18
© Strategic Networks Group, Inc. 2012 Beyond Step One… Driving Economic Development through Meaningful Use of Broadband FFTH Council Europe Conference Munich, Germany March 15, 2012

Michael curri

Embed Size (px)

DESCRIPTION

FTTH Conference Europe 2012Munich, 14 Feb 2012

Citation preview

Page 1: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

Beyond Step One…

Driving Economic Development through Meaningful Use

of Broadband

FFTH Council Europe Conference

Munich, Germany March 15, 2012

Page 2: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

WE ARE a global leader in broadband planning for socio-economic development

WE PROVIDE data and insights to increase broadband utilization and impacts

WE DELIVER strategies for economic development and community transformation through broadband Some of our clients:

2

We are the “Broadband economists”

Page 3: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

Revenues from client subscriptions

- Investment and maintenance costs

= PROFIT

Operators

Local Economy

Increased productivity and competitiveness,

increased revenues, new jobs,

better quality of life, etc…

- Investment, maintenance, support

= BENEFITS FOR THE COMMUNITY

3

The economic case for broadband

“Off-

balance-sheet”

Page 4: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

4

Broadband Creates Jobs

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0-19 20-99 100-449 500+ Total

30.0%

22.9% 22.4%

13.1%

19,6%

Employees

Percent of New Jobs Related to Internet By Size of Employer Group

Broadband is responsible for 19.6% of all new jobs

n = 1,721

Page 5: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

5

Broadband and Communities

Broadband retains and attracts population and businesses

38% of households said they would definitely, or likely, relocate if broadband was not available

72% of home-based businesses say broadband was essential for their business

32% of households have a home-based business, with 14%

planning to start one in the coming year

55% of business and organizations said broadband is essential for

remaining in current location

Page 6: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

6

Better Broadband = Higher Productivity

Internet benefits vary by speed and quality of connection

0.0%

20.0%

40.0%

60.0%

80.0%

Enabling the growthof your organization

or business

Improvingproductivity

Cost management Enabling product orservice innovation

Fiber

Cable

DSL

Dial-up

Sample: Fiber 737; Cable 1,257; DSL 1,892; Dial-up 102

Page 7: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

Economic ROI from Public Investments in Broadband

Contribution to GDP 10 x the initial public investment

Number of Jobs created and saved Variable

Fiscal revenues increase 3 to 4 x the initial public investment

7

ROI from Broadband Networks

SNG projects have revealed common return on investment (ROI) multipliers from broadband investments

Average multipliers identified from economic impact studies conducted by SNG.

Page 8: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

DRIVING UTILIZATION

8

Page 9: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

Increased Utilization Enables Revenue Growth

9

Average DEi is 6.46

1.4%

3.3%

2.9%

8.8%

17.4%

39.6%

28.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 to 4 4 up to 5 5 up to 6 6 up to 7 7 up to 8 8 up to 9 9 up to 10

% o

f R

eve

nu

es

Att

rib

ute

d b

y I

nte

rne

t

Contribution of Internet to Revenues / Level of Utilization (Businesses with 1 - 99 employees)

% of Revenue Attributed by InternetLevel of Broadband Utilization on a scale of 1 to 10

Businesses underutilizing the Internet miss significant revenue opportunities n = 687

Page 10: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

10

We uncover Internet use at a micro-level and benchmark against peers

17 e-solutions1 by organizations

30 e-solutions1 by households

Utilization data collected2 by SNG directly

from 13,000 businesses / organizations

and 5,500 households (normative database).

Results shown use SNG’s Digital Economy index (DEi), a composite score

between 1 and 10 to reflect level of Internet utilization.

How SNG Measures Utilization

Ranking process by DEi score

1. Internet-enabled applications and processes; 2. Between 2008-2011

Highest

2

3

4

5

6

Lowest

Insufficient Data

Page 11: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Level of Utilization by DEi Score

Fast / Early Adoption

Slow / Late Adoption

Slow / Late Adoption

The Adoption Process for e-Solutions

Social networking

Rich media or service creation

Selling goods or services

Teleworking Deliver services and content Research by staff

Website for organization

Access government information

Accessing collaborative tools

Electronic document transfer

Fast / Early Adoption

n = 4,533

© Strategic Networks Group, Inc. 2012

Page 12: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

5.00

5.50

6.00

6.50

7.00

7.50

Relationship Between DEi Scores and Frequency of Use

Average DEi Score Percentage of Households (%)

The Digital Divide Impacts Household Earning Power

12

n = 4,638

Biggest benefits!

Page 13: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

13

Benefits of Driving Utilization

For an individual business or organization, increasing utilization by 10% means:

Increasing revenues by 24%

Decreasing costs by 7%

Average multipliers identified by SNG from over 12,000 data records collected in 2009-10.

Page 14: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

14

Reliable, affordable BB

Responsive Customer Service

Meaningful utilization

Local ownership to drive economic development

Economic Growth and quality of life from broadband

The Elements of Success

TO ENSURE

YOU NEED

Page 15: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

15

Context Client : e-North Carolina Authority

Need: State-wide broadband planning

The North Carolina experience

In 2010 Micro-level data gathering of broadband connectivity and utilization from businesses / organizations and households.

Stakeholder engagement and building local planning capacity focusing on bridging gaps in regions.

In 2011 Regional Analysis, Strategies and e-Profiles for the 7 regions of the State.

In 2012 Regional planning in three economic development regions.

Workshops to mobilize stakeholders and maximize local benefits.

Development of customized resources for individual businesses and targeted sectors.

Page 16: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

16 16

Thank-you

Let’s connect !

www.sngroup.com

Michael Curri, CEO

Strategic Networks Group, Inc.

Europe + 33.618176456 North America + 1.613.277.2588 [email protected]

Page 17: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

We Support Your Objectives

To propel innovation and economic benefits, SNG helps regions uncover the dynamics of Internet / broadband utilization in the following areas:

Impacts (benefits, revenues, job creation)

Who is leading and lagging in adoption of Internet-enabled applications and processes (e-solutions)?

In what areas do differences in utilization occur?

How do people and organizations acquire Internet skills?

17

Utilization = Competitiveness / Growth = Economic Benefit

Page 18: Michael curri

© S

trat

egic

Net

wo

rks

Gro

up

, In

c. 2

012

Key Steps for Economic Development through Broadband

Help your businesses and organizations be more productive and competitive

Benchmark against peers and industry sector leaders, within and outside your region, as an integral part of the process to improve local productivity and competitiveness

Understand where investment will have the greatest impact by identifying needs, gaps, and demand for broadband

Develop strategies to drive innovation, promote awareness and utilization, and leverage assets to maximize socio-economic benefits locally

Mobilize regional stakeholders to leverage broadband, build sustainability, and maximize local benefits

Track outcomes, reveal impacts, adjust plans, and identify where investment is needed to further evolve into a 21st century economy

18