Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
My apologies for the light posting recently. We've been head down shoveling stimulus proposals out the door for the last three weeks. We worked on seven stimulus proposals in four states worth a combined $68 million. Now it is just back to our regular work--planning and building broadband networks. Call us if you need help.
I was in Danville, Virginia last week, and was reminded of the changes that fiber is bringing to that community, which has experienced some of the highest unemployment in the state over the last decade. The White Mill building had been considered a white elephant for years--once a showpiece textile manufacturing plant--but closed for years and a visible sign of Danville's proud past and uncertain future. The White Mill building is being converted into a massive commercial data center with 500,000 square feet of server space.
What I saw last week is still a work in progress, but what a difference a few months make. The formerly forlorn industrial site has been cleaned up, the interior renovations are well under way, and the property values of empty downtown storefronts has probably been quietly soaring. The White Mill building is walking distance from Danville's Main Street, and the 400 high tech jobs the project is bringing will bring Main Street back to life, as those workers will be getting coffee in the mornings, buying lunch every day, doing a little shopping, and meeting after work for a beverage.
What was it that brought a data center to Danville. It's simple, and takes just two words.
Community fiber.
Not a promise of fiber if a company shows up, not a plan for fiber, not a feasibility study, but fiber--in the ground and on poles, owned by the community, ready to use, and open access. Danville bet big back in 2006 when it made the decision to invest scarce community resources on open fiber, but now it's looking like one of the best decisions the city ever made.
Disclosure: Design Nine has been advising the City since 2006 on broadband.
There's a slogan for you: U.S. Broadband--We're almost as good as Latvia! Kind of rolls right off the tongue. Here is a link to a list of the "top 10" broadband countries, and the U.S. is nowhere to be found. Grim news indeed for the country.
The Wired Road community broadband network in southwest Virginia has added Nationsline as a service provider, and is starting a rural fiber to the home expansion project this spring. Grant, Virginia residents will get 100 megabit fiber connections and a community computing center in the historic Grange Hall in the small town.
The Wired Road is an open access, open services, Layer 3 network with three retail service providers and two wholesale providers with a mountainous service area of more than 1,000 square miles. The Wired Road is part of The Crooked Road country music territory, and Galax, in the heart of the network, is home to the world famous Fiddler's Convention. Downtown Galax has fiber connections to more than sixty buildings. Design Nine designed and built The Wired Road network.
This article suggests that pay for play is doomed, because no one (according to the data) wants to pay for content.
The problem I see is not paying for content, but pricing. Newspapers and magazines have not adjusted their cost/pricing models to adequately reflect the new distribution costs, which are effectively zero. The Apple revenue share model that is being delivered with the iPad is going to fix this, as it provides a worldwide distribution network for news and magazine startups.
For example, which is better? A million subscribers paying $5/year for an iPad delivered monthly magazine, or 50,000 subscribers paying $20/year? I think it is the former, because the barrier to making the next sale is 75% lower. I'm pretty sure I could produce a pretty nice magazine with a lot of original content on an editorial and writing budget of $5 million/year. Online music took off when Apple changed the pricing structure by creating a low cost distribution system that let the little guys compete with the big guys. The same is about to happen with print, but the big winners will be start-ups.
Community perspective: Guess what? Magazines delivering their content via the Apple Store don't have to be produced in New York any more. Writers and editors can live anywhere in the country with good broadband on Main Street and good broadband at home. But work from home writers, editors, and graphic artists will want business class services, with symmetric bandwidth. That means DSL and cable modem services won't draw these kinds of knowledge workers to your community. Open access fiber, designed right, will attract them.
FastMac is advertising something I think almost everyone wants. It is a duplex AC wall socket with two standard 110 volt sockets, but it also has two USB ports. That's right, no more wall chargers cluttering things up. You can plug your USB charging cables right into the wall. Best part--these things are on sale for a limited time (note that these are pre-orders, so you may have to wait to get them).
Here is an interesting story. Apparently, a Microsoft exec has proposed that all bloggers need to have a license before they can write on the Web. And Time magazine and the New York Times think this would just be spiffy. This is not likely to ever happen, but the fact that companies like Microsoft and old media think it is a great idea suggest that there is still much resistance to the changes the Internet has brought.
The Intertubes have been buzzing for the past couple of days with what is actually a very modest announcement from Google that the company wants to play around with community fiber. Google wants to find out what people do when they have a fast connection, and what kinds of services they might be able to give away or sell if everyone has those kinds of connections.
Based on the RFP application Google has released, I am guessing that they will do this in only two or three communities, meaning the odds of being selected are very long. What seems a bit odd is that there are plenty of community fiber projects in the country Google could partner with to do the very same thing at much less expense. But Google probably wants to be able to track activity at a finer level of granularity than they would be able to do on a public network. One benefit I already see is that just the announcement by Google has created some healthy interest in open access networks.
Want to read more about why open access works? Download my paper.