Michael curri

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FTTH Conference Europe 2012
Munich, 14 Feb 2012

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Michael curri

  1. 1. Beyond Step One…Driving Economic Development through Meaningful Use of Broadband © Strategic Networks Group, Inc. 2012 FFTH Council Europe Conference Munich, Germany March 15, 2012
  2. 2. We are the “Broadband economists”WE ARE a global leader in broadband planning for socio-economic developmentWE PROVIDE data and insights to increasebroadband utilization and impactsWE DELIVER strategies for economic developmentand community transformation through broadbandSome of our clients: © Strategic Networks Group, Inc. 2012 2
  3. 3. The economic case for broadbandOperators Revenues from client subscriptions - Investment and maintenance costs = PROFIT Local Economy Increased productivity and competitiveness, increased revenues, new jobs, better quality of life, etc… - Investment, maintenance, support © Strategic Networks Group, Inc. 2012 “Off- = BENEFITS FOR THE COMMUNITY balance- sheet” 3
  4. 4. Broadband Creates Jobs Broadband is responsible for 19.6% of all new jobs35.0% 30.0%30.0% 22.9% 22.4% Percent of New Jobs25.0% 19,6% Related to Internet20.0% By Size of Employer Group 13.1%15.0%10.0%5.0% © Strategic Networks Group, Inc. 20120.0% 0-19 20-99 100-449 500+ Total Employees 4 n = 1,721
  5. 5. Broadband and Communities Broadband retains and attracts population and businesses38% of households said they 32% of households have a home-would definitely, or likely, based business, with 14%relocate if broadband was not planning to start one in theavailable coming year72% of home-based businesses 55% of business and organizationssay broadband was essential for said broadband is essential for © Strategic Networks Group, Inc. 2012their business remaining in current location 5
  6. 6. Better Broadband = Higher Productivity Internet benefits vary by speed and quality of connection80.0%60.0% Fiber40.0% Cable DSL Dial-up20.0% © Strategic Networks Group, Inc. 20120.0% Enabling the growth Improving Cost management Enabling product or of your organization productivity service innovation or business 6 Sample: Fiber 737; Cable 1,257; DSL 1,892; Dial-up 102
  7. 7. ROI from Broadband NetworksSNG projects have revealed common return on investment (ROI) multipliers from broadband investments Economic ROI from Public Investments in BroadbandContribution to GDP 10 x the initial public investmentNumber of Jobs created and saved VariableFiscal revenues increase 3 to 4 x the initial public investment © Strategic Networks Group, Inc. 2012Average multipliers identified from economic impact studies conducted by SNG. 7
  8. 8. DRIVING UTILIZATION 8© Strategic Networks Group, Inc. 2012
  9. 9. Increased Utilization Enables Revenue Growth Contribution of Internet to Revenues / Level of Utilization (Businesses with 1 - 99 employees) 45% 39.6% % of Revenues Attributed by Internet 40% 35% 30% 28.0% 25% Average 20% DEi is 6.46 17.4% 15% 10% 8.8% 5% 3.3% 1.4% 2.9% 0% © Strategic Networks Group, Inc. 2012 1 to 4 4 up to 5 5 up to 6 6 up to 7 7 up to 8 8 up to 9 9 up to 10 % of Revenue Attributed by Internet Level of Broadband Utilization on a scale of 1 to 10Businesses underutilizing the Internet miss significant revenue opportunities 9 n = 687
  10. 10. How SNG Measures UtilizationWe uncover Internet use at a micro-leveland benchmark against peers 17 e-solutions1 by organizations 30 e-solutions1 by householdsUtilization data collected2 by SNG directlyfrom 13,000 businesses / organizationsand 5,500 households (normative database).Results shown use SNG’s Digital Economy index (DEi), a composite scorebetween 1 and 10 to reflect level of Internet utilization. Highest 2 3 Ranking process © Strategic Networks Group, Inc. 2012 4 by DEi score 5 6 Lowest1. Internet-enabled applications and processes; 2. Between 2008-2011 10 Insufficient Data
  11. 11. The Adoption Process for e-Solutions Level of Utilization by DEi Score100%90%80%70% Fast / Early Adoption60%50%40%30% Slow / Late Adoption20%10% 0% n = 4,533 © Strategic Networks Group, Inc. 2012 Fast / Early Adoption Slow / Late Adoption Access government information Research by staff Teleworking Deliver services and content Electronic document transfer Website for organization Selling goods or services Social networking Accessing collaborative tools Rich media or service creation © Strategic Networks Group, Inc. 2012
  12. 12. The Digital Divide Impacts Household Earning Power Relationship Between DEi Scores and Frequency of Use 7.50 100.0% 90.0% 7.00 80.0% 70.0% 6.50 60.0% 50.0% 6.00 40.0% 30.0% 5.50 20.0% 10.0% 5.00 0.0% © Strategic Networks Group, Inc. 2012 n = 4,638Biggest benefits! Average DEi Score Percentage of Households (%) 12
  13. 13. Benefits of Driving Utilization For an individual business or organization, increasing utilization by 10% means: Increasing revenues by 24% Decreasing costs by 7% © Strategic Networks Group, Inc. 2012Average multipliers identified by SNG from over 12,000 data records collected in 2009-10. 13
  14. 14. The Elements of Success TO ENSUREEconomic Growth and quality of life from broadband YOU NEED Reliable, affordable BB Responsive Customer Service Meaningful utilization © Strategic Networks Group, Inc. 2012 Local ownership to drive economic development 14
  15. 15. The North Carolina experienceContext Client : e-North Carolina Authority Need: State-wide broadband planningIn 2010 Micro-level data gathering of broadband connectivity and utilization from businesses / organizations and households. Stakeholder engagement and building local planning capacity focusing on bridging gaps in regions.In 2011 Regional Analysis, Strategies and e-Profiles for the 7 regions of the State.In 2012 © Strategic Networks Group, Inc. 2012 Regional planning in three economic development regions. Workshops to mobilize stakeholders and maximize local benefits. Development of customized resources for individual businesses and targeted sectors. 15
  16. 16. Thank-you Michael Curri, CEO Strategic Networks Group, Inc. Europe + 33.618176456 North America + 1.613.277.2588 mcurri@sngroup.comLet’s connect ! © Strategic Networks Group, Inc. 2012 www.sngroup.com 16 16
  17. 17. We Support Your ObjectivesTo propel innovation and economic benefits,SNG helps regions uncover the dynamicsof Internet / broadband utilizationin the following areas: Impacts (benefits, revenues, job creation) Who is leading and lagging in adoption of Internet-enabled applications and processes (e-solutions)? In what areas do differences in utilization occur? How do people and organizations acquire Internet skills? © Strategic Networks Group, Inc. 2012 Utilization = Competitiveness / Growth = Economic Benefit 17
  18. 18. Key Steps for Economic Development through BroadbandHelp your businesses and organizationsbe more productive and competitive Benchmark against peers and industry sector leaders, within and outside your region, as an integral part of the process to improve local productivity and competitiveness Understand where investment will have the greatest impact by identifying needs, gaps, and demand for broadband Develop strategies to drive innovation, promote awareness and utilization, and leverage assets to maximize socio-economic benefits locally Mobilize regional stakeholders to leverage broadband, build sustainability, and maximize local benefits © Strategic Networks Group, Inc. 2012 Track outcomes, reveal impacts, adjust plans, and identify where investment is needed to further evolve into a 21st century economy 18

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