The Potential for the The Potential for the Expansion of High-speed Expansion of High-speed Internet Services in Rural Internet Services in Rural

Arizona:Arizona:

The Demand Side of the The Demand Side of the EquationEquation

Presentation OverviewPresentation Overview

Importance to economic developmentImportance to economic development Some reasons for high-speed lag in rural AZSome reasons for high-speed lag in rural AZ Demand does existDemand does exist Arizona’s current situationArizona’s current situation Public-private partnershipsPublic-private partnerships What can communities and citizens do?What can communities and citizens do? Arizona Cooperative Extension’s roleArizona Cooperative Extension’s role

Arizona Will Continue to Arizona Will Continue to GrowGrow

Source: Center of the American West, www.centerwest.org/futures/archive/development/development_az.html

High-Speed Internet is High-Speed Internet is Important for Economic Important for Economic

DevelopmentDevelopment

Many new rural residents demand itMany new rural residents demand it Potential relocating firms cite it as one of Potential relocating firms cite it as one of

their top requirementstheir top requirements Broadband communities experience more-Broadband communities experience more-

rapid growth in employment and number rapid growth in employment and number of businessesof businesses Shown by 2006 study prepared for Shown by 2006 study prepared for

Economic Development AdministrationEconomic Development Administration

Why Has High-Speed Why Has High-Speed Penetration Lagged in Rural Penetration Lagged in Rural

Areas?Areas?

Lack of telecommunications infrastructureLack of telecommunications infrastructure Return on investment for providers often Return on investment for providers often

isn’t thereisn’t there Communities have difficulty Communities have difficulty

demonstrating demand for a service they demonstrating demand for a service they don’t yet have…don’t yet have…

Public sector investment needed but Public sector investment needed but federal and state $ dwindlingfederal and state $ dwindling

Will Rural Residents Utilize Will Rural Residents Utilize High-Speed Services?High-Speed Services?

Is this a demand—not a supply—problem?Is this a demand—not a supply—problem? 2002 Consumer Electronics Association study: 2002 Consumer Electronics Association study:

68% of U.S. homes had access, only 9-10% 68% of U.S. homes had access, only 9-10% subscribedsubscribed

Pike & Fischer forecasts rural penetration topping Pike & Fischer forecasts rural penetration topping out at only 50% of homesout at only 50% of homes

However, 2006 Pew Internet & American Life However, 2006 Pew Internet & American Life survey suggests rural users aren’t significantly survey suggests rural users aren’t significantly different from other usersdifferent from other users

May depend on applications utilizedMay depend on applications utilized

Current Situation in ArizonaCurrent Situation in Arizona

Critical infrastructure has been slow in Critical infrastructure has been slow in coming to some parts of Statecoming to some parts of State

Is estimated that half of AZ’s rural Is estimated that half of AZ’s rural residents don’t have Broadband accessresidents don’t have Broadband access

Where there is availability, costs can Where there is availability, costs can be highbe high

Rural Arizona is now sharing in State’s Rural Arizona is now sharing in State’s rapid growthrapid growth

State-Level State-Level Organizations/Initiatives/StuOrganizations/Initiatives/Stu

diesdies

Arizona Government Information Arizona Government Information Technology Agency (GITA)Technology Agency (GITA)

AZNetAZNet Telecommunication Open Partnership Telecommunication Open Partnership

of Arizona (TOPAZ)of Arizona (TOPAZ)

State-Level State-Level Organizations/Initiatives/StuOrganizations/Initiatives/Stu

diesdies Communications Infrastructure Advisory Communications Infrastructure Advisory

Committee (CIAC)Committee (CIAC) Arizona Broadband Initiative FrameworkArizona Broadband Initiative Framework

Study prepared by the Center for Digital Study prepared by the Center for Digital Government for the Arizona Department of Government for the Arizona Department of Commerce in April 2007Commerce in April 2007

Broadband Assessment Project Broadband Assessment Project (ongoing)(ongoing)

Examples of Examples of Rural Broadband InitiativesRural Broadband Initiatives

I-19 Wi-Fi for first respondersI-19 Wi-Fi for first responders Southern Pinal County Broadband Southern Pinal County Broadband

and and Wi-Fi ProjectWi-Fi Project

Town of Superior Wi-Fi ProjectTown of Superior Wi-Fi Project Town of Wickenburg Wi-Fi ProjectTown of Wickenburg Wi-Fi Project

Public-Private Partnerships Public-Private Partnerships Are CriticalAre Critical

Public Sector can’t or won’t Public Sector can’t or won’t undertake infrastructure undertake infrastructure modernization alonemodernization alone

““Middle Mile” is criticalMiddle Mile” is critical Local governments will have to Local governments will have to

invest, especially in Middle Mileinvest, especially in Middle Mile

Public-Private Partnerships Public-Private Partnerships Are CriticalAre Critical

Three main models/strategies Three main models/strategies nationally:nationally: Public sector stimulates demandPublic sector stimulates demand State creates a broadband authority with State creates a broadband authority with

legal power to collect funding, make legal power to collect funding, make grants or loans, reform right-of-waygrants or loans, reform right-of-way

Public-private partnership in the form of a Public-private partnership in the form of a state-chartered nonprofitstate-chartered nonprofit

What Can Communities and What Can Communities and Citizens Do?Citizens Do?

Create a broad-based plan and get buy-inCreate a broad-based plan and get buy-in Conduct an asset inventoryConduct an asset inventory Identify and document demandIdentify and document demand Mobilize support for local fundingMobilize support for local funding Look for additional fundingLook for additional funding Research a variety of potential private Research a variety of potential private

partnerspartners

Grant/Loan OpportunitiesGrant/Loan Opportunities

Economic Development Economic Development AdministrationAdministration

USDA Rural Utilities Service (RUS)USDA Rural Utilities Service (RUS) Rural Broadband Access Loan ProgramRural Broadband Access Loan Program Community Connect Grant ProgramCommunity Connect Grant Program RUS Rural Telephone Loan ProgramRUS Rural Telephone Loan Program RUS Distance Learning and RUS Distance Learning and

Telemedicine Grants ProgramTelemedicine Grants Program

Grant/Loan OpportunitiesGrant/Loan Opportunities

Universal Service Fund (USF)Universal Service Fund (USF) Schools and Libraries ProgramSchools and Libraries Program Rural Health Care ProgramRural Health Care Program

Arizona Department of CommerceArizona Department of Commerce GADA debt financing?GADA debt financing?

How Can We Stimulate and How Can We Stimulate and Demonstrate Demand?Demonstrate Demand?

Internet/computer coursesInternet/computer courses Free public access on limited basis?Free public access on limited basis? Marketing existing programsMarketing existing programs Surveys of residentsSurveys of residents PetitionsPetitions Town halls/workshopsTown halls/workshops

Arizona Cooperative Arizona Cooperative Extension’s RoleExtension’s Role

Data and interpretation!Data and interpretation! Education: elected officials, Education: elected officials,

community leaders, residentscommunity leaders, residents University research, outreach and University research, outreach and

facilitationfacilitation Bringing public and private entities Bringing public and private entities

togethertogether

The Bottom LineThe Bottom Line

High-speed Internet services are High-speed Internet services are critical for rural communities, toocritical for rural communities, too

Develop community partnerships; Develop community partnerships; then develop a planthen develop a plan

Inventory your assetsInventory your assets Document demandDocument demand Focus your effortsFocus your efforts

The Bottom LineThe Bottom Line

Commit to funding the “Middle Mile”Commit to funding the “Middle Mile” Look for supplemental fundingLook for supplemental funding Investigate ALL possible solutionsInvestigate ALL possible solutions Look at interesting public-private Look at interesting public-private

partnershipspartnerships

Questions/CommentsQuestions/Comments

Erik GlennErik Glenn

Area Assistant AgentArea Assistant Agent

Community Resource DevelopmentCommunity Resource Development

Arizona Cooperative ExtensionArizona Cooperative Extension

1955 E Sixth St1955 E Sixth St

Tucson, AZ 85719-5224Tucson, AZ 85719-5224

(928) 899-4595(928) 899-4595

FAX: (520) 621-7834FAX: (520) 621-7834

erikg@cals.arizona.eduerikg@cals.arizona.edu