Measuring Impact of Broadband on the Community
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This document analyzes the impact of broadband access in 5 rural Minnesota communities. It examines the public and private investments made, as well as the annual economic benefits and increases in real estate values seen in each community. The methodology included analyzing existing data and conducting community interviews. Broadband access has increased over time in most communities and median incomes are higher than similar counties. Formulas are presented to calculate return on investment, with all 5 communities seeing their public investments outweighed by the annual economic benefits and real estate value increases brought by broadband. The study concludes that access and adoption are key to economic benefits, and public funding can shorten providers' return on investment timelines.
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Measuring Impact of Broadband on the Community
- 1. Measuring Impact of Broadband on the Community 2017 CASE STUDIES OF 5 RURAL MINNESOTA COMMUNITIES ANN TREACY
- 2. Research questions 1. What does a connected rural community look like? 2. What are the providers and communities doing right? 3. What is the community ROI on public investments?
- 3. Methodology • Collect and analyze existing data from 5 communities • Look at ROI formulas • Hold community meetings/interviews with key interlocutors
- 4. Beltrami/Bemidji – Hip and Happening Provider – Paul Bunyan Fiber (Gig) DSL (50/40) Community Partners Bemidji Leads and Greater Bemidji
- 5. Crow Wing/Brainerd – Work Hard, Play Hard Provider – CTC Fiber (Gig) DSL (50/1.5) Community Partners Brainerd Lakes Chamber of Commerce, Brainerd Lakes Area EDC (BLAEDC), Schools
- 6. Goodhue/Red Wing – Hotbed of Entrepreneurs Provider – HBC Fiber (Gig) Fixed Wireless (40/40) Community Partners Red Wing Ignite
- 7. Lake – Remote but Global Provider – Lake Connections Fiber (Gig) Community Partners County Commissioners, Lake County
- 8. Sibley – Stable & Determined Provider – RS Fiber (HBC) Fiber (Gig) Fixed Wireless (50/25) Community Partners RS Fiber
- 9. What do the numbers show?
- 10. Broadband Access Over Time
- 11. Beltrami – Census Stats 2016 Population is up 3.7 percent from 2010 ◦ The statewide average was 4.1 ◦ Town/Rural counties as a group have seen a decline 2015 Median Income is $44,757 ◦ Compared $40,700 for similar counties Beltrami’s Digital Divide Index Score is the second best out of the counties we are tracking
- 12. ROI Formulas • Public investment – Border to border grants, ARRA • Annual economic benefit - $1850/household x HH served • Community real estate increase – 3% increase of market (median value x HH served)
- 13. ROI Formulas 0 50000000 100000000 150000000 200000000 250000000 Beltrami Crow Wing Goodhue Lake Sibley Public Investment vs Community Benefits Public Investment Annual Economic Benefit Community Real Estate Increase
- 14. ROI Details County Public Investment Annual Econ Benefit* Real Estate Increase* Beltrami $1,432,000 $38,631700 $102,593,266 Crow Wing $15,123,450 $67,412,150 $214,662,149 Goodhue $542,262 $32,774,600 $104,825,572 Lake $83,418,170 $13,695,550 $38,547,421 Sibley $9,850,011 $8,604,350 $20,162,085 • Annual economic benefit - $1850/household x HH served • Community real estate increase – 3% increase of market (median value x HH served)
- 15. Conclusions • Two keys to economic benefit – access and adoption • The community benefits from broadband quickly; the provider’s ROI may not be as “timely” • Public funding shortens ROI for the provider • Adoption efforts increases ROI for community
- 16. Thank you! Bernadine Joselyn Blandin Foundation brjoselyn@blandinfoundation.org http://blandinfoundation.org Ann Treacy Treacy Information Services atreacy@treacyinfo.com http://treacyinfo.com
Editor's Notes
- Area of extremes Provider - Paul Bunyan Communication (Cooperative) Voted Bemidji their Best City by Minnesota Monthly Recently wooed Delta Dental (150 jobs!) Beltrami Stats Youngest population of the cohort Highest level of education Highest population of Indigenous Smallest population of White (73%) Greatest percentage in poverty Greatest growth percentage since 2012 Highest number of housing building permits, despite being third largest county What’s happening Bemidji State University Gaming Championship GigaZone Minnesota Innovation Institute Launchpad Growing Art Scene County partner role - Been meeting for 15 years to plan from the Future. Broadband was key. They still meet regularly.
- Lots of tourism, but big enough to need other industries Crow Wing Stats Largest population Greatest population density Second highest median home value Tourism location but big enough to have other industries What’s happening? Concerted focus on shifting to tech industry after closure of Potlatch Community Tech Recruiter position created Schools offering tech training Seasonal homes are becoming year-round residents Attracting people who can work anywhere Hackfest to convene techies County partner role - Held a conference of leaders in 1999. In 2001, the school took the lead to getting broadband. Joined BBC.
- Goodhue Stats Highest median income Highest median home value Closest to Twin Cities What’s happening? Red Wing Ignite Bringing “cool” events to Red Wing such as hackfest and the MN Ignite Cup Promoting innovation and entrepreneurs in schools Programs to support existing entrepreneurs County partner role - Founded in 2013 through local foundations and the City to support better broadband use. Joined BBC.
- Lake Stats Lowest population (and pop density) Largest percentage of population over 65 Smallest percentage of population under 18 Second largest land area Most remote, although proximity to Duluth What’s happening? Attracting people who can work anywhere Extending vacations Making area away from the lake attractive Creating intergenerational interaction Dealing with haves/have-nots in the school County partner role - Stimulated with ARRA funds in 2010. Founded to bring better broadband. Joined BBC to spur adoption.
- Sibley Stats Second highest median income Second lowest population Highest population of foreign born (4.6%) Lowest percentage of college degrees Smallest number of building permits What’s happening? Broadband is still new – but receiving a lot of attention for the approach Saved the newspaper and found a way to reach millennials Attracted a medical school (to open in 2018) County partner role - Started in 2015 – after 10 years of striving for broadband. Joined BBC to spur adoption.
- Our challenge was to try to quantify some of the success that we’re seeing. Like website stats – we have to balance quantitative and qualitative. AND unlike website site we need to recognize that the stat lag behind reality.
- First – it’s helpful to look at progress over time to help determine where these counties are in the process. One problem with broadband mapping is changing definitions Another problem with broadband mapping is reliability The problem with census data is that it lags behind broadband updates
- 2016 Population (46,101) is up 3.7 percent from 2010. The statewide average was 4.1 Town/Rural counties as a group have seen a decline 2015 Median Income is $44,757 Compares favorably to similar communities where median is $40,700. Beltrami’s Digital Divide Index Score is the second best out of the counties we are tracking