PTC09: How Intelligent Communities Collaborate to Develop Successful Private/Public Partnerships and Funding Models for Broadband
Here is the description for this session. Moderator Louis Zacharilla will talk with Jay Gillette, Wes Rosenbalm, and Brad Woodside. I’m looking forward to this session.
What intelligent communities are doing to build the new “railroad.”
LZ: What is an intelligent community? A town, city or metro region that has (crisis or wisdom) come to understand the challenges, and has taken steps to create an economy capable of seizing its opportunities.
All Roads Lead to (your community here). Our lives are where our homes are.
Broadband economy: Community Opportunities. Every community has oportunities to use broadband for economic, political and socila development. Global trade opportunities, innovation becomes as important as location, resources or capital. Global community of vendors, search for education and culture, etc.
Community choice: taking advantage of broadband opportunity requires prolonged, conscious efforts to adapt: collaborative efforts between public, private and non-profoit sectors, identify challenges and development of strategies, edu and consulting, leadership from others.
Virtuous cycle: broadband access : knowledge workforce (what types of jobs are being created?) : innovation : digital inclusion (possibility to close digital divide) : marketing and advocacy (tell the story).
Indicator #1: broadband
Why governments get involved: overcome a broadband gap (market failure, prices, poor quality service), fill a broadband hold (unwired locations), or make a “broadband statement (community that “gets it”). Intervention: policy, networks for govs, public-private partnerships (and two others, but covering the latter).
Jay Gillette: Successful Intelligent Community Development: Leadership. Vision, Technology
Theory guides practice and practice corrects theory.
Topics: 1. successful economic and community development: people using tech catalysts to achieve community goals. 2. A positive negative example (Hays USA Info City Iniative), 3.Leadership is the key, 4. Develop an inspiring vision, and 5. Conclusions.
Successful economic and community development: focus on economic and community development, not just eco-devo. Thrive, not survive: not just biz as usual, three sector approach: gov, biz and civic. Succeed: no sector can go it alone, build economic foundation for community structure on top. Prosper: use tech catalysts to achieve the community’s goals; quality of life attracts knowledge workers, technology infrastructure and apps.
Hays USA Info City Initiative: early attempt at an intelligent community iniative, great project that produced small lasting change. University/rural trade center, vision of “smart city” through info technology. Good participation from IT professionals (rest of community missing). Set-back: Meetings resulted in unrelated election caused halt to project, leadership changes, Info City initiative scaled back to sharing gov IT resources (fill pot holes), gov shakeup. People need knowledge of future stakes, start at home with vision first.
Leadership is the key: significant, supported, sustained. Lessons relearned (matters at all levels). Top: anchor tenants, power elites in social networks. Lower levels: effective gov leaders, visionaries and champions, must truly lead. Leadership by 3S model: significant (power level, supported by tech & other communities, sustained over time.
Develping an inspiring vision: three key words for tech-based community advance: Develop (vision), Develop plans, and develop the vision to insprire, thrive. Not filled potholes, show the finished vision.
Conclusions then Recommendations: 1. Leadership is a social influence phenomonon. Leaders must be creative convincing, communicate well. Followers must get it, go with it, make it their own. Rec: build the community thru coalition of sectors. 2. Vision can embody our tech-based future as bright info renaissance, requiring us to be renaissance men and women, confident people, educated and competent, collaborating together. Rec: develop an inspiring vision, appropriate to your own community, in a supportable plan. 3. tgech provides a foundation for community structures and quality of life. Red; plan for evolving tech as catalyst for achieving community goals, not as end.
(His Worship) Brad Woodside: longest serving mayor of Fredricton. Partnership in builiding broadband. Wanted to move on their timeline, not industry. Canadian broadband is highly regulated. City council prioritized, perfect size to collaborate (“enovation?”) (commercials playing in background) Muni-wifi based fredEzone gave public wifi. Start up costs recovered, network costs recovered, now profitable and reduced community price point.
Why haven’t others done this? Some not willing to front costs. Our community needed this, was prepared to pay for it as 21st Century infrastructure. Was a critical service.
LZ: all industries there have benefited. One thing you see in Intelligent Community movement is these communities are often neglected by carriers.
Wes Rosenbalm: Advanced Broadband Comes to Rural America
Bristol is small rural community in southwest corner of VA, Appalacian Mountain region. Hard working (17k) people, average income $20k; primary industry is coal and tabacco, also NASCAR raceway and birthplace of country music. Coal industry declined by 5-10%, tobacco by 67% annually. Brain drain of youth is climbing.
Muni-utilities initiated fiber to users project (Optinet). Started in 1999. Need: improve communications at Bristol’s 8 electric substations. Answer: build fiber network. 2000: BVU, all schools and gov ofices, investment in fiber to user. 2001: engineering firm determines cost, survey of customer interest (they were interested), business plans determined feasibility.
Developed “culture of use” mission: enhance economic development in rural mountainous Virginia, and improve quality of life thru broadband access at affordable, stable prices.
Uphill battle: VA law barred municipalities from offering telecom services. Sued state and won, overturned law. General Assembly reversed, another state went to Supreme Ct and definition of “any entity” does not include muni utils. However, VA legislature allowed Bristol because of level of investment. Incumbent phone co accuses of bross-subsidizing phone rates. (that’s funny!) Commission ruled against complaint. Three years and $2.5M in legal fees later (wow), they were allowed to offer services. BVU becomes first muni utility in US to deploy a fiber to user network offering triple play of phone, cable and data services.
Aggressive marketing campaign: familiar name, reliable electric provider for 60 yrs, customer installs exceed projections (waiting list from customers), advanced entertainment services are added (continuous improvement). OptiNet saved customers >$10M based on competitors’ rates and deals, and captured 65% of market in 5 years (consideration re: credit problems on customer level).
Was it possible to share fiber with neighbors? Neighboring rural coal counties also inadequate services, network could reach out to other needy communities. Fed and tobacco funding sources enabled partnerships to happen. (long term thinking: didn’t use funds to balance budgets) Partnerships with Cumberland Plateau (200 mi expansion in four counties, $17M in grants and matches) 2003-2007.
Passes 1800 potential business customers, nine industrial parks. Significant: major tech conpanies brought high paying jobs (CGI, Northrop Grumman). Region now championed by state and national leaders as “broadband gateway…”
Broadband build-outs in Southwest VA brings 1,220 jobs (and lots more).
Collaborative ventures: AccessBristol high tech area for new businesses. Fielding “how did you do it” calls from around the world. That took time: BVU Focus formed to help other munis develop solutions for their communities. First customer: Charlotte NC area (BVU managing their net, 5% growth in 2008, 27% revenue projection increase. Hard-earned victory: revenues have increased 50% since 2003, have improved quality of life, and biz potential unlimited. Impact is far reaching: 800 miles thru 8 counties. Have received numerous awards.
Questions: Interconnection with local incumbent? Wes: Yes, with the two nearby.
Broadband power lines? Wes: wasn’t available at the time, exploring, also wireless, for future use.
Education level and culture of use: how is it being communicated and sustained? Brad: University offers computer sci, rural areas not really a barrier, culture has evolved and they’re constantly promoting value and vision; also younger generation is growing up knowing. Wes: had to deal with the issues of lower edu level and older population. Had a hard time getting people off dial-up. Had to market 64K service off of optical network, made it a teaser. Made a difference with older population. Still working on penetration due to lower expectations. Jay: really believes in education, in cases of aging population: they have trouble coordinating hand and mouse. Different kind of issue. Other communities are going to have issues. National discussion of broadband will help all. (Price resistance is hurting.)
Q: Need to get a large fraction of service is important to economic success of project. Did you consider wholesale models? Brad: passed. Wes: Bristol started off with different economic model, but wasn’t practical because of muni utility model. Partner with Peercom (wireless) helped. Brad: Different rules between US and Canada; they had to sit and wait for private sector. Partnership benefited both.
Q: Charges at low or no cost to customers, any pressure to exercise control over content? Wes: short answer: no, but lots of conversations particularly on TV, ended up (without?) pay per view basis. Jay: is business and moral issues, common carrier issues and “blue” channels, “blue” chat are very lucrative and popular but people don’t want to admit that they use them.
LZ: Seven Habits of Intelligent Communities
- Have leaders who convince people there is more to be won than lost from Broadband Economy
- Do what it takes to get broadband but don’t fall in love with the technology. (It’s about the people.)
- Are open rather than closed
- Have big visions and appetite for action
- Create local heroes to advocate
- Never miss a chance to tell their stories
- Plan for economic growth in zero-net-emissions world
Awards ceremony tomorrow (luncheon)!