Unraveling Broadband in Wisconsin - Center for Community ...
from the director
The Role of County Government
in Broadband
–Mark D. O’Connell, Executive Director, Wisconsin Counties Association
Counties play a critical
role in making informed
decisions on investments
in economic development, public
safety and delivering government
services that keep communities
strong and vital.
Community broadband (high
speed internet) is an issue that can
greatly influence all of these areas.
It is incumbent on county leaders
to understand this issue and how
it is a vital and constantly growing
piece of community infrastructure that has the potential
to improve tax base, increase jobs and improve public
services while cutting costs.
The first step for counties is to understand broadband
for what it is – a must-have utility that can bring
prosperity to local areas. While broadband does not
guarantee economic prosperity, counties without it will
be excluded from many economic opportunities and
not be considered as a desirable place to live by much
of the workforce. County boards can take a leadership
role in helping others become educated by utilizing the
technology, learning what the challenges are for local
broadband providers, acting as catalysts for increasing
and improving broadband for businesses, community
institutions and residents. Help to do this is available.
One valuable resource you will recognize as a longtime
partner of the Wisconsin Counties Association
(WCA), as well as county governments across the state.
The University Wisconsin-
Extension (UWEX) has launched
the Center for Community
Technology Solutions to work
with county governments to help
leaders understand the importance
of broadband, the complex
issues involved with connecting
communities to broadband, and
working with leaders to implement
effective strategies for improving a
community’s broadband connection.
The center, launched in November
2012, will be conducting listening sessions during the first
three months of 2013 to understand county needs and
questions around broadband. Following these sessions,
the center will work directly with interested counties to
help develop locally led community broadband solutions.
Help your communities become better positioned to
compete, more prepared to leverage local tax dollars and
able to address brain drain. Take a first step by reading the
articles to be found in this edition of Wisconsin Counties
to better acquaint yourself to the issues surrounding
broadband in Wisconsin.
Follow up by inviting folks from the UWEX’s center
to visit your county (toll free: 855-306-8050, e-mail:
wibroadband@uwex.edu). As always, WCA stands ready
to help you tackle the challenges presented to your county;
call us any time for help in addressing the unique issues
that surround the implementation of statewide broadband
in Wisconsin.
4 u January 2013
The
Digital
Divide
–UW-Extension Center for Community Technology Solutions
Build it and they will come” is not a truism
for community high speed internet. Those
building out high speed community
networks are learning that outreach to and education
for people who are not online is a critical component
of making broadband investments successful for a
community. This type of effort is often called “closing
the digital gap” or “bridging the digital divide.” The
young “digital natives” within our community often
need no introduction to broadband technology.
However, segments of the population need training
in order to become “digital immigrants” who are
comfortable in using technology.
According to the Pew Research Center, the top
three obstacles to broadband adoption are digital
literacy and trust, relevance and cost. Training on how
to use the Internet is critical to closing the digital gap.
Through training, many participants come to realize
how integral the Internet has become to everyday
tasks like paying bills, applying for jobs, filing for
Veteran’s benefits, searching for medical information
and helping with kids’ homework. There are economic
benefits as well: Consumers with broadband at home
can save more than $7,000 a year.
24 January 2013
u
According to the Federal Communications
Commission (FCC), fully one-third of all Americans
– 100 million people – have not adopted broadband
at home. Compare that to South Korea and Singapore
where adoption rates top 90%.
There is a growing divide between the digitalhaves
and have-nots:
q
q
q
q
q
Less than one-third of the poorest Americans
have adopted broadband, while 90%(+) of the
richest have adopted it.
Less than 50% of African Americans, Latinos, elderly
and rural populations have adopted broadband.
About 46% of low-income families have adopted
broadband at home compared with over 90% of
higher income families.
Low-income Americans, rural Americans, seniors
and minorities disproportionately find themselves
on the wrong side of the digital divide and
excluded from the $8 trillion dollar global Internet
economy.
80%+ of Fortune 500 companies require online job
applications (including major employers such as
Wal-Mart, Target, Costco and ExxonMobil).
continues on page 34
Key Stakeholders
Like water and electricity, high capacity
internet (“broadband”) is quickly
being viewed as a 21st century necessity
for communities, businesses and
household consumers: to have it opens
the possibility for economic success.
The number of parties that recognize
broadband as a benchmark for economic
development is growing. This is good
news for Wisconsin. As more and more
people become educated about the
value of broadband, our state is much
more able to compete both nationally
and globally. The graphic to the left shows
some of the key stakeholders helping to
lead an effort to increase connectivity in
Wisconsin and increase understanding of
the value of broadband.
Glossary of Terms
Northern Regional Broadband Networks Forum, Excerpted from
http://bit.ly/broadband_glossary
25 u January 2013
4G A marketing term for 4th generation
wireless technology with transmission
speeds typically in the range of
1-10 Mbps. Not necessarily faster than
3G service, just the next generation.
Backbone A robust central transmission
line (or a collection of transmission
lines) that links many smaller local
networks via connections known as
network access points. It can be a local
backbone for a group of office buildings
or local area, linking smaller networks to
create a wide area network (WAN); or
the Internet backbone itself.
Bandwidth The amount of data that
can be sent in a time period.
Broadband A commonly-used term
for high-speed Internet. The definition
of “high-speed” is constantly redefined
with technology changes, but the National
Broadband Plan defines a minimum
residential standard for broadband
which is 4 Mbps download/1 Mbps upload.
Cloud Computing The growing
practice for online applications to be
housed online (in data centers), rather
than on an individual’s computer or a
smaller company’s servers.
DSL Digital Subscriber Line Internet
Service. Provides high-speed networking
over ordinary phone lines using
broadband technology. DSL technology
allows Internet and telephone service to
work over the same phone line without
disconnecting either service. Typically
delivers 2Mbps or lower for downloads
and up to 512 Kbps for uploads. Service
declines when multiple subscribers
compete for access.
Dark Fiber A fiber strand that is not
being used by any entity and carries no
Internet traffic, i.e., fiber that is not “lit”
by equipment transmitting data via light.
Gbps Gigabits per second. Data rate
of 1,000,000,000 bits per second (bps);
also 1,000 Mbps.
ISP Internet Service Provider. A company
that supplies Internet connectivity
to home and business customers. ISPs
operate networks that connect end-users
to the Tier 1 Internet, allowing them
to access resources worldwide. ISPs
function as on-ramps to the Internet.
Last Mile Segment of telecommunications
network that connects the local
provider to the customer. The type
of cable and distance to the telecommunications
provider determines the
amount of data/speed and services
available to the customer.
LinkWisconsin A statewide
initiative to promote the availability
and sustainable adoption of broadband
internet access. This effort is managed
by the Wisconsin Public Service
Commission (PSC). See: http://www.
linkwisconsin.org
January 2013 u 25
Link
WISCONSIN
–The Broadband Team at the Public Service Commission of Wisconsin
The Public Service Commission of
Wisconsin (PSCW) recognizes
that the availability and adoption of
broadband is the new challenge of
today’s world. Broadband has become
a critical tool for economic growth,
job creation, global competitiveness
and improved communication in
both our professional and social
lives. Recognizing this, the PSCW
was designated to receive federal
funds to administer a statewide broadband planning and mapping initiative.
The program, now known as LinkWISCONSIN, is not intended to replace
or compete with other broadband efforts in our state, but rather to identify
and work with new and existing projects that share a common goal of better
broadband deployment and adoption in every region of Wisconsin. Its goals
are to collect data and map Wisconsin’s broadband assets, as well as use a
data-driven approach to develop a statewide plan and more locally driven
regional plans.
The fundamental objective of the state broadband maps is to organize and
conduct a comprehensive inventory of service across Wisconsin. This core
information helps focus policymakers, community leaders, service providers
Background
Wisconsin Governor Jim Doyle designated
the Public Service Commission
of Wisconsin (PSCW) as the Wisconsin
entity eligible to apply for and receive a
federal mapping grant under the National Telecommunications
and Information Administration’s
(NTIA) State Broadband Data and Development
Grant Program (SBDD). This program is
for broadband mapping and planning work in the
state of Wisconsin.
In August 2009, PSCW submitted a grant application
to NTIA seeking funding for broadband
mapping activities for five years. This was later
modified per NTIA request to address only the
first two years of this program.
In November 2009, NTIA announced they
had awarded approximately $1.7 M for broadband
mapping and planning in Wisconsin.
PSCW contracted with the LinkAMERICA Alliance
to assist the state with the mapping and
planning activities. PSCW and LinkAMERICA will
work together to conduct broadband mapping
and to develop a long-term, sustainable plan for
increasing access to, and use of, broadband.
In summer 2010, NTIA announced they
would accept updated grant applications from
states to fund mapping and planning efforts for
three additional years. An application was submitted
for Wisconsin’s continued SBDD efforts
on July 1, 2010, and the state was awarded an
additional $2.82 M to fund LinkWISCONSIN’s
broadband data development and capacity building
programs for years 3-5.
26 u January 2013
LinkWISCONSIN
REGIONS
and others on the central issue at
hand. LinkWISCONSIN’s mapping
initiative has resulted in the creation
of an interactive online mapping tool
that depicts availability of broadband
by type of technology and the different
advertised speeds.
On the planning side, efforts are
directed towards sustainable capacitybuilding.
One of the first steps in this
process was to divide the state into nine
regions (see Wisconsin regions on the
map to the right), and local teams were
established in each. Working with the
continues on page 33
Glossary of Terms
Northern Regional Broadband Networks Forum, Excerpted from http://bit.ly/broadband_glossary
27 u January 2013
LinkWisconsin
Coverage Map
Private broadband
companies have
provided data on
their coverage areas
which have been
mapped. This map is
an excellent starting
point for consumers
and businesses
that are interested
in learning more
about the providers
serving their area.
The maps overstate
coverage, but there
is also the ability to
correct the data that
is provided on the
maps. See: http://
wi.linkamericadata.
org/
Middle Mile Segment of a telecommunications network
which connects a network operator’s core network to the
local network plant. Local telecom providers often purchase
middle mile services from larger telecom companies.
National Broadband Plan The current plan, set by the
Federal Communications Commission (FCC), establishes a
minimum standard of 4 Mbps download/1 Mbps upload for
residential broadband and a goal of having 100 million homes
with access to affordable actual download speeds of 50 Mbps
by 2015, and an increase to 100 Mbps by 2020. See: http://
www.broadband.gov/plan/
POP Point of Presence. The point at which local Internet
Service Providers connect to regional and national networks.
Distance to the POP can influence service availability and pricing.
R&E Network Research and Education Network
Speed Test Online tests to determine a customer’s actual
internet speed. There are several online speed tests that can
be used including the one offered by Link Wisconsin: http://
www.linkwisconsin.org/lwi/speedtest.aspx?bhcp=1
VoIP Voice over Internet
Protocol. Technology
that enables
broadband users to
send and receive telephone
calls over the
Internet.
WiFi Wireless Fidelity.
WiFi is used to create
wireless networks
which use radio transmissions
over short
distances to create
connections between
devices without wires
or cables.
WiMax A mobile
wireless technology
with significantly
greater range than
WiFi.
January 2013 u 27
Broadband &
economIc
development
–UW-Extension Center for Community Technology Solutions
Historically communities
developed along important
transportation corridors:
waterways, stage coach routes, rail,
roads, highways and airports. Other
important infrastructure like mills
and electrical systems soon followed.
Why? Access to markets.
Communities today need to
determine the location of their nearest
on-ramp to the world-market—via the
Internet. How many lanes does that ramp have and what is the speed limit?
Not long ago, residents in Richland County were celebrating the installation
of the first Rural Electrification Administration (REA) electrical pole in
Wisconsin. The residents understood the significance of this important
infrastructure and its impact on quality of life and the growth of their local
economy.
Today’s local leaders and economic development professionals are taking
the time to learn more about the significance of broadband and why this is
essential infrastructure for their communities. In many ways, it is as important
as the advancement of electricity was in the 1930’s. Successful communities
will be those that bring this essential infrastructure to their community.
Festivus for the Rest of Us…
a celebration based on a pole?
“On the second day of May, 1936, a telegram from Washington announced the first allotment of REA [Rural
Electrification Administration] money to Wisconsin. The Richland Cooperative Electric Association was one of two
recipients…. A three-day celebration was staged in Richland Center, Sunday, September 7, being the momentous
day. Thousands of people gathered from near and far to witness the setting of the first REA pole in this state.”
[WI Rural Electric Cooperative Association publication]
28 u January 2013
what can broadband allow YOU to do?
• Broadband is what allows the nation’s largest catalogue and online seller of pet supplies to be
located in Rhinelander, Wisconsin. To view a short video case study of Drs. Foster & Smith,
please see: http://bit.ly/Ecommerce_broadband.
• Broadband is what allows small companies like My Tires in Platteville, Wisconsin to improve their
business to business transactions and better serve customers. See: http://bit.ly/MyTires.
• Broadband is what allows Wisconsin Cheese makers to sell their products to global markets. See:
http://bit.ly/Webwise_ecommerce.
Successful communities understand
that the demand for bandwidth and
faster Internet connectivity will only
increase over time.
The success of business often
depends on the ability to tap into
the huge potential of high speed
broadband connectivity. Successful
communities will be those that
bring this essential broadband
infrastructure to their community.
Increasingly, elected officials want to
know more about the opportunities
and barriers to achieving a high level
of connectivity.
According to the International
Economic Development Council’s
2012 survey on broadband:
• Seventy-four percent of economic
development professionals
thought that fiber-based
broadband would have a direct or
indirect impact on their ability to
attract businesses (60% also felt
that wireless broadband would
have a direct or indirect impact
on their ability to attract businesses).
• Forty-seven percent of economic developers indicate that money spent
for broadband could produce a greater return by helping individuals
improve job and professional skills. Another 25% see transitioning people
from dying industries to 21st century job skills as the broadband potential
we should be cultivating. Seventeen percent of economic development
professionals say using broadband to help people get a better education
is the greater value of broadband for personal economic development.
q While the national broadband plan now defines a connection of 4
Mbps download/1 Mbps upload as being “broadband,” fewer than
10% of the economic development professionals believe 4 Mbps is
sufficient for advancing their local economies.
q Seventy-six percent of economic development professionals thought
a minimum of 100 Mbps or greater was needed to effectively attract
new businesses.
q Eighteen percent of respondents have insufficient speeds to produce
economic outcomes listed and have given up hope for a solution.
q Thirteen percent do not have enough speed to get the job done, but
are actively trying to find or create a solution.
For a copy of the complete report on the survey, see: http://www.
cjspeaks.com/msp/IEDC2012.pdf
While everyone is focused on the economy and the need to increase
employment, incomes, and tax base, the benefits of high speed Internet
29 u January 2013
go beyond just creating employment and increasing
incomes. In 2010, a study titled, “The Economic Impact
of Digital Exclusion,” conservatively estimated the
impact of not having everyone well connected is costing
this country over $55 billion per year. This estimate was
based on the likely levels of impact in 11 categories of
economic impact ranging from increased health care
costs to energy conservation. Given our share of the
population and economy, the digital divide is likely
costing Wisconsin over $1 billion per year.
Most elected officials agree that it is time to transform
government by consolidating service delivery and doing
it more efficiently to save taxpayer dollars. Broadband is
one technology that allows for cost savings, increased
government cooperation, and an improvement in
government services. The best case example of that
being applied in Wisconsin can be found in the Chippewa
Valley.
In a recent study commissioned by the Local
Government Institute of Wisconsin (A Roadmap for
Government Transformation), six factors were identified
that clearly contribute to the success of efforts to
transform the delivery of public services within an area,
notably:
q Trust between leaders
q Shared perception of need
q Clear fiscal benefit
q Improved service quality
q Collaborative leadership
q Community support
These principles are likely critical to the success
of developing any collaborative community-based
broadband solution. For a copy of the complete report:
http://www.localgovinstitute.org/node/122
Community leaders are increasingly recognizing the
need to improve the level of Internet connectivity within
the state. It takes thoughtful collaboration between
elected officials, economic development professionals,
broadband providers, residents and businesses to
determine the appropriate strategy for most elected
officials.
The Chippewa Internet Working Consortium (CINC)
Community institutions in Eau Claire and Chippewa Falls, Wisconsin, pooled their resources to
build a high-speed broadband network. The high-speed connections create opportunities to share
applications and open up possibilities for new uses of technology. For a short video case study
describing this collaborative model. Please see: http://bit.ly/CINC_broadband
wisconsin Economic development association
The Wisconsin Economic Development Association (WEDA) has identified Telecommunications
Infrastructure: Broadband in their 2013-14 Legislative Agenda (http://www.weda.org/media/cushycms/
LegislativeIssues_31_1130160817.pdf )
Specifically, “WEDA has consistently advocated for policy initiatives that foster broadband deployment,
particularly for small businesses located in non-urbanized corridors, and will continue to encourage widespread
broadband development throughout the state to promote an “infrastructure-ready environment for business.”
30 u January 2013
Funding Streams FOR
BROADBAND
There are several funding streams for
multiple broadband expansion projects
happening across Wisconsin. These
funding streams involve multiple organizations,
including private telecommunications companies
to telecom cooperatives. Below is a sample of
some of the largest grants and loans awarded to
Wisconsin telecommunications businesses since
2010. For a complete list and details, see: http://
www.link.wisconsin.gov/lwi/default.aspx?page=19
USDA Rural Development
Community Connect
Program:
q Marquette-Adams Telephone
Cooperative, Inc.
o $19,781,000 loan funds
o System wide fiber-tothe-premises
(FTTP) network,
including over 370
miles of new or modified
buried fiber.
o Projected benefit: enhanced
broadband service
to all subscribers.
q Vernon Telephone Cooperative,
Westby
o $24 million loan
o Build a FTTP system in
areas outside the town,
along with system improvements
in several
area exchanges.
USDA RUS (Rural Utilities
Service):
q Baldwin Telecom, Inc.
o $16,716,000
o Broadband infrastructure
RUS Round Two BIP
(Broadband Investment
Program)
Each of these projects is designed
to bring broadband service to
unserved establishments in their
communities.
q
q
q
Baldwin Telecom, Inc.
o $9.1 million/$120,000
additional outside capital
o 109 mile fiber-to-thehome
infrastructure in
the town of Troy, Wisconsin.
o Projected benefit: More
than 3,600 people, 30
local businesses and 2
community institutions.
Midway Telephone Company
o $4.7 million grant/$1.6
million additional outside
capital
o High-speed DSL broadband
service
o Projected benefit: approximately
2,700
people, 50 businesses,
and 20 other community
institutions.
Chequamegon Communications
Cooperative Inc.
o Award of $31.1 million
o Fiber-to-the-Home
(FTTH)
o Projected benefit: More
than 10,400 people, 959
local businesses and 35
community institutions
stand to benefit from this
improved service.
Round 2 BTOP and BIP
Awards
q Reedsburg Utility Commission,
Inc:
o $5.2 million grant/$2.3
million additional outside
capital
o Extend existing municipal
FTTP network to surrounding
rural areas.
o Projected benefit: 6,000
people, along with 144
businesses and 12 community
institutions.
q Marquette-Adams Telephone
Cooperative, Inc.:
o $20 million grant/loan
project
o Extend fiber optic service
from existing service area
to surrounding unserved
rural areas.
o Projected benefit: 11,000
people, 144 businesses
and 12 community institutions.
31 u January 2013
January 2013 u 31
The impact of NOT having everyone well
connected is costing this country over $55 billion
per year ... the digital divide is likely costing
Wisconsin over $1 billion per year.
the role of
UW-EXT
–Bailey Quam, Cooperative Extension Communications and Marketing Assistant
In the 1930’s Cooperative Extension played a
vital role in helping rural communities receive
electricity. Now, more than 60 years later,
Cooperative Extension is doing the same with
broadband.
The 1935 Rural Electrical Administration (REA)
legislation provided farm cooperatives with lowinterest
loans as a way to fund power plants and
string power lines.
In the movement to electrify Wisconsin,
Cooperative Extension agents worked to educate
rural families about electricity and its benefits.
Today, Cooperative Extension helps people discover
advantages of the internet and broadband.
Through educational programs in five Wisconsin
communities, people learn computer uses and
broadband connection benefits. Educational
programs offered in Chippewa Valley, Menominee
County, Platteville, Superior and Wausau are held
in community centers, health care facilities and
senior centers. “People have a fear of technology
but in these classes we show them there is nothing
to be scared about,” says Jill Hietpas, community
development and broadband educator in Eau Claire
County.
Hietpas teaches classes in Chippewa, Dunn and
Eau Claire counties, going where she is needed with
her laptops and iPads. After attending her classes,
Hieptas says people are able to connect via computer
through email and Facebook with friends and family
who live long distances away. Many veterans consult
Heitpas for help ordering prescriptions online, as
that is the only way they can get their medications.
As time and technology change, the need to
educate people remains. Cooperative Extension, a
division of the University of Wisconsin-Extension, is
committed to making sure all Wisconsin residents
have access to knowledge of a changing world. For
more information, go to http://broadband.uwex.edu/
bccb-demonstration-communities/.
32 u January 2013
Link
WISCONSIN (cont.)
continued from page 27
LinkWISCONSIN’s mapping and planning program has been developed
to work with diverse stakeholders to expedite the availability, adoption
and usage of new technologies.
PSCW, the regional teams assessed current availability,
adoption and broadband use and developed targeted
strategies in their regional plans to expand adoption and
address their local needs. Going forward, the teams will
continue their efforts to co-ordinate all ongoing work in
their regions and will continue to support the PSCW on
other state-wide efforts with their local knowledge.
On a state-wide level the Public Service Commission
managed a collaborative statewide process to create a
state plan called the Wisconsin Broadband Playbook. The
playbook was developed to address statewide priorities,
including specific policy and institutional reform ideas
(or plays), for which there was broad consensus. These
ideas will not only be the foundation for future state policy
initiatives, but will inform state and local policymakers
whose action and leadership will be necessary in
advancing the state’s broadband initiative.
Additionally, PSCW recently partnered with the
University of Wisconsin Extension (UWEX) on an
important component of capacity-building, which is to
monitor and evaluate progress in broadband availability,
adoption and usage benchmarks across Wisconsin. This
process involves identifying best practices for measuring
outcomes and collecting data regarding regional progress
in order to accurately estimate the social and economic
impact of broadband. UWEX was a natural choice for
this role due to their Wisconsin-specific knowledge that
was acquired due to their extensive outreach efforts in
the state. Their presence in 72 counties and their existing
relationship with several organizations all around the
state is critical in effectively mobilizing these monitoring
and evaluation efforts. The PSCW is also partnering with
UWEX to assist with broadband awareness training for
state and local policymakers. This training effort will
identify technical leaders around the state and will keep
the group up-to-date on the latest broadband technologies,
policies and strategic opportunities through events,
online meetings, webinars, etc.
The growing number of such collaborations between
various stakeholders in the state towards achieving a
common goal of advancing broadband has been very
encouraging. Partnerships that incent private investment
in broadband are critical for planning and understanding
the landscape of the future, and will help identify
beneficial opportunities for all broadband stakeholders
within the state. It not only reduces wasteful duplication
and improves synergies, but it also provides a healthy
environment that speeds innovation and facilitates
private initiative and provision of the technology. Given
the economic and social importance of broadband,
LinkWISCONSIN’s mapping and planning program
has been developed to work with diverse stakeholders
to expedite the availability, adoption and usage of new
technologies.
33 u January 2013
The
Digital
Divide
(cont)
continued from page 24
q
Extension (UWEX) has just completed
a two-year digital outreach pilot
project in five communities around
Wisconsin, conducting 22,708 training
hours for 796 activities and reaching
A Federal Reserve study found
that students with a personal
computer and broadband at home
have six to eight percentage point
higher graduation rates than similar
student who do not have home
access to the Internet
The University Wisconsin-
over 3 million people, including
advertising reach. UWEX new
Center for Community Technology
Solutions will extend this effort
to help communities develop the
internet access they need while
developing critical outreach and
education efforts to connect all their
residents and businesses to critical
services and the global economy.
Source: http://transition.fcc.gov/
statelocal/Connect-to-Compete-
March-08-2012.pdf
34 u January 2013
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