5. What is the Return for $1 Billion+ Investment?
Broadband & E-Commerce Education Center | broadband.uwex.edu
6. Estimated Annual Cost of Digital Exclusion
(-) $55 Billion U.S.
(-) $1 Billion Wisconsin
http://www.econsult.com/articles/030810_costofexclusion.pdf
Broadband & E-Commerce Education Center | broadband.uwex.edu
7. A little fuzzy math
Broadband & E-Commerce Education Center | broadband.uwex.edu
$55.2 billion/316,128,839 = $175 per citizen
$175 x 5,742,713 (WI Pop)= > $1 billion
8. “If it were a national economy,
the Internet economy would rank
in the world’s top five, behind
only the U.S. China, Japan, and
India and ahead of Germany”
Broadband & E-Commerce Education Center | broadband.uwex.edu
9. What is it worth to consumers?
Source: http://www.bcg.com/documents/file100409.pdfBroadband & E-Commerce Education Center | broadband.uwex.edu
10. IDEC Survey 2012
Fewer than 10% believe 4 Mbps is
sufficient for advancing their local
economies.
Broadband & E-Commerce Education Center | broadband.uwex.edu
Economic Development
Marketing & Attraction
12. High Speed Bits 3.20.14
Broadband & E-Commerce Education Center
Broadband.uwex.edu | Twitter @WI_Broadband
Presenter: Andy Lewis
Broadband and Economic Development Specialist
Andy.Lewis@ces.uwex.edu
608-890-4254
Broadband & E-Commerce Education Center | broadband.uwex.edu
Editor's Notes
How Does broadband investment impact local economies:- First, there is the direct investment in deployment. When you spend money on installing and operating broadband infrastructure….income and employment are created (ARRA grant: Divide by $92,000 = 1 job year, Presidents Council of Economic Advisors)
~$1.4 billion for wired over 5 years (construction and operations)/$290 million = 4.8 year pay back (After that you would only have the annual operating expenses of ~$89 million with an annual return of $290 million.~$2.6 billion for wireless over 5 years (construction and operations)/340 million = 7.7 year pay back
2010 study
Not really new (new to me) ….2012
$2,528 per person per year./12 months = $211 per year (huh….about the average cost of a 1 Gbps connection)“In our analysis, we took into consideration the value derived from communication, content (entertainment, news, and socia media), search, commerce, and job searches,. We used a “loss aversion technique” to avoid anchoring the data to the current prices of goods and services – many of which are free – and to determine the true value that people place on them.”Loss aversion = people's tendency to strongly prefer avoiding losses to acquiring gains. Loss aversion implies that one who loses $100 will lose more satisfaction than another person will gain satisfaction from a $100 windfall.
The Reedsburg municipal utility recently announced and published their monthly rate of $274.99 per month. That is very close to the national average for the 20 communities that we have identified that have a published rates on the web. These prices range from $34.95 – $999.95 with an average of $211.55 per month.