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How Does Broadband
Contribute to Economic
Development
National Telecommunications and Information Administration
Eric Frederick, AICP, LEED AP
Vice President for Community Affairs
517-994-8024 : efrederick@connectednation.org
November 16, 2016
Context
Connected Nation, non-profit dedicated to expanding
broadband access, adoption, and use to improve quality of life
and community and economic development.
Core competencies include:
• Community Engagement and Planning
• Research & Analysis
• Policy Consultation
• Mapping/GIS
• Digital Inclusion
By the Numbers:
• 10 state-based broadband public-private partnerships, from Alaska
to Puerto Rico, impacting 876 counties
• 1,200+ unique broadband provider relationships in data collection
and processing
• Broadband availability mapping across 37% of the U.S. landmass and
27.6 million households
• 170 communities actively engaged in local technology planning
activities
Access
The physical connection to
high-speed infrastructure
Adoption
Recognizing the value of
broadband and subscribing
either at home, work, or via
public institutions
Use
Skills and applications to
leverage technology to
improve quality of life and
community/economic
development
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Effecting Change - Broadband
Planning Framework
Many communities have
experienced…
•Recession w/o recovery
•Job loss
•Attrition
•Disinvestment
•Apathy
•Overall decline
Broadband and technology
provide new means of…
•Education
•Economic activity
•Healthcare
•Government service delivery
•Workforce development
Strategic assessment, planning,
investment, and improvements
in tech…
•Access
•Adoption
•Use
•In these areas…
Which then support…
•Stabilization
•Sustainability
•Maintenance
•Metered growth
•Transformation
•Which combats and
prevents…
Lead to..
•Leadership development
•Family and youth retention
•Civic engagement
•Local human capital
development
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Connected Community
Engagement Program
Using hyperlocal data to benchmark and identify gaps: Spartanburg, SC
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Connected Community
Engagement Program
Examining relationships with business technology adoption and use in Spartanburg County, SC
60%
35%
40%
65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Businesses
w/Revenue <
$250k
Businesses
w/Revenue >
$250k
Less than 25 Mbps More than 25 Mbps
Business Revenue by
Connection Speed
42%
37%
58%
63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Not Hiring in the
Last or Next 6
Months
Hiring in the Last or
Next 6 Months
Less than 25 Mbps More than 25 Mbps
Business Recent Hiring by
Connection Speed
45%
20%
31%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Businesses With a
Website
Businesses
Without a
Website
Will Hire in Next 6 Months
Hired in Last 6 Months
Business Website Use by
Hiring Trends
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Connected Community
Engagement Program
Business Revenue and Current Use of Various
Advanced Technologies and Applications
30.2%
20.6%
31.7%
22.2%
20.6%
33.3%
41.3%
38.1%
30.2%
25.4%
41.3%
47.6%
77.8%
37.5%
39.0%
39.4%
42.5%
46.7%
48.3%
50.2%
55.6%
61.4%
62.2%
70.3%
83.4%
96.9%
0% 20% 40% 60% 80% 100%
e-Commerce
e-Supply Chain
Point-of-Sale
Teleworking
Videoconferencing
Online Cust. Experience
e-Inventory
Mobile Devices
e-Management
VoIP
Online Directories
e-HR/Finance
Admin. Email
More than $250k Less than $250k
34%
15%
59%
40%
15%
4%
10%
20%
0%
10%
20%
30%
40%
50%
60%
70%
Bus. Hiring in Last 6 Months Bus. Not Hiring in Last 6
Months
On-Site Training On-the-Job Training
Incentives for Training Does Not Support Training
Business Technology Training Policies by
Recent Hiring
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Connected Community
Engagement Program
Digital communication and interaction among businesses and residents
Several times daily
Several times weekly
Several times monthly
Less than once monthly
Less than $50,000$50,000 to $99,999 $100,000 to
149,999
$150,000 to
$249,999
$250,000 to
$499,999
$500,000 to
$999,999
$1,000,000 to
$2,000,000
More than
$2,000,000
Business Use of Social Media by Annual Revenue
MoreFrequently----LessFrequently
Facebook
Twitter Instagram
Social Media Avg.
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
50%
60%
70%
80%
90%
18-34 35-44 45-54 55-64 65-69 70+
Local Businesses
Non-Local Businesses
Residents Digitally Interacting at Least Weekly with Local and Non-Local Businesses
Connected Community
Engagement Program
Residents Stating Their Proficiency with Various Online Activities by
Age Income
Digital skills among residents that could impact economic activity
30%
40%
50%
60%
70%
80%
90%
100%
18-34 35-44 45-54 55-64 65+
E-Banking
Searching
For Jobs Online
Taking
Online
Classes
Staying Safe
Online
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
20%
30%
40%
50%
60%
70%
80%
90%
Less than
$35,000
$35,000 -
$49,999
$50,000 -
$74,999
$75,000 -
$99,999
$100,000
or more
E-Banking
Searching
For Jobs Online
Taking
Online
Classes
Staying Safe
Online
Connected Community
Engagement Program
So what? What do we do with this new, local information?
Faster connection speeds
tend to be associated with
bus. with higher revenue and
that have recently hired.
How do we get faster
connections to our
businesses?
We use it to inform a plan of action to leverage broadband and technology for the improvement of
economic activity and prosperity in the community.
Businesses that have hired
recently tend to be those
with websites.
How do we get more
businesses to have a website
or online presence?
Businesses that have
implemented advanced tech.
applications tend to have
higher revenue.
How do we help businesses
incorporate advanced tech.
into their operations and
business plans?
Businesses that have hired
recently offer greater assistance
to employees for tech-related
continuing education.
How can we support technology
training and continuing
education for local employees?
Social media use is highest
among bus. with revenues
btw. $150k and $1m.
Can social media help
smaller businesses grow
and how can we assist?
Residents tend to digitally
interact slightly more
frequently with non-local
businesses.
Is there an opportunity to
improve the online presence
of local businesses and the
awareness of such?
30% of residents aged 45 to 54
say they need to learn how to
search for jobs online.
What training opportunities do
we have or could we employ to
help improve residents’ ability
to find jobs online?
Lower income residents tend
to be less proficient with
online activities related to
the digital economy.
How can new or existing
digital training efforts better
reach low-income residents?
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
Connected Community
Engagement Program
Wright County, IA
- Agricultural community
- Focused on growing existing businesses, while
also attracting new, tech. establishments
- Want to improve the Internet and tech. skill set
among local business owners
- Economic development corporation
implementing e-commerce training courses for
businesses
Clare County, MI
- Rural, agricultural community with small towns
- Small ILEC installing gigabit internet services
- ILEC and community partnered to promote new
infrastructure to grow local businesses and
attract investment
- Have entered into PPPs in the past to accelerate
infrastructure expansion
- Hold annual business technology summit to
connect businesses with tech. providers.Harbor Springs, MI (HarborActive)
- Rural, dispersed, and often seasonal population
- Wants to improve the digital literacy of the
community and businesses
- Developed their own training program to train
groups of all types on the latest technology
including social media, tablets, website
development, etc.
- Wine and Web (most popular)
Roscommon and Newaygo Counties, MI
- Rural area with a need to expand economic
development
- Instead of focusing on attracting new businesses,
programs aimed at retaining, growing, and
sustaining those already in the community
- MichiganWorks office and local EDCs conducting
training programs to get more businesses online with
social media and websites
www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org

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How Does Broadband Contribute to Economic Development

  • 1. How Does Broadband Contribute to Economic Development National Telecommunications and Information Administration Eric Frederick, AICP, LEED AP Vice President for Community Affairs 517-994-8024 : efrederick@connectednation.org November 16, 2016
  • 2. Context Connected Nation, non-profit dedicated to expanding broadband access, adoption, and use to improve quality of life and community and economic development. Core competencies include: • Community Engagement and Planning • Research & Analysis • Policy Consultation • Mapping/GIS • Digital Inclusion By the Numbers: • 10 state-based broadband public-private partnerships, from Alaska to Puerto Rico, impacting 876 counties • 1,200+ unique broadband provider relationships in data collection and processing • Broadband availability mapping across 37% of the U.S. landmass and 27.6 million households • 170 communities actively engaged in local technology planning activities Access The physical connection to high-speed infrastructure Adoption Recognizing the value of broadband and subscribing either at home, work, or via public institutions Use Skills and applications to leverage technology to improve quality of life and community/economic development www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 3. Effecting Change - Broadband Planning Framework Many communities have experienced… •Recession w/o recovery •Job loss •Attrition •Disinvestment •Apathy •Overall decline Broadband and technology provide new means of… •Education •Economic activity •Healthcare •Government service delivery •Workforce development Strategic assessment, planning, investment, and improvements in tech… •Access •Adoption •Use •In these areas… Which then support… •Stabilization •Sustainability •Maintenance •Metered growth •Transformation •Which combats and prevents… Lead to.. •Leadership development •Family and youth retention •Civic engagement •Local human capital development www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 4. Connected Community Engagement Program Using hyperlocal data to benchmark and identify gaps: Spartanburg, SC www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 5. Connected Community Engagement Program Examining relationships with business technology adoption and use in Spartanburg County, SC 60% 35% 40% 65% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Businesses w/Revenue < $250k Businesses w/Revenue > $250k Less than 25 Mbps More than 25 Mbps Business Revenue by Connection Speed 42% 37% 58% 63% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not Hiring in the Last or Next 6 Months Hiring in the Last or Next 6 Months Less than 25 Mbps More than 25 Mbps Business Recent Hiring by Connection Speed 45% 20% 31% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% Businesses With a Website Businesses Without a Website Will Hire in Next 6 Months Hired in Last 6 Months Business Website Use by Hiring Trends www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 6. Connected Community Engagement Program Business Revenue and Current Use of Various Advanced Technologies and Applications 30.2% 20.6% 31.7% 22.2% 20.6% 33.3% 41.3% 38.1% 30.2% 25.4% 41.3% 47.6% 77.8% 37.5% 39.0% 39.4% 42.5% 46.7% 48.3% 50.2% 55.6% 61.4% 62.2% 70.3% 83.4% 96.9% 0% 20% 40% 60% 80% 100% e-Commerce e-Supply Chain Point-of-Sale Teleworking Videoconferencing Online Cust. Experience e-Inventory Mobile Devices e-Management VoIP Online Directories e-HR/Finance Admin. Email More than $250k Less than $250k 34% 15% 59% 40% 15% 4% 10% 20% 0% 10% 20% 30% 40% 50% 60% 70% Bus. Hiring in Last 6 Months Bus. Not Hiring in Last 6 Months On-Site Training On-the-Job Training Incentives for Training Does Not Support Training Business Technology Training Policies by Recent Hiring www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 7. Connected Community Engagement Program Digital communication and interaction among businesses and residents Several times daily Several times weekly Several times monthly Less than once monthly Less than $50,000$50,000 to $99,999 $100,000 to 149,999 $150,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $2,000,000 More than $2,000,000 Business Use of Social Media by Annual Revenue MoreFrequently----LessFrequently Facebook Twitter Instagram Social Media Avg. www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org 50% 60% 70% 80% 90% 18-34 35-44 45-54 55-64 65-69 70+ Local Businesses Non-Local Businesses Residents Digitally Interacting at Least Weekly with Local and Non-Local Businesses
  • 8. Connected Community Engagement Program Residents Stating Their Proficiency with Various Online Activities by Age Income Digital skills among residents that could impact economic activity 30% 40% 50% 60% 70% 80% 90% 100% 18-34 35-44 45-54 55-64 65+ E-Banking Searching For Jobs Online Taking Online Classes Staying Safe Online www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org 20% 30% 40% 50% 60% 70% 80% 90% Less than $35,000 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 or more E-Banking Searching For Jobs Online Taking Online Classes Staying Safe Online
  • 9. Connected Community Engagement Program So what? What do we do with this new, local information? Faster connection speeds tend to be associated with bus. with higher revenue and that have recently hired. How do we get faster connections to our businesses? We use it to inform a plan of action to leverage broadband and technology for the improvement of economic activity and prosperity in the community. Businesses that have hired recently tend to be those with websites. How do we get more businesses to have a website or online presence? Businesses that have implemented advanced tech. applications tend to have higher revenue. How do we help businesses incorporate advanced tech. into their operations and business plans? Businesses that have hired recently offer greater assistance to employees for tech-related continuing education. How can we support technology training and continuing education for local employees? Social media use is highest among bus. with revenues btw. $150k and $1m. Can social media help smaller businesses grow and how can we assist? Residents tend to digitally interact slightly more frequently with non-local businesses. Is there an opportunity to improve the online presence of local businesses and the awareness of such? 30% of residents aged 45 to 54 say they need to learn how to search for jobs online. What training opportunities do we have or could we employ to help improve residents’ ability to find jobs online? Lower income residents tend to be less proficient with online activities related to the digital economy. How can new or existing digital training efforts better reach low-income residents? www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org
  • 10. Connected Community Engagement Program Wright County, IA - Agricultural community - Focused on growing existing businesses, while also attracting new, tech. establishments - Want to improve the Internet and tech. skill set among local business owners - Economic development corporation implementing e-commerce training courses for businesses Clare County, MI - Rural, agricultural community with small towns - Small ILEC installing gigabit internet services - ILEC and community partnered to promote new infrastructure to grow local businesses and attract investment - Have entered into PPPs in the past to accelerate infrastructure expansion - Hold annual business technology summit to connect businesses with tech. providers.Harbor Springs, MI (HarborActive) - Rural, dispersed, and often seasonal population - Wants to improve the digital literacy of the community and businesses - Developed their own training program to train groups of all types on the latest technology including social media, tablets, website development, etc. - Wine and Web (most popular) Roscommon and Newaygo Counties, MI - Rural area with a need to expand economic development - Instead of focusing on attracting new businesses, programs aimed at retaining, growing, and sustaining those already in the community - MichiganWorks office and local EDCs conducting training programs to get more businesses online with social media and websites www.connectmycommunity.org : www.connectednation.org : efrederick@connectednation.org