BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.
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ECONOMIC DEVELOPMENT A public library adjacent to a commercial district may generate greater investment interest than a rural water tower. demonstrate the economic viability of particular broadband areas. Other relevant assets extend beyond technology. Rights of way and zoning permits, for example, are substantial assets. Te more a community can eliminate hurdles, the more robust its technological assets become. Moreover, expediting procedures powerfully demonstrates a community's willingness to engage in broadband investment. Failing to do so demonstrates the opposite and therefore leads to underserved communities. A slow-moving approval process can signifcantly escalate costs, discouraging broadband providers from doing business in the community. OPPORTUNITY FOR INVESTMENT Te value of new assets ultimately depends on how likely these assets are to be integrated into the nationwide network and how well they can be integrated into that network. Fortunately, there is tremendous momentum for both communities and companies to invest in broadband technologies. Te benefts are increasingly clear, and the federal government is currently investing substantial resources to ensure that the quality of the nation's technology infrastructure is second to none. Te marketplace has organic momentum as well. As of 2012, smartphone usage reached 80 million customers and is growing at 25 percent per year. As video streaming and interactive content have become commonplace, the demand for more data transmitted at faster speeds has grown rapidly. Indeed, the demand for broadband is expected to rise to as much as 25 to 35 times its current usage by 2016. Tis unprecedented expected 100 increase in demand signals an everpressing need to invest in the necessary infrastructure. Although there are more than 250,000 cell towers in the United States today, the current rate of infrastructure expansion is expected to cover only a portion of the demand. Small cells will ultimately be the ideal method to meet this unmet demand. Internet service providers have grown eager to harness this shift. AT&T;, for example, is investing heavily in small-cell infrastructure as part of its Project VIP. Te company has laid out an aggressive investment plan that includes an expanding reliance on small-cell sites and in-building distributed systems. Indeed, AT&T; plans to build 40,000 new small-cell sites versus 10,000 new towers over the next two years. Other companies have sprung up to harness new opportunities. Republic Wireless, a young but growing company, utilizes Wi-Fi networks to provide mobile telephone service at much cheaper rates. Tere is momentum in all levels of the broadband economy. RETURN ON INVESTMENT By using asset maps, communities and broadband providers can pinpoint opportunity, facilitate partnerships, anticipate hurdles and streamline processes. Such an initiative would be tremendously attractive for Internet service providers, who often need to be convinced of the value of investing in a particular community. A community that has measured, analyzed and assessed potential assets and also garnered support for the development will undoubtedly stand out among possible development locations for national carriers. Communities that successfully | BROADBAND COMMUNITIES | www.broadbandcommunities.com position themselves for broadband investment see extraordinary results. Put simply, high-speed broadband has become an integral and necessary condition for any community in the 21st century. Tis includes enhanced quality of life and improved health care, education and public safety. Most clearly, broadband access creates jobs. Tis can be seen on both extremes of the broadband-capacity spectrum. As discussed above, Kansas City is rapidly becoming a hub for business growth and innovation because of the Google Fiber program. On the opposite end of the spectrum, communities without broadband are simply passed by in an increasingly competitive, mobile and transitory economy. Companies without broadband access cannot compete with those that have it; thus, communities without broadband are unable to recruit or keep quality companies. When a community receives broadband, it is quite literally placed on the map. Communities that were once quickly overlooked are now viable candidates for possible locations of new enterprise. As a small example, many companies have started "reshoring" their operations to the United States. Previously outsourced operations, such as call centers, are now being placed in rural communities that have gained access to broadband. Within this fastpaced, interconnected economy, only communities with broadband capacity could even be considered. Tough broadband infrastructure as a whole certainly benefts communities, monetizing previously unused assets has the most immediate efect on a community's bottom line. A municipal building can lease cell-site locations for $18,000 to $24,000 a year. If this estimate held true in the Palo Alto example of 40 AT&T; sites, that community might have generated revenues of $720,000 to $960,000 a year. Given the recent budget constraints aficting communities across the nation, such an annual infow of cash could represent a tremendous immediate beneft. | NOVEMBER/DECEMBER 2013