Understanding and Using Broadbandto Influence

Business Growth and Expansion

Price County Economic Development AssociationFall Membership Meeting

September 24, 2014

Presenters:Jill HietpasUWEX Broadband EducatorJill.hietpas@ces.uwex.edu

Gail HuyckeUWEX Price County CNRED Educatorgail.huycke@ces.uwex.edu

Matt KuresUWEX Center for Community and Economic DevelopmentGIS Specialistmatthew.kures@ces.uwex.edu

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

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?)

Broadband=Many Different FlavorsWireless

Fiber

Cable DSL

Satellite

Speed Matters….

Dial-up+ (56 Kbps): 1 day, 10 hrs, 44 min

T1/DSL (1.54 Mbps): 1 Hour, 15 min

Cable (10 Mbps ): 11 min, 44 sec

Fiber (1 Gbps): 7 sec

Technology (Data Pipe)

Files/Data (Megabytes)

Wired or Wireless?

“Ya got to

have em

both…”

Broadband Access and Technologies in Price County

• Wired Progress and Providers

• Wireless Progress and Providers

• Fixed Wireless Progress and Providers

Wired Broadband

Price County Wired Broadband Wired Providers CenturyTel, Inc. Charter Communications Frontier North, Inc. Packerland Broadband Price County Information Systems LLC Price County Telephone Company

Wired Broadband Neighboring Counties

Bruce Telephone Company, Inc.Chequamegon Communications CooperativeChoicetel LLCCitizens Telephone Cooperative, Inc.Frontier North, Inc.Indianhead Telephone CompanyKarban TV Systems, Inc. (KTVS)Midway Telephone Company, LLCNorvadoRhinelander Telephone Company

Mobile Wireless

Price County Mobile Wireless Broadband

Mobile Wireless ProvidersAT&T Mobility LLCCellComVerizon WirelessSurrounding CountiesT-Mobile USA, Inc.CTC TelecomSprint Corporation

Fixed Wireless

Fixed Wireless Providers

Fixed Wireless in PriceNone

Surrounding CountiesAirRunner Networks, LLCCountry Wireless, LLC SonicNet Inc.

So What Does All of This Mean for Price County and Economic Development?

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.

History

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

PCEDA Action Items

PSC Demand Survey Data• How PCEDC Collected

Responses (543)

• Residential Demand Highpoints

• Business Demand Highpoints

“Affordable and Reliable Broadband Access”

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

1 2 3 4 5 6 7 8 9-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Percent Change in Population 2000 to 2010By Rural-Urban Continuum Code

United States

State of Wisconsin

Rural-Urban Continuum Code

Perc

ent C

hang

e in

Pop

ulati

on

Data Source: U.S. Census Bureau

YourEconomy.org

http://Youreconomy.org(1995-2013)

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500Total 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+)

Tota

l Job

s

Data Source: National Establishment Time Series Database extracted from YourEconomy.org

19701972

19741976

19781980

19821984

19861988

19901992

19941996

19982000

20022004

20062008

20102012

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Change in Wage and Salary EmploymentPercent Change in Employment Since 1970

All Counties with RUCC of 9Price CountyUnited StatesState of Wisconsin

Perc

ent C

hang

e Si

nce

1970

Data Source: Bureau of Economic Analysis

19701972

19741976

19781980

19821984

19861988

19901992

19941996

19982000

20022004

20062008

20102012

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Change in PopulationPercent Change in Employment Since 1970

All Counties with RUCC of 9

Price County

State of Wisconsin

United States

Perc

ent C

hang

e Si

nce

1970

Data Source: Bureau of Economic Analysis

Change in Employment by Industry - 2003 to 2013Industry 2003 2013 Numeric Change Percent ChangeAll 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

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)

Top “Cottage” Businesses in Price CountyFor 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

Establishments Jobs0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%Price County Share of Jobs and Share Establishments by Stage (2013)

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

Examining Price County Sectors and Trends in Relation to

Broadband

• Woods Industry • Tourism Industry• Aging Population/Health Care Industry• Youth and Our Next Generation

Woods Industry

• Foresters• Loggers• Haulers• Wood Products

Q3 1990

Q2 1991

Q1 1992

Q4 1992

Q3 1993

Q2 1994

Q1 1995

Q4 1995

Q3 1996

Q2 1997

Q1 1998

Q4 1998

Q3 1999

Q2 2000

Q1 2001

Q4 2001

Q3 2002

Q2 2003

Q1 2004

Q4 2004

Q3 2005

Q2 2006

Q1 2007

Q4 2007

Q3 2008

Q2 2009

Q1 2010

Q4 2010

Q3 2011

Q2 2012

Q1 20130

100

200

300

400

500

600

700

800

900

Price County Employment Trends - Q3 1990 to Q3 2013Forestry and Logging (NAICS 113) and Wood Product Manufacturing (NAICS

321)Forestry and Logging (NAICS 113)

Wood Product Mfg. (NAICS 321)

Tota

l Qua

rter

ly E

mpl

oym

ent

Data Source: U.S. Census Bureau Local Employment Dynamics

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

50

100

150

200

250

300

208 211

252

223

196178

166157 154 157

Forestry and Logging (NAICS 113)Number of Non-Employers 2003 to 2012

Num

ber o

f Non

-Em

ploy

ers

Data Source: U.S. Census Bureau Non-Employer Statistics

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

Tourism Industry

• Second home owners• Restaurants• Lodging• Gas• Entertainment

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.

Results: “Northwoods Wisconsin” SurveyHow much longer would you stay in the Northwoods of Wisconsin

each year if you had access to broadband internet?

Answer Options Response Percent Response CountI would not stay any longer than I currently do 47.1% 112

Up to 2 weeks 8.4% 202-4 weeks 13.4% 321-2 months 16.8% 403-4 months 5.9% 145-6 months 2.9% 76-12 months 5.5% 13

Answered Question 238

Northwoods Broadband and Economic Development Coalition

Second Home Study

http://www.slideshare.net/WI_Broadband/economic-impact-of-broadband-second-homes-high-speed-bits

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

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

Aging Population/Health Care Industry

• Telemedicine• Emergency services• Home Care Services• Medical Records

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

SupportingYouth and Our Next Generation

• Population Size• School Enrollment, Enabling Our

Schools to Compete• Workforce

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

-80

-60

-40

-20

0

20

40

60

80Price County Net Migration Rates by Age

2000s1990s1980s1970s

Net

Mig

ratio

n pe

r 100

Indi

vidu

als

Source: Age-Specific Net Migration Estimates for US Counties, 1950-2010. Applied Population Laboratory, UW-Madison, 2013

2010 2015 2020 2025 2030 2035 2040 -

50

100

150

200

250

300

Projected Convergence of the Population Age 18 and Age 65in Price County – 2010 to 2040

Age 18

Age 65

Num

ber o

f Res

iden

ts

Data Source: Wisconsin Department of Administration.

Implications

• Quality of Life Issue • Lack of technology prohibits

telecommuting• Shifts in population will influence

available workforce • Limit access to Higher or

Alternative Education

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

Price County—Where are You At?

http://sngroup.com/

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 PlansBusiness Growth/DeclineEducation and Outreach

Next Steps: Collect Data, Strategize, Educate, Implement

Wisconsin’s Playbook for Broadband Progress

http://www.link.wisconsin.gov/lwi/docs/WI_Playbook.pdf

Wisconsin Dashboardhttp://wisconsindashboard.org/

Bandwidth Assessment Tool (BAT)

Broadband Assessment Tool (BAT)

The BAT SurveyAreas 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.

Provider Portal

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

Cost Analysis

http://www.verizonwireless.com/wcms/consumer/shop/shop-data-plans/more-everything.html

Verizon Wireless example: $375 + $15 * 35 GB = $900 per month for the heavy user using 85 GB per month.

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

Affordability for Price?

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

• We don’t know…• We Continue to Ask the Question

and Look for Research• Based on National/International

Studies, affordability in Price could be….

Build a CAN/Build Subscribership

Strategies to Enhance Broadband

See: http://broadband.uwex.edu/wp-content/uploads/2014/05/Collected-Broadband-Regulations-6-11-14.pdf

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