Slide1: Network Provider Community of Interest Milestone Meeting #1 SIU Dunn-Richmond Center 3:00-5:00 PM June 20, 2006 Building a Collaborative Regional Economic Strategy Enabled By Broadband Connectivity Leading With Healthcare CONNECT SI


Slide2: Agenda - Milestone Meeting #1 3:00 PM - Introductions of Participants and GIS Mapping Team 3:15 PM - Overview of Connect SI and Role of Network Provider COI 3:45 PM - Review Central Role of GIS Map and Available GIS Resources 4:15 PM - Discuss Guiding Principles for GIS Data Provision, Security and Access 4:45 PM - Leadership of COI and Next Steps 5:00 PM - Adjourn


Slide3: Population=423,670 Workforce=195,429


Slide4: Connect SI: Strategic Goals Create a broadband enabled 20-county economic strategy Build network provider, CED and health COI’s for regional economy Communicate enabling economic role of connectivity to region Benchmark impact of healthcare on regional economy Develop connectivity business case for at least 3 Tele-health apps Create GIS broadband demand aggregation map and peering solution Build strategies to improve employee retention & raise wages in SI Establish long-term regional framework to sustain initiative Implement a successful collaborative funding strategy


Connect SI Strategic Engagements: Connect SI Strategic Engagements 20-County Economic and Community Development Leadership Engagement Health Services Community of Interest (COI) Engagement Connectivity Provider Community of Interest (COI) Engagement Enabled by Collaborative Regional Leadership and Connectivity Frameworks


Connect SI Potential Outcomes Drive Connectivity Demand: Connect SI Potential Outcomes Drive Connectivity Demand Connect SI Possible Five-Year Measurable Outcome Goals: Create 10,000 new jobs paying $43,500/year plus health benefits=$435 million/year Raise average wage by $3,400/year for regions workforce=$571.6 million/year Reduce region poverty rate to state average of 10.7% from 16.4% affects 22,000 Reverse health service revenue migration to increase revenues by $100 million/year Reduce regions real unemployment rate to state average=6.1% Increase broadband penetration rates by 50% to finance ubiquitous broadband access Projected Five-Year Measurable Outcome Goals versus ViTAL Economy Client History: Job creation goal is 40% of average client experience for comparable employment base Average wage goal is 52% of average client community experience Annual wage creation is 42% of average client community experience Healthcare revenue creation goals are 20% of average client community experience Unemployment rate goal is 50% of average client community experience


Slide7: Role of the Connectivity Provider COI Champion collaboration of connectivity providers to grow regional economy Collaborate to map all broadband network infrastructure assets in the region Develop the business case for a sustainable shared-use broadband network in SI Collaborate with other COI’s to identify who else benefits from shared access Research and propose legal peering solutions to connect all of Southern Illinois Use connectivity to make Southern Illinois attractive for work and workers Develop COI and community understanding of connectivity impact on SI economy Move region/industry from a mindset of parochial competition to co-opetition Link the COI strategy to Connect SI strategy for regional economic transformation Invest time, talent and treasure in making Connect SI a collaborative success


Connectivity Provider COI: Connectivity Provider COI Establish GIS Sub-Committee, Procure & Feb 2006--------------------------------------------------------> Manage GIS Resources Source and Map All Network & User Info Mar 2006---------------------------------------------------> 1 - Organize COI, Conduct Amplify Workshop Jun-Sep 2006 Set GIS Mapping Guidelines & Goals 2 - GIS Map Regions Broadband Assets, Sep - Dec 2006 Conduct Gap Analysis 3 - GIS Map Broadband requirements for Health Dec 2006 - Feb 2007 ED, CED and General Community 4 - Select a ROI based network peering solution Feb - Apr 2007 & Develop Reg’l Demand Driven B-Band Strategy 5- Connect COI Strategy with other COI Strategies Apr 2007 into Regional Strategy


Slide9: What Would Define Connect SI Success for You? Your thoughts…


Benefits Articulated by Connectivity Providers: Benefits Articulated by Connectivity Providers Expands market size and market share for providers Providers become customer solution partners Dramatically increases provider customer loyalty Opens up emerging market opportunities for providers Positions connectivity as a strategic resource Transforms customers into provider sales champions Expands collaborative investment opportunities for providers Maximizes return on network investment for providers Focuses on increasing provider share of market GDP


Central Role Of GIS Map: Central Role Of GIS Map


Slide12: GIS Map Is Central To A Connectivity Driven Growth Strategy Provides a clearer picture of broadband connectivity for users and providers Identifies gaps that are real and dispels myths about gaps that may not exist Creates ability to map connection of remote resources to solve problems Aggregates market demand opportunities…clarifies expanded market opportunities Enables provider collaboration on network investments…increases ROI Creates a robust economic development tool for attracting KBE’s


Unified Connectivity Growth Strategy: Unified Connectivity Growth Strategy Regional Marketplace Enterprise Customers Communities of Interest Industry Clusters Lifestyle Application Offerings Increased Share of GDP


Slide14: Regional Economies Transformed by Broadband Connectivity Western New York - 1st networked rural health/learning service across 4 counties Rural North Carolina - Rural Internet Access Authority transforms rural regions Olympic Peninsula - Connectivity enables reversal of 30 year economic down trend Nova Scotia - Networks transform fishing villages into e-learning & e-business engines Tasmania - Resource economy becomes global virtual marketplace Southwest Virginia - 13 counties become a virtual networked economy Coachella Valley - Nine communities transform desert into a smart economy asset Rural Maryland - Networks transform 17 rural counties into growth engines New Brunswick - Connecting 750,000 citizens to global economy


Sample States & Cooperating ProvidersVE Led GIS Broadband Infrastructure Initiatives: Sample States & Cooperating Providers VE Led GIS Broadband Infrastructure Initiatives Sample Communities Sample Providers Maryland Verizon, Comcast, IOC’s Pennsylvania Verizon, ATT, Comcast, Cox, etc. Virginia Verizon, Sprint, IOC’s, Cable North Carolina Bell South, Comcast, IOC’s, GTE Washington State Century Tel, CLEC’s IOC’s, Cable Delaware Verizon, CLEC’s, Cable, etc Arkansas Alltel, IOC’s, Cable, CLEC New York Verizon, IOC’s, Cable, CLEC’s


Review of GIS Resources: Review of GIS Resources Dr. Tonny Oyana Assistant Professor of Geography Graduate Program Director Southern Illinois University


Slide17: Guiding Principles for GIS Data Provision, Display, Use and Access Your thoughts…


What You Need To DoTo Assure the Success of Connect SI: What You Need To Do To Assure the Success of Connect SI Lead/Participate in the Connectivity Provider COI and Connect SI Invest in the 2006/2007 collaborative funding of Connect SI Champion the sharing of network infrastructure info to connect region Define benchmarks that will measure success of Connect SI Provide access to resources to help map regions broadband assets Define connectivity requirements to link regions resources Help COI define viable business cases for priority initiative actions Move the region to a climate of shared versus special interests Support a sustainable framework for managing regional economy


Slide19: Next Steps Your thoughts…


Back-up Resource Slides: Back-up Resource Slides


Why Network Providers Like the ViTAL Economy Approach “It Generates Measurable Connectivity Results”: Why Network Providers Like the ViTAL Economy Approach “It Generates Measurable Connectivity Results” Provider doubles business over 5 years in mature rural market Rural provider feature take-rate becomes highest in any of their U.S. markets Provider realizes added $35 mm in sales per year on $50mm investment Provider moves from 40% below to 150% above sales plan-6mths Regions leaders become connectivity sales force to grow enablers sales from 1.5% to 3% of regions GSP…ultimate goal is 6% of GSP Regions providers lower infrastructure build plan from $7mm to $500,000 Network expansions gain regulatory support & approval for 3-year versus 16-year depreciation schedules…it changes regulatory and citizen perspectives Users now view broadband connectivity as a strategic asset they can’t afford to be without versus a service they cannot afford…increased willingness to pay


Understand How Connectivity Grows Value of Networks & Integrated Marketplaces: The Utility/Usefulness of a Network Increases by the Square of the Number of Users on the Network ! Metcalfe’s Law The Value of a Network Increases Geometrically by the Number of “Many-to-Many” Uses delivered over the Network ! ViTAL Economy Law Understand How Connectivity Grows Value of Networks & Integrated Marketplaces Users Uses Utility Value Integrated Marketplace


Successful Response To Integrated Marketplace Requires ViTAL Economy’s 3 C’s for Economic Development: Successful Response To Integrated Marketplace Requires ViTAL Economy’s 3 C’s for Economic Development Collaboration Builds Sufficient Critical Mass to Compete Globally, while Emerging Cluster Strategies Assure Regional Growth + Connectivity Links Geographically Remote Resources to Increase Access, while Creating Opportunity, Building Diversification, Enabling Collaboration + Changed Spending Increases Productivity and Revenues Opens New Markets, Expands Opportunity, Establishes Measurable Benchmarks and Goals


How the ViTAL Economy Approach Worksto Increase Connectivity % of GDP: How the ViTAL Economy Approach Works to Increase Connectivity % of GDP Existing customers recruit new customers into the ViTAL Economy initiative. . The Vi AMPLIFY Sales Funnel becomes a powerful tool for building GDP and your own revenue.


Slide25: Move Up the Value Chain, Capture Greater Share of Value Chain Margins, Increase Economic Prosperity Economics 101 P=Producer & C=Customer


Business Cases are Built UsingThe Value Linkage Process: Business Cases are Built Using The Value Linkage Process


Example of A Community of InterestWithin an Integrated Marketplace: Example of A Community of Interest Within an Integrated Marketplace Acute Care Hospitals Nursing Homes Assisted Living Centers Life Care Communities Homecare Medicare and Medicaid 3rd party Payers Managed Care Providers Patients at Home & On the Go Prisons, Jails, Homeland Security Primary Care Givers Mental Health Providers Community Health Clinics CME for Providers and Clients Employers Schools Laboratories, Pharmacies, Therapists GP and Specialized Physicians Tertiary Care Specialists Primary Care Providers State and Federal Regulators Public Health Service Providers


Slide28: Collaborative Investment Builds Regional Ownership of Strategy Healthcare Providers Invest 2006/07 @ $100,000/Year = $200,000 over 2 years Connectivity Providers Invest 2006/07 @ $100,000/year = $200,000 over 2 years Reg’l Communities invest 2006/07 @ $100,000/Year = $200,000 over 2 years Corporations/Foundations invest 2006/07 @ $100,000/Year = $200,000 over 2 years State/Fedral Governments invest 2006/2007@ $100,000/Year = $200,000 over 2 years ViTAL Economy Recommended Funding Model


How Many Direct & Indirect ICN Connections by County Are In Southern Illinois ?: How Many Direct & Indirect ICN Connections by County Are In Southern Illinois ? County Direct Indirect Total Alexander 18 3 21 Franklin 30 30 60 Gallatin 2 0 2 Hamilton 6 11 17 Hardin 5 3 8 Jackson 58 21 79 Jefferson 40 13 53 Johnson 24 6 30 Perry 26 4 30 County Direct Indirect Total Pope 3 0 3 Randolph 18 17 35 Saline 25 6 31 Union 29 11 40 Washington 11 5 16 Wayne 14 3 17 White 23 1 24 Williamson 50 9 59 Direct = T-1, multiple T-1’s, DS-3 or Fiber Link via cable provider Indirect = Example of a large DS-3 going to a Library and sub-clients connect behind it 96% of ICN Constituents are connected at a T-1 speed or greater


Why Network Providers Invest in Connect SI?: Why Network Providers Invest in Connect SI? It expands base of customers willing to pay for connectivity services It transforms customer perceptions of the cost of connectivity from too expensive or an entitlement, to a valuable strategic investment that is to be afforded Leaders of all major institutions are at the table as well as the key leaders of 20 counties with 425,000 citizens and 195,000 workers Strong federal, state and local level political and funding support Provides an opportunity for network providers to be seen as strategic partners enabling economic growth rather than a mere vendor of service Opportunity to use a highly visible collaborative initiative that creates a more collaborative climate for consideration of changes in regulations that grow the economy Brings to the forefront the fundamental strategic value of your services for growing a rural 21st century economy


Next Steps: Next Steps