The Return from Investment in Broadband Infrastructure and Utilization Initiatives Insights from the 2014 SNG White Paper. Border to Border Broadband: A Call to Action February 5, 2014 Saint Paul, Minnesota. Making Broadband Work and Proving it.
The Return from Investment in Broadband Infrastructure and Utilization Initiatives
Insights from the 2014 SNG White Paper
Border to Border Broadband: A Call to Action
February 5, 2014
Saint Paul, Minnesota
WE ARE a global leader in broadband planning for socio-economic development
WE PROVIDEdata and insights to increase
broadband utilization and impacts
WE DELIVERstrategies for economic development
and community transformation through broadband
Some of our clients:
Source: SNG Digital Economy Database n = 19,951 businesses and 9,318 households
Broadband is responsible for 23.4% of all new jobs
Small businesses create 12x more Internet jobs relative to large firms
Source: SNG Digital Economy Database n = 6,177
Provided actionable insights
utilization and impacts in Illinois
Average DEi score by region
Source: SNG Digital Economy Database for Illinois n = 7,225
Cross referencing data enables to develop customized strategies
Based on Average DEi Score- Source: SNG Digital Economy Database for Illinois n = 7,225
Based on Average DEi Score- Source: SNG Digital Economy Database for Illinois n = 2,125
Used our proprietary database on broadband impacts to study
the ROI in Broadband Infrastructure and Utilization Initiatives
Focus on 2 areas:
Inside these areas, the paper focuses on three industry sectors
Based on SNG research, the eSolutions below have the greatest impact for each sector.
Challenge: how to raise awareness and drive utilization of these esolutions?
Technology is not enough
The situation in North Georgia
“Traditional marketing to customers wasn’t going
to get our network to sustainability.”
Bruce Abraham, President, North Georgia Network
In the Broadband equation,
the quality of each input affects the outcome
How SNG Helps Drive Utilization
Why “build-it and they will come” does not work?
→ Because people buy benefits, not features
… so driving awareness and utilization is the next challenge
For further information, see “No Field of Dreams: Eliminating the Waiting Game and Driving Uptake”
Network operators are typically*
not sustainable with a “build it and they will come approach”
* Financial profile of typical fiber network build. Source: Ventura Team LLP, www.venturateam.com
Fear of the unknown overrules slow Internet as a barrier
Source: SNG Digital Economy Database
What is important to measure for driving adoption Transformative Economic Benefits of Broadband?
The SNG Data Collection Process
Need metrics to know… …. where are we now? Transformative Economic Benefits of Broadband
… and how much closer are we to our goal?
How businesses, organizations, and households are currently using, or planning to use broadband and e-solutions.
Gaps and Barriers
Where the gaps in the utilization of e-solutions are and which factors inhibit, or prevent adoption.
Drivers and Needs
Understanding the needs and preferences of end-users in order to raise awareness, to increase adoption, and to drive effective utilization.
How things have improved and which e-solutions have benefitted businesses, organizations, and households.
Quantify benefits in terms of new revenues, cost efficiencies, new jobs, quality of life, etc.
Internet connection type, tested speed, length of time using broadband, organization size, industry sectorclassification, demographics, etc.
We uncover Internet use at a micro-level
and benchmark against peers
17 e-solutions1by businesses / organizations
30 e-solutions1by households
Utilization data collected2 by SNG directly
from 27,150 businesses / organizations
And 12,400 households.
SNG has normative databasewith deep insights on
Internet usage and impacts – over 110 metrics for each record.
Results shown use SNG’s Digital Economy index (DEi), a composite score
between 1 and 10 to reflect level of Internet utilization.
1. Internet-enabled applications and processes; 2. Between 2008-2013
Identify Broadband Impacts Transformative Economic Benefits of Broadband
Benefits from the Digital Economy
Businesses underutilizing the Internet miss significant revenue opportunities
For an individual business or organization, increasing utilization by 10% means:
Increasing revenues by 24%
Decreasing costs by 7%
For a Region, it means :
Allowing businesses to be more competitive
Creating a demand for high-skilled workers
Adding fiscal revenues
Average multipliers identified by SNG from over 12,000 data records collected in 2009-10.
Motivating Business Broadband Transformative Economic Benefits of BroadbandUtilization
Tools for Economic Development
Business Assessment Survey
Financial Impact Calculator
There is an economic case for investing in broadband Transformative Economic Benefits of Broadband
To promote broadband investment, increase coverage and drive utilization you need to:
Engage local stakeholders to “own the process”
Collect and use meaningful, actionable broadband data
Illustrate local examples of broadband impactsSNG Recommendations for Minnesota
Both Lac qui Parle and Kanabec counties are rural and relatively small in terms of total business establishments (191 and 295, respectively) and total employment (1,945 and 3,188, respectively).
1. Select your organization characteristics
2. Select your actual and needed e-Solutions
Source: SNG Digital Economy Database n = 27,200
3. See your potential benefits from increased utilization
4. Details of potential revenues and cost savings
Source: SNG Digital Economy Database n = 27,200