say the people of Macoupin and Montgomery counties will not be left offline. Everybody in, nobody left out – that’s my philosophy.”

As chairman of the Illinois Broadband Deployment Council, Quinn is hoping the Vince Demuzio Broadband Initiative project partnership represents the first of many more to come, especially as the state has been very active in planning for a broadband future. For example, the “Illinois Jobs NOW!” public works program includes $50 million for broadband deployment, while the state government has committed an additional $40 million to help fund 16 other broadband-based projects. (According to broadband.Illinois.gov, the $40 million in state-committed funding is conditioned on how much American Recovery & Reinvestment Act first-round broadband stimulus funding is obtained.)

At the Knight Center of Digital Excellence, we encourage our communities to seek new and innovative ways to ensure broadband Internet is provided to all citizens and utilized properly to maximize its benefits. Public/private partnerships are often the cornerstone to a successful community broadband initiative.

Tags: American Recovery & Reinvestment Act 2009, broadband, Broadband Expansion, Broadband Initiatives Program, Broadband Technology Opportunities Program, community, digital, digital divide, economy, high-speed, Illinois, Illinois Broadband Deployment Council, Illinois Jobs NOW!, infrastructure, innovation, Internet, Knight Center of Digital Excellence, Macoupin County, Montgomery County, Motorola, network, Norlight Telecommunications, ommunity broadband initiative, Pat Quinn, Public/private partnerships, Royell Communications, rural communities, stimulus, underserved, Vince Demuzio Broadband Initiative
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