Knock knock, ARRA. Where will you invest?

The National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) announced recently that they received nearly $28 billion in grant requests for the first round broadband funding through the American Recovery and Reinvestment Act (ARRA). Approximately $4 billion has been allocated to be awarded in the first round of available funding – this is out of $7.2 billion total broadband grants available under ARRA.

NTIA and RUS reported that tallies indicate almost 1,500 applications for broadband infrastructure projects and over 300 applications for broadband adoption and public computer programs. Again – these requests have been made under just the first round of available funding, which gave potential grantees a mere five weeks from publication of the Notice of Funds Availability to the application’s due date.

So, it seems there are lots of ideas for how to invest in broadband infrastructure, and a lot of need to go with it. With a national broadband policy still under development, it will be interesting to see which applications are selected, how the use of these funds will shape the future of broadband policy and what changes will be realized in the telecommunications industry overall.

And while the broadband landscape changes, how will this impact other telecom industry infrastructure? According to The Economist, if landlines continue to decline at the current rate, they could be extinct by 2025. This scenario creates its own challenges – a cell phone can sometimes replace a home phone line, but could businesses easily replace landlines? And what about emergency services? Do businesses and individuals without cell phones end up paying more for a critical phone line which, while not as exciting as broadband, is nevertheless a lifeline utility? And with decreased demand, how many remaining customers are paying into the Universal Service Fund? A complementary opinion piece in The Economist calls for regulators to respond to these complex challenges.

Meanwhile, mobile networks continue to grow from investments in 3G and 4G networks. There is talk of possible scrambling to obtain or retain deals with Apple for rights to the iPhone, seen as a compelling enticement for getting customers to sign up with a particular wireless carrier.

All this is to say – you won’t have to look far to see folks waiting on the edge of their seats to see how ARRA broadband funds are invested. Not only will these investments impact broadband evolution, but they will also have a strong influence upon the changing tide telecommunications period – landlines, wireless, voice, data and video. Hopefully there are some exceptional ideas within the 2,200 applications submitted a few weeks ago and, with any luck, these ideas can be sifted through for the best investments to foster innovative broadband and telecom policies for the country.

Technology Reuse: New life for old computers

Many of us have been environmentally conscious for years. We faithfully sort through our trash to unearth newspapers, glass, aluminum cans, and plastic bottles. We take old clothes to Goodwill Industries, buy organic and tend a compost pile in the backyard. But when it comes to that old computer sitting in the hall closet and those ancient monitors gathering dust in the attic, it is difficult to know what to do.

According to the Environmental Protection Agency, “In 2007, discarded TVs, computers, peripherals (including printers, scanners, faxes), mice, keyboards and cell phones totaled about 2.5 million tons” of waste. When this electronic waste, or e-waste as it’s commonly known, is disposed of improperly, substances like lead, mercury, cadmium and brominated flame retardants can end up in landfills. Fortunately, there are environmentally-responsible disposal alternatives that can benefit our communities.

First, open your phone book and call a nonprofit – as there are scores of them nationwide that collect donated, second-hand computer equipment. This equipment is often refurbished and offered free or at a low cost to organizations and individuals. This helps to bridge the digital divide in a major way. San Francisco’s City Youth Now has also found that donated laptops can positively influence the lives of some teenagers and young adults who have become involved with gangs and illegal drug activity. Here in North Carolina, the e-NC Authority is exploring how refurbished computers can be used to help economically-disadvantaged citizens gain access to the Internet.

If you are looking to donate or acquire a refurbished or used computer, these organizations could be of assistance.

Earth911.com: Web site offering a searchable database of over 100,000 reuse/recycling centers nationwide.

EPA: The EPA’s Do the PC Thing offers helpful information about clearing data from your computer before making an equipment donation.

Goodwill Industries: Contact your local Goodwill to find out if the location accepts computer donations.

National Cristina Foundation: Accepts donations of used computer equipment from individuals and corporations, and then matches that equipment to non-profit organizations, schools, and public agencies that serve the disabled, at-risk students, and the economically disadvantaged.

Plug-In To eCycling: A partnership program between the EPA and electronic manufacturers, retailers, and service providers, which is designed to provide consumers with options for donating and recycling used electronic equipment.

Kramden Institute: Durham, N.C.-based nonprofit that refurbishes donated computers and awards them to economically-disadvantaged K-12 students in the Triangle area.

Purple Elephant Computer Factory for KIDS!: Raleigh, N.C.-based nonprofit that provides refurbished, operational, Internet-capable computers to individuals and organizations.

Recycles.org: Web site serving as a national and regional exchange network that connects prospective computer equipment donors with nonprofit participants.

TechSoup: Offers discounted and donated technology products to nonprofits. Web site also features a blog, Webinars, articles, discussion forums, and information about upcoming technology events.

Planning Broadband for the “New Normal”

In his recent conversation-starter essay, The New Normal, Ian Davis poses the question of “What comes next?” in terms of our current economic turbulence. Davis’ basic premise is that the current downturn is fundamentally different from recessions of the past, and that we are about to face a restructuring of known economic order. He states that the “new normal” will be shaped by a confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before this all began. One-time factors such as the entry of women into the labor force and loads of new college graduates conveniently coincided with peak spending years of the baby boom generation – all helping to boost consumption-driven growth since the 1980s. It is clear that these forces will not predominate in whatever emerges. Rather, Davis says that the factors shaping the world economy of the near future are less leverage and more government.

We already see evidence of the effect these factors are having on efforts to stabilize the financial crisis and revitalize growth in the banking and financial services sector. In the arena where the e-NC Authority is most directly concerned (broadband deployment), decreased leverage is sparking a new wave of mergers and acquisitions, delays in equipment upgrades and new deployments and reduced investment in product R&D. Countering these negative trends is another that makes us cautiously optimistic: increased interest in broadband at the highest levels of federal government through targeted investment of the American Recovery and Reinvestment Act (ARRA).

On Feb. 17, 2010, at long last, a national broadband plan will be delivered to Congress by the Federal Communications Commission (FCC). As its primary goal, this plan will espouse ubiquitous and affordable broadband access. On May 22, 2009, acting FCC chairman Michael, J. Copps made an important down-payment toward the national plan with the release of the report Bringing Broadband to Rural America. This report fulfills a requirement of the June 2008 Farm Bill that the USDA and the FCC submit a rural broadband strategy to Congress. Other critical federal broadband legislation includes the ARRA that will provide funds to map the current broadband footprint and help fund network deployment to unserved and under-served communities, and the October 2008 Broadband Data Improvement Act that requires the FCC to deliver an annual status report to Congress that benchmarks progress toward ubiquitous broadband access.

Highlighted recommendations contained in the Rural Broadband Plan include:

• Improve coordination among federal agencies and with stakeholders to better harmonize broadband agendas and working definitions – leverage broadband dollars across federal agencies and improve communication via an improved Web site
  
• Assess and address broadband needs thorough accurate mapping, education and training to stimulate demand – and provide subsidies to increase penetration while decreasing the cost of deployment
  
• Overcome challenges through consideration of universal services reform, network openness, spectrum access, middle mile and speed access reforms, inter-carrier compensation, access to poles and rights-of-way and tower studies
  
• Monitor and adjust the plan through annual status reports to Congress

In support of a national vision for broadband, acting FCC Chairman Copps harkens back to other instances where leadership and vision were successfully employed in the face of considerable opposition – and those adventures ended up delivering critical infrastructure that catalyzed and sustained economic growth. Think about it – he’s right. U.S. Postal Service. Transcontinental Railroad. Interstate Highway System. Rural Electrification and its spin-of, the Rural Telephone Cooperatives. All then of course, the Internet itself. All of these initiatives represent transformative public investments whose development depended on a strong and coordinated national vision. We agree with Copps’ statement that it is time for the United States to meet the challenges of the 21st century with universal broadband deployment. Whatever our collective “New Normal” turns out to be, we will be better prepared to meet it if we are all connected.

The nationwide splatter of job losses

We came across an interesting animation this week - a tool that demostrates/illustrates the collective job gains and losses that different communities in this country have experienced since January 2004. The animation is simple but the impact is profound. Just visually, this shows you that no area of the country stands immune from the economic downturn. While some economists and politicians may groan about certain corners of the United States that seem to be losing more jobs than in other areas, this animation truly debunks any notion of that. Unfortunately, the final "slide" is eerily reminiscent of a crime scene. Yikes. All the more reason to start your own business?

Rural business grows by using technology, through New Ventures Business Development, Inc.

Harold Britt, owner of Britt Insurance Agency, Inc./Nationwide (www.brittinsuranceagency.com) in Anson and Union counties, N.C., talks about the technology applications he learned by working with New Ventures Business Development Inc. (www.nvbdi.org). Using these services, Britt's business is growing and saving money at the same time. New Ventures is a publicly-supported business and technology center that offers free or low-cost counseling for small business owners and entrepreneurs, thereby creating jobs and local wealth in this rural community.

Lacking broadband infrastructure in Halifax County

Florine Bell, a community organizer in Roanoke Rapids, N.C., explains the value of high-speed Internet services to her area and its ability to impact economic improvement.

Lacking broadband infrastructure in western N.C.

Betty Hurst of western North Carolina's HandMade in America (www.handmadeinamerica.org), explains how craftspeople must have access to high-speed Internet services in order to sustain their small businesses and resultant livelihood.

InternetforEveryone.org Town Hall Series Coming to North Carolina

InternetforEveryone.org - a national initiative of groups that are working to bring the benefits of a fast, affordable and open Internet connection to everyone in America - will hold its second town hall meeting on March 7 in Durham. This event is part of a nationwide series designed to give local citizens a seat at the table as new leadership shapes America ʼs broadband future.

WHAT: InternetforEveryone.org Town Hall Meeting
WHEN: Saturday, March 7, 11 a.m. - 4 p.m.
WHERE: Durham Marriott Convention Center, 201 Foster St., Durham

High-speed Internet, or "broadband," is becoming a crucial public necessity - but more than 40 percent of all U.S. homes are not connected or use slow "dial-up" technology. To address this digital divide, President Barack Obama has vowed to "expand broadband lines across America," and Congress is poised to spend billions on broadband as part of its economic stimulus bill. InternetforEveryone.org will deliver feedback from the Durham town hall meeting to the Obama administration and Congress as a national guide to building a better Internet.

"Leadership in Washington has made Internet for everyone a national priority," said Timothy Karr, campaign director of Free Press, the organizer of InternetforEveryone.org." But getting everyone connected wonʼt happen overnight. In North Carolina alone, more than 3.5 million citizens are without high-speed access. Building an open, fast, affordable Internet is a process that requires true public participation. Washington must listen to the people of Durham , and others across the country, in order to build an Internet that works for all Americans."

For more information, visit www.InternetforEveryone.org/Events/Durham.

Lacking broadband infrastructure in N.C. - Piedmont Comm. College, Caswell County

Lionell Parker, librarian at Piedmont Community College in Yanceyville, Caswell County, shares his story about the challenges of life without broadband at a public meeting about poor Internet access in North Carolina.

Paging the Economy! Can We Get Some Stimulation Please?

It is impossible to watch the news these days without hearing stories on the economic recession and how it is impacting the country. As the recession continues, national and state leaders are examining a variety of ingredients in some far-off economic stimulus packages – all wondering if any of them will help to stir the economy. Early on, there was talk of a possible focus on physical infrastructure – investing in improved roads, airports and schools for the country – creating jobs through the implementation of these projects, simultaneously improving the backbone of the country. But FINALLY, the idea of increasing broadband infrastructure became part of the discussion.
Last weekend, in a radio address, Pres.-elect Obama pledged rollout of a massive public works program as part of his economic stimulus plan, including a renewal of the country’s information superhighway. While some have said that physical infrastructure projects take too much time to show results, others say the recession is deep enough that we have plenty of reason to invest for the long term. If we are moving toward an infrastructure-focused plan, it seems that broadband, our gateway to 21st century competitiveness, should be the key component.

Edward Glaeser’s recent column in the New York Times talks about the challenge of not losing focus on human capital in the mix of all the public infrastructure projects, especially when considering the unskilled workers. And really, broadband is A LOT more than just physical infrastructure. It is more so a tool that allows citizens and communities to reach their full capacity by enabling them to be connected to each other. A global conversation, if you will. But reaching those left behind will require not only infrastructure, but also training and education that will help unskilled workers reap the benefits of this tool.

This plan holds lots of potential promise for those interested in a national broadband strategy, but there is much left to be defined. It will be interesting to see how a massive broadband deployment program would be rolled out. From the FCC? From individual states? From some yet-unnamed entity? Broadband is not currently considered a public utility. Traditional public works programs are defined by the government investing in government-owned infrastructure. So if that’s the case moving forward, who will own this valuable infrastructure? If the funding goes to private service providers, what will be the criteria for deployment? How do we ensure competition between the providers, and what areas will be targeted? These questions are just some of the complicated issues to be sorted out in the country’s economic stimulus plan. At the e-NC Authority, we will be watching with great interest to see how it unfolds.

Broadband Policy and Obama: What to Expect

The votes are in; now the work begins. What can we expect in terms of how broadband Internet will infuse and define the platforms, programs, policies of President-elect Obama’s first administration? How can we get involved? Fortunately, the answers to these questions can be found online where Obama is already on the record as supporting universal broadband access and its use in support of education, health care, business development and civic engagement in government at all levels. The following excerpts from various sources capture and highlight what we might expect from his administration related to broadband.

Some of Obama’s sector-specific goals for broadband include…

Business Development:
Obama recognizes the role that technology and broadband Internet needs play in business development.

Health Care:
A key feature of Obama’s plan to lower health care costs is the proposal to invest $10 billion each year over the next five years to move the U.S. health care system to broad adoption of standards-based electronic information technology systems. This includes use of electronic health records to better coordinate care, measure quality and reduce medical errors.

Public Safety:
Obama is committed to improving the use of ICT to support public safety and improve response to emergencies and natural disasters. Critical to this is investment in the development and deployment of new technologies to promote interoperability, broadband access and more effective communications between public safety responders and their network systems.

Education:
Obama will push for funding to bring broadband access into all K-12 schools as a minimum technology operating platform.

Civic Engagement:
Building on the most technology-intensive campaign ever, the Obama administration envisions continued and expanded use of the Internet to encourage civic engagement.

Speed DOES matter

The Communications Workers of America (CWA) have been strong supporters of universal Internet access in the United States. These last two years, they have taken that message online, especially in an effort to try to demonstrate what the true picture is of the speeds that people have to deal with across our land.

According to the CWA, between May 2007 and May 2008, over 230,000 people in all 50 states, the District of Columbia and Puerto Rico have found their Web site to take the Internet speed test and to measure how fast their computers can upload and download data. Unfortunately, the results show how far the United States lags other countries in speeds. And that’s not good…

But why should we care? Speed matters because it defines the applications that you can effectively run on the Internet from your home, business, government or institution. The United States – the very country that invented the Internet – have now fallen to a world rank of 15th in the percent of the population subscribing to broadband. This is according to the Organisation for Economic Co-operation and Development survey (OECD). Canada, France, and South Korea all have faster Internet connections. In Japan you can download an entire movie or educational course in two minutes, but it could take you two hours or more in the United States. And that’s if you’re lucky. And as for cost? Citizens in Japan often pay the same as we do and sometimes lower for their Internet connections of profoundly faster speed.

Take the CWA’s speed test and test your computer access and download speeds. Last year, the United States had a median download speed of 2.35 Mbps. North Carolina had a median download speed of 2.93 Mbps. On page 40 of the CWA August 2008 Speed Matters Report, you can find the page for North Carolina. Our median upload speed is 369 kbps. So in that regard, our ranking among the states is 11th, up from 16th in 2007.

Is the Internet Immune to an Economic Downturn?

Our economy has been on a real rollercoaster ride this year. Most every day brings new stories of bank failures. Stock market troubles. Mortgages gone wild. Fluctuating oil prices. The National Debt that even the famous Times Square “counter” can’t keep up with. And then there’s the $700 billion bailout (ahem…rescue plan). Add to this volatile mix, pundits consulting their crystal balls, comparing our current economic crisis to the Great Depression, and telling us the obvious – that the institutions we’ve traditionally trusted have failed us. Our domestic woes are now impacting the world and, oh by the way, we might be in a recession. Bad news withstanding, the Internet seems to be thriving. And no wonder…

According to a May 2008 survey by Pew, 73 percent of American adults are Internet users. And in this age of Google, iTunes, eBay and cars.com, users are spending money, and lots of it. Forrester Research shows online sales, excluding travel, reached $175 billion in 2007. And Forrester expects the figure to hit $204 billion this year, despite the economic slump.

Online content consumption is also on the rise. In June 2008, Cisco reported global Internet traffic will grow at a compound annual rate of 46 percent from 2007 to 2012. And the company believes Internet videos will account for 50 percent of consumer traffic in 2012.

But, back to the question of whether the Internet is immune to an economic downturn. The Internet is certainly well-insulated because of high demand for its offerings and affordable delivery. Likewise, its worldwide audience, innovation-friendly environment, and seemingly unlimited expansion potential offer some additional warm-and-fuzzy buffers. On the other hand, though, Internet content and usage is influenced by our needs and wants, and our relationship to the prevailing economy shapes those needs and wants. So, can there really be a definitive yes or no answer to the question? What do you think?