Adams Columbia March 7 2016
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University Wisconsin Extension Broadband and E-commerce Education Center presentation to Adams Columbia Electric Cooperative March 7 2016
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Adams Columbia March 7 2016
- 1. Cooperatives and High Speed Internet Monday, March 7,2016 Lynn Pitman, UW Center for Cooperatives Mary Kluz, UW-Extension Broadband and E-Commerce Education Center
- 2. Mary Kluz Community Development Outreach mary.kluz@uwex.edu 608-890-4254 Lynn Pitman Outreach Specialist pitman@wisc.edu 608-261-1355
- 3. Cooperatives changing lives 1946: Marathon-Portage Electric Cooperative Board
- 4. Changing lives for the better • Disparity in charges between urban and rural electric customers • Overcoming neighbors’ attitudes: “it takes millionaires to do it” • “cream skimming” and “spite lines” • Minimum three farms per mile of line • Demonstration of “electric refrigeration” • World War II – suspension of operations
- 6. Broadband is • “Always on” • High speed internet access • Capable of carrying multiple devices simultaneously
- 7. Bits, Bytes, and Bandwidth • Kbps, Mbps, Gbps = bits per second • Kilobits, megabits, or gigabits per second • Measure of data transfer rates • 1 mbps is ~ 1000 times faster than 1 kbps • KB, MB, GB = Kilobytes, Megabytes, Gigabytes • Measurement of file size (i.e. movie ~ 6000MB) • Download and Streaming
- 8. Download Speed Comparison Dial-Up (56 Kbps): 1 day, 10 hrs, 44 min. T1/DSL (1.54 Mbps): 1 hour, 15 min. Cable (60 Mbps): 1 minute, 50 seconds Fiber (1 Gbps): 7 seconds
- 9. Source: CTS technologies Data Speed Capacity/Technology
- 10. • Research in the U.S. shows… • 56% of businesses and organizations say broadband is essential for remaining in current location • 56% of households say they would definitely/likely relocate if broadband was not available • 32% of households work from home or have a home-based business The Internet has become the highway for technology Source: SNG Digital Economy Database n = 19,951 businesses and 9,318 households
- 12. Interaction between factors affecting broadband development Internet service provider activity Availability of infrastructure Consumer demand / adoption Consumer confidence Affordability Consumer savvy Regulations Return on Investment
- 13. How are people effecting systemic change?
- 14. Developing broadband: the players • Federal level: – Federal Communication Commission (FCC) – National Telecommunications and Information Administration (NTIA) • http://www.ntia.doc.gov/report/2015/broadbandusa- guide-federal-funding-broadband-projects – US Department of Agriculture (USDA), others who administer grants and loans • State level: – Public Service Commission (PSC)
- 15. PSC Resources • State Broadband Office http://www.link.wisconsin.gov/
- 16. • Local level – Internet Service Providers, often working at the state and federal level – Consumers judge it according to • Capacity (including speed) • Cost • Reliability – Government (county & municipal) Developing broadband: the players
- 17. Framework for Change 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick
- 18. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick
- 19. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Cook County was working as a Blandin Broadband Community; the cooperative sent representatives as part of the coalition • The coalition put together an ARRA grant application, which was not funded
- 20. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Surveying was done before the project to • Verify that service was needed • Gauge interest • The cooperative analyzed the business case
- 21. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Arrowhead Cooperative approached the county for a grant (funded by sales tax) to assist with construction
- 22. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Arrowhead Cooperative applied for and received ARRA funding in the second round for a lesser amount ($24 mil) • Arrowhead Cooperative developed business relationship with CTC Telephone Cooperative to handle billing and much of the customer support
- 23. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Co-op hosted “grand launch” and open houses • Co-op allowed use of broadband in their facility (job interviews, trying service on co-op computers)
- 24. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick • Arrowhead continues to work on build out • County coalition continues their work on community projects related to digital literacy, co-working space
- 25. RS FIBER Cooperative 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick
- 26. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick Renville and Sibley counties underserved Local leaders recognized critical nature of missing infrastructure Phone and cable companies not interested
- 27. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick Outreach to other communities: Joint Powers Board formed Grant for feasibility study Statistically valid survey to gauge interest Public meetings: feedback, education, building support
- 28. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick Operator identified, developed financing plan through revenue bonding Final plan did not have needed support Public meetings to present feasibility study, create support for revenue bonding Network to serve both farms and towns
- 29. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick Opt-in by 17 townships and10 cities in JPB jurisdiction JPB to make $13.7 million loan with 20-year bond issue: phased approach Co-op raising additional $32-35 million RS Fiber restructured as a 308B cooperative
- 30. 1. Increase urgency 2. Build guiding teams 3. Get the vision right 4. Communicate the vision 5. Enable action 6. Create short-term wins 7. Don’t let up 8. Make it stick Hiawatha Broadband Communications: network operations/service provider Reworked financial plan to immediately invest funds to begin generating a return Broke ground in July 2015 Phase 1: RS Fiber Air: wireless in first 6 months to 17 townships FTTH in 10 towns in 2 years
- 32. Interaction between factors affecting broadband development Internet service provider activity Availability of infrastructure Consumer demand / adoption Consumer confidence Potential co-op role? Affordability Consumer savvy Regulations Potential co-op role? Return on Investment Potential co-op role?
- 33. Preparing a platform for the future -for consideration • How does your organization’s need for infrastructure overlap with potential partners? • How do you analyze the business case? • How do you measure member benefit? – Financial: costs and savings (not just on internet service) – Quality of life: medical, education, recreation, etc • Do you have a role to play in adoption of internet technology?
- 35. Broadband & E-Commerce Education Center wibroadband@uwex.edu Twitter @WI_Broadband 608-890-4255 Lynn Pitman, Outreach Specialist, pitman@wisc.edu 608-261-1355 Mary Kluz, Community Development, mary.kluz@ces.uwex.edu 608-890-4254 Find this presentation online: http://www.slideshare.net/WI_Broadband
Editor's Notes
- MARIA
- How is it your boundaries are so interesting?
- First: some basics. 1-A definition 2-What we’re NOT covering: types of technologies except on the most shallow level and specific applications Having said that we need a little background to help us all speak the same language for an hour or so.
- let’s start on the same page.
- So why have people gotten excited about broadband? Expectations have risen. People are missing out and even those with some access, waiting an hour for a movie clip to download is not acceptable. Why is it of particular interest to you, as community leaders in economic development and community development?
- Take away: An industry comparison of the potential for different technologies providing internet service covering the disparity of availability of different types of technologies AND the potential some have to deliver much more than they are delivering today without changing the infrastructure, but rather, the technology (software and engineering) at the ends
- More on why people are getting excited and frustrated when they are excluded: Boston Consulting Group, 2012 Small and Medium sized Enterprises. Green colors indicate enterprises that were rated as HIGH-WEB use; gold colors indicate numbers for low or no web use enterprises.
- Do you find you need to work at selling the reasons broadband is important? Are you able to find data that supports the case or is broadband development now accepted best practice?
- RURAL:: Whitacre, Galardo and Strover for the National and Rural Development and Policy Center, 2013 http://www.nardep.info/Broadband_2.html Researchers from Oklahoma State, Mississippi State and the University of Texas. They looked at seven factors related to local economics, including median household income, the percentage of people in poverty, the total people employed, non-farm proprietor income, the number of firms with paid employees, the percentage of non-farm proprietors and the percentage of employees classified as “creative class.” Take Away: “If there were a lot of people without broadband available or not a lot of providers, it negatively impacts all seven economic measures,” said Whitacre.
- The point is, this technology is affecting all aspects of how we live in community. In fact, the internet and its increasing speed has created whole new industries. I think a few decades ago, no one would have imagined that something like Facebook would have any public trading value. This change in how we live in community is why people are getting engaged around broadband and concerned that people have access and know how to use it well.
- Let’s take a very incomplete and simplified view of how the system of internet access and adoption works. VERY simplified, in order to be able to have some discussion about how we can affect the system. We have collected stories…. Consumer engagement is a huge factor in creating movement in our feedback ‘wheel’. It pays to look at any of the interaction points to see where there is leverage and where we can ‘grease the wheel’.
- This is a big job! It is a complicated system. But people are motivated. We started collecting stories about what people, as communities, were doing to produce change. As we started looking at the number of ways people were becoming engaged, we saw some patterns.
- Go to broadband map for their area
- The patterns seemed to tell us: when you need to eat an elephant, do it a bite at a time. The actions that communities are taking appeared to fit into a framework we were familiar with regarding organizational change, each step one bite. John P Kotter analyzed change failures in companies and organizations over fifteen years, and he identified patterns of errors that create barriers. From these patterns he crafted a roadmap to overcome these barriers. This led to his 1996 book, Leading Change, in which he outlined an eight-step change framework for organizations. Kotter expands on these ideas in his 2014 book, Accelerate, in which he describes the advantages of a more fluid strategy network; this model applies more readily to community change. Communities must factor in that the parties who collaborate for larger, community change are not bound by the rules and structures that one finds in organizations. Leadership is often informal; authority comes in the form of knowledge sharing and relationship.
- The patterns seemed to tell us: when you need to eat an elephant, do it a bite at a time.
- The patterns seemed to tell us: when you need to eat an elephant, do it a bite at a time.
- The patterns seemed to tell us: when you need to eat an elephant, do it a bite at a time.
- The patterns seemed to tell us: when you need to eat an elephant, do it a bite at a time.
- Some of the reduction in costs came from reassessing how much fiber could be put on poles, and where on the poles.
- Broadband situation 2008
- We need to do this ourselves: local government partnerships 2010-2012 Cities/towns in Sibley and Renville Counties formed JPB Feasibility plan
- We need to do this ourselves: cooperative + local government partnership Farmers and other community members continued to support work by JPB to find financing model Project restructured as RS Fiber, a MN 308B cooperative Both patron and investor members; patrons retain board control WI version of this= Chapter 193 Phase 1: cities bond in 2015; townships will bond in 2018 Co-op is raising additional $32-35million in 2 phases through loans, loan guarantees, equity drive, grants, tax credits
- We need to do this ourselves: continuing partnerships RS Fiber: partnership with HBC HBC focuses on service to community/ people before profit: evolved out of nonprofit education initiative
- (the graphic is hyperlinked to the flipbook on our website) you can access this online, assuming you have a decent internet connection, and use the links provided in the document to learn more about the stories that you find most relevant to your situation.
- Let’s take a very incomplete and simplified view of how the system of internet access and adoption works. VERY simplified, in order to be able to have some discussion about how we can affect the system. We have collected stories…. Consumer engagement is a huge factor in creating movement in our feedback ‘wheel’. It pays to look at any of the interaction points to see where there is leverage and where we can ‘grease the wheel’.