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2.3 ANECDOTAL EVIDENCE

by Malcolm Matson last modified 2006-04-27 15:37


The economic impact that local access networks providing high-speed Internet access on communities is demonstrated by anecdotal evidence.  Unfortunately, it was not possible to find experiences from developing economies, which may be a reflection that some of the newer local access implementations are too recent for there to be any real study of the economic impact of these on the local economy.

 

2.3.1 Cumbria, England

In the United Kingdom, Cybermoor, a community owned broadband network providing wireless high-speed Internet services to Cumbria attribute the availability of its services to five new companies moving into the area creating 50 new jobs.[xvii]

 

2.3.2 Dalton, Georgia, United States

Dalton is described as the Carpet Capital of the World as the carpet industry in the town and surrounding Whitfield County employ more than 30,000 workers in over 150 manufacturing plants.[xviii]  The main reasons cited for the build out of the Dalton Utilities fibre network to provide businesses and residents in Dalton and surrounding communities with FTTH services were lack of available telecommunications infrastructure for industrial and public sector use. 

 

We knew that our large industrial customers needed another means of data transportation than the incumbent ILEC provided. And the incumbent wasn’t serving this area with the big pipes that we needed anyway,” said Chris King, telecommunications manager for Dalton Utilities.

 

In fact, the community itself was beginning to experience a digital divide that was affecting Internet access in schools and government offices. Dalton Utilities recognized that the time was right to build a community network — one that could also support the utility’s plans to upgrade its own production and processes.[xix]

 

2.3.3 Scottsburg, Indiana, United States

Scottsburg, Indiana is a community of 6000 people, 29 miles (47 km) north of Louisville, Kentucky that did not have high-speed Internet access and was faced with the closure or relocation of several businesses out of the community as a result.  The local Chrysler dealership employing some 72 people was prepared to move from Scottsburg, as the community did not have fast and reliable Internet access required for a number of business applications, such as, enabling the mechanics to download service manuals. [xx]  Also a group of home workers that do medical transcription work threatened to relocate, if they could not get high-speed Internet access.

 

The Mayor approached the local telecommunications company, but it was unwilling to deploy DSL in the community because it felt that the community was too small to justify the investment.  Scottsburg decided to deploy its own wireless system to provide service, which it was able to deploy in three months at a cost of $385,000.  It was successful in retaining the existing workforce and it is estimated that the system saves the local school district, some $6,000 a month in telecommunications costs.  The network, Citizens Communications Corporation Broadband, is operated as a division of the City-owned electric utility. 

 

2.3.4 Grant County, Washington, United States

The Grant County Public Utility District began deploying an FTTH LOAN to businesses and residents in this largely rural county in Washington State.  In its 2003 report, the Telecommunications Industry Association noted that the economic impact had been significant with the creation of 100 new jobs resulting in a $9 million economic benefit to the region and businesses have experienced increased productivity from advanced bandwidth applications.[xxi]

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REFERENCES



 

[xx] Public CIO, “Six Wireless Communities Best Practices Award Winners”, 2005.

www.public-cio.com/newsStory.php?id=2005.10.13-96946

 

[xxi] The Telecommunications Industry Association, “The Economic and Social Benefits of Broadband Deployment”, October 2003.

http://www.tiaonline.org/policy/broadband/Broadband paperoct03.pdf

2. ECONOMIC AND SOCIAL DEVELOPMENT
Chapter 2 provides more detailed information on studies that have demonstrated the economic impact of broadband deployment at the national, regional and local level and the role of local open access networks. It also deals with the impact of broadband deployment and adoption on the issues of social benefit and inclusion.
2.1 INTRODUCTION 2.2 CASE STUDIES ON ECONOMIC IMPACT OF BROADBAND 2.3 ANECDOTAL EVIDENCE 2.4 SOCIAL BENEFIT AND INCLUSION 2.4.1 PUBLIC SAFETY 2.4.2 PUBLIC SAFETY APPLICATIONS 2.4.3 E-GOVERNMENT 2.4.4 E-GOVERNMENT APPLICATIONS