Connectivity is Essential to a Competitive Economy
Information and Communication Technologies (ICT) play a critical role in the
economic development and competitiveness of national, regional, and local communities.
A diverse group of organizations from the World Bank [1] to the Congress of American Indians[2] have made the case that without access to ICT,
rural communities cannot hope to support a competitive economic environment.
The ICT requirement for the future will not be access alone, but broadband
access (defined loosely by the federal government as any technology that provides
downstream access—from the Internet to the user—at a minimum of
200Kbps). Indeed, the construction of a national broadband network has been
suggested and has received support from a variety of legislators,[3] trade associations, and policy
makers. One study[4] estimates that such a network would result in the creation
of 1.2 million jobs, the majority of which would be in technology as opposed
to pure telecommunications-related jobs. Another estimate[5] is that $500 billion a year for the next
10 years would be pumped into the American economy if broadband was available
universally.
Yet for rural communities—particularly many of the communities served by
the Appalachian Regional Commission (ARC)—lack of access to a modern telecommunications
infrastructure has denied them the opportunity to compete equally with more-connected
regions that are in or adjacent to metropolitan areas.[6]
The Commission recognized this barrier and adopted the Information Age Appalachia
program to promote access to a modern telecommunications platform for the Region,
and to ensure that its residents can take advantage of the opportunities ICT
allows.
From Austin to Appalachia
The founders of NuRelm, Inc., (www.nurelm.com)
a software development company that creates web management products, are
Appalachian natives who wanted to return to the region and keep their company
vital. They relocated a high-tech Austin business to Appalachia, where they
can use cable modems to connect to the Internet, with little impact on their
productivity—and an improvement in their lifestyle. NuRelm now employs
14 people in Uniontown, Pennsylvania. Without access to the high-speed cable
modem they would have been unable to relocate the company in Appalachia.
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Barriers to Access in Appalachia—Cost, Landscape,
and Perceived Demand
Lack of access in the Region is the epitome of the classic chicken-and-egg
scenario: lack of access suppresses demand, while lack of demand leads to
lack of access.
Telecom providers—primarily the local telephone company, but also a growing
number of alternative providers, such as cable TV companies—don't typically
view rural communities as ones in which the investment to physically run wires
will pay off with usage fees in a reasonable timeframe.
In rural areas, mountainous terrain and long distances often drive the cost
of building the infrastructure to extremely high levels compared with urban
settings. High cost, paired with the perceived lack of demand for advanced
telecommunications services, makes providers reluctant to build infrastructure
to remote and/or sparsely populated communities.
As a result, many rural ARC communities have limited telecommunications options,
including—
- Poor quality dial-up lines that don't support modem use;
- Long distance dial-up access at prohibitive costs (and slow speed); and
- Long-haul leased lines at exorbitant rates.
The Connectivity Conundrum
It has been said that technology makes distance and location irrelevant. Indeed,
when available and affordable, advanced telecommunications services deliver
benefits especially relevant to rural communities. Distance learning, telemedicine,
and e-commerce add more value to those in remote areas than to those in metropolitan
areas.
So we are left with the Connectivity Conundrum: those who would benefit the
most from a broadband network have the least access to it.
Wired Broadband Options: DSL, Cable Modems, and Dedicated Leased Lines
Although the term "broadband" brings to mind vast speed and limitless capabilities,
it does not have a universally accepted definition. Nonetheless, we will adopt
the term to distinguish the status quo—dial-up connections with 56Kb
modems unable to support large applications—from the desired state, which is
broadband access.
Digital Subscriber Lines and Cable Modems are Hard to Come By In Rural Areas
Alternative options for access, such as DSL and cable modems that are
popular in metropolitan centers, typically are not available in rural communities.
Indeed, in many areas, basic cable television is not available. Each of these
alternative options requires a significant investment by the service provider
to upgrade equipment and to deliver the expanded bandwidth.
Digital Subscriber Lines leased from the phone company, or cable modems that
allow computers to access the Internet through a community's cable TV infrastructure,
provide a higher level of connectivity than dial-up modems. While primarily
marketed for residential use, DSL is capable of supporting some small business
applications. However, neither DSL nor cable modems are prevalent in the ARC
service region.
Dedicated Leased Lines—A Starting Point for Broadband, but Still
Prohibitively Expensive
The only remaining option in most areas is a dedicated leased line. Dedicated
leased lines from the telephone company are generally the most available method
of gaining a high-quality, high-speed connection. The typical leased line is known
as a "T1." [7] One T1 line delivers about
30 times the bandwidth of a standard dial-up modem. Multiple lines are often leased
by large organizations to provide sufficient bandwidth for advanced applications
or large numbers of users. Leased line rates are usually dependent on the distance
traveled—the greater the distance, the higher the cost.
In rural areas, only relatively large organizations such as colleges, hospitals,
or manufacturing plants can typically afford to run a T1 (or similar) leased
line to their location from miles away. Often the loop costs [8] will be significantly more than the
cost of the Internet access. Therefore, the high cost of leased lines is a
barrier that essentially prohibits access to most rural communities.
Nonetheless, for this discussion we can think of a T1 as being the entry
point for broadband. A T1 connection can support some of the advanced applications
that define the minimum requirements to support economic development efforts.
Compared to a standard office Ethernet network connection, which is typically
10 Mbps, and internal office networks of 100Mbps, a T1 is slow and expensive.
For future applications one might consider 10Mbps to be the entry point for
broadband, as applications will increasingly require expanded bandwidth.
Wireless Broadband is an Opportunity for Rural Communities
The evolution of fixed[9] wireless broadband technology
presents an opportunity for rural communities to tear down the access barrier.
As the name implies, connectivity to commercial and residential buildings is
provided through a central access point, like a transmitter, and received through
an antenna mounted on an outside wall or roof (both antennae actually transmit
and receive). Both the transmitter and receiver antennae are small and require
few special power requirements, which makes them easy to install and quick to
implement.
Wireless Technologies Reduce Infrastructure Costs
Wireless technology eliminates the need to run physical wires, which avoids
the enormous costs involved in a conventional wired environment—costs that most
providers view as prohibitive in rural or sparsely populated communities.
Community connectivity to the Internet, or a high-speed backbone network, can
be obtained either through leased lines—the cost of which the community
can share—or through a wireless "back haul" that can cover dozens
of miles.
An alternative to the backbone network is commercial satellite service, which
is now reasonably affordable. However, it offers modest bandwidth and is best
used for things such as email and web browsing. Interruptions in the satellite
signal due to the distance it must travel to space make this technology unsuitable
for truly interactive applications. Also required for satellite service is an
unobstructed view of the southern sky, which may not be available in all locations.
Wireless Technology Helps a Marine Service Company Locate its Boats
The C and C Marine Services Company had trouble scheduling the 223 barges
in their fleet, as the managers were unable to determine the barges' exact
position and thus plan their availability for additional work. As a result,
some barges sat empty and customers were not served effectively. With help
from the Carnegie Mellon University e-commerce practicum, a wireless application
was developed that allowed communication between the fleet and C and C headquarters,
as well as provided continuous GPS-based location data. Now the company
instantly knows the position of barges in its fleet and can schedule them
more effectively, decreasing downtime and response time to customer requests
while increasing sales.
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The Public Spectrum for Wireless Technology Makes it Affordable
Recently, technologies have been introduced that use a portion of the spectrum
that requires no FCC license. By using this "public spectrum," one avoids significant
license fees, resulting in affordable, wireless broadband service.
One solution attracting a lot of attention is Wi-Fi (for Wireless Fidelity,
a take-off on "Hi-Fi"). Hotels and cafes are installing Wi-Fi networks
in cities around the country. In these locations, anyone with a Wi-Fi card in
their laptop or handheld device can pay to access the network and surf the web
while sipping a latte.
As impressive as wireless cafes are, Wi-Fi installations typically cover limited
distances. As a result they will not, as currently configured, provide the distance
and speed required to enable multiple, community-wide applications. Further,
the spectrum that Wi-Fi uses—2.4GHz—is becoming increasingly crowded with wireless
services.[10]
Technologies using spectrum in the 5GHz range (reserved for the National Information
Infrastructure, a planned national network that was being envisioned in the
early 1990s) provide another option. Known as the U-NII spectrum, it can easily
allow wireless technologies operating in this portion of the spectrum to cover
many miles.[11] Moreover, U-NII provides
bandwidth comparable to a 10Mbps wired Ethernet office network.
Implementing Wireless Broadband Can Help Rural Communities Catch Up
Minimal costs for construction and equipment acquisition, along with the ease
of configuration and maintenance represent a true sea change in technology, and
provides the means for rural communities not only to catch up to their metropolitan
counterparts, but to surpass them in the availability of bandwidth. For once,
rural America can be a technology leader. Wireless is Here to Stay
Several indicators suggest that the future of wireless broadband is secure—not
a technological flash-in-the-pan. FCC Chairman Michael Powell has indicated his
desire to promote increased use of the unlicensed spectrum. [12] Further, the government has recently reallocated additional
spectrum in the 5GHz range from the Defense Department to the public.
Wireless technologies are predicted to grow by 20 percent a year for the near
future, and wireless will soon account for 10 percent of all broadband revenues.[13] A recent study[14]
by the National Telecommunications Cooperative Association shows that rural
customers of wireless broadband are pleased with the service and most providers
report retention rates of 90 percent or more.
Broad Applications for Broadband: Health Care, Education, and Economic Development
Once rural communities employ broadband, what can they do with it? ICT development
is not limited to, or even focused on, "high-tech" related development.
While high-tech related companies and individuals will certainly have more options
in a connected rural community, existing organizations will be enhanced as they
increasingly become dependent on broadband access. Consider using broadband
for health care, education, and economic development.
Health Care
Broadband uses for patients. Broadband networking can enhance
the medical care of residents in rural communities. Through telemedicine residents
can have access to remote specialists that would otherwise be unavailable. Mobility-impaired patients can thus avoid the expense and hassle of traveling long distances for expert consultations. Telemedicine also brings instant access to distant specialists to support diagnostic and treatment services.
And patients' with access can save money on prescription drugs ordered online
and can take part in medical support groups.
Broadband uses for the industry. Local health clinics can be
linked to regional hospitals to better serve patients. Federal regulations
will soon require hospitals and caregivers to submit Medicare and Medicaid
claims electronically; those who fail to do so risk losing substantial reimbursements.
Cost savings in records management and other administrative duties can be
substantial.
Broadband uses for professionals. Distance learning applications
enable health care workers to participate in continuing education programs.
Participation in professional organizations and online communities allows
rural practioners to keep up with advances in the field.
Tech Drives Development
"Although high-tech is not the only development strategy to pursue, it will
be the key distinguishing feature of regional vitality in the 21st century....
States that recognize these changes and alter course quickly will be ahead
in the economic development game."
- Milken Institute, State Technology and Science Index, 2001
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Education
The benefits of integrating technology into K–12 schools are substantial
and well documented.[15] The wealth of information on the Internet
opens a world of knowledge to children that was unimaginable only a few years
ago.
Distance learning opportunities allow rural children to have access to subjects
not available locally and to engage in programs such as advanced placement,
which local schools often cannot support. With a broadband connection students
can have access to cutting edge technology like Internet2, where tomorrow's
applications are being developed.
There are also significant resources for teachers to integrate technology into
the classroom, as well as to maintain their own skills.[16]
Economic Development
Access to advanced telecommunications is increasingly required for small-
and medium-sized businesses common in rural areas. According to the U.S. Chamber
of Commerce, more than 90 percent of small businesses reported that productivity
gains meet or exceed the monthly cost of broadband.[17]
With broadband access, the tourism and crafts industries can significantly
expand their potential customer base and increase profits. Banks and other
traditional Main Street businesses can work more efficiently and interact
more easily with customers and suppliers. Small, rural telephone companies
have the opportunity to dramatically increase the level of service they can
afford to offer, and by extension, increase their revenue. And technology-related
businesses and incubators can be sustained in the Region, whereas in the past
entrepreneurs and high-tech firms were forced to leave to be viable.
Considerations for Implementing Broadband
Implementing Broadband Requires Community Planning
A key to developing broadband service in rural communities is having a large
number of people actively participate in the planning process—[18]
the opposite approach of planning processes used in metropolitan areas, where
infrastructure availability is the product of commercial and regulatory forces.
It is likely that the community will share the connectivity, so the needs of
every member should be considered when connectivity is being configured. Further,
although wireless broadband is relatively inexpensive, some investment is necessary.
So, by configuring the network to best meet the needs of the entire community,
the cost may be reduced. In addition, your community may or may not want to
complete an inventory; you may or may not want or need to hire a consultant
to assist through the process.
See the Appendix for a list of resources to
help plan for broadband implementation.
Communities Should Target the Highest Level of Bandwidth Possible
There are many broadband technologies and many ways to implement them. Regardless
of the technology, it is almost certain that broadband access will become a
prerequisite for any type of application. When adopting a telecommunications
strategy, communities are best advised to target the highest level of bandwidth
they can reasonably afford and to avoid technologies that may well become obsolete
in the near future.
Security, Line-of-Sight, and Environmental Considerations for Implementing
Wireless Broadband
As with any technology, communities implementing a wireless broadband network
need to be mindful of constraints and plan their installation accordingly. Properly
configured, installed, and managed, a wireless network will approach the robustness
and quality of service typical of a wired environment, at a fraction of the
cost. Some factors to consider include:
- Security. Data transmitted through the air instead of through
discrete wires is inherently easier to intercept. Network managers must implement
the proper security protocols and encryption software to ensure that stray
signals remain secure from intentional hacking or unintentional use.
Another security concern is the attractiveness of computers on high-bandwidth
networks to hackers looking for unknowing hosts to spread viruses. Firewalls
are necessary to protect against this threat, even on individual PCs.
- Line-of-Sight. Wireless applications should be considered as pure
line-of-sight connections. The technology is reasonably robust and will likely
operate adequately with interference from trees and even walls, but don't
assume that will be the case.
- The environment. Bad weather can occasionally affect a network's
speed and availability. Antennae should be protected against lightening and
significant icing.
Wireless Phoenix
A typhoon hit the rural Japanese community of Nangoku in 1998, wiping out
the telecommunications infrastructure. Not content to wait to replace the
wired environment, the city's residents, led by university professors, installed
a wireless infrastructure. The new network is credited with stimulating
additional development and new job creation.
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Technical Requirements for Implementing Broadband Vary
The technical requirements for acquiring broadband access may vary from community
to community, depending on what is commercially available. And access may run
the gamut from DSL to wireless. The specifications for broadband can even change
within a single technology, as with Wi-Fi implementations or cable modems.[19]
Data connections are two-way streets, and traffic on one side can have a higher
"speed limit," as it were. The federal government tends to view broadband as
any technology that provides downstream access (i.e., from the Internet to the
user) at a minimum of 200Kbps. This speed may be sufficient for standard web
browsing, when the data transmitted from the user to the Internet is typically
small, and when data delivered to the user is typically substantial. However,
for uses such as telemedicine or distance learning, this level of broadband
may not be sufficient for interactive applications.
For some applications a T1 will suffice; for others only an Ethernet-level
speed of 10Mbps will work. Advanced networks such as Internet2 provide speeds
and capacity well beyond that. Access to this network is available for K–20
educational institutions, libraries, and museums through a university sponsor.
Best Practices
Rural communities around the world share some of the same challenges and
barriers to broadband access. No better example exists than the Connectivity
Conundrum. Many international development organizations and governments who
focus on rural issues have addressed the access problem and implemented programs
to solve it. Organizations such as the World Bank and the Inter-American
Development Bank are active in this area, and countries as diverse as India,
Australia, Canada, and Japan have established national programs to stimulate
telecommunications delivery in their rural areas.
Although Appalachian communities certainly have unique characteristics, lessons
can be learned from the experiences of others.
Also in this report:
Return to Spotlight on Telecom Issues
Footnotes:
[3] See for example, Senator Leiberman's white
paper, "Broadband: A 21st Century Technology and Productivity Strategy."
[7] T1 (or Trunk Level 1) technology was developed
in the late 1950s and represents the initial digitalization of the analog,
voice phone system. Faster speeds, e.g. "T3", are available as
are slower speeds by leasing a portion of the channels known as a "fractional
T1."
[8]"Loop costs" can be thought of
as "mileage charges" for operating a circuit linking a facility
to the Internet. In rural areas with long distances to cover these charges
can be substantially more than access charges themselves.
[9] Advanced
mobile applications, such as 3G, which use cellular technologies, have not
proven to be sufficiently robust or widely available to support community-wide
strategies.
[10] The standards and capabilities of technology in
this spectrum are, however, rapidly changing and increasing.
[11] Although the specs list an operating distance
of two miles, a provider in Salem, Virginia, has customers over 12 miles
away from the nearest network access point.
[12] Broadband Migration III: New Directions in
Wireless Policy, Federal Communications Commission.
[13] Jim Wagner, Internet News, March 2002
[14] NTCA 2002 Wireless Survey Report, October
2002
[17] The Donahue Letter, "Broadening the Internet's
Reach," 5 December 2002.
[18] See Community-oriented Communication Development
in Rural Japan, Takeshi Shinohara, June 2002.
[19] For example, a cable modem service may be advertised
as providing "up to" 1.5MB of throughput. However, that throughput is generally
shared by others on the same segment of the network. So, as the number of
active users grows within that segment, there will be significant decreases
in throughput. What may be broadband speeds when you're online alone slows
to speeds more akin to dial-up when your neighbors start logging on.
Do you want to know more?
Contact the ARC Telecommunications staff at telecommunications@arc.gov.
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