Bringing Broadband To Unserved Areas

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IIA Broadband Symposium June 2006

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Bringing Broadband To Unserved Areas

  1. 1. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Wednesday, June 17, 2009
  2. 2. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Bringing Broadband to the Unserved: An Economic Framework Scott Wallsten Technology Policy Institute
  3. 3. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Market failure? yes no What is it? Other objectives? (equity, merit goods) <ul><li>Clear, measurable goals. </li></ul><ul><li>Cost-effective plan. </li></ul><ul><li>Evaluate rigorously. </li></ul>yes stop no information externality Tailor policy to problem Expect benefits > costs? no yes
  4. 4. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Market Working Well Overall…
  5. 5. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus But Market Not Working for All People in All Places…
  6. 6. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Gaps reflect a market failure only if total benefits > total costs of connecting ‘have-nots’. <ul><li>Possible market failures: </li></ul><ul><li>Positive Externalities: everyone benefits with more people online </li></ul><ul><li>Information: people don’t know what they’re missing </li></ul>
  7. 7. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Benefit to household from subscribing = PB (private benefit) </li></ul><ul><li>Positive externality = E </li></ul><ul><li>Cost to connect = C </li></ul><ul><li>Assume C > PB. </li></ul><ul><li>If C <= PB + E then nonsubscriber does reflect a market failure. </li></ul><ul><li>If C > PB + E then nonsubscriber does not reflect a market failure. </li></ul><ul><li>Existence of nonsubscribers does not necessarily indicate a market failure. </li></ul><ul><li>Difficult to know whether nonsubscriber reflects market failure or not. </li></ul>Do Nonsubscribers Reflect a Market Failure?
  8. 8. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Economic Benefits of Residential Broadband In 2006 broadband created about $10b in new GDP. About $6b of that was new consumer surplus. Greenstein, Shane M. and Ryan McDevitt. February, 2009. &quot;The Broadband Bonus: Accounting for Broadband Internet's Impact on U.S. GDP.&quot; NBER Working Paper # 14758.
  9. 9. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Does New Broadband Investment Create Jobs? New infrastructure: Construction and related jobs. (as long labor and capital do not move from other projects). Presence of new broadband: Probably not too many.
  10. 10. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus No major availability market failure. No huge economic effects from connecting remainder No longer the issue <ul><li>Universal broadband IS the policy objective. </li></ul><ul><li>Question is how to achieve it in most cost-effective manner. </li></ul>
  11. 11. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Why Do Non-Subscribers Not Subscribe? Source: Pew (2009)
  12. 12. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Biggest bang for buck in terms of improvements to consumer welfare and broadband penetration: Helping low-income people connect (eg, One Economy model). + ≈
  13. 13. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Policies must have clearly defined, measurable goals <ul><li>Broadband stimulus does not. </li></ul><ul><li>Is objective to maximize stimulus or broadband improvement? </li></ul><ul><li>71 Economists proposed competitive procurement (reverse auctions). </li></ul><ul><li>Forces government to clarify goals and make decisions rationally. </li></ul><ul><li>Can lead to lowest-cost subsidy and thus have biggest effect. </li></ul>
  14. 14. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Build evaluation in from the beginning <ul><li>Ex post evaluation of grant recipients and funded projects is insufficient. </li></ul><ul><ul><li>(Selection bias, difficult to determine if project was inframarginal) </li></ul></ul><ul><li>Success stories do not constitute evaluation and do not prove the grant was useful. </li></ul><ul><li>Project failures do not prove that program failed. Government is supposed to take risks. If no project fails then probably being too conservative. </li></ul>
  15. 15. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Better Data <ul><li>Surveys, not (or at least in addition to) mapping!! </li></ul><ul><li>Advantages: </li></ul><ul><li>Cheap because many government agencies conduct surveys already. </li></ul><ul><ul><li>US Census American Community Survey </li></ul></ul><ul><ul><li>Bureau of Labor Statistics Consumer Expenditure Survey </li></ul></ul><ul><ul><li>Bureau of Economic Analysis business surveys </li></ul></ul><ul><li>Consistently updated. </li></ul><ul><li>Easily combined with socioeconomic and geographic data. </li></ul><ul><li>Do not rely on cooperation from providers. </li></ul>
  16. 16. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Conclusions: </li></ul><ul><li>Broadband is not really economic stimulus in policy sense. </li></ul><ul><li>Universal broadband IS policy goal for other reasons. </li></ul><ul><li>Policies designed to help low-income people connect are likely to be the most cost-effective first step. </li></ul><ul><li>Define clear, measurable goals and get there in the lowest-cost way. </li></ul><ul><li>Think carefully about evaluation. </li></ul><ul><li>Coordinate government agencies to gather valuable data on broadband using existing surveys. </li></ul>
  17. 17. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Bringing Broadband to the Unserved: An Economic Framework Scott Wallsten Technology Policy Institute
  18. 18. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Wednesday, June 17, 2009
  19. 19. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus On the Road to Wired Health 3.0 XTreme Collaboration Hub Carl W. Taylor Center for Strategic Health Innovation
  20. 20. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Fragmented silos of paper driven care </li></ul><ul><li>Sometimes our care in neither safe nor effective </li></ul><ul><li>Rarely is our care cost conscious </li></ul><ul><li>Almost always we have a herd driven one size fits most approach </li></ul><ul><li>We are a supply driving demand industry searching for consumers </li></ul>Our Common Present
  21. 21. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Our Uncommon Future <ul><li>My EHR becomes a Me-HR </li></ul><ul><li>My data is a visual image that I can understand </li></ul><ul><li>My physicians provide care designed for me based on robust bioinformatics </li></ul><ul><li>I am able to report my own health status through ubiquitous biosensors </li></ul><ul><li>My medical home is my home </li></ul>
  22. 22. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus With a Path Ahead <ul><li>If we continue to understand our emergent coherence </li></ul><ul><li>If we migrate to a fully integrated m health and e-health 3.0 platform </li></ul><ul><li>If our sensor and imaging technology advances </li></ul><ul><li>If our high performance computing supports new algorithms for social, clinical and geographical interdependencies </li></ul>
  23. 23. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>My health care system can reach me anywhere anytime and I can reach back </li></ul>But Only If
  24. 24. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus RMEDE
  25. 25. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Ed Utilization
  26. 26. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Diagnosis and Procedures
  27. 27. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Home Monitoring
  28. 28. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Threshold Violations
  29. 29. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Quality to the Desktop
  30. 30. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Cost Impact
  31. 31. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Patients in Need
  32. 32. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Ready for Me Health
  33. 33. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>We need to recognize the same health fragility in our rural communities today is present during disasters </li></ul><ul><li>And that H1N1 or something like it will produce even more dramatic stress on unconnected communities </li></ul>And While on the Road
  34. 34. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>AIMS Our Statewide Situational Awareness Tool. </li></ul>The Current State of Affairs
  35. 35. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus AIMS creates reliance on public health based upon user perception that by inputting needs those can and will be met, without knowing whether the ESF structure can meet those needs. The Current State of Affairs
  36. 36. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>Many of the resources are hard coded-SNS stockpile, ventilators and may not match the real needs of rural patients or the healthcare providers. </li></ul><ul><li>ESF handoffs are no assurance of a fulfillment of a request particularly in rural communities </li></ul><ul><li>Even relatively small events can be the tipping point to push rural health systems to being overwhelmed </li></ul>Barriers to Being Transactional
  37. 37. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus <ul><li>We need to recognize that there is a gap between that which we can do and that which needs to be done </li></ul><ul><li>We need to fill in that gap by creating greater capability in our rural health care providers and giving them the tools to succeed </li></ul><ul><li>We can do that by moving to a more robust communication structure including virtual response </li></ul>Which Means
  38. 38. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus An always on virtual system of response and care when IT happens With the ability to allow anyone, anywhere to help Assuming there is bandwidth to connect the dots The Path to Emergent Coherence
  39. 39. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Any situational awareness information from any source I Track
  40. 40. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus To use discussions for specific information sharing realizing rural communities may not be the first site to experience the event. Forums
  41. 41. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus The ability to ask for anything from anyone I Need
  42. 42. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus The ability to find the right resource and to close the transaction I Can Help
  43. 43. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Mobile Imaging Technology
  44. 44. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Crowd sourcing as an effective surveillance tool I Saw
  45. 45. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Extensible inclusion of emerging tools with the ability to connect any cell phone to any laptop anywhere in the world. Ushahidi
  46. 46. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Connecting patients with their records no matter where treated and using data to prioritize care. RMEDE
  47. 47. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus An instant ability to suggest workarounds when your plan fails I Have an Idea
  48. 48. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus The need for subject matter experts, patient centric health information and tools to manage today and see tomorrow. I Know
  49. 49. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus From Disconnected In Health and Disasters
  50. 50. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus To Connected Anywhere Always
  51. 51. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Questions
  52. 52. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus On the Road to Wired Health 3.0 XTreme Collaboration Hub Carl W. Taylor Center for Strategic Health Innovation
  53. 53. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Wednesday, June 17, 2009
  54. 54. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Ron Packard K12, Inc.
  55. 55. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Hunter School Case Study After just one full year of using K12, the Hunter School achieved impressive gains on the Pennsylvania PSSA state math exams (see chart). William H. Hunter School - School District of Philadelphia <ul><ul><li>About Hunter School </li></ul></ul><ul><ul><li>Located in Norris Square neighborhood </li></ul></ul><ul><ul><li>600 students in grades K-8 </li></ul></ul><ul><ul><li>95% qualify for free/reduced lunches </li></ul></ul><ul><ul><li>25% study English as a Second Language (ESL) </li></ul></ul><ul><ul><li>Numerous bilingual classrooms </li></ul></ul>Results In 2004, K12 became the sole provider of math, science, art, and history in a traditional brick and mortar classroom. K12 provided a full-time trainer for support. K12 Scope of Work K12 Involved K12 Not Involved
  56. 56. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Draper Elementary Case Study After just 3 months of using K12 Science, Draper Elementary achieved impressive results on the DC CAS 5 th grade Science test. Draper Elementary School – District of Columbia Public Schools <ul><ul><li>About Draper Elementary School </li></ul></ul><ul><ul><li>Located in the Anacostia neighborhood of Southeast DC </li></ul></ul><ul><ul><li>Approximately 125 students in grades PK-6 </li></ul></ul><ul><ul><li>100% qualify for free/reduced lunches </li></ul></ul><ul><ul><li>20% of the students tested receive Special Education services </li></ul></ul>Results In February 2008, K12 became the sole provider of science. In September 2008 K12 Math was implemented as a supplement to their existing Math curriculum. K12 provided a trainer for on-site support. K12 Scope of Work
  57. 57. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Fuller Normal Advanced Technology Charter School Case Study After just two years of using the K12 curriculum, FNATCS made the highest gains in Math of any school in SC. Fuller Normal Advanced Technology Charter School- Greenville, SC <ul><ul><li>About FNATCS </li></ul></ul><ul><ul><li>120 students in grades K-6 </li></ul></ul><ul><ul><li>98% qualify for free/reduced lunches </li></ul></ul><ul><ul><li>10% qualify for Special Education services </li></ul></ul><ul><ul><li>Won the 2007 InnoVision Technology Award for Innovation in Education for the state </li></ul></ul>Results In 2006, the first year of the charter, the FNATCS Board of Directors contracted with K12 for their math, science, history and art curriculum. K12 provided a full-time trainer for daily on-site support. K12 Scope of Work
  58. 58. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus North Panola School District Case Study North Panola School District, Panola County, MS <ul><ul><li>About the North Panola School District </li></ul></ul><ul><ul><li>Located in northern Mississippi </li></ul></ul><ul><ul><li>Three elementary schools; one junior high school </li></ul></ul><ul><ul><li>Approximately 1200 students in grades K-8 </li></ul></ul><ul><ul><li>95+% qualify for free/reduced lunches </li></ul></ul><ul><ul><li>All schools are Title 1 </li></ul></ul><ul><li>The Mississippi Department of Education, under the guidance of State Superintendent Bounds, engaged K12 to help improve the daily instruction of math and science in the North Panola School District, which was recently taken over by the state. In August 2008, K12 became the sole provider of Math and Science for the three elementary schools and one junior high school in the district. As a result of this partnership, K12 provides: </li></ul><ul><li>Math and Science curriculum materials </li></ul><ul><li>Online School access for teachers, students and parents </li></ul><ul><li>A trainer at each site for daily on-site support and professional development </li></ul><ul><li>Promethean Boards for every classroom using the program </li></ul><ul><li>Scantron Performance Series for Math and Science </li></ul>K12 Scope of Work Green Hill Elementary Crenshaw Elementary Como Elementary and Junior High School
  59. 59. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus Students With K12 Schools For Grades K - 4 Performance Relative to State Average Across Six States +18 +20
  60. 60. Developing a National Broadband Strategy: Deployment, Adoption and the Stimulus K12 Delivers For Its Customers 96% Parent Satisfaction with K¹² Curriculum 89% Very Satisfied Academic Performance Improves With Tenure % Proficiency Versus # of Years In K12 School

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