Understanding Broadband to Influence Business Growth (Price County WI)
1. Understanding and Using Broadband
to Influence
Business Growth and Expansion
Price County Economic Development Association
Fall Membership Meeting
September 24, 2014
2. Presenters:
Jill Hietpas
UWEX Broadband Educator
Jill.hietpas@ces.uwex.edu
Matt Kures
UWEX Center for Community and Economic Development
GIS Specialist
matthew.kures@ces.uwex.edu
Gail Huycke
UWEX Price County CNRED Educator
gail.huycke@ces.uwex.edu
3. Discussion Objectives
• Understand What Broadband Is and Who
Provides Broadband Services
• Look Back at Price County Demand Survey and
What the Data Tells Us
• Examine What Broadband Access Means for
Economic Development
• Explore Options for Moving Forward
4. What is Broadband?
• Federal Communication Commission (FCC) definition
(for residential service):
– Current: 4 Mbps Down/1 Mbps Up
– Proposed: ~10 Mbps/3 Mbps (maybe greater)
• Alternative definition:
– Connection that does not limit application (i.e. VoIP,
web-based video streaming, future innovations?)
8. Broadband Access and Technologies
in Price County
• Wired Progress and Providers
• Wireless Progress and Providers
• Fixed Wireless Progress and
Providers
10. Price County Wired Broadband
Wired Providers
CenturyTel, Inc.
Charter Communications
Frontier North, Inc.
Packerland Broadband
Price County Information Systems LLC
Price County Telephone Company
11. Wired Broadband
Neighboring Counties
Bruce Telephone Company, Inc.
Chequamegon Communications Cooperative
Choicetel LLC
Citizens Telephone Cooperative, Inc.
Frontier North, Inc.
Indianhead Telephone Company
Karban TV Systems, Inc. (KTVS)
Midway Telephone Company, LLC
Norvado
Rhinelander Telephone Company
13. Price County
Mobile Wireless Broadband
Mobile Wireless Providers
AT&T Mobility LLC
CellCom
Verizon Wireless
Surrounding Counties
T-Mobile USA, Inc.
CTC Telecom
Sprint Corporation
15. Fixed Wireless Providers
Fixed Wireless in Price
None
Surrounding Counties
AirRunner Networks, LLC
Country Wireless, LLC
SonicNet Inc.
16. So What Does All of This
Mean for Price County and
Economic Development?
17. History
Price County Economic Development
Association Priority Project
• Coordinate and promote technology transfer
through internet and/or related
telecommunications and technical abilities,
thereby expanding Website
abilities/capacities.
18. PCEDA Action Items
Gather information with broadband presentation at fall
membership meeting
Apply for a PSC grant to participate in Broadband
Demand Survey
Partner with UW-Extension to conduct Business and
Residential Demand Surveys
Meet with providers on preliminary data
19. PSC Demand Survey Data
• How PCEDC Collected
Responses (543)
• Residential Demand
Highpoints
• Business Demand
Highpoints
“Affordable and Reliable Broadband
Access”
20. Overview of Economic and Business
Development
• Rural Economy Classifications
• Economic vs. Business Development
– Impacts of Broadband
– Partnerships between chamber of Commerce, Small
Business to Understand Broadband Needs
• Price County Businesses
– Job Establishments
– Cottage-based Industries
21.
22. 16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
Percent Change in Population 2000 to 2010
By Rural-Urban Continuum Code
1 2 3 4 5 6 7 8 9
Percent Change in Population
Rural-Urban Continuum Code
United States
State of Wisconsin
Data Source: U.S. Census Bureau
25. 4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total Jobs
Total Price County Jobs by Establishment Stage – 1995 to 2012
Self-Employed (1)
Stage 1 (2-9)
Stage 2 (10-99)
Stage 3 (100-499)
Stage 4 (500+)
Data Source: National Establishment Time Series Database extracted from YourEconomy.org
26. -10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Percent Change Since 1970
Change in Wage and Salary Employment
Percent Change in Employment Since 1970
All Counties with RUCC of 9
Price County
United States
State of Wisconsin
Data Source: Bureau of Economic Analysis
27. -10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Percent Change Since 1970
Change in Population
Percent Change in Employment Since 1970
All Counties with RUCC of 9
Price County
State of Wisconsin
United States
Data Source: Bureau of Economic Analysis
28. Change in Employment by Industry - 2003 to 2013
Industry 2003 2013 Numeric Change Percent Change
All Industries 6,486 5,566 -920 -14.2%
Natural Resources & Mining 108 119 11 10.2%
Construction 188 69 -119 -63.3%
Manufacturing 2,402 2,084 -318 -13.2%
Trade and Utilities 911 698 -213 -23.4%
Transportation & Warehousing 119 124 5 4.2%
Information 63 54 -9 -14.3%
Finance & Insurance 173 161 -12 -6.9%
Real Estate & Rental & Leasing 41 30 -11 -26.8%
Professional & Technical Services 148 174 26 17.6%
Business Services 107 94 -13 -12.1%
Educational Services 424 337 -87 -20.5%
Health Care & Social Assistance 846 784 -62 -7.3%
Arts, Entertainment & Recreation 34 49 15 44.1%
Accommodation & Food Services 352 285 -67 -19.0%
Other Services 156 128 -28 -17.9%
Public Administration 415 376 -39 -9.4%
Data source: Quarterly Census of Employment and Wages
29. Price County Cottage-based Industry
at a Glance
• 2013 D& B - 727 Home-based Businesses
(59% of all D&B business establishments)
• For every storefront or commercial business
there are 1.44 home-based business (This is a
bit higher than the state 1.22)
30. Top “Cottage” Businesses in Price County
For every 1 commercial business space in the county, there are an estimated
1.44 “cottage” businesses (state level = 1.22)
NAICS Code Industry Description Number of Establishments
561990 All Other Business Support Services 167
112120 Dairy Cattle and Milk Production 25
722410 Drinking Places 19
484110 General Freight Trucking - Short Haul 13
721110 Hotels and Motels 13
111998 Miscellaneous Crop Farming 11
812112 Beauty Salons 11
236115 Single-Family Housing Construction 10
561730 Landscaping Services 10
111421 Nursery and Tree Production 9
451110 Sporting Goods Stores 9
484121 General Freight Trucking - Long Distance 9
524210 Insurance Agencies and Brokerages 9
541990 Other Professional, Scientific, and Technical Services 9
All Other Industries 404
Data Source: National Establishment Time Series Database
31. 70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Price County Share of Jobs and Share Establishments by Stage (2013)
Self-Employed
(1)
Stage 1 (2-9)
Establishments Jobs
Data Source: National Establishment Time Series Database extracted from YourEconomy.org
32. Examining Price County Sectors
and Trends in Relation to
Broadband
• Woods Industry
• Tourism Industry
• Aging Population/Health Care Industry
• Youth and Our Next Generation
36. 208 211
252
223
196
178
166
157 154 157
300
250
200
150
100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of Non-Employers
Forestry and Logging (NAICS 113)
Number of Non-Employers 2003 to 2012
Data Source: U.S. Census Bureau Non-Employer Statistics
37. Implications
• Currently many regions lack even basic cell
coverage
• Access to GIS Mapping software is critical
• Processor to Mill connections is becoming
vital
• Access shortens equipment downtime
• Safety increases with coverage
38. Tourism Industry
• Second home owners
• Restaurants
• Lodging
• Gas
• Entertainment
39.
40. Housing Units by Tenure
(2008 to 2012 Five Year Estimates)
Geography
Price
County
State of
Wisconsin
United
States
Total Housing Units 10,799 2,620,401 131,642,457
Owner Occupied Units 50.3% 59.9% 57.3%
Renter Occupied Units 13.5% 27.4% 30.2%
Vacant Units 36.2% 12.7% 12.5%
Vacant Units: Seasonal
or Recreational Use
30.0% 6.7% 3.8%
Data Source: U.S. Census Bureau, 2008-2012 American Community Survey. Based on a 90% Confidence Interval. Figures are
subject to a margin of error.
41. Second Home Study
Results: “Northwoods Wisconsin”
How much longer would you stay Sinu threv Neorythwoods of Wisconsin
each year if you had access to broadband internet?
http://www.slideshare.net/WI_Broadband/economic-impact-of-broadband-second-homes-high-speed-bits
Answer Options Response Percent Response Count
I would not stay any longer
47.1% 112
than I currently do
Up to 2 weeks 8.4% 20
2-4 weeks 13.4% 32
1-2 months 16.8% 40
3-4 months 5.9% 14
5-6 months 2.9% 7
6-12 months 5.5% 13
Answered Question 238
Northwoods Broadband and Economic Development Coalition
42. IMPLAN Results
(These numbers need to be updated)
Impact Type Employment Labor Income Output
Direct Effect 1,454 $23,528,923 $55,778,505
Indirect Effect 109 $4,294,936 $12,867,676
Induced Effect 188 $7,281,161 $22,466,186
Total Effect 1,751 $35,105,021 $91,112,368
Northwoods Broadband and Economic Development Coalition
43. Implications
• Potential to increase visitor stays
• Overall increase in economic impact to
county (groceries, gas, restaurants,
entertainment, etc.)
• Increase in second home ownership
• Increase in telecommuting
44. Aging Population/Health Care Industry
• Telemedicine
• Emergency services
• Home Care Services
• Medical Records
45.
46. Implications
• Hospital and Clinics rely heavily on
telemedicine, investing in infrastructure
• Independent Providers struggle with
affordability of speed vs needs
• Individual patients lack high speed access
from home and or adopt broadband
• Industry reimbursement standards will be
based on telemedicine
• Industry is moving more to telecommuting
47. Supporting
Youth and Our Next Generation
• Population Size
• School Enrollment, Enabling Our
Schools to Compete
• Workforce
48. 80
60
40
20
0
-20
-40
-60
-80
0 to 4 5 to 9 10 to
14
15 to
19
20 to
24
25 to
29
30 to
34
35 to
39
40 to
44
45 to
49
50 to
54
55 to
59
60 to
64
65 to
69
70 to
74
75 and
Over
Net Migration per 100 Individuals
Price County Net Migration Rates by Age
2000s
1990s
1980s
1970s
Source: Age-Specific Net Migration Estimates for US Counties, 1950-2010. Applied Population Laboratory, UW-Madison, 2013
49. 300
250
200
150
100
50
-
2010 2015 2020 2025 2030 2035 2040
Number of Residents
Projected Convergence of the Population Age 18 and Age 65
in Price County – 2010 to 2040
Age 18
Age 65
Data Source: Wisconsin Department of Administration.
50. Implications
• Quality of Life Issue
• Lack of technology prohibits
telecommuting
• Shifts in population will influence
available workforce
• Limit access to Higher or
Alternative Education
51. Next Steps
• Collect More Data (PSC Tools)
– Bandwidth Assessment Tool
– Mobile Pulse
– Broadband playbook
– Anecdotal Stories and Case Studies
• Prepare for and Explore Funding Opportunities
• Create a Technology Council—who’s in the game?
• Consider Regulations and Policies
• Include Broadband in Comprehensive Plans
• Continue Education and Outreach
53. Next Steps: Collect Data, Strategize,
Educate, Implement
Public Service Commission Tools
• Playbook for Broadband
• LinkWISCONSIN Mapping Efforts and Wisconsin
Dashboard
• Cost Model
• Broadband Assessment Tool (BAT)
• Mobile Pulse
Regulations and Policies
“Smart Growth” Comprehensive Plans
Business Growth/Decline
Education and Outreach
54. Wisconsin’s Playbook for Broadband
Progress
http://www.link.wisconsin.gov/lwi/docs/WI_Playbook.pdf
58. The BAT Survey
Areas of Assessment
• Current service – location, current speed, type of service, etc.
• User profile – concurrent users, PCs/tablets, avg hours use per user, VOIP, etc.
• Video – streaming time, minutes down/up loading, avg video use per user, etc.
• Social Media – concurrent users, time on media per user per day, etc.
• Audio – streaming time, minutes down/up loading, avg audio use per user, etc.
• Online apps and gaming – concurrent users, avg online app hours per user, etc.
• Basic web – concurrent users, number sites per user per day, email/attm qty, etc.
• Data files, smart phones/tablets – software installs/updates per month,
concurrent cloud users, megabytes backup per day per user, etc.
60. Fixed Residential Broadband Prices
(Average in the U.S.)
Average Monthly Price
$(2011 PPP*)
Rank Among OECD and
other Countries with
Developed Broadband
Markets
Average Monthly Price of a
Broadband Package
$69.75 32nd out of 38
Download speed of 1-5
Mbps
$34.93 14th out of 24
Download speed of 5-15
Mbps
$43.71 21st out of 33
Download speed of 5-15
Mbps
$56.50 26th out of 32
Source: The National Broadband Plan Goals: Where Do We Stand?
http://www.fas.org/sgp/crs/misc/R43016.pdf
61. Cost Analysis
Verizon Wireless example: $375 + $15 * 35 GB =
$900 per month for the heavy user using 85 GB per
month.
http://www.verizonwireless.com/wcms/consumer/shop/shop-data-plans/
more-everything.html
According to a 2012 OPASTCO
study, broadband users now
consume 5-20 GB data per
month on average, and heavy
users consume 70-100 GB per
month, with 10 percent of
users consuming 90% of the
bandwidth. Usage has
increased eightfold within the
last five years and is predicted
to increase threefold again by
2016.
Page 72, http://bbcmag.epubxp.com/title/13001
62. Affordability for Price?
• We don’t know…
• We Continue to Ask the Question
and Look for Research
• Based on National/International
Studies, affordability in Price could
be….
MEDIAN
INCOME
1.50%
(Year)
1.5%
(Month)
3%
(Year)
3%
(Month)
5%
(Year)
5%
(Month)
Price $42,206 $633.09 $52.7575 $1266.18 $105.515 $2110.3 $175.86
64. Strategies to Enhance Broadband
See: http://broadband.uwex.edu/wp-content/uploads/2014/05/Collected-
Broadband-Regulations-6-11-14.pdf
65. Regulations and Policies
• Develop a plan (more on the Comprehensive Plan…)
• Adopt a resolution that states the broadband priorities
for the County (Position the County for potential
funding and partnerships)
• Lease public infrastructure (towers, high rooftops,
poles, water towers, road ROW’s, etc.
• Create Public/Private Partnerships
• Inform State Legislation/funding decisions
• Facilitate conversations that connect consumers with
providers
Notas del editor
FCC Definition:
Proposed change for this year could be as high as 25 Mbps download
This last definition is the one that I have been using for more than ten years. It best describes what is needed and our needs are rapidly changing. We will come back to a brief discussion of the demand survey and broadband assessment tool that helps us determine what is needed.
With broadband, it’s not about just one technology that is available to communities; broadband comes in many different “flavors” and these different technologies together and alone to provide the broadband speeds, or bandwidth, needed to perform modern applications to….
Shttp://www.numion.com/Calculators/Time.html
o why does speed matter?
Two things to know: The Data Pipe or technology measures the speed or “bandwidth” in megabits per second. As you can see in this example with wired technologies, the larger the pipe/faster the speed, the quicker a file will download to your computer/device. File sizes (measured in Megabytes) vary pending the work you do--visiting (or downloading) a webpage is a relatively small file size; viewing or streaming a video which is a larger file size requires more bandwidth or a bigger pipe—in this example you can clearly see fiber is a bigger pipe and will download a 835 MB file in seconds versus days with a dial-up connection.
So why does this matter? As the internet and innovations evolved, so do the bandwidth needs and demand—streaming videos and large data files is commonplace for education, telemedicine, etc.
Jill:
Defy the myth: Wireless does not stand alone—it can’t take over the world and be the only solution; in other words, you can’t have wireless without a wired connection. Ya need em both!
So, How Did We get and how do we evolve so all communities are connected?
No fixed wireless providers; note the definitions
Currently there are no fixed wireless providers in Price County and therefore no broadband expansion for this technology is represented in these maps. Note: within this report, the term Fixed Wireless refers to the technology types that may include commonplace Wi-Fi wireless mesh networking techniques, or proprietary equipment designed to operate over open 900MHz, 2.4GHz, 4.9, 5.2, 5.4, 5.7, and 5.8GHz bands or licensed frequencies in the UHF or MMDS bands.
Handouts: Buisness and Residential results
PSC demand survey grants to support baseline data collection in 2013 with follow-up date as appropriate for each regional planning team’s particular needs. $90,000 in funding was available to support expenses related to collecting survey data that could inform regional planning teams’ projects and future planning to improve broadband availability and adoption throughout the state
The map categorizes unmet demand as low, moderate, high, or signifies if there were an inadequate number of survey responses within the county.
gail
a classification scheme for all U.S. counties that describe them by degree of urbanization and nearness to a metropolitan area.
People covered by unemployment and thus collect a wage
Gail
More data is being collected and interpretted so forthcoming
Need to add wireless and fixed wireless to this map (Colter working on it for Jill)
Second Home Study—Inlcude Andy’s slide
Second Home Study—Inlcude Andy’s slide
Listen to the Webinar where Russ explains this second home study—also note an updated/new study of Door county is in the works
Second Home Study—Inlcude Andy’s slide
Second Home Study—Inlcude Andy’s slide
People who enter and leave the labor force. People leave (25ish);quotes from engaging young people
Second Home Study—Inlcude Andy’s or Russ’s slides from the Second Home Study
Think of this as a planning cycle—where are you at and what are the steps needed to move forward (Price is still in stage 1…)
Utilize the action steps that can improve broadband availability and utilization throughout Wisconsin!
Results of Demand Survey Data
Mention Cost model and how stakeholders can use this data (Andy)
Access InfoGraph,
Model impact of broadband investments
Valuable to decision making on initiatives that incent deployment (i.e. PSC Grant funding)
Calculates impact of network investments
Considers three basic impacts:
Direct impact of construction & operation
Economic development impact
Broader community
Determines broadband bandwidth needs for business and residents
Note: Data in the provider portal INCLUDES demand survey data; however, questions for each survey is different so infograph and some information from the demand survey is not inlcuded here
We can talk about access and adoption, but affordability MUST be part of the equation. Average monthly price in 2011 documented within the National Broadband Goals shows…
PPP = Purchasing power parity is a currency conversion rate that converts to a common currency and equalizes the purchasing power of different currencies
Ranked from lowest to highest (#1 would be the lowest price)
With respect to mobile broadband, the FCC concluded that “particularly for smartphone plans, the
United States is one of the ten least expensive countries in terms of price per gigabyte of data.”
Two things to keep in mind…..
Broadband is unregulated so providers chose what they can/will charge and how they do so (i.e. triple play and/or individual options for internet, TV, phone); different technologies also bring about different price offerings..
Based on WASCEC and an example from a chat I had with verizon….
For example, wireless providers now cell service by data packages—”Data Caps” are a new pricing structure within the past few years, and wireless providers are not alone in offering this type of pricing model….but, is it affordable?
Usage has increased eightfold in the last 5 years is predicted to increase threefold again by 2016
A couple things to note: Data Caps keep changing as they are somewhat of a new way of charging for broadband.
Understanding affordability, access, and adoption are strageties other communities are using are
No research to even know what may be considered affordable, but we need to continue to ask the question. Internationalk research “Reaching the Third Billion” potentially the annual cost of broadband needs to drop below 3 percent of a family’s annual income as a break point for increasing utilization dramatically. The economic impact of an increase in broadband penetration obvious in all of the examples provided.
http://www3.weforum.org/docs/GITR/2012/GITR_Chapter1.6_2012.pdf
Two resources available through the Broadband & E-Commerce Center address strategies other Wisconsin Communities have done to overcome barriers to broadband access and affordability.
Know what others are doing….policies, ordinances,
Andy:
Wisconsin State Statute 66.0422: The definition for "Local government" in this statute is defined to mean a city, village, or town. No mention of Counties. There must have been an assumption that Counties had not been granted the authority to provide broadband services and yet:
When I look at 59.57, there appears to be authority that could be interpreted very broadly to include broadband. Pun intended. For example, in the description of a County Industrial Development Agency, it says, “do all things necessary to provide for the continued improvement of the industrial climate of the county”. An industrial development project is defined as meaning: ”any site, structure, facility, or undertaking comprising or being connected with or being a part of an industrial, manufacturing, commercial, retail, agribusiness, or service−related enterprise established or to be established by an industrial development agency”. I would think that this would clearly authorize the County to build fiber infrastructure for example, within an industrial park owned by the County?