South Central Ozarks Council of Governments Broadband Study Findings

SOUTH CENTRAL OZARK BROADBAND STUDY

Regional Technology Planning Team Report

July 2011

RESIDENTIAL STUDY BACKGROUND

Survey mailed May 2011 4000 homes randomly sampled.

491 returned surveys/12% response rate

400 returned surveys analyzed Provides margin of error of ± 5 percentage points

RESIDENTIAL STUDY: WHO RESPONDED

County Frequency % of Total respondents

County pop as % of Total SC Ozark Region Population

Howell 186 47% 32%

Texas 102 26% 20%

Wright 66 17% 15%

Oregon 13 3% 8%

Shannon 10 3% 7%

Douglas 8 2% 11%

Ozark 5 1% 8%

NOTE: 3% OF RESPONDENTS DID NOT INDICATE THEIR COUNTY OF RESIDENCE

RESIDENTIAL SURVEY: WHO RESPONDED ?

RESIDENTIAL SURVEY: AGE OF RESPONDENTS

RESIDENTIAL STUDY - DEMOGRAPHICS

Education Level High School graduate 37% Some College or Associates 17%

College degree 18% Graduate degree 15%

No Response 8%

RESIDENTIAL SURVEY: INCOME OF RESPONDENTS

Median HH Income of Surveyed HH > Median HH income of Region Note: (36% did not respond to income question)

County Median Income (Census)

Howell 31,135 Texas 31,743 Wright 27,612 Oregon 24,907 Shannon 24,680 Douglas 32,936 Ozark 28,224 SC Ozark region 28,748

Missouri 45,149

RESIDENTIAL SURVEY: COMPUTER OWNERSHIP AND INTERNET ACCESS AT HOME

Dial-Up

Cable Modem

Satellite

Cellular Broadband

DSL

Fixed Wireless

Other

Don't Know

11%

1%

8%

4% 49%

6%

3%

2%

Type of Internet Service

Sell something online

Operate or support a home-based business

Look for information about a place to live

Share something online that you created yourself

Work from home (telecommuting)

Contribute to a website, blog or other online forum

Take a class or do homework

Look online for information about a job

Play online video games

Watch television or other videos

Visit your state, region or local government’s website

Do any online banking

Use an online social networking site like Facebook

Look online for news or information about politics

Buy something online

Look for health or medical information

Look for service or product information

Keep in touch with family and friends

15%

17%

17%

19%

20%

20%

23%

26%

31%

39%

41%

60%

64%

65%

68%

72%

84%

86%

Internet Activity in the Last 7 Days

RESIDENTIAL SURVEY: WHEN DID THE HOUSEHOLD FIRST OWNED A COMPUTER AND WHEN DID THEY FIRST HAD ACCESS TO BB/ HSI AT HOME ?

BUSINESS STUDY BACKGROUND

Online survey available from: March 2011 to July 2011

58 local businesses responded (as of 07/13) 23% were satellite offices 7% had satellite locations

32 questions about broadband or high-speed Internet services in the South Central Ozark region

BUSINESS STUDY – RESPONSES BY COUNTY

By County: Douglas 17% Howell 22% Texas 29% Wright 3% Oregon 4% Shannon 9% Ozark 16%

EMPLOYEE BUSINESS SIZE

1 – 4 73% 5 - 25 13% 26 – 100 13% 751 – more 1%

BUSINESS CATEGORIES

DO YOU HAVE INTERNET SERVICE AT YOUR BUSINESS?

Two businesses report that internet service is not available, but they

plan on establishing it as soon as it becomes available.

YES 94%

NO 6%

Do you have Internet Access?

CURRENT INTERNET PROVIDER

Service established 1998-2011, Mode=2008

TYPES OF INTERNET CONNECTIONS

SPEED OF CONNECTIONS 29% of those responding reported not knowing

their speed 71% of those responding reported the following

speeds by connection type: Satellite Broadband Users

Download 5 MBPS/Upload 1 MBPS Download 1.0 Mbps/Upload 200 Kbps 1.5 Mbps 500K 800K

T-1: 1.5 Mbps

SPEED OF CONNECTIONS Mobile Wireless:768 Kbps Fixed Wireless Users

3 Mbps (2) 20 Mbps (2) 768 Kbps

DSL Users 1.5 Mbps () 256 Kbps Download - 1.56 Mbps/ Upload - 0.43 Mbps 10 Mbps/2 Mbps (4) 0.5 Mbps

ACCESS TO BROADBAND SERVICE Why haven’t you adopted broadband? (check

all that apply). 30% of businesses responded Not available 94% Too expensive 25%

Do you plan to adopt broadband service? 100% said YES, When? (multiple responses)

As soon as it is available 88% When it becomes affordable 22%

BROADBAND SERVICE RATINGS Rating of Broadband Services

Services Very

Satisfied Satisfied Dissatisfied

Very Dissatisfied

Don’t Know/Not Applicable

Response Count

Cost of internet/network service

12% 40% 14% 24% 10% 50

Speed of the on-line connection

10% 27% 12% 47% 4% 51

Billing practices of your provider

8% 56% 13% 10% 13% 48

Reliable access to the Internet 8% 44% 27% 19% 2% 48

Training and technical support 10% 40% 14% 19% 17% 48

Customer Service Representative’s knowledge when you call for service

15% 37% 13% 23% 12% 48

Installation technician’s ability and courteousness 13% 50% 8% 6% 23% 48

SUPPORTED INTERNET APPLICATIONS

IMPORTANCE OF BROADBAND AMONG BUSINESSES

How important is a broadband (high-speed Internet access) connection to the day to day operations of your business?

Very Important 88% Important 10% Somewhat Important 2% Not at all Important 0%

WHY IMPORTANT?

Broadband service is important for business connections Daily access to the Internet is important for staying connected to

customers Internet content mandates a broadband connection now

WOULD IT BE BENEFICIAL TO YOUR BUSINESS IF BROADBAND WERE ENHANCED?

100% indicated “YES”, Why? Top four reasons: 17% said faster speeds would save time 15% said it would increase their productivity and

allow an expansion of their services 11% said competition would bring more affordable

broadband 10% said broadband would increase reliability of

internet services

COMMERCIAL BROADBAND ENVIRONMENT

COST OF SERVICE

TYPE OF CONTRACT

TOP THREE RESPONSES MONTHLY 31% DON”T KNOW 31% 2- YEAR 11% ANNUAL 3% NO CONTRACT 23% UNSPECIFIED TERM 1%

ONLINE BUSINESS SURVEY

29 Businesses had other comments about broadband in the region. Some included: Besides satellite none exist although CenturyTel has promised to

expand DSL service. I have been on the list for 7 years and still waiting

Broadband is available about 1/2 mile away from our house and we were told that we can't get it yet. It has been available for houses 1/2 mile away from us for about 1 year. We will be thankful when it gets to us.

Broadband is available a mile in each direction from where I live. It's like my area is a bubble; very frustrating. The local phone company has been saying for nearly four years that broadband is coming in the next four to six months. Everyone around me can get it, but I can not. I even was told my address was eligible for it a year ago, but the local service canceled my appointment, saying I could not have it. I would like to get service so that I can work from home.


Additional comments: DSL is limited to only a few miles around the town of

Ava Households around us have internet access through

our phone company. We are part of an "island" that is serviced by a switch that is inadequate to handle internet service. The company has no plans to upgrade that switch at this time. We are frustrated and angry that service is not available and we must rely on either dial-up or satellite service at this time -- both of which are totally inadequate for my needs. Many of my neighbors have home businesses and we are in great need of decent internet access.


Additional comments: I believe that most people in rural MO will use

broadband service if it is provided at a reasonable cost. Many like myself would profit from it as a business tool for advertising, sales, access to materials and many other users. Please Help.

"I do not know what the technical hurdles are for DSL, but every time I've called Centurylink for the past 4 years, they assure me that 'it is coming.' I know that it is available 3 miles up the road... what I would do for a reliable DSL connection for $30-40/month!


Additional comments: I think expansion of broadband in the region is

important to the future of the economic development in the area.

If were are going to be economically viable - high-speed Internet is a necessity.

More broadband service cannot come soon enough to Ozark County.

Other broadband options are incredibly important to businesses like ours that are located in rural areas. Satellite companies just do not understand or care about the needs of businesses in rural Missouri.

SOUTH CENTRAL OZARK VARIOUS SECTORS’ BROADBAND NEEDS

INDIVIDUAL SECTOR DATA

Collected through various methods: Written Surveys & Online Surveys

Agriculture (24 OL) Community & Social Services (8 W) Healthcare (9 OL) Higher Education (5 OL) K-12 Education (19 OL) Library (4 OL/1 W)

Local Government (8 OL) Public Safety (2 W) Small Business (14 W) Service (4 OL) Tourism (9 OL/9 W) Workforce Development (2 OL)

KEY ASPECTS OF AGRICULTURAL USE OF INTERNET AND BROADBAND

68% of those that responded indicated that current Agr-business processes and procedures encourage the use of broadband. Examples of these include: Selling, cattle, sheep, wool, beefalo, dairy products,

etc. Keeping track of cattle and commodity prices Research on agricultural topics Video conferencing with other agri-businesses Providing veterinary information to farmers and

clinics Weather information and updates


61% indicate that more training is needed. Higher education institutions should provide

broadband technology-related training Workshops could be offered through the extension

service Hands-on training at agricultural trade shows Libraries should offer instruction


85% indicate that broadband access and availability does not meet the minimum standards needed in the South Central Ozark region. Enhancements would include: The electric cooperative and the phone company could

get together and extend service beyond the current limited boundaries

Provide affordable service throughout the entire county Wired service will be needed because terrain (hills and

valleys) is a limitation for wireless Guarantees or incentives may be needed to reduce risk More choices are needed in rural areas


89% of those that responded indicated that addressing Broadband issues in the South Central Ozark region was important (53% Very important)

KEY ASPECTS OF COMMUNITY SERVICES USE OF INTERNET AND BROADBAND

89% of those that responded indicated that current processes and procedures encourage the use of broadband. Examples of these uses include: Is essential to do business/serve our clients Marketing Information searches Communication with members and the community Send and receive reports and food orders Acquire data to determine eligibility for multiple programs Facilitate assistance programs

44% of respondents indicated that minimum broadband standards are not met, “barely” met or “Don’t know”. Need the phone company to make it happen Broadband is very cost-prohibitive for non-profits

KEY ASPECTS OF COMMUNITY SERVICES USE OF INTERNET AND BROADBAND

89% of respondents indicated that it is important (67% said “very important”) to address broadband issues in the region. These include: Clients need access to broadband service. Without it,

information that could be transported electronically, must be delivered physically

Small, rural communities need it to draw businesses and families to the area

Would increase efficiency and save time Better, real-time information could be provided to a

large network of people

KEY ASPECTS OF TOURISM SECTOR USE OF INTERNET AND BROADBAND

62% of those that responded indicated that current processes and procedures encourage the use of broadband. Examples of these uses include: Financial transactions and data transfers Offer internet to customers Our website is our window to the world. 80% of our

business is via the Internet Supply ordering and other business communications Research

38% said their processes do not encourage the use of broadband, because it is not available to them


50% indicated that their Broadband access and availability does not meet minimum standards for effective use by both destination locations and tourists. Needs and problems include: Speed is too slow Not available to many area attractions


50% indicate that Broadband technology is cost prohibitive. Problems include: Lack of availability High cost. One respondent indicated a $19,000 contract was

needed to get T-1 service All agree that it is very important that broadband issues be

addressed in the region. Cannot compete with other tourism-oriented businesses without

broadband Tourists expect broadband and internet connectivity while on

vacation Lack of high-speed internet is slowing the growth of our company Lack of broadband hurts repeat business

KEY ASPECTS OF HEALTHCARE USE OF INTERNET AND BROADBAND

100% of respondents indicated that current processes and procedures encourage the use of broadband. Examples of these uses include: Sending and receiving of patient information

(medical records, x-rays, lab work, vital records, immunizations, etc.)

Medical billing Communications with physicians, schools, other

health departments and agencies Researching health information Uploads and reports to the State

KEY ASPECTS OF HEALTHCARE USE OF INTERNET AND BROADBAND

100% indicated that healthcare providers are properly trained to use broadband technology effectively.

22% indicated that broadband technology is cost prohibitive, while 56% indicated that they didn’t know One respondent indicated that if infrastructure cost

is subsidized, the savings to the providers should be passed on to customers

KEY ASPECTS OF HEALTHCARE USE OF INTERNET AND BROADBAND 89% indicate that Broadband access and availability

meets minimum standards for effective healthcare applications. Needs and problems for the remaining 11% include: Slow speeds at branch clinics High cost of reliable service

100% indicate that it is very important (67%) or important that broadband access and availability issues be addressed in the region. Broadband is very important to the provision of timely, high

quality healthcare Broadband needs to be available to rural homes as well as

rural population centers Improvements are needed in speed and dependability of

service

KEY ASPECTS OF HIGHER EDUCATION USE OF INTERNET AND BROADBAND

50% of those that responded indicated that current processes and procedures encourage the use of broadband. Examples of these uses include: Fast, reliable connection to the main campus Conduct research Access on-line classes and library services Provide student support services

Where broadband is not an option, on-line programs cannot be promoted and instructors of seated classes won’t use an on-line component in their classes.

KEY ASPECTS OF HIGHER EDUCATION USE OF INTERNET AND BROADBAND 50% indicated that Broadband access and availability

meet minimum standards for effective higher education applications. For students living in rural areas, online classes are not a

viable option 50% indicated that broadband technology is not cost

prohibitive (50% don’t know). 100% indicate that it is very important that broadband

issues be addressed in the South Central Ozark region. Broadband needs to be just as available as telephone and

electricity Commuter savings would be substantial if they could

participate in on-line classes Available options may be cost prohibitive for many students

KEY ASPECTS OF K-12 EDUCATIONAL USE OF INTERNET AND BROADBAND 92% of those that responded indicated that

current processes and procedures encourage the use of broadband. Examples of these uses include: Accessing on-line study aids Provision of student information Classroom use of eMINTS as a delivery system for

curriculum Access to multiple web-based student assessment

programs Records, billing and payroll Reporting to the State Access to professional development information and

training

KEY ASPECTS OF K-12 EDUCATIONAL USE OF INTERNET AND BROADBAND

77% indicated that their Broadband access and availability does meet minimum standards. Increased bandwidth and speed are needed Expansion in service is cost-prohibitive Service at school is adequate, but for many of our

rural students … not even close We have benefited from recent upgrades

KEY ASPECTS OF K-12 EDUCATIONAL USE OF INTERNET AND BROADBAND

92% believe that it is very important (85%) or important to address broadband availability and adoption issues in the region (8% indicated somewhat important). The best possible, technology-enhanced curriculum is

needed to prepare our students for occupations that don’t even exist yet

Parent and student access to district information and programs are limited because of limited internet service in our region

Location in the state should not limit the opportunities of students

KEY ASPECTS OF LIBRARY SECTOR USE OF INTERNET AND BROADBAND

100% of respondents indicated that current

processes and procedures encourage the use of broadband. Examples of these uses include: Patron Internet use Access to the circulation system Branch automation Web-site and social media promotion of library

programs 75% of those that responded to the question

indicated that library broadband access and availability does meet minimum standards for staff and patron applications. Minimum standards are met because of MOREnet Our locations could benefit from increased bandwidth

KEY ASPECTS OF LIBRARY SECTOR USE OF INTERNET AND BROADBAND

100% of respondents indicated that it is very important that broadband issues be addressed in the region. Our operations depend on Internet access 75% of patrons use the public computers at least

twice a week for bandwidth-intensive applications Faster speeds are needed at a lower cost

KEY ASPECTS OF LOCAL GOVERNMENT USE OF INTERNET AND BROADBAND 100% of those that responded to the questions

indicated that current processes and procedures encourage the use of broadband. Examples of these uses include: Internet is used by all departments daily Procurement Reporting Research Applying for grants Communication with other local governments and

the State

KEY ASPECTS OF LOCAL GOVERNMENT USE OF INTERNET AND BROADBAND

67% indicated that their Broadband access and availability does meet minimum standards for effective online government services. Internet access is at all needed locations Current access allows us to do everything we need

to do Unknown for the future

KEY ASPECTS OF LOCAL GOVERNMENT USE OF INTERNET AND BROADBAND

67% indicated that broadband technology was not cost prohibitive. It is not, however, affordable, for most individuals

100% of those that responded to the question indicate that addressing broadband services and adoption issues is very important All offices require internet access for the performance

of their duties Economic development is not feasible without

broadband Everyone should have access to broadband, even those

that are “too far” out of town

KEY ASPECTS OF PUBLIC SAFETY USE OF INTERNET AND BROADBAND

100% of those that responded indicated that current processes and procedures use broadband. Examples of these uses include: Secure, timely transmission of data to other

locations Monitor weather radar and communicate with

National Weather Service Remotely access data and video Communicate with other agencies

KEY ASPECTS OF PUBLIC SAFETY USE OF INTERNET AND BROADBAND Respondents indicated high levels of dissatisfaction with

certain aspects of their current broadband services, including: Speed Reliability Customer service Installation

100% indicated that broadband is very important to their day-to-day operations and that it would be beneficial if broadband was enhanced in the region. We have a dedicated line for video conferencing; any other

video is difficult to monitor Solid, speedy connections need to be ensured to deliver

data in a timely manner

KEY ASPECTS OF THE WORKFORCE DEVELOPMENT USE OF INTERNET AND BROADBAND

100% of those that responded to the question indicated that current training processes and procedures encourage the use of broadband. These include: Internet-based case management system Job searches Computer-based training

100% indicate that workers are trained to use broadband technology effectively. The problem is having the access where needed to

use the technology

KEY ASPECTS OF THE WORKFORCE DEVELOPMENT USE OF INTERNET AND BROADBAND

Those that responded indicated that broadband in the region does not meet minimum standards for effective e-commerce, training and business applications. Current systems are slow Higher speed access would allow many more

opportunities 50% indicate that it is very important for

broadband issues to be addressed in the region (50% indicated somewhat important). These include: The need is throughout the region Their needs to be a better cost/speed trade off

KEY ASPECTS OF THE SMALL BUSINESS USE OF INTERNET AND BROADBAND 85% of respondents indicated that current business

processes and procedures encourage the use of broadband. Key uses include: Customer communications Uploading and downloading large data files Watching videos and live newscasts Procurement information Using VPNs for secure communications On-line access to construction documents and

specifications Dispatch communications Research Marketing Website product sales and service hosting Every aspect of our service relies on the Internet

KEY ASPECTS OF THE SMALL BUSINESS USE OF INTERNET AND BROADBAND

23% indicate that people in their business are not trained to use broadband technology effectively. Web-training is very good and effective, when the

broadband connection is working Regular sessions should be held to discuss planned

and implemented upgrades Workers have learned how the current employer

wants things done, but need a broader skill set


60% indicate that broadband access and availability does not meet minimum standards for effective business applications. Reasons include: Not close enough to the nearest DSL hub Satellite has problems during bad weather Need higher upload speeds. Quote for such by

provider is cost prohibitive Terrain is an issue for wireless internet All rural counties need better high-speed internet


86% of respondents indicated that it is very important (79%) or important that broadband service availability and adoption issues be addressed in the South Central Ozark region. Specifically: Need enhanced reliability and decreased cost It is essential to our business Rural businesses need the same opportunities for

growth as non-rural businesses We have an efficient cost of doing business from

our rural location, except for broadband

KEY ASPECTS OF THE PROFESSIONAL AND SERVICES INDUSTRY USE OF INTERNET AND BROADBAND 100% of those that responded indicated that

current business processes and procedures encourage the use of broadband. Key uses include: Research and investigation Billing and banking Calendaring and staff coordination Access to remote servers and customer service

management systems Provision of web-store and on-line catalog Facilitation of a paperless office Communications with remote staff making home visits

KEY ASPECTS OF THE PROFESSIONAL AND SERVICES INDUSTRY USE OF INTERNET AND BROADBAND

89% of those that responded indicated that people in their business are properly trained to use broadband technology effectively. It would be helpful to have specific training related

to broadband enabled uses

KEY ASPECTS OF THE PROFESSIONAL AND SERVICES INDUSTRY USE OF INTERNET AND BROADBAND 33% indicate that their broadband access and

availability does not meet minimum standards for effective business applications. Problems and needs include: Needs to be more reliable and function at a higher-speed We cover a 9 County region. Access in more rural areas is

not available 89% of those that responded indicated that it is very

important (67%) or important that broadband service issues be addressed in the region. Specifically: Increased access to all will mean increased access to

essential services Will improve efficiency It will help greatly with business development Technology is crucial to keeping up with competitors

MORE INDIVIDUAL SECTOR DATA NEEDED

Environmental Sector Energy Sector Broadband Provider Sector Industrial and Manufacturing Sector

SCOCOG BROADBAND RTPT STRATEGIC PLANNING

BROADBAND STRATEGIC PLANNING

Will identify strategies, and related directions, initiatives, goals and objectives, that can be employed by interested parties within the region.

It is a large scale, high-level planning exercise It provides specific guideposts and pathways

to better help the region build long term broadband sustainability

Addresses both availability (supply) and adoption (demand) within the region.

72

BROADBAND STRATEGIC PLANNING PROCESS

The Strategic Planning process is split into four (4) phases: Phase 1 (Completed Today): Needs Assessment and

Existing Information Review – A detailed understanding of the current broadband climate and the current and future broadband-related needs in the region.

Phase 2 (Beginning Today): How to move from the current broadband environment to the one needed within the region. Strengths, Weaknesses, Opportunities and Challenges (SWOC)

analysis will be performed.

73

SWOC ANALYSIS The definitions of the four (4) SWOC elements are as

follows: Strengths – Broadband-related systems, practices,

processes, and resources that are highly valued by the region.

Weaknesses – Areas that need improvement; reasons why stakeholders are not able to wholeheartedly embrace broadband; and, areas that tend to compromise the achievement of high levels of availability and adoption.

Opportunities – Favorable situations/circumstances not yet taken advantage of that may positively impact the development and acceptance of broadband.

Challenges – Present and future situations/circumstances that may negatively impact broadband development and acceptance as perceived by the region. 74

SWOC ANALYSIS Phase 2: cont’d

The analysis should cover a wide range of issues including those centered on: residential, business and institutional broadband availability

and adoption, whether available bandwidth(s) are sufficient for current as well

as near and long term needs and applications, potential upgrade and expansion possibilities, reliability of existing networks, related matters.

Providers are asked during Phase 2 to present their ideas on possibilities for advancing the broadband environment.

75

SWOC ANALYSIS

76

SWOC ANALYSIS The definitions of the four (4) SWOC elements are as

follows: Strengths – Broadband-related systems, practices,

processes, and resources that are highly valued by the region.

Weaknesses – Areas that need improvement; reasons why stakeholders are not able to wholeheartedly embrace broadband; and, areas that tend to compromise the achievement of high levels of availability and adoption.

Opportunities – Favorable situations/circumstances not yet taken advantage of that may positively impact the development and acceptance of broadband.

Challenges – Present and future situations/circumstances that may negatively impact broadband development and acceptance as perceived by the region. 77

BROADBAND STRATEGIC PLANNING PURPOSE AND PROCESS

Phase 3: Findings Review and Initial Strategic Plan Element Development – The RTPT will review the initial findings, priorities, potential strategic directions and actions, timelines and resources needed related to those potential directions. In this phase, a number of potential strategic

directions and initiatives will be identified, reviewed, discussed, and then incorporated into the initial draft of the Strategic Plan.

78

BROADBAND STRATEGIC PLANNING PURPOSE AND PROCESS

Phase 4: Drafting and Finalization of the Strategic Plan by the RTPT. The Strategic Plan will consist of :

1. Introduction and Regional Overview 2. Purpose Statement 3 Detailed SWOC Findings and Analysis 4. Strategic Direction(s)

Short, medium and long term goals and objectives to boost broadband adoption and availability.

Action Items and Implementation Plan

5. Financial, human and organizational resource considerations 6. Timelines and benchmarks for measuring progress 79

Additional Discussion

80

Connect with us at MOBroadbandNow

http://mobroadbandnow.com/

Follow us on Facebook and Twitter

81

http://mobroadbandnow.com/�

THANK YOU FOR YOUR PARTICIPATION IN THE SOUTH CENTRAL OZARK BROADBAND

PLANNING PROJECT!